MIRA INFORM REPORT

 

 

Report Date :

04.02.2012

 

IDENTIFICATION DETAILS

 

Name :

AL RAD INTERNATIONAL TRADING EST

 

 

Registered Office :

NRE Building, Office No. 705, Ground Floor, Rolla Street, 21357, Sharjah

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

16.10.1994

 

 

Com. Reg. No.:

18479, Sharjah

 

 

Legal Form :

Sole Proprietorship

 

 

Line of Business :

Distributors of general foodstuff products, kitchen utensils and stationery.

 

 

No. of Employees :

7

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

US$ 750,000

Status :

Satisfactory

Payment Behaviour :

Usually correct

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

United Arab Emirates

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

SUMMARY

 

Company Name                                     : AL RAD INTERNATIONAL TRADING EST

Country of Origin                                    : Sharjah, United Arab Emirates

Legal Form                                            : Sole Proprietorship

Registration Date                                   : 16th October 1994

Commercial Registration Number            : 18479, Sharjah

Trade Licence Number                            : 18479

Membership Number                              : 35514

Invested Capital                                     : UAE Dh 100,000

Total Workforce                                     : 7

Activities                                               : Distributors of general foodstuff products, kitchen utensils and stationery.

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Recommended Credit Limit                     : US$ 750,000

Person Interviewed                                 : Vinit Brijmohan Aggrawal, General Manager

 

COMPANY NAME

 

AL RAD INTERNATIONAL TRADING EST

 

 

ADDRESS

 

Registered & Physical Address

 

Building             : NRE Building, Office No. 705, Ground Floor

Street               : Rolla Street

 

PO Box             : 21357

 

Town                 : Sharjah

Country             : United Arab Emirates

 

Telephone         : (971-6) 5624227 / 5583387 / 5583324

Facsimile          : (971-6) 5624223

Mobile               : (971-50) 6566987 / 5592862

Email                : alrad@emirates.net.ae

 

Premises

 

Subject operates from a small suite of offices that are rented and located in the Industrial Area of Sharjah.

 

Branch Office (s)

 

     Location                                                                                           Description

 

·       Naser Square                                                                                    Sales Office

     Dubai

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Sheikh Fahim Mohamed Khalid Bin Al Qassimi                                   Proprietor

 

·       Vinit Brijmohan Aggrawal                                                                   General Manager

 

·       Nirag Ganag                                                                                     Finance Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 16th October 1994

 

Legal Form                  : Sole Proprietorship

 

Commercial Reg. No.  : 18479, Sharjah

 

Trade Licence No.       : 18479

 

Membership No.          : 35514

 

Invested Capital           : UAE Dh 100,000

 

Sheikh Fahim Mohamed Khalid Bin Al Qassimi is the sole proprietor of the business.

 

 

AFFILIATED COMPANIES

 

·       Al Fahim Investment Co

PO Box: 30444

Sharjah

Tel: (971-6) 5623666

 

·       White Impex General Trading LLC

PO Box: 64927

Dubai

Tel: (971-4) 2351356

 

 

OPERATIONS

 

Activities: Engaged in the import and distribution of general foodstuff products, kitchen utensils and stationery.

 

Import Countries: Europe and the Far East

 

International Suppliers:

 

·       Super Intex                           India

·       Varun Incorporation Ltd          China

 

Operating Trend: Steady

 

Subject has a workforce of 7 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: United Arab Emirates Dirham (UAE Dh)

 

Balance Sheet                                                             31/12/10                        31/12/09

 

Assets

Current assets

Cash & bank balances                                                   375,051             332,327

Deposits, prepayments & advances                                 59,233                          66,511

Accounts receivable                                                       584,722,700                  300,198,248

Inventories                                                                     7,327,000                      5,375,294

                                                                                    592,483,984                  305,972,380

Non-current assets

Property, plant and equipment                                         -                                   4,774

Total assets                                                                  592,483,984                  305,977,154

 

Liabilities and shareholder’s equity

Current liabilities

Accounts payable                                                          474,191,575                  216,479,354

Amounts due to related party                                          0                                  20,801,410

Provisions, accruals and other liabilities                           155,000             130,000

                                                                                    474,346,575                  237,410,764

Non-current liabilities

Employee’s end of service benefits                                  40,000                          40,000

Total liabilities                                                                474,386,575                  237,450,764

 

Shareholder’s equity

Loan from beneficial owner                                              118,097,409                  68,526,390

Total liabilities and equity                                                592,483,984                  305,977,154

 

Statement of Income

 

Sales                                                                            942,113,756                  501,943,680

Direct costs                                                                   (888,021,980)                (472,588,002)

Gross profit                                                                   54,091,776                    29,355,678

 

Selling & distribution costs                                             (1,641,745)                    (1,198,420)

Administrative costs                                                       (859,115)                       (925,131)

Finance costs                                                                (2,125,212)                    (1,197,403)

 

Net profit                                                                       49,465,704                    26,034,724

 

Local sources consider subject’s financial condition to be Good.

 

 

BANKERS

 

·       Standard Chartered Bank

       Al Boorj Avenue

PO Box: 5

Sharjah

     Tel: (971-6) 5357788

     Fax: (971-6) 5543604

Acc No. 02-5712440-01

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                              December 2006

Credit amount                                        150,000

Amount overdue                         0

Payment terms                                      60 days

Payment Method                                   Letters of Credit

Paying record                                        No Complaints

Currency                                               US Dollars

 

 

GENERAL COMMENTS

 

Local sources report that payment obligations are met in a generally timely manner and the operating history is clear. As such the business is deemed a fair trade risk.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.48.96

UK Pound

1

Rs.77.46

Euro

1

Rs.64.39

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.