MIRA INFORM REPORT

 

 

Report Date :

22.08.2014

 

IDENTIFICATION DETAILS

 

Name :

ABDUL KARIM ALWAN FOODSTUFF TRADING LLC

 

 

Registered Office :

Sheikh Hasher Maktoum Building, Suite No. 306, Al Ras Street, Al Ras Area, Deira, PO Box   63041, Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

20.12.2000

 

 

Com. Reg. No.:

69205

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is engaged in the import and distribution of general foodstuff products, including grain, cereal, vegetables, beverages, milk powder and spices.

 

 

No of Employees :

10

 

 

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.

 

 

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                                     : ABDUL KARIM ALWAN FOODSTUFF TRADING LLC

Country of Origin                                    : Dubai, United Arab Emirates

Legal Form                                            : Limited Liability Company - LLC

Registration Date                                   : 20th December 2000

Commercial Registration Number            : 69205, Dubai

Trade Licence Number                            : 560007

Chamber Membership Number                : 89830

Issued Capital                                        : UAE Dh 300,000

Paid up Capital                                      : UAE Dh 300,000

Total Workforce                                     : 10

Activities                                               : Distributors of general foodstuff products.

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Saif Eddine Abbas, General Manager

 

 

 

COMPANY NAME

 

ABDUL KARIM ALWAN FOODSTUFF TRADING LLC

 

 

ADDRESS

 

Registered & Physical Address

 

Building             : Sheikh Hasher Maktoum Building, Suite No. 306

Street               : Al Ras Street

Area                 : Al Ras Area, Deira

PO Box             : 63041

Town                 : Dubai

Country             : United Arab Emirates

Telephone         : (971-4) 2350402

Facsimile          : (971-4) 2350403

Mobile               : (971-50) 6597837

Email                : alwantea@emirates.net.ae / alwantea@eim.ae

 

Premises

 

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

 

Branch Office (s)

 

Subject operates two sales offices in Iran, one on Kish Island and the other at Bander Abbas.

 

 

KEY PRINCIPALS

 

Name                                                    Nationality                     Position

 

Abdul Karim Muhsen Alwan                    Iraqi                              Managing Director

 

Habib Hussain Nasser Al Obdai              Emirati                         Director

 

Saif Eddine Abbas                                      -                              General Manager

 

Mohamed Faisal                                         -                              Sales Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment              : 20th December 2000

 

Legal Form                  : Limited Liability Company - LLC

 

Commercial Reg. No.  : 69205, Dubai

 

Trade Licence No.       : 560007 (Expires 30/07/2015)

 

Chamber Member No. : 89830

 

Issued Capital              : UAE Dh 300,000

 

Paid up Capital            : UAE Dh 300,000

 

Name of Shareholder (s)                                              Percentage

 

Habib Hussain Nasser Al Obdai                                          51%

 

Abdul Karim Muhsen Alwan                                                49%

 

 

AFFILIATED COMPANIES

 

Al Sabah Trading Co

Baghdad

Iraq

 

 

OPERATIONS

 

Activities: Engaged in the import and distribution of general foodstuff products, including grain, cereal, vegetables, beverages, milk powder and spices.

 

Import Countries: Europe, the Far East and GCC countries.

 

International Suppliers:

 

Anvali & Sons                            Sri Lanka

HVA Tea                                   Sri Lanka

Classic Tea                               Sri Lanka

Sons Star Overseas Ltd              India

G R Agrotech Ltd                       India

 

Export Countries: GCC countries, Iran and Iraq.

 

Brand Names: ROYAL STALON and HELADIV

 

Operating Trend: Steady

 

Subject has a workforce of 10 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 300,000,000                  UAE Dh 200,000,000

 

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

 

The above figures were provided by Mr Saif Eddine Abbas, General Manager

 

 

BANKERS

 

Commercial Bank of Dubai

Baniyas Street

PO Box: 1709

Deira

Dubai

Tel: (971-4) 2227121 / 2253222

Fax: (971-4) 2220943 / 2254565

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                                 September 2001

Credit amount                                        120,000

Amount overdue                                     0

Payment terms                                      90 days

Payment Method                                   Letters of Credit

Paying record                                        No Complaints

Currency                                               US Dollars

 

 

GENERAL COMMENTS

 

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 company is deemed a fair trade risk.

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.77

UK Pound

1

Rs.100.72

Euro

1

Rs.80.55

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 

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%)

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