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MIRA INFORM REPORT

 

 

Report No. :

332203

Report Date :

21.07.2015

 

IDENTIFICATION DETAILS

 

Name :

RIKA TRADING LLC

 

 

Registered Office :

Al Quoz Industrial Area, PO Box : 44529, Dubai

 

 

Country :

United Arab Emirates

 

 

Date of Incorporation :

14.03.1996

 

 

Com. Reg. No.:

62642, Dubai

 

 

Legal Form :

Limited Liability Company - LLC

 

 

Line of Business :

Subject is engaged in the import and distribution of cement as well as building materials and construction equipment

 

 

No. of Employee :

12

 

 

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 – 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                                    : RIKA TRADING LLC

Country of Origin                                   : Dubai, United Arab Emirates

Legal Form                                           : Limited Liability Company - LLC

Registration Date                                  : 14th March 1996

Commercial Registration Number           : 62642, Dubai

Trade Licence Number                           : 240501

Chamber Membership Number               : 36959

Issued Capital                                       : UAE Dh 300,000

Paid up Capital                                     : UAE Dh 300,000

Total Workforce                                     : 12

Activities                                               : Distributors of building materials and construction equipment.

Financial Condition                                : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Jain Kumar, Sales Manager

 

 

COMPANY NAME

 

RIKA TRADING LLC

 

 

ADDRESS

 

Registered & Physical Address

 

Location           : Al Quoz Industrial Area

PO Box            : 44529

Town                : Dubai

Country             : United Arab Emirates

 

Telephone         : (971-4) 2671331 / 3200330 / 3200336 / 3397888

Facsimile          : (971-4) 2670858 / 3200459 / 3397772

Mobile              : (971-50) 7584225 / 9265500

Email                : rikatrd@emirates.net.ae

 

Premises

 

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

 

Branch Offices

 

     Location                                                                                          Description

 

·       Sobha Daffodil Building                                                                   Office premises

Jumeirah Village South

Dubai

Tel: (971-4) 4522294

Fax: (971-4) 3397772

 

 

KEY PRINCIPALS

 

     Name                                                           Nationality                    Position

 

·       Jagdish Parsad Mittal                                     Indian                         Managing Director

 

·       Rashid Mathar Rashid Al Jabiri                        Emirati                        Director

 

·       Sumit Mittal                                                         -                            General Manager

 

·       Pripesh Kumar                                                     -                            Accountant

 

·       Jain Kumar                                                          -                            Sales Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 14th March 1996

 

Legal Form                  : Limited Liability Company - LLC

 

Commercial Reg. No.   : 62642, Dubai

 

Trade Licence No.        : 240501 (Expires 13/03/2016)

 

Chamber Member No.  : 36959

 

Issued Capital              : UAE Dh 300,000

 

Paid up Capital            : UAE Dh 300,000

 

Name of Shareholder (s)                                         Percentage

 

·       Rashid Mathar Rashid Al Jabiri                                  51%

 

·       Jagdish Parsad Mittal                                               49%

 

 

OPERATIONS

 

Activities: Engaged in the import and distribution of cement as well as building materials and construction equipment, including:

  • OP Cement, SR Cement, White Cement, GGBS, Micro Silica
  • Silicone Sealants RT 1200, Adhesives and Glues (Wood fix, Vambond, Bison kit etc)
  • Masking Tapes, Aluminum Tapes, Duct Tapes, BOPP tapes (RT1200) 
  • Paints (National, Jotun), Spray Paints RT 1200
  • G.I. binding wire, Wire Nails, Steel Nails and Concrete Nails, Hessian Cloth

Import Countries: Indonesia, Holland, China, India, Pakistan, Thailand, Italy

 

Local Suppliers:

 

·       Henkel Polybit

·       Pioneer Cement Industries

 

Operating Trend: Steady

 

Subject has a workforce of 12 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 15,210,000                   UAE Dh 15,675,000

 

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

 

 

BANKERS

 

·       Mashreq Bank Plc

Deira Branch

PO Box: 1250

Dubai

Tel: (971-4) 2229131 / 2221134

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                               April 2007

Credit amount                                       150,000

Amount overdue                                    0

Payment terms                                      60 days

Payment Method                                   Letters of Credit

Paying record                                       No Complaints

Currency                                               US Dollars

 

 

GENERAL COMMENTS

 

Established in 1996, subject is involved in the import and distribution of building materials and construction equipment.

 

According to local sources, subject’s financial condition is satisfactory whilst payments are made in a timely manner. The company’s operating history is reportedly clear and as such it is deemed a fair trade risk.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.55

UK Pound

1

Rs.99.10

Euro

1

Rs.68.83

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

ASH

 

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.