MIRA INFORM REPORT

 

 

Report Date :

30.04.2013

 

IDENTIFICATION DETAILS

 

Name :

TRADE LINE LLC

 

 

Registered Office :

Al Ghurair Centre, Tower A1, 8th Floor, Office No. 839 Al Rigga Street Al Muraqqabat PO Box 55409 Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

17.10.1989

 

 

Com. Reg. No.:

43778, Dubai

 

 

Legal Form :

Limited Liability Company - LLC

 

 

Line of Business :

Subject operates several divisions like Trading Division, Shipping & Chartering Division

 

 

No. of Employees :

25

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

Payment Behaviour :

Regular

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

UAE

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

UAE - ECONOMIC OVERVIEW

 

The UAE has an open economy with a high per capita income and a sizable annual trade surplus. Successful efforts at economic diversification have reduced the portion of GDP based on oil and gas output to 25%. Since the discovery of oil in the UAE more than 30 years ago, the country has undergone a profound transformation from an impoverished region of small desert principalities to a modern state with a high standard of living. The government has increased spending on job creation and infrastructure expansion and is opening up utilities to greater private sector involvement. In April 2004, the UAE signed a Trade and Investment Framework Agreement with Washington and in November 2004 agreed to undertake negotiations toward a Free Trade Agreement with the US; however, those talks have not moved forward. The country's Free Trade Zones - offering 100% foreign ownership and zero taxes - are helping to attract foreign investors. The global financial crisis, tight international credit, and deflated asset prices constricted the economy in 2009. UAE authorities tried to blunt the crisis by increasing spending and boosting liquidity in the banking sector. The crisis hit Dubai hardest, as it was heavily exposed to depressed real estate prices. Dubai lacked sufficient cash to meet its debt obligations, prompting global concern about its solvency. The UAE Central Bank and Abu Dhabi-based banks bought the largest shares. In December 2009 Dubai received an additional $10 billion loan from the emirate of Abu Dhabi. Dependence on oil, a large expatriate workforce, and growing inflation pressures are significant long-term challenges. The UAE's strategic plan for the next few years focuses on diversification and creating more opportunities for nationals through improved education and increased private sector employment

Source : CIA


 

 

SUMMARY

 

Company Name                                    : TRADE LINE LLC

Country of Origin                                   : Dubai, United Arab Emirates

Legal Form                                           : Limited Liability Company - LLC

Registration Date                                  : 17th October 1989

Commercial Registration Number           : 43778, Dubai

Trade Licence Number                           : 221023

Chamber Membership Number               : 17295

Issued Capital                                       : UAE Dh 35,000,000

Paid up Capital                                     : UAE Dh 35,000,000

Total Workforce                                     : 25

Activities                                               : Subject operates several divisions (see below for details)

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Jaffar Ali Mohamed, Financial Controller

 

 

COMPANY NAME

 

TRADE LINE LLC

 

 

ADDRESS

 

Registered & Physical Address

 

Building            : Al Ghurair Centre, Tower A1, 8th Floor, Office No. 839

Street               : Al Rigga Street

Area                 : Al Muraqqabat

 

PO Box            : 55409

 

Town                : Dubai

Country             : United Arab Emirates

 

Telephone         : (971-4) 2219086 / 2243870

Facsimile          : (971-4) 2277693

Email                : mail@tradelinellc.com / trading@tradelinellc.ae

 

Premises

 

Subject operates from a medium sized suite of offices that are leased and located in the Central Business Area of Dubai.

 

 

KEY PRINCIPALS

 

     Name                                                           Nationality                     Position

 

·       Ahmed Hussain Lafir                                        Indian                        Managing Director

 

·       Majid Saif Ahmed Al Ghurair                           Emirati                        Director

 

·       Habib Ahmed Mubarak                                         -                            Chief Executive Officer

 

·       Abu Bucker Hussain                                             -                            Operations Manager

 

·       Hetaish Gupta                                                     -                            Trading Manager

 

·       Kamal Nassir                                                       -                            Finance Manager

 

·       Shashi Kumar                                                      -                            Chartering Manager

 

·       Jaffar Ali Mohamed                                             -                            Financial Controller

LEGAL FORM & OWNERS

 

Date of Establishment  : 17th October 1989

 

Legal Form                  : Limited Liability Company - LLC

 

Commercial Reg. No.   : 43778, Dubai

 

Trade Licence No.        : 221023 (Expires 09/10/2013)

 

Chamber Member No.  : 17295

 

Issued Capital              : UAE Dh 35,000,000

 

Paid up Capital            : UAE Dh 35,000,000

 

Name of Shareholder (s)                                                 Percentage

 

·       Majid Saif Ahmed Al Ghurair                                          51%

 

·       Ahmed Hussain Lafir                                                     49%

 

 

AFFILIATED COMPANIES

 

·       Lafttiz Trading Co

No. 3 58th Alley, 4th Floor

Asad Abadi Avenue

Tehran 14368

Iran

Tel: (98-21) 8059334

Fax: (98-21) 8030052

Email: lafttiz@lafttiz.com

 

·       Fairway Trading Company (Pvt) Ltd

No. 300, Thambu Chetty Street

Chennai 600001

India

Tel: (91-44) 5220569 / 5230251

       Fax: (91-44) 5228428

Email: cma@vsnl.com

 

·       Trans Gulf Aluminium Industries Co LLC

PO Box: 55409

Sheikh Zayed Road

     Dubai

     Tel: (971-4) 8801524

     Fax: (971-4) 8801514

     Email: alrod@emirates.net.ae

 

·       Al Ghurair Iron & Steel LLC

Abu Dhabi

 

 

OPERATIONS

 

Activities: Subject’s operations are performed through the following divisions:

 

·       Trading Division

 

Engaged in the import and distribution of dry bulk commodity goods, including agricultural feed products, fertilizers, chemical raw materials and steel products as well as coal and minerals such as iron ore, chrome ore, nickel ore and limestone.

 

·       Shipping & Chartering Division

 

Subject is also involved in shipping services, including the chartering of commercial boats. Chartering a modest average of 80-100 vessels per year, both on Time-Charter and Voyage-charter, Tradeline has built an enviable reputation as a highly professional and reliable charter operator. The modern fleet operates with vessels of capacity ranging from 3000DWT to Cape-size (including tankers) and deal in cargoes such as Steel, Coal, Animal feed, Fertilizers, Sugar, Grain, Scrap and project cargoes.

 

     Subject’s fleet includes:

 

     Vessel                       Size                Built      Purchase Date              Owners

 

     M.V. Emirates Star   15,030              1980            2002                      Thymus Shipping

     M.V.Regal Star         16,411              1984            2002                      Thymus Shipping

     M.V.Kardaran Star      9,119              1983            2003                      Stellar Shipping LLC

     M.V.North Star         42,219              1985            2004                      Orient Marine Ltd

     M.V. Seven Star         6,146              1979            2005                      Seven Star Maritime Corp

     M.V. Blue Star          25,694              1985            2005                      Atlas Shipping S.A

 

Import Countries: Europe and the Far East

 

Operating Trend: Steady

 

Subject has a workforce of 25 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: United Arab Emirates Dirham (UAE Dh)

 

                                                Year Ending 31/12/11:               Year Ending 31/12/12:

 

Total Sales                                UAE Dh 486,700,000                 UAE Dh 500,400,000

 

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

 

The above figures were provided by Mr Jaffar Ali Mohamed, Financial Controller

 

 

BANKERS

 

·       Mashreq Bank Plc

Deira Branch

PO Box: 1250

Dubai

       Tel: (971-4) 2229131 / 2221134

 

·       Banque Cantonale Vaudoise

PO Box: 300-1001

Lausanne

Switzerland

Tel: (41-21) 2121000

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Trade Line LLC was established in 1989 and is engaged in the import and distribution of dry bulk commodity goods. It also offers shipping services, chartering commercial boats.

 

The company is run in a professional manner and is owned by the prominent Indian businessmen, Ahmed Hussain Lafir, and his wealthy Emirati sponsor, Majid Saif Ahmed Al Ghurair.

 

During the course of this investigation nothing detrimental was uncovered regarding the manner in which payment obligations are fulfilled. The operating history is clear and the financial situation is satisfactory. As such we are of the opinion that the subject is a sound trade risk.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.28

UK Pound

1

Rs.84.23

Euro

1

Rs.70.90

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.