MIRA INFORM REPORT

 

 

Report Date :

13.11.2013

 

IDENTIFICATION DETAILS

 

Name :

AL RAHMANI GENERAL TRADING CO LLC

 

 

Registered Office :

Yousuf Al Rahmani Sons Building, Hor Al Anz Street, Hor Al Anz, Deira, PO Box: 329, Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

1917

 

 

Com. Reg. No.:

45740, Dubai

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Distributors of building materials and hardware.

 

 

No. of Employees :

500

 

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 :

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)

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                                     : AL RAHMANI GENERAL TRADING CO LLC

Country of Origin                                    : Dubai, United Arab Emirates

Legal Form                                            : Limited Liability Company – LLC

Start Date                                             : 1917

Registration Date                                   : 6th May 1980

Commercial Registration Number            : 45740, Dubai

Trade Licence Number                            : 208692

Chamber Membership Number                : 6655

Issued Capital                                        : UAE Dh 3,000,000

Paid up Capital                                      : UAE Dh 3,000,000

Total Workforce                                     : 500

Activities                                               : Distributors of building materials and hardware.

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Yassir Mohamed, Finance Manager

 

 

 

COMPANY NAME

 

AL RAHMANI GENERAL TRADING CO LLC

 

 

ADDRESS

 

Registered & Physical Address

 

Building             : Yousuf Al Rahmani Sons Building

Street               : Hor Al Anz Street

Area                 : Hor Al Anz, Deira

PO Box             : 329

Town                 : Dubai

Country             : United Arab Emirates

 

Telephone         : (971-4) 2142599 / 2664300 / 2664698 / 2664417

Facsimile          : (971-4) 2142452 / 2694870 / 2649870

Email                : rahmani@emirates.net.ae / info@alrahmani.com

 

Premises

 

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

 

Branch Office (s)

 

Location                                                                                              Description

 

Hor Al Anz                                                                                            Showroom premises

Dubai

Tel: (971-4) 2142540 / 2664282

 

Al Aweer                                                                                               Showroom premises

Dubai

Tel: (971-4) 3331286

 

Al Nakheel Road                                                                                    Showroom premises

Dubai

Tel: (971-4) 2224978 / 2221444

 

Mussafah Industrial Area                                                                        Showroom premises covering

PO Box: 8413                                                                                        an area of 40,000 square feet

Abu Dhabi

Tel: (971-2) 5554647 / 5552998

Fax: (971-2) 5554909

 

Sharjah                                                                                                 Showroom premises

 

 

KEY PRINCIPALS

 

Name                                                               Nationality                   Position

 

Ibrahim Yousuf Abdul Rahman Al Rahmani            Emirati                         Managing Director

 

Adel Ibrahim Yousuf Abdul Rahman Al Rahmani   Emirati                         Director

 

Yassir Mohamed                                                       -                            Finance Manager

 

Iqbal Khan                                                                -                            Sales Manager (Hardware)

 

Laeq Ahmed                                                            -                             Sales Manager (Building Materials)

 

Sayed Maqbool                                                         -                            Operations Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1917

 

History                         : Subject’s operations date back to 1917 when it was established by the late Haji Yousuf  Al  Rahmani as a small trading concern. However subject was registered on 6th May 1980.

 

Legal Form                  : Limited Liability Company - LLC

 

Commercial Reg. No.  : 45740, Dubai

 

Trade Licence No.       : 208692 (Expires 27/02/2014)

 

Chamber Member No. : 6655

 

Issued Capital              : UAE Dh 3,000,000

 

Paid up Capital            : UAE Dh 3,000,000

 

Name of Shareholder (s)                                              Percentage

 

Ibrahim Yousuf Abdul Rahman Al Rahmani                            80%

 

Adel Ibrahim Yousuf Abdul Rahman Al Rahmani                20%

 

 

AFFILIATED COMPANIES

 

Pacific Building Materials LLC

Sharjah

 

Al Rahmani Building Materials

Abu Dhabi

 

 

OPERATIONS

 

Activities:                     Subject has a product range covering more than 15,000 items, including the following products:

 

-  Building materials such as timber, plywood boards/panels, sheets, cements, and structural steel.

-  Interior decoration items.

-  Ceiling and partitioning products like ceiling tiles and gypsum boards .

-  Complete range of hardware, plumbing and sanitary ware, paints and accessories, hand/power tools  and accessories, as well as electrical fittings.

 

Import Countries:         Europe, India, the Far East, Canada and the United States of America.

 

International Suppliers:

 

Bison-Kit Adhesives       Netherlands

Fobro Sarlino                 France

Diaglas                         Germany

Hornitex                        Germany

Jowat                            Germany

ARPA Srl                      Italy

Ondura Ltd                    United Kingdom

Canfor Wood Panels      Canada

Hitachi                          Japan

Milton Ltd                      India

Swan                            Malaysia

Modecor Ltd                  Saudi Arabia

 

Export Countries:         United States of America, Europe, Eritrea, Ethiopia, Iran, Sudan, Libya, Algeria, Mauritania, Zaire, Kenya, Uganda, Tanzania, Rwanda, Gabon, Madagascar and Russia.

 

Brand Names:              WONDER FOAM, BPB, DOLPHIN, MERBOARD, RIKVIN, EUCATEX, KOHL, STANLEY,

LOUVERLUX, RHINO, NITTOBO, TENBY ELECTRICAL and MAKITA

 

Operating Trend:         Steady

 

Subject has a workforce of approximately 500 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 346,200,000                  UAE Dh 350,000,000

 

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

 

The above figures were confirmed by Mr Yassir Mohamed, Finance Manager

 

 

BANKERS

 

HSBC Bank Middle East

Deira Souk Branch

PO Box: 66

Dubai

Tel: (971-4) 2535000

 

The Standard Chartered Bank

Khalid Bin Waleed Street

Mankhool Branch

PO Box: 999

Dubai

Tel: (971-4) 2520455

 

Emirates Bank International Ltd

Al Nasr Square

PO Box: 2923

Dubai

Tel: (971-4) 2281181

 

First Gulf Bank

PO Box: 52053

Dubai

Tel: (971-4) 2941234

Fax: (971-4) 2949595

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                     January 2005                 October 2006                 October 2007

Credit amount                            306,300             50,000                          150,000

Amount overdue             0                                  0                                  0

Payment terms                          60 days                         60 days                         60 days

Payment Method                       Letters of Credit             Letters of Credit             Letters of Credit

Paying record                            No Complaints               No Complaints               No Complaints

Currency                                   Canadian Dollars            Pounds Sterling             US Dollars

 

 

 

GENERAL COMMENTS

 

Subject is involved in the import and distribution of building materials, hardware, power tools, timber, laminate flooring and sanitary ware products under a number of well known brand names.

 

Local sources report that the subject’s operating history is clear with payment obligations met in a generally timely manner. The financial position is satisfactory and the business is deemed a fair trade risk.

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.59

UK Pound

1

Rs.101.56

Euro

1

Rs.85.15

 

 

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.