MIRA INFORM REPORT

 

 

Report Date :

04.03.2013

 

IDENTIFICATION DETAILS

 

Name :

MEGA STAR TRADING CO LLC

 

 

Registered Office :

Dubai Investment Park No. 2 PO Box 6512 Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

01.09.1987

 

 

Legal Form :

Limited Liability Company - LLC

 

 

Line of Business :

Wholesale, distribution and retail of timber products.

 

 

No. of Employees :

65

 

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

(31.03.2011)

Current Rating

(30.06.2012)

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 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                         : MEGA STAR TRADING CO LLC

Country of Origin                                    : Dubai, United Arab Emirates

Legal Form                                            : Limited Liability Company - LLC

Registration Date                                   : 1st September 1987

Trade Licence Number                            : 215477

Chamber Membership Number                : 12501

Issued Capital                                        : UAE Dh 3,000,000

Paid up Capital                                      : UAE Dh 3,000,000

Total Workforce                                     : 65

Activities                                               : Wholesale, distribution and retail of timber products.

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                         : Steady

 

 

 


COMPANY NAME

 

MEGA STAR TRADING CO LLC

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : Dubai Investment Park No. 2

 

PO Box             : 6512

 

Town                 : Dubai

Country             : United Arab Emirates

 

Telephone         : (971-4) 8990000 / 3332211

Facsimile          : (971-4) 8990099 / 3332667

Email                : mega@emirates.net.ae / megastar@darvesh.com / vamshi.admin@darvesh.com

 

Please note that subject’s previous address was, Mohamed Bin Ali Alamr Building, Ras Al Khor Road, Al Aweer Industrial Area, Dubai. Subject moved to the above address in October 2011.

 

Premises

 

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

 

Branch Office (s)

 

     Location                                                                                           Description

 

·       PO Box: 29206                                                                                 Sales Office & Warehouse

Abu Dhabi

Tel: (971-2) 5545060

Fax: (971-2) 5540747

 

·       Ras Al Khor Industrial Area                                                                Sales Office & Warehouse

Al Aweer

Dubai

Tel: (971-4) 8990180

Fax: (971-4) 3332027

 

 


KEY PRINCIPALS

 

     Name                                                           Nationality                     Position

 

·       Hassan Miya Sulaiman Darvesh                        Indian                         Managing Director

 

·       Taleb Miya Darvesh                                          Indian                         Director

 

·       Majeeb Habib Jaffar Ali                                    Emirati                        Director

 

·       Maymouna Hassan Darvesh                             Indian                          Director

 

·       Ihsan Hassan Miya Sulaiman Darvesh        -                            General Manager

 

·       Rada Krishnan                                                     -                            Assistant General Manager

 

·       Vamshi Kumar                                                     -                            Administration Manager

 

·       Ashish Desai                                                       -                            Finance Manager

 

·       Venod Nair                                                          -                            Sales Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1st September 1987

 

Legal Form                  : Limited Liability Company - LLC

 

Trade Licence No.       : 215477 (Expires 30/08/2013)

 

Chamber Member No. : 12501

 

Issued Capital              : UAE Dh 3,000,000

 

Paid up Capital            : UAE Dh 3,000,000

 

Name of Shareholder (s)                                Percentage

 

·       Majeeb Habib Jaffar Ali                                              51%

 

·       Hassan Miya Sulaiman Darvesh                     ]

                                                                        ]           49%

·       Maymouna Hassan Darvesh                           ]

 

 

AFFILIATED COMPANIES

 

Subject is a member of the Darvesh Group of Companies, which has extensive and varied operations throughout the Middle East, Far East and Africa. The group is currently planning to extend operations to Myanmar and other CIS countries. The combined annual turnover of the group is in excess of US$ 100 million.

 

The Darvesh Group of Companies consists of the following concerns:

 

·       Abou Nabil LLC (ANETCO)

PO Box: 174

Muttrah 114

Oman

Tel: (968) 24593249

Fax: (968) 24595278

Email: anetco@omantel.net.om

 

·       Nova Tapes & Stationery Industries LLC

Al Aweer Industrial Area

PO Box: 2194

Dubai

United Arab Emirates

Tel: (971-4) 3337600

Fax: (971-4) 3337411

Email: novaind@emirates.net.ae

 

·       Elegant Furniture Manufacturing LLC

PO Box: 2194

Dubai

United Arab Emirates

Tel: (971-4) 3337667

Fax: (971-4) 3337186

Email: efm@emirates.net.ae

 

·       Nova Home Appliances

PO Box: 2194

Dubai

United Arab Emirates

Tel: (971-4) 3337600

Fax: (971-4) 3337411

 

·       Batavia Eximp & Contracting (S) Pte Ltd (BECS)

Maxwell Road

PO Box: 3544

Singapore 9055

Tel: (65) 2255633

Fax: (65) 2255733

 

·       Associate Lumbers Ltd

Associate House

85 Victoria Road

Mustafa Bazzar

Mumbai 400010

India

Tel: (91-22) 3717777

Fax: (91-22) 3738787

 

·       West African Trading Co (WATCO)

32 Boulevard Latrille

PO Box: 833

Abid

Ivory Coast

Tel: (225) 448859

 

·       General Trading & Contracting Co Ltd (GETCO)

42 Azadliq Prospect, Apt 18

Baku 370007

Azerbaijan

Tel: (994-12) 964209

Fax: (994-12) 964209

 

·       Technova Industries LLC

PO Box: 2194

Dubai

Tel: (971-4) 8850264

Fax: (971-4) 8850335

 

·       Fire and Safety Industries Pvt Ltd

Delhi

India

Tel: (91-124) 4873786

 

 

OPERATIONS

 

Activities: Engaged in the wholesale, distribution and retail of timber products, including plywood, block boards, red meranti, red wood, white wood, Burma teak, flexel sheets, and chip board, as well as general building and construction materials and chemicals.

 

Import Countries: South Africa, India, Taiwan, France, Italy, United Kingdom and the United States of America

 

International Suppliers:

 

·       P.G. Bison               South Africa

·       Grasim Industries      India

·       Triplie Lite                 Taiwan

·       Fontex                     France

·       Onduline                   France

·       Vernisi Milesi            Italy

 

Operating Trend: Steady

 

Subject has a workforce of 65 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 41,300,000                   UAE Dh 43,500,000

 

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

 

The above financial figures are based on estimations by our local sources.

 

 

BANKERS

 

·       Bank of Baroda

Deira Branch

PO Box: 5107

Dubai

Tel: (971-4) 5531955

Fax: (971-4) 5536962

 

·       Emirates National Bank of Dubai

Baniyas Street

     PO Box: 777

     Dubai

     Tel: (971-4) 2222241

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                              May 2005

Credit amount                                        26,000

Amount overdue                         0

Payment terms                                      150 days

Payment Method                                   Letters of Credit

Paying record                                        No Complaints

Currency                                               Pounds Sterling

 

 

GENERAL COMMENTS

 

Mega Star Trading Co LLC was incorporated in 1987 and specialises in the distribution of timber products as well as general building materials. The company enjoys an excellent reputation for the quality of its products, dealing with many well known international suppliers.

 

Subject is a member of the Darvesh Group of Companies, which has extensive and varied operations throughout the Middle East, Far East and Africa.

 

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 fair trade risk.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.48

UK Pound

1

Rs.82.72

Euro

1

Rs.71.27

 

 

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.