MIRA INFORM REPORT

 

 

Report Date :

25.06.2014

 

IDENTIFICATION DETAILS

           

Name :

MODERN BAKERY LLC

 

 

Formerly Known as :

Modern Bakery & Supermarket

 

 

Registered Office :

Modern Bakery Building, Umm Hurrair Road, Karama Area, Deira, P O Box 5558, Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

18.01.1976

 

 

Com. Reg. No.:

40299, Dubai

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject’s activities are performed through the following divisions:

 

·       Bakery Division

Engaged in the import and distribution of bakery products, such as bread, cakes, biscuits, pastries and confectionery, as well as bakery equipment.

 

·       Modern General Trading Division

Established on 1st May 1987, this division operates a number of supermarkets and retail outlets located throughout the United Arab Emirates, specialising in the distribution and retail of general foodstuff and bakery products.

 

 

No of Employees :

1,380 (Approximately)

 

 

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 :

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 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

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate 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                                                : MODERN BAKERY LLC

Country of Origin                                   : Dubai, United Arab Emirates

Legal Form                                           : Limited Liability Company - LLC

Registration Date                                  : 18th January 1976

Commercial Registration Number           : 40299, Dubai

Trade Licence Number                           : 300367

Industrial Licence Number                      : 580664

Chamber Membership Number               : 11211

Issued Capital                                       : UAE Dh 3,000,000

Paid up Capital                                     : UAE Dh 3,000,000

Total Workforce                         : 1,380

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

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Prakash Lalshman, Finance Manager

 


COMPANY NAME

 

MODERN BAKERY LLC

 

 

company ADDRESS

 

Registered & Physical Address

Building            : Modern Bakery Building

Street               : Umm Hurrair Road

Area                 : Karama Area, Deira

PO Box                        : 5558

Town                : Dubai

Country : United Arab Emirates

Telephone         : (971-4) 3371100 / 3231792 / 3371144 / 3472068

Facsimile          : (971-4) 3370064

Email                : mbakery@emirates.net.ae / prakash@modernbakeryllc.om

 

Premises

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

 

Branch Office (s)

 

     Location                                                                                          Description

 

·       Bur Dubai                                                                                         Retail outlet

Dubai

     Tel: (971-4) 2263059

     Fax: (971-4) 2261638

 

·       Al Quoz Industrial Area                                                                      Retail outlet

Dubai

Tel: (971-4) 3474700 / 3475758 / 3402026

 

·       Baniyas Street                                                                                  Retail outlet

Deira

     Dubai

     Tel: (971-4) 2231792

 

·       Al Karama                                                                                        Retail outlet

Dubai

     Tel: (971-4) 3375776

 

·       Electra Street                                                                                   Retail outlet

Abu Dhabi

Tel: (971-2) 6332281

Fax: (971-2) 6793132

 

·       Market Road                                                                                     Retail outlet

Abu Dhabi

Tel: (971-2) 6335464

 

·       Hamdan Street                                                                                 Retail outlet

Abu Dhabi

Tel: (971-2) 6727784

 

·       Near Clock Tower                                                                              Retail outlet

Al Ain

Tel: (971-3) 654533

 

·       Sharjah                                                                                            Retail outlet

Tel: (971-6) 5372035

 

·       Ras Al Khaimah                                                                                Retail outlet

Tel: (971-7) 2226414

Fax: (971-7) 2227234

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Mohamed Bin Naser Bin Sultan Al Owais                                           Managing Director

 

·       Humaid Bin Naser Al Owais                                                               Director

 

·       Abdullah Bin Sultan Al Owais                                                                        Director

 

·       Abdul Qader Al Accad                                                                      Director

 

·       Dr Fawaz Al Bahri                                                                             Director

 

·       Ali Bin Ahmed Sultan Al Owais                                                          Director

 

·       Mozaha Swiedan Al Sayed                                                                Director

 

·       Rafiya Bint Ali Al Owais                                                                    Director

 

·       Prakash Lalshman                                                                             Finance Manager

 

·       Syed Manzar Ali                                                                               Sales Manager

 

·       Sharif Aurrab                                                                                    Technical Manager

 

·       Mustafa Al Amar                                                                               Manager – Bakery Division

 

·       Mohamed Nasim                                                                              Manager – Modern General Trading Division

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 18th January 1976

 

History                         : Subject was originally established in 1976 as a General Partnership under the

  name of “Modern Bakery & Supermarket”.

 

                                      In mid-1997, subject changed its legal status to a Limited Liability Company and

  re-registered under the new name of “Modern Bakery LLC”.

 

Legal Form                  : Limited Liability Company - LLC

 

Commercial Reg. No.   : 40299, Dubai

 

Trade Licence No.        : 300367 (Expires 10/03/2015)

 

Industrial Licence No.  : 580664

 

Chamber Member No.  : 11211

 

Issued Capital              : UAE Dh 3,000,000

 

Paid up Capital            : UAE Dh 3,000,000

 

Name of Shareholder (s)                                                         Percentage

·       Mohamed Bin Naser Bin Sultan Al Owais                               16.75%

·       Humaid Bin Naser Al Owais                                                   16.75%

·       Dr Fawaz Al Bahri                                                                 16.50%

·       Abdul Qader Al Accad                                                          10.00%

·       Ali Bin Ahmed Sultan Al Owais                                              10.00%

·       Mozaha Swiedan Al Sayed                                                    10.00%

·       Rafiya Bint Ali Al Owais                                                        10.00%

·       Abdullah Bin Sultan Al Owais                                                            10.00%                                                

 

 

AFFILIATED COMPANIES

 

·       Al Owais Al Accad Pharmaceutical Equipment Co

PO Box: 597

Sharjah

Tel: (971-6) 5333888 / 5330388

Fax: (971-6) 5335855

 

       This business was established in 1989 as a General Partnership under Commercial Reg. No 19096, Sharjah. It is engaged in the retail and distribution of pharmaceutical products and health food.

 

·       Al Accad Trading Co (G.C. Trading & Contracting)

Al Accad Building

Deira

PO Box: 4194

Dubai

Tel: (971-4) 660606 / 625010

Fax: (971-4) 661633

 

This business was established in 1963 as a General Partnership and is engaged in the distribution of general merchandise including building materials, electrical equipment, stationery and furniture.

 

·       Al Accad Spare Parts

Al Accad Building

Deira

PO Box: 4194

Dubai

Tel: (971-4) 660606 / 625010

Fax: (971-4) 661633

 

This business was established in 1965 as a Limited Liability Company and is engaged in the distribution and retail of automotive spare parts and various accessories.

 

 

OPERATIONS

 

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

 

·       Bakery Division

 

Engaged in the import and distribution of bakery products, such as bread, cakes, biscuits, pastries and confectionery, as well as bakery equipment.

 

·       Modern General Trading Division

 

Established on 1st May 1987, this division operates a number of supermarkets and retail outlets located throughout the United Arab Emirates, specialising in the distribution and retail of general foodstuff and bakery products.

 

Import Countries: Europe, United States of America, Asia and Australia.

 

International Suppliers:

 

·       Pepsi Cola International        United States of America

·       Global Marketing Inc             United States of America

·       Gist Brocades NV                 The Netherlands

·       Ezeelandia                           The Netherlands

·       Zelandia                               The Netherlands

·       Prestige Group Ltd               United Kingdom

·       Barry Callebaut                     Switzerland

·       Kerry Aptunion                     France

·       Algist Bruggemann               Belgium

·       Appolinaris                           Germany

·       Bonlac Foods                      Australia

·       Eichner International              India

·       Campbell                             Malaysia

·       SIS'88 PTE Limited               Singapore

 

Operating Trend: Steady

 

Subject has a workforce of approximately 1,380 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 Revenue                           UAE Dh 614,000,000                 UAE Dh 650,000,000

 

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

 

The above figures were provided by Mr. Prakash Lalshman, Finance Manager

 

 

BANKERS

 

·       Emirates National Bank of Dubai

Baniyas Street

     PO Box: 777

     Dubai

     Tel: (971-4) 2222111

     Fax: (971-4) 2283000

     Acc No. 01-50218205

 

·       Mashreq Bank Plc

Deira Branch

PO Box: 1250

Dubai

Tel: (971-4) 2229131 / 2221134

Fax: (971-4) 2233784

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

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.60.11

UK Pound

1

Rs.102.32

Euro

1

Rs.81.75

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

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.