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MIRA INFORM REPORT
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Report No. : |
503112 |
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Report Date : |
13.04.2018 |
IDENTIFICATION DETAILS
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Name : |
FRUITS GARDEN TRADING WLL |
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Registered Office : |
Bin Mahmood Street PO Box 37812 Doha |
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Country : |
Qatar |
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Date of Incorporation : |
01.10.2017 |
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Com. Reg. No.: |
105589 |
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Legal Form : |
With Limited Liability - WLL |
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Line of Business : |
Subject is engaged in the wholesale
and retail of fruit and vegetables, including apples, oranges, mangoes,
bananas, grapes, pears, plumps, nectarine, pomegranates, strawberry, cherry,
lemon, potato ,tomato, ginger, garlic, carrots, onions, cabbage, coconut,
broccoli, turnip, chilli, radish, cucumber and chestnuts. |
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No. of Employees : |
5 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
NB |
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Credit Rating |
Explanation |
Rating Comments |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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Maximum Credit Limit : |
US$ 10,000 |
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Status : |
New Business |
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Payment Behaviour : |
Unknown |
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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.
QATAR - ECONOMIC
OVERVIEW
Qatar’s oil and natural gas resources are the country’s main economic engine and government revenue source, driving Qatar’s high economic growth and per capita income levels, robust state spending on public entitlements, and booming construction spending, particularly as Qatar prepares to host the World Cup in 2022. Although the government has maintained high capital spending levels for ongoing infrastructure projects, low oil and natural gas prices in recent years have led the Qatari Government to tighten some spending to help stem its budget deficit.
Qatar’s reliance on oil and natural gas is likely to persist for the foreseeable future. Proved natural gas reserves exceed 25 trillion cubic meters - 13% of the world total and, among countries, third largest in the world. Proved oil reserves exceed 25 billion barrels, allowing production to continue at current levels for about 56 years. Despite the dominance of oil and natural gas, Qatar has made significant gains in strengthening non-oil sectors, such as manufacturing, construction, and financial services, leading non-oil GDP to steadily rise in recent years to just over half the total.
Following trade restriction imposed by Saudi Arabia, the UAE, Bahrain, and Egypt in 2017, Qatar established new trade routes with other countries to maintain access to imports.
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Source
: CIA |
SUMMARY
Company Name : FRUITS GARDEN TRADING WLL
Country of Origin : Qatar
Legal Form : With Limited Liability - WLL
Registration Date : 1st October 2017
Commercial Registration Number : 105589, Doha
Issued Capital : QR 200,000
Paid up Capital : QR 200,000
Total Workforce : 5
Activities : Wholesalers and retailers of fruit and vegetables
Financial Condition : Undetermined
Payments : Unknown
Recommended Credit Limit : US$ 10,000
COMPANY
NAME
FRUITS GARDEN TRADING
WLL
ADDRESS
Registered &
Physical Address
Location :
Bin Mahmood Street
PO Box :
37812
Town :
Doha
Country :
Qatar
Telephone :
(974) 44805873
Facsimile :
(974) 44686502
Mobile :
(974) 50779888 / 55915903
Email :
fruitsgardentradingwll@gmail.com
Premises
Subject operates from a small suite of offices and a
showroom that are rented and located in the Central Business Area of Doha.
KEY
PRINCIPALS
Name Nationality Position
·
Mujeeb Al Rahman Indian Managing
Director
·
Meshal Issa Abdulrahman Qatari Director
LEGAL
FORM & OWNERS
Date
of Establishment : 1st
October 2017
Legal
Form : With
Limited Liability - WLL
Commercial
Reg. No. :
105589, Doha
Issued Capital : QR
200,000
Paid up Capital :
QR 200,000
Name of Shareholder (s) Nationality Percentage
· Meshal Issa Abdulrahman Qatari 51%
·
Mujeeb Al Rahman Indian 49%
Notes to the legal Form Under
the Qatari Commercial Companies Law a WLL may be formed by a minimum of 2 and a
maximum of 50 natural or legal persons, whose liability is limited to their
shares in the company’s capital. It can be established in almost all sectors of
the economy (excluding banking, insurance and financial investment on behalf of
others), has no minimum capital requirement, and is one of the easiest ways for
a foreign shareholder to establish a legal presence in Qatar. However, there
are foreign investment restrictions. Law No. (13) of 2000, Regulating
Non-Qatari Capital Investment in Economic Activity (Foreign Investment Law)
requires a Qatari citizen to hold at least 51% of the share capital of an WLL.
Shareholders' profit shares do not have to be proportionate to the equity
shareholding. It cannot issue shares to the public.
OPERATIONS
Activities: Engaged in the wholesale and
retail of fruit and vegetables, including apples, oranges, mangoes, bananas,
grapes, pears, plumps, nectarine, pomegranates, strawberry, cherry, lemon,
potato ,tomato, ginger, garlic,
carrots, onions, cabbage, coconut, broccoli, turnip, chilli, radish,
cucumber and chestnuts.
Import Countries: South Africa, Brazil,
Netherlands, Saudi Arabia, Oman, Thailand, Sri Lanka, Pakistan, Iran, Kenya,
Egypt, USA, New Zealand, China, India and Australia
Subject has a workforce of 5 employees.
FINANCIAL
DATA
Subject is a newly formed business and as a result financial
information is not currently available.
BANKERS
·
Doha Bank Ltd
PO Box: 3818
Doha
Tel: (974) 44435444
Fax: (974) 44416631 / 44410625
PAYMENT
HISTORY
Unknown
GENERAL
COMMENTS
During the course of this investigation the following
sources were consulted:
- Internal database
- Journals,
directories, media & web searches
- Local Registry
office
The subject and its shareholders/owners have been searched
in the following databases; Office of Foreign Assets Control (OFAC), United
Nations Security Council Sanctions, Australian Sanctions List, US Consolidated
Sanctions List, EU Financial Sanctions List and UK Financial Sanctions List and
nothing adverse could be found on the exact names listed within the report.
In view of subject’s infancy, extensive payment and
financial are not available, therefore dealings are recommended to be on
secured terms, and a close monitoring of subject’s business development is
advisable.
COUNTRY
OUTLOOK
Recent Developments
Like its GCC neighbours, Qatar appears
to be entering a period of slower growth. GDP growth eased to 3.6 percent in
2015 (from 4.2 percent in 2014), with output in the hydrocarbon sector broadly
flat.
Growth in the latter has fallen
sharply since 2012 in line with stagnating production, in large measure due to
a self-imposed moratorium on additional output from the North Field. More
recently, the oil price slump has also taken a toll. Nominal GDP fell 20
percent in 2015, due to deteriorating terms of trade, while non-hydrocarbon
sector growth slowed to 7.6 percent (vs. 11 percent in 2014) on weaker
consumer confidence, fiscal
adjustment and tighter banking sector liquidity.
Large fiscal and current account
surpluses have vanished. Hydrocarbon revenues account for some 90 percent of
fiscal receipts and the bulk of export earnings. With low oil prices
persisting, the current account surplus has narrowed sharply, from over 30
percent of GDP in 2011-12 to 8 percent in 2015.
With fiscal revenues falling
sharply amid continued fiscal outlays related to the staging of the 2022 World
Cup, the general government fiscal balance has shifted into deficit and is
projected to reach 12.1 percent in 2016. Policy shifts to prioritize capital
spending on projects deemed critical to economic diversification and the World
Cup were reflected in the shelving of major “non-essential” projects (notably
the US$6.4 billion Al Karaana petrochemicals complex in 2015). It is estimated
that
government spending on new
construction and transport contracts fell by 92 percent (y/y) in Q1 2016.
The government has begun to
rationalize subsidies, allowing fuel prices to more closely track global
prices. It is also developing new revenue sources, including through planning
for a value added tax.
Large buffers are anchoring
confidence amid rising debt issuance. Qatar’s SWF is estimated to hold US$256
billion in assets. Instead of drawing upon the SWF to fund the fiscal deficit,
the government
has issued QR 4.6 billion and
US$9 billion in debt markets thus far in 2016. Indications are that no new
money has been allocated to the SWF this year, with new investments to be
funded through asset sales or dividend income.
By and large, though, fiscal
policy tends to be pro-cyclical in Qatar with the country needing fiscal
frameworks to insulate the budget from commodity price volatility. The country
could benefit from
cross governmental planning,
coordination, and public investment management of non-hydrocarbon projects.
Monetary policy remains
accommodative but banking liquidity is tight. The central bank chose not to
mirror the US Fed’s policy rate hike in December 2015. But with further
tightening by the Fed likely,
it will eventually need to follow
suit given the currency peg. Banking sector solvency indicators and capital buffers
remain healthy; however both deposit and credit growth have slowed.
Living standard monitoring and
analysis should contribute to better design of social policies, including their
targeting, especially in light of the recent rise in utility tariffs and the
elimination of subsidies.
Outlook
Qatar is projected to continue
growing at a moderate pace. Qatar is in the second year of a US$200 billion
infrastructure upgrade ahead of hosting the World Cup, which should support
activity, particularly in construction, transport and services. GDP growth is
projected at 2.1 percent in 2016, and should gradually rise 3.7 percent in
2018. Natural gas production has plateaued, and is expected to decline. However, the 1.4
billion cubic feet per day Barzan gas project – the last project approved
before the North Field moratorium – is set for start in 2016 with full output
expected in 2017. This should offset some of the anticipated production
decline.
Fiscal and CA balances should
gradually improve. As gas production increases and oil prices recover, export
earnings should recover. The CA deficit will stay elevated during the forecast
period, reflecting FIFA related capital imports before gradually narrowing to
3.2 percent of GDP in 2018. The fiscal deficit will narrow, also helped by
savings in current expenditures and subsidy reforms, but is expected to remain
large at close to 9 percent in 2018 (general government basis).
Risks
and Challenges
Key downside risks include depressed
global oil and gas prices, which lead to a slower than expected improvement in
fiscal balances at a time when the GCC region as a whole is tapping
international investors for funds to
finance fiscal short falls. Room to cut capital spending is limited given
contractual obligations regarding FIFA.
Other risks include volatility in
global financial markets, or regional instability that disrupts oil and gas
production and/or capital inflows. Over the medium term,
growing competition and the
emergence of a global spot market in gas prices could pose a challenge to
Qatar’s dominance in global LNG markets.
In light of the uncertain medium
term outlook for the gas sector later this decade and beyond, the development
of the non-hydrocarbon sector is of even greater importance. Qatar’s investment
driven
growth strategy over the past
decade has yet to deliver benefits in terms of greater productivity growth,
even as bottlenecks have been visible in the form of overheating pressures,
congestion and pollution, and demographic imbalances. To diversify Qatar will
have to raise the productivity of its investment, in both human and physical
capital, and undertake structural reforms to improve the business environment.
Key Economic Indicators 2014 2015 2016* 2017* 2018*
Real GDP Growth (%) 4.0 3.6 2.1 3.6 3.7
Inflation Rate (%) 3.1 1.9 0.0 0.0 0.0
Current Account Balance (% of GDP) 24.0 8.4 -1.1 -5.6
-3.2
Financial & Capital Account (% of GDP) -19.7 17.1 30.0
26.8 17.1
Fiscal Balance (% of GDP) 35.9 10.3 -12.1 -11.7
-8.9
Primary Balance (% of GDP) 38.0 11.9 -10.1 -9.2 -6.3
* forecast
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.35 |
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1 |
INR 92.70 |
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Euro |
1 |
INR 80.80 |
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QAR |
1 |
INR 17.91 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
TRU |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
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Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.