MIRA INFORM REPORT

 

 

Report No. :

301377

Report Date :

06.01.2015

 

IDENTIFICATION DETAILS

 

Name :

FARM LAND FOOD PRODUCT LLC

 

 

Registered Office :

Al Awir Road, Al Awir, Ras Al Khor Industrial Area 2, P O Box 111985, Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2014 (Consolidated)

 

 

Date of Incorporation :

08.10.2003

 

 

Com. Reg. No.:

64421, Dubai

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

·         Engaged in the import and distribution of General Foodstuffs and Beverages

·         Engaged in importing Chilled Meat from Ethiopia and Kenya.

 

Subject product lines are as follows:-

·         Frozen Products (Indian Beef)

·         Chilled Products (Indian Mutton & Indian Beef)

·         Dry Food Products (sugar and rice)

 

 

No of Employees :

47

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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                                                : FARM LAND FOOD PRODUCT LLC

Country of Origin                                   : Dubai, United Arab Emirates

Legal Form                                           : Limited Liability Company – LLC

Registration Date                                  : 8th October 2003

Commercial Registration Number                       : 64421, Dubai

Trade Licence Number                           : 549713

Chamber Membership Number               : 81479

Issued Capital                                       : UAE Dh 300,000

Paid up Capital                                     : UAE Dh 300,000

Total Workforce                                     : 47

Activities                                               : Distributors of general foodstuffs and beverages

Financial Condition                                : Good

Payments                                             : No Complaints 

Operating Trend                                    : Steady

Person Interviewed                                : Mohamed Javid, Accountant

 

COMPANY NAME

 

FARM LAND FOOD PRODUCT LLC

 

 

company ADDRESS

 

Registered & Physical Address

Street               : Al Awir Road

Area                : Al Awir, Ras Al Khor Industrial Area 2

PO Box                        : 111985

Town                : Dubai

Country             : United Arab Emirates

Telephone         : (971-4) 3204293

Facsimile          : (971-4) 3204815

Mobile              : (971-50) 4940569

Email                : farmland@emirates.net.ae / info@farmland.ae

 

Premises

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

 

 

KEY PRINCIPALS

 

     Name                                                           Nationality                                Position

·       Shaik Abdul Razzaq                                      Indian                                       Managing Director

·       Shaik Hasnah Bano                                       Indian                                       Director

·       Gino T V Varghese                                           -                                           General Manager

·       Hussain Mohamed                                            -                                           Sales Executive

·       Mohamed Javid                                                -                                           Accountant

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 8th October 2003

 

Legal Form                  : Limited Liability Company – LLC

 

Commercial Reg. No.   : 64421, Dubai

 

Trade Licence No.        : 549713 (Expires 07/10/2015)

 

Chamber Member No.  : 81479

 

Issued Capital              : UAE Dh 300,000

 

Paid up Capital            : UAE Dh 300,000

 

Name of Shareholder (s)                                                     Percentage

 

·       Al Wahaa Star Facilities Management Services LLC                51%

     Dubai

 

·       Shaik Hasnah Bano                                                               25%

 

·       Shaik Abdul Razzaq                                                              24%

 

 

AFFILIATED COMPANIES

 

·       Farm Food Packaging LLC

Dubai

 

 

OPERATIONS

 

Activities: Engaged in the import and distribution of general foodstuffs and beverages.

 

Subject product lines are as follows:-

 

Frozen Products

Subject is mainly concentrated for EATCCO brand Indian beef products.

 

Chilled Products

Engaged in offering the premium quality Indian mutton & Indian beef with the best reasonable price on daily based air cargo.

 

Dry Food Products

Farmland is trading the sugar in the UAE market. The sugar is being sourced directly from Sugar Mills & offers 45 ICUMSA &Below 100 ICUMSA sugar in large quantity & competitive price for the local and international market.


Farm Land has a very wide range of sugar catering different tastes and market segments 

Commodities such as sugar and rice packed at Farmland’s packaging plant.

 

Subject plant is set up in a way so as to package commodities in a number of weights is packed in 1kg, 2kg, 5kg, 10kg & 20kg packages.

 

 

Import Countries: Brazil and India.

 

International Suppliers:

 

·         Hind Agro Industries Ltd      India

·         Alifa Agro Pvt Ltd               India

·         Abator                                Brazil

 

Operating Trend: Steady

 

Subject has a workforce of 47 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: United Arab Emirates Dirham (UAE Dh)

 

                                                Year Ending 31/12/13:               Year Ending 31/12/14:

 

Total Revenue                           UAE Dh 240,000,000                 UAE Dh 280,000,000

 

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

 

The above figures were provided by Mr Mohamed Javid, Accountant and are consolidated figures for the subject and Farm Food Packaging LLC.

 

 

BANKERS

 

·       HSBC Bank Middle East

Deira Souk Branch

     PO Box: 66

     Dubai

     Tel: (971-4) 2535000

 

 

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.63.39

UK Pound

1

Rs.96.85

Euro

1

Rs.75.67

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.