MIRA INFORM REPORT

 

 

Report Date :

05.06.2014

 

IDENTIFICATION DETAILS

 

Name :

SYSTEM MIDDLE EAST FZC

 

 

Registered Office :

Hamriyah Free Zone, PO Box : 49576, Sharjah

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

02.04.2009

 

 

Legal Form :

Free Zone Company

 

 

Line of Business :

Subject is engaged in the import and distribution of printing products and materials, including ink.

 

 

No. of Employees :

20

 

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

 

Maximum Credit Limit :

US$ 150,000

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                                    : SYSTEM MIDDLE EAST FZC

Country of Origin                                   : Sharjah, United Arab Emirates

Legal Form                                           : Free Zone Company - FZC

Registration Date                                  : 2nd April 2009

Trade Licence Number                           : 5090

Issued Capital                                       : UAE Dh 150,000

Paid up Capital                                     : UAE Dh 150,000

Total Workforce                                     : 20

Activities                                               : Distributors of printing products and materials

Financial Condition                                : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Recommended Credit Limit                    : US$ 150,000

 

 

 

COMPANY NAME

 

SYSTEM MIDDLE EAST FZC

 

 

ADDRESS

 

Registered Address

 

Area                 : Hamriyah Free Zone

PO Box            : 49576

Town                : Sharjah

Country             : United Arab Emirates

 

Physical Address

 

Building            : Warehouse No. 9

Area                 : Al Qusais Industrial Area

PO Box            : 234564

Town                : Sharjah

Country             : United Arab Emirates

 

Telephone         : (971-6) 2589250

Facsimile          : (971-6) 2589270

Email                : khaled.gamal@sme-digital.com

 

Premises

 

Subject operates from a small suite of offices and a warehouse that are rented and located in the Industrial Area of Sharjah.

 

 

KEY PRINCIPALS

 

Name                                                    Nationality                                             Position

 

Khaled Gamal                                       Egyptian                                               Managing Director

 

Abdullah Hussain                                         -                                                    Director

 

Shah Rokh                                                   -                                                    Sales Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  :           2nd April 2009

 

Legal Form      :                       Free Zone Company - FZC

 

Trade Licence No.        :           5090 (Expires 01/04/2015)

 

Issued Capital              :           UAE Dh 150,000

 

Paid up Capital            :           UAE Dh 150,000

 

Name of Shareholder (s)                                              

 

Khaled Gamal                          

 

Abdullah Hussain

 

 

OPERATIONS

 

Activities:                     Engaged in the import and distribution of printing products and materials, including ink.

 

Import Countries:         France and Japan.

 

International Suppliers:

 

MOTO                           Japan

Hexis                            France

 

Operating Trend:          Steady

 

Subject has a workforce of 20 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 12,880,000                   UAE Dh 13,375,000

 

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

The above financial figures are based on estimations by our local sources.

 

 

BANKERS

 

Union National Bank

Baniyas Street

PO Box: 6811

Dubai

Tel: (971-4) 2211188

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

CREDIT RATING

 

Recommended credit limit:                  US$ 150,000

 

 

GENERAL COMMENTS

 

Local sources report that subject meets its payments in a timely manner and is considered to be a fair trade risk.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.59.34

UK Pound

1

Rs.99.18

Euro

1

Rs.80.76

 

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.