MIRA INFORM REPORT

 

 

Report Date :

07.11.2013

 

IDENTIFICATION DETAILS

 

Name :

MOAFAQ AL GADDAH TRADING CO LLC

 

 

Registered Office :

Al Moosa Building, Al Mussalah Street, Nasser Square – 41804, Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

29.06.1989

 

 

Com. Reg. No.:

41403, Dubai

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Wholesale and retail of motor vehicle body components and spare parts.

 

 

No. of Employees :

Approximately 250

 

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 – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 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                                     : MOAFAQ AL GADDAH TRADING CO LLC

Country of Origin                                    : Dubai, United Arab Emirates

Legal Form                                            : Limited Liability Company - LLC

Registration Date                                   : 29th June 1989

Commercial Registration Number            : 41403, Dubai

Trade Licence Number                            : 220248

Chamber Membership Number                : 29830

Issued Capital                                        : UAE Dh 300,000

Paid up Capital                                      : UAE Dh 300,000

Total Workforce                                     : 250

Activities                                               : Wholesale and retail of motor vehicle body components and spare    parts.

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Dr Hani S Abu Auida, Finance Manager

 

 

 

COMPANY NAME

 

MOAFAQ AL GADDAH TRADING CO LLC

 

 

ADDRESS

 

Registered & Physical Address

 

Building             : Al Moosa Building

Street               : Al Mussalah Street

Area                 : Nasser Square

PO Box             : 41804

Town                 : Dubai

Country             : United Arab Emirates

 

Telephone         : (971-4) 2288804 / 2221602 / 2277651 / 2272684

Facsimile          : (971-4) 2282048 / 2275491

Mobile               : (971-50) 3898843

Email                : moafaq@emirates.net.ae / info@mag.ae / hani@mag.ae

 

Please note that subject is located in Dubai and not Ajman.

 

Premises

 

Subject operates from a large suite of offices, a showroom and storage facilities that are rented and located in the Central Business Area of Dubai.

 

Branch Office (s)

 

Location                                                                                  Description

 

·         Khalifa Saeed Al Qaizi Building                                             Rented showroom premises

Baniyas Square

Al Rigga, Deira

Dubai

Tel: (971-4) 2231602 / 3330188 / 2280103

Fax: (971-4) 2231790

 

·         Mohamed Salah Al Gurg Building                                          Rented showroom premises

PO Box: 23325

Dubai

 

·         Abu Dhabi                                                                           Rented showroom premises

Tel: (971-2) 6338195

 

·         Al Batha Building, 19th Floor                                                  Rented office premises

Corniche Buheira Street

PO Box: 37402

Sharjah

Tel: (971-6) 5751110

3Fax: (971-6) 5751479 / 5751473

 

 

KEY PRINCIPALS

 

Name                                                               Nationality                   Position

 

Moafaq Ahmed Al Gaddah                                    Syrian                         Managing Director

 

Khalid Al Amoudi                                                 Emirati                        Director

 

Musab Moafaq Al Gaddah                                          -                            Director

 

Mohammed Nimer                                                     -                            Chief Executive Officer

 

Mahmood Hussain Al Zarawi                                      -                            General Manager

 

Abdul Mulla A Gaddah                                               -                            Commercial Manager

 

Dr Hani S Abu Auida                                                 -                            Finance Manager (Sharjah)

 

Hassan Barbar                                                          -                            Finance Manager (Dubai)

 

Ali Aliwah                                                                 -                            Sales Manager – Lubricants

 

Mazen Abu Saadah                                                   -                            Sales Manager – Filters

 

Sami Hassan                                                            -                            Administration Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 29th June 1989

 

Legal Form                  : Limited Liability Company - LLC

 

Commercial Reg. No.  : 41403, Dubai

 

Trade Licence No.       : 220248 (Expires 28/06/2014)

 

Chamber Member No. : 29830

 

Issued Capital              : UAE Dh 300,000

 

Paid up Capital            : UAE Dh 300,000

 

Name of Shareholder (s)                                            Percentage

 

Khalid Al Amoudi                                                              51%

 

Moafaq Ahmed Al Gaddah                                                 49%

 

 

AFFILIATED COMPANIES

 

·         Al Gaddah General Trading LLC

Dubai

 

 

OPERATIONS

 

Activities                      Engaged in the wholesale and retail of motor vehicle body components and spare parts,     including tyres, batteries, filters, piston rings, car valet chemicals, oil and lubricants, as well as mobile phone accessories for cars.

 

Import Countries          Oman, South Korea, Thailand, the Netherlands, the United Kingdom and the United States of America

 

International Suppliers:

 

·         Mag Batteries                                  Oman

·         3K Batteries                                    Thailand

·         Siga                                                Korea

·         Vertish International                         The Netherlands

·         Abro Brothers Inc                             United States of America

 

Export Countries:         Subject exports to many African countries such as Ethiopia, Kenya, Uganda, Tanzania, Nigeria, Mali, Somalia, Eritrea and Sudan, as well as Middle Eastern states including Bahrain, Saudi Arabia, Kuwait, India, Pakistan, Yemen and Iran

 

Operating Trend:         Steady

 

Subject has a workforce of approximately 250 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 116,700,000                  UAE Dh 120,000,000

 

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

 

The above figures were provided by Dr Hani S Abu Auida, Finance Manager

 

 

BANKERS

 

·         Emirates National Bank of Dubai

Baniyas Street Branch

PO Box: 777

Dubai

Tel: (971-4) 2222241

 

·         Arab Bank Plc

Ittihad Street

PO Box: 11364

Dubai

Tel: (971-4) 2228845

Fax: (971-4) 2285974 / 2940847

Acc No. 464466300

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction         October 2002                 September 2003            June 2005                     July 2007

Credit amount                1,300,000                      300,000             50,000                          51,000

Amount overdue 0                                  0                                  0                                  0

Payment terms              120 days                       30 days                         90 days                         120 days

Payment Method           Letters of Credit             Letters of Credit             Letters of Credit             Letters of Credit

Paying record                No Complaints               No Complaints               No Complaints               No Complaints

Currency                       US Dollars                     US Dollars                     Pounds Sterling             Pounds Sterling

 

 

GENERAL COMMENTS

 

Moafaq Al Gaddah Trading Co LLC has been in business for over 20 years in the wholesale and retail of motor vehicle body components and spare parts. It deals with a number of reputable international companies from around the world with nothing detrimental heard regarding the manner in which payments are made.

 

The operating history is clear with no problems noted regarding the manner in which payment obligations are met. According to local sources, subject’s financial position is considered to be satisfactory and the company is a sound trade risk.

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.92

UK Pound

1

Rs.99.60

Euro

1

Rs.83.64

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIA

 

 

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.