MIRA INFORM REPORT

 

 

Report No. :

345545

Report Date :

23.10.2015

 

IDENTIFICATION DETAILS

 

Name :

ABU AL HASSAN BUILDING MATERIAL ESTABLISHMENT (ABCO)

 

 

Registered Office :

Green Belt Street, Industrial Area No. 4, P O Box: 5060 & 60630, Sharjah

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

05.07.1983

 

 

Com. Reg. No.:

10852, Sharjah

 

 

Legal Form :

Sole Proprietorship

 

 

Line of Business :

Import and distribution of timber products such as hardwoods, white-wood, plywood, veneer plywood, MDF and chipboard.

 

 

No. of Employees :

25

 

 

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.

 

 

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 of 2008, 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 economic diversification and creating more job opportunities for nationals through improved education and increased private sector employment.

 

Source : CIA

 

SUMMARY

 

Company Name                                    : ABU AL HASSAN BUILDING MATERIAL ESTABLISHMENT (ABCO)

Country of Origin                                   : Sharjah, United Arab Emirates

Legal Form                                           : Sole Proprietorship

Registration Date                                  : 5th July 1983

Commercial Registration Number           : 10852, Sharjah

Trade Licence Number                           : 17915

Chamber Membership Number               : 11470

Invested Capital                                    : UAE Dh 150,000

Total Workforce                                     : 25

Activities                                               : Import and distribution of building materials, construction equipment

                                                              and timber

Financial Condition                                : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Samir Salman Salem Harzien, Commercial Manager

 

COMPANY NAME

 

ABU AL HASSAN BUILDING MATERIAL ESTABLISHMENT (ABCO)

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Green Belt Street

Area                 : Industrial Area No. 4

 

PO Box                        : 5060 & 60630

 

Town                : Sharjah

Country             : United Arab Emirates

 

Telephone         : (971-6) 5331491

Facsimile          : (971-6) 5330625

Mobile              : (971-50) 6977913

Email                : abco@emirates.net.ae / admin@abcosharjah.com

 

Premises

 

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

 

 

KEY PRINCIPALS

 

     Name                                                           Nationality                     Position

 

·       Salman Hassan Salem Harzien                      Jordanian                      Proprietor & General Manager

 

·       Jamal Salman Hassan Saleem Harzien           Jordanian                      Assistant General Manager

 

·       Ajit Kumar                                                           -                            Sales Manager

 

·       Shema Sudakaran                                                -                            Financial Controller

 

·       Samir Salman Salem Harzien                    -                            Commercial Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 5th July 1983

 

Legal Form                  : Sole Proprietorship

 

Commercial Reg. No.   : 10852, Sharjah

 

Trade Licence No.        : 17915

 

Chamber Member No.  : 11470

 

Invested Capital           : UAE Dh 150,000

 

Mr Salman Hassan Salem Harzien is the sole proprietor of the business. Mr Salman Hassan Salem Harzien is a Jordanian national who operates in Sharjah under the local sponsorship of Mr Khalid Abdullah Khamis Juma.

 

 

AFFILIATED COMPANIES

 

·       Abu Al Hassan Furniture & Decor Furniture

PO Box: 29874

Sharjah

       Tel: (971-6) 5326699

       Fax: (971-6) 5398191

 

·       The General Trading & Construction Est

Green Belt Street

Industrial Area No. 4

PO Box: 5060

       Sharjah

       Tel: (971-6) 5331491

 

 

OPERATIONS

 

Activities: Engaged in the import and distribution of timber products such as hardwoods, white-wood, plywood,

      veneer plywood, MDF and chipboard.

 

Import Countries: Europe and GCC countries

 

International Suppliers:

 

·       American Forest       United States of America

 

Operating Trend: Steady

 

Subject has a workforce of 25 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 86,750,000                   UAE Dh 88,200,000

 

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

 

The above figures were provided by Mr Samir Salman Salem Harzien, Commercial Manager

 

 

BANKERS

 

·       Emirates National Bank of Dubai

PO Box: 21850

Sharjah

Tel: (971-6) 5738888

 

 

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.64.89

UK Pound

1

Rs.100.39

Euro

1

Rs.73.52

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

               

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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