MIRA INFORM REPORT

 

 

Report Date :

09.02.2013

 

IDENTIFICATION DETAILS

 

Name :

SHAR METAL SCRAP CO LLC

 

 

Registered Office :

Al Wasit Road, Caterpillar Road, Industrial Area No. 2, PO Box 40692, Sharjah

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

12.12.1989

 

 

Com. Reg. No.:

19586

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Distributors of scrap, ferrous and non-ferrous metals.

 

 

No. of Employees :

25

 

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

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

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

 

 

United Arab Emirates - 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 UAE 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. The economy is expected to continue a slow rebound. 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                                     : SHAR METAL SCRAP CO LLC

Country of Origin                                    : Sharjah, United Arab Emirates

Legal Form                                            : Limited Liability Company - LLC

Registration Date                                   : 12th December 1989

Commercial Registration Number            : 19586, Sharjah

Trade Licence Number                            : 12858

Chamber Membership Number                : 24012

Issued Capital                                        : UAE Dh 300,000

Paid up Capital                                      : UAE Dh 300,000

Total Workforce                                     : 25

Activities                                               : Distributors of scrap, ferrous and non-ferrous metals.

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Osama Ahmed, Finance Manager

 

 

 


COMPANY NAME

 

SHAR METAL SCRAP CO LLC

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : Al Wasit Road, Caterpillar Road, Industrial Area No. 2

PO Box             : 40692

Town                 : Sharjah

Country             : United Arab Emirates

 

Telephone         : (971-6) 5430007

Facsimile          : (971-6) 5430101

Mobile               : (971-55) 2521342 / (971-50) 3162011

Email                : syed@sharmetal.com / sharmetal@eim.ae / sharmt@eim.ae

 

Premises

 

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

 

 

KEY PRINCIPALS

 

            Name                                                   Nationality                   Position

 

Jassim Khalil Mirza Nasser                                 Emirati                          Managing Director

 

Hassan Asaad Chahrour                         Lebanese                      Director

 

Samir Ali Chahrour                                             Lebanese                      Director

 

Ibrahim Ali Chahrour                                           Lebanese                      Director

 

Fadi Ali Chahrour                                               Lebanese                      Director

 

Bassam Ali Chahrour                                         Lebanese                      Director

 

Osama Ahmed                                                    -                                 Finance Manager

 

Bala Krishnan                                                    -                                   Sales Manager

 

Syed Khaja Mohieddine                                      -                                   Export Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 12th December 1989

 

Legal Form                  : Limited Liability Company - LLC

 

Commercial Reg. No.  : 19586, Sharjah

 

Trade Licence No.       : 12858

 

Chamber Member No. : 24012

 

Issued Capital              : UAE Dh 300,000

 

Paid up Capital            : UAE Dh 300,000

 

Name of Shareholder (s)                                         Percentage

 

Jassim Khalil Mirza Nasser                                             51%

 

Hassan Asaad Chahrour                                     10%

 

Samir Ali Chahrour                                                         10%

 

Ibrahim Ali Chahrour                                                       10%

 

Fadi Ali Chahrour                                                           10%

 

Bassam Ali Chahrour                                                     9%

 

 

AFFILIATED COMPANIES

 

Metal Master

Beirut

Lebanon

Tel: (961-1) 823675

Fax: (961-1) 823680

 

United Brother Co

Safat

Kuwait

 

Al Fayha For International Scrap

Saudi Arabia

 

 

OPERATIONS

 

Activities:                     Engaged in the import and distribution of scrap, ferrous and non-ferrous metals.

 

Subject handles about 7,000 mt/month of non-ferrous and 40,000 mt/month of ferrous metals.

 

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 42,350,000                   UAE Dh 45,000,000

 

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

 

The above figures were provided by Mr Osama Ahmed, Finance Manager

 

 

BANKERS

 

United Arab Bank

PO Box: 25022

Sharjah

Tel: (971-6) 5733900

Fax: (971-6) 5733907

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

 

 

GENERAL COMMENTS

 

During the course of this investigation nothing detrimental was uncovered regarding subject’s operating history or the manner in which payments are fulfilled. As such the company is considered to be a fair trade risk.

 

 

 

 

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.57

UK Pound

1

Rs.84.25

Euro

1

Rs.71.78

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.