MIRA INFORM REPORT

 

 

Report Date :

12.10.2013

 

IDENTIFICATION DETAILS

 

Name :

AL BUHEIRA LACNOR DAIRIES CO LTD

 

 

Registered Office :

Green Belt Street, Sharjah Industrial Area No. 4, P O Box 5983, Sharjah

 

 

Country :

United Arab Emirates 

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

25.01.1978

 

 

Com. Reg. No.:

2742, Sharjah

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Production and marketing of dairy products as well as fruit juices and drinks

 

 

No. of Employees :

650

 

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 :

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                                     : AL BUHEIRA LACNOR DAIRIES CO LTD

Country of Origin                                    : Sharjah, United Arab Emirates

Legal Form                                            : Limited Liability Company

Registration Date                                   : 25th January 1978

Commercial Registration Number            : 2742, Sharjah

Trade Licence Number                            : 10358

Chamber Membership Number                : 4054

Issued Capital                                        : UAE Dh 2,000,000

Paid up Capital                                      : UAE Dh 2,000,000

Total Workforce                                     : 650

Activities                                               : Production and marketing of dairy products as well as fruit juices and

drinks

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Upal Gunnwarandan, Financial Controller

 

 

 


COMPANY NAME

 

AL BUHEIRA LACNOR DAIRIES CO LTD

 

 

Company ADDRESS

 

Registered & Physical Address

Street               : Green Belt Street

Area                 : Sharjah Industrial Area No. 4

PO Box             : 5983

Town                 : Sharjah

Country             : United Arab Emirates

 

Telephone         : (971-6) 5331551

Facsimile          : (971-6) 5336102 / 5394109

Email                : lacnor@emirates.net.ae / aneel.kumar@nfpc.net / dennis.mathew@nfpc.net

 

Premises

Subject operates from a large suite of offices, a factory and distribution facilities that are owned and located in the Industrial Area of Sharjah.

 

Branch Office (s)

 

     Location                                                                                          Description

 

·       Mussafah Industrial Area, M1                                                 Distribution centre

Abu Dhabi

Tel: (971-2) 5582808

 

·       Ajman                                                                                              Distribution centre

 

·       Al Ain                                                                                               Distribution centre

 

·       Dubai                                                                                               Distribution centre

Tel: (971-4) 8845588

Fax: (971-4) 8845566

 

 

KEY PRINCIPALS

 

     Name                                              Nationality                               Position

·       Fady Gargas Antonious                     Lebanese                                  Managing Director

·       Farag Ali Bin Hamoodah                      Emirati                                    Director

·       M K Pardeep                                           -                                        Accountant

·       Azmi Yagi                                               -                                        Administration Manager

 

·       Nabil Jaber                                              -                                        Commercial Manager

·       Fleming Brikmos                                      -                                        Factory Manager

·       Upal Gunnwarandan                                 -                                        Financial Controller

·       Dennis Mathew                                        -                                        Finance Manager (Sharjah)

·       Anil Kumar                                              -                                        Finance Manager (Al Ain)

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 25th January 1978

 

Legal Form                  : Limited Liability Company

 

Commercial Reg. No.  : 2742, Sharjah

 

Trade Licence No.       : 10358

 

Chamber Member No. : 4054

 

Issued Capital              : UAE Dh 2,000,000

 

Paid up Capital            : UAE Dh 2,000,000

 

Name of Shareholder (s)                                              Percentage

·       Farag Ali Bin Hamoodah                                                 51%

·       Fady Gargas Antonious                                                  49%

 

 

AFFILIATED COMPANIES

 

·       Bin Hamoodah Trading & General Services Co (Bin Hamoodah Automotive)

     Bin Hamoodah Building

     Old Airport Road

     PO Box: 203

     Abu Dhabi

     Tel: (971-2) 4448888

     Fax: (971-2) 4449073

 

·       Alpha Data LLC

     Alpha Data Megastore

     Airport Road

     PO Box: 45384

     Abu Dhabi

     Tel: (971-2) 6333644

     Fax: (971-2) 6211924 / 6392192

     Email: vijay@alpha.co.ae

 

·       Gulf Automation Services & Oil Field Supplies (GASCO)

 

·       National Food Products

 

·       Sahara Transport & Contracting Co

 

·       Tareef Trading Co

 

·       Howard Al Geemi & Partners

 

 

OPERATIONS

 

Activities: Engaged in the production and marketing of dairy products as well as fruit juices and drinks.

 

Import Countries: Germany, the United Kingdom and Australia.

 

Brand Names: BUHEIRA LACNOR

 

Operating Trend: Steady

 

Subject has a workforce of approximately 650 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 Revenue                            UAE Dh 674,165,000                  UAE Dh 699,513,000

 

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

 

The above figures were provided by Mr Upal Gunnwarandan, Financial Controller

 

 

BANKERS

 

·       National Bank of Abu Dhabi

Al Hajar Street

Al Quoz Area

PO Box: 282227

Dubai

Tel: (971-4) 4050940

Fax: (971-4) 3285094

 

·       National Bank of Sharjah

Al Boorj Avenue

     PO Box: 4

     Sharjah

     Tel: (971-6) 5547747

 

·       Arab Bank Plc

PO Box: 130

Sharjah

Tel: (971-6) 5353994

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                              January 2002                           June 2006

Amount overdue                         0                                              0

Payment terms                                      90 days                                     60 days

Payment Method                                   Letters of Credit                         Letters of Credit

Paying record                                        No Complaints                           No Complaints

Currency                                               Euros                                        US Dollars

 

 

 

GENERAL COMMENTS

 

Al Buheira Lacnor Dairies Co Ltd is very well established in the local market with operations dating back to 1978. It is engaged in the production and marketing of dairy products as well as fruit juices and drinks, operating branches in Sharjah, Abu Dhabi, Ajman and Al Ain.

 

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.61.16

UK Pound

1

Rs.97.77

Euro

1

Rs.82.78

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.