MIRA INFORM REPORT

 

 

Report Date :

22.04.2014

 

IDENTIFICATION DETAILS

 

Name :

HARIS AL AFAQ LTD

 

 

Registered Office :

Kamal Hamza Building, Flat No. 501, Salahuddin Street, Deira, PO Box : 8141, Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

1968

 

 

Com. Reg. No.:

2047, Dubai

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject’s operations are performed through the following divisions:

·         Chemical Division

·         Electrical Division

·         Instrumentation Division

·         Computer & Networking Division

 

 

No. of Employees :

78

 

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

United Arab Emirates

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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                                    : HARIS AL AFAQ LTD

Country of Origin                                   : Dubai, United Arab Emirates

Legal Form                                           : Limited Liability Company

Start Date                                             : 1968

Registration Date                                  : 1st January 1971

Commercial Registration Number           : 2047, Dubai

Trade Licence Number                           : 202207

Chamber Membership Number               : 40653

Issued Capital                                       : UAE Dh 5,000,000

Paid up Capital                                     : UAE Dh 5,000,000

Total Workforce                                     : 78

Activities                                               : Subject operates several divisions (see below for details)

Financial Condition                                : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Joydee Datagupta, Financial Controller

 

 

 


COMPANY NAME

 

HARIS AL AFAQ LTD

 

 

ADDRESS

 

Registered & Physical Address

 

Building            : Kamal Hamza Building, Flat No. 501

Street               : Salahuddin Street

Area                 : Deira

PO Box            : 8141

Town                : Dubai

Country             : United Arab Emirates

 

Telephone         : (971-4) 2719156 / 2719625 / 2283623 / 2283624 / 2283625

Facsimile          : (971-4) 2719285 / 2281285

Mobile              : (971-55) 1760569 / (971-50) 3231865

Email                : sales@haris.com / joydeep@haris.com

 

Premises

 

Subject operates from a medium sized suite of offices that are rented and located in the Central Business Area of Dubai

 

Branch Office (s)

 

Location                                                                                               Description

 

PO Box: 61394                                                                                      Office premises

Jebel Ali Free Zone Area

Dubai

Tel: (971-4) 8818986

Fax: (971-4) 8818991    

 

PO Box: 545                                                                                         Sales office & warehouse

Sharjah

Tel: (971-6) 5332331

Fax: (971-6) 5437802

 

PO Box: 8675                                                                                       Sales office & warehouse

Al Ain

Tel: (971-3) 7650772

Fax: (971-3) 7650771

 

Jebel Ali Free Zone                                                                               Rented warehouse covering

PO Box: 61394                                                                                      30,000 square feet

Dubai

Tel: (971-4) 8818986

Fax: (971-4) 8818991

 

PO Box: 26386                                                                                      Sales office & warehouse

Abu Dhabi

Tel: (971-2) 6656181

Fax: (971-2) 6652692

 

PO Box: 3474                                                                                       Sales office & warehouse

Ajman

Tel: (971-6) 7437554

Fax: (971-6) 7437802

 

 

KEY PRINCIPALS

 

Name                                                                                       Position

 

Ramesh K Soni                                                                         Managing Director

 

Joy Narayan Mukerji                                                                  Director

 

Arjun Mukerji                                                                             Director

 

Mohamed Abdul Khaleq Al Sarkal                                              Director

 

Vipin Ravendaran                                                                      Commercial Manager

 

Rajev Saiitumaran                                                                      Finance Manager

 

Joydee Datagupta                                                                     Financial Controller

 

Venkat Raman                                                                           Accountant

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  :           Subject was formed in 1968 and registered on 1st January 1971

 

Legal Form      :                       Limited Liability Company

 

Commercial Reg. No.   :           2047, Dubai

 

Trade Licence No.        :           202207 (Expires 18/02/2015)

 

Chamber Member No.  :           40653

 

Issued Capital              :           UAE Dh 5,000,000

 

Paid up Capital            :           UAE Dh 5,000,000

 

Name of Shareholder (s)

 

Joy Narayan Mukerji

 

Ramesh K Soni

 

Arjun Mukerji

 

Mohamed Abdul Khaleq Al Sarkal

 

 

AFFILIATED COMPANIES

 

Al Sanani Trading Est

PO Box: 7187

Dubai

Tel: (971-4) 3728963

 

Al Dobowi Tyre Co

PO Box: 5576

Dubai

Tel: (971-4) 2285044

 

Al Wazeer Electrical LLC

Dubai

 

 

OPERATIONS

 

Activities: Subject’s operations are performed through the following divisions:

 

Chemical Division

 

Haris Al Afaq was involved in chemical trading right from the company's inception in 1968. The main activity at that time was the supply of commodity chemicals to the oil field and water treatment sectors.

 

In the early 1990's the company focused on specific industries, which has resulted in Haris Al Afaq being a leading raw material supplier to the following industries:

 

-  Paint / Ink Industry

-  Construction chemical industry

-  Plastics Industry

-  Interlocking / blocks / tile industry

-  Water treatment and commodity chemicals

Electrical Division

 

The company is active in the supply of spare parts and primary instrumentation to the electric industry, to both utilities and contractors of transformers, cables and 11kV switchgear along with other ancillary equipment such as fuses, solders, joints, etc - both on a contractual and on an ex-stock basis.

 

The company represents a number of international companies in this field and is also involved in tendering to the Utilities and Oilfield Sector, both on its own account and on an agency basis.

 

Instrumentation Division

 

Haris Al Afaq started its instrumentation activities in the early 1980's in the Test & Measurement arena. Now it covers many areas, including the power sector in which the high-end application areas include Relay Test equipment, Electrical Relays, Transformer Loss Measurement Systems, High Voltage Test systems, as well as SCADA and Data Acquisition systems.

 

Other market areas that Haris Al Afaq is active in includes the Government Ministries (chiefly Water and Health), Defence as well as the Oil & Gas sectors. Items sold here include calibration systems, counters, Data Acquisition systems and Biomedical Calibration and Simulation products.

 

This division also operates a technical centre and calibration lab offering technical backup, repair and service facilities for the above products.

 

Computer & Networking Division

 

This division specialises in the provision of network testing products and services that are focused on assisting a network engineer in installing, maintaining and securing a computer network. The product range includes:

 

-  Handheld network monitoring & troubleshooting tools

-  Network appliances for monitoring and security

-  Network appliances for performance

-  Network appliances & troubleshooting software

-  Network monitoring software

-  Network security software

 

Import Countries: France, Germany, the United Kingdom, Canada, India, Korea, Malaysia and China.

 

International Suppliers:

 

Huntsman Tioxide                                  France

SNCZ                                                   France

Stockhausen                                         Germany

Sheen Instruments                                 United Kingdom

Dominion Colour Corporation                 Canada

Fielding Chemicals                                Canada

Jai International                                     India

Auchtel                                                 India

Philips Carbon                                      India

Samhwa                                                Korea

Dae Han                                               Korea

DIC                                                       Malaysia

Deiqing Huayuan                                   China

 

Export Countries: Iran, Oman, Kuwait, Bahrain, Saudi Arabia, Qatar, Yemen, Pakistan, Sri Lanka and India.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 78 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: United Arab Emirates Dirham (UAE Dh)

 

                                                Year Ending 31/12/12:              Year Ending 31/12/13:

 

Total Sales                                UAE Dh 46,070,707                   UAE Dh 37,642,152

 

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

 

The above figures were provided by Ms Joydee Datagupta, Financial Controller

 

 

BANKERS

 

Middle East Bank Ltd

Arbit Tower

Beniyas Street

PO Box: 5547

Dubai

Tel: (971-4) 2220121

 

United Arab Bank

Deira Branch

Dubai

Tel: (971-4) 2220181

 

The Standard Chartered Bank

Khalid Bin Waleed Street

PO Box: 999

Dubai

Tel: (971-4) 2520455

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                    July 2006                      August 2007                  April 2008

Credit amount                           396,830             372,995             150,000

Amount overdue                        0                                  0                                  0

Payment terms                          90 days                                    90 days                                    90 days

Payment Method                       Letters of Credit                        Letters of Credit                        Letters of Credit

Paying record                           No Complaints              No Complaints              No Complaints

Currency                                   US Dollars                    US Dollars                    US Dollars

 

 

GENERAL COMMENTS

 

Haris Al Afaq Ltd has operations dating back to 1968 and is a leading supplier of technical products and services in the Gulf region. It deals with a host of well known international suppliers and has an excellent reputation for the quality of its products.

 

The company is run in a professional manner and no problems were noted regarding either the operating history or the payment record. The financial situation is healthy and profitable and as such the company is deemed a sound trade risk.

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.34

UK Pound

1

Rs.101.41

Euro

1

Rs.83.38

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NNA

 

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.