MIRA INFORM REPORT

 

 

Report No. :

331923

Report Date :

16.07.2015

 

IDENTIFICATION DETAILS

 

Name :

MODERN BAKERY LLC

 

 

Registered Office :

Modern Bakery Building (Zommorodha Building), Umm Hurrair Road, Karama Area, Deira, PO Box 5558, Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

18.01.1976

 

 

Com. Reg. No.:

40299

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject’s activities are performed through the following divisions:

  • Bakery Division
  • Modern General Trading Division

 

 

No. of Employees :

1,400

 

 

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, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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. 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 and ultimately a $20 billion bailout from the UAE Central Bank and Abu Dhabi-emirate government that was refinanced in March 2014. 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                                     : 1,400

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

 

 

ADDRESS

 

Registered & Physical Address

 

Building                        : Modern Bakery Building (Zommorodha 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

 

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 1,400 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 Sales                                UAE Dh 650,000,000                 UAE Dh 672,000,000

 

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.63.38

UK Pound

1

Rs.99.13

Euro

1

Rs.69.69

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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%)

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.