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MIRA INFORM REPORT
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Report No. : |
505503 |
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Report Date : |
21.04.2018 |
IDENTIFICATION DETAILS
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Name : |
ZAFCOMM LLC |
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Registered Office : |
11 Al
Ahmadiyya Street, Al Ras, Deira, PO Box 64516, Dubai |
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Country : |
United Arab Emirates |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
10.06.2002 |
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Legal Form : |
Limited Liability Company - LLC |
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Line of Business : |
Subject Engaged
in the import and distribution of spices, dried fruit, seeds, coffee beans
and sandal wood |
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No. of Employees : |
8 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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.
ECGC Country Risk Classification List
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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United Arab Emirates |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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 from the oil and gas sector to 30%.
Since the discovery of oil in the UAE nearly 60 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 2008-09, 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 Government that was refinanced in March 2014.
The UAE’s dependence on oil is a significant long-term challenge, although the UAE is one of the most diversified countries in the Gulf Cooperation Council. Low oil prices have prompted the UAE to cut expenditures, including on some social programs, but the UAE has sufficient assets in its sovereign investment funds to cover its deficits. The government reduced fuel subsidies in August 2015, and has announced plans to introduce excise and value-added taxes by January 1, 2018. The UAE's strategic plan for the next few years focuses on economic diversification, promoting the UAE as a global trade and tourism hub, developing industry, and creating more job opportunities for nationals through improved education and increased private sector employment
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Source
: CIA |
SUMMARY
Company Name :
ZAFCOMM LLC
Country of Origin :
Dubai, United Arab Emirates
Legal Form :
Limited Liability Company – LLC
Registration Date :
10th June 2002
Trade Licence Number :
534832
Chamber Membership Number :
69602
Issued Capital :
UAE Dh 300,000
Paid up Capital :
UAE Dh 300,000
Total Workforce :
8
Activities :
Distributors of spices, dried fruit, seeds, coffee beans and sandal wood
Financial Condition :
Fair
Payments :
No Complaints
Operating Trend :
Steady
Person Interviewed :
Mohamed Sajid, Sales Manager
COMPANY
NAME
ZAFCOMM LLC
ADDRESS
Registered & Physical Address
Street : 11 Al
Ahmadiyya Street
Area : Al
Ras, Deira
PO Box :
64516
Town : Dubai
Country : United Arab
Emirates
Telephone : (971-4)
2291782
Facsimile : (971-4)
2258634
Mobile :
(971-50) 6528493
Email :
zafcomm@emirates.net.ae / info@zafcomm.ae
Premises
Subject operates from a small suite of offices that are rented and
located in the Central Business Area of Dubai.
KEY
PRINCIPALS
Name Nationality Position
Ali Hussaini Pakistani Managing
Director
Mahdi Habib Emirati Director
Mohamed Sajid - Sales
Manager
LEGAL
FORM & OWNERS
Date of Establishment : 10th
June 2002
Legal Form :
Limited
Liability Company - LLC
Trade Licence No. : 534832
(Expires 09/06/2018)
Chamber Member No. : 69602
Issued Capital : UAE Dh 300,000
Paid up Capital : UAE Dh 300,000
Name of Shareholder (s) Nationality Percentage Holding
Mahdi Habib Emirati 51%
Ali Hussaini Pakistani 49%
Notes
to the legal Form The
LLC requires a minimum of two and a maximum of 50 members. The minimum share
capital required is UAE Dh 300,000. Shareholders are only liable up to the
extent of the value of their shares. This type of company may engage in any
form of legitimate business, with the exception of insurance, banking and
investment of funds. The company is not obliged to publish its accounts. The
participation of non-Emirati in a trade or business in the United Arab Emirates
is governed by the Foreign Business Investment Law, which sets capital
requirements and requires 51 percent Emirati participation in capital and
profits. It is common for the 51 percent to be held by the UAE national on
paper only with the foreign partner(s) providing all the capital requirements
for the company and paying an annual fee to the local partner.
OPERATIONS
Activities: Engaged in the import and distribution of spices, dried fruit,
seeds, coffee beans and sandal wood.
Import Countries: Europe and the Far East
Operating Trend: Steady
Subject has a workforce of 8 employees.
FINANCIAL
DATA
Financial highlights provided by local sources are given below:
Currency: United Arab Emirates Dirham (UAE Dh)
Year Sales
Year Ending 31/12/15: UAE
Dh 11,620,000
Year Ending 31/12/16: UAE
Dh 11,935,000
Year Ending 31/12/17: UAE
Dh 12,200,000
Local sources consider subject’s financial condition to be Fair.
Note: According to local
Commercial Law, only publicly listed companies are required to publish their
financial information. Financial information on other legal forms can only be obtained
from the companies / businesses directly
BANKERS
Commercial Bank of Dubai
Baniyas Street
Deira
PO Box: 1709
Dubai
Tel: (971-4) 2227121 / 2253222
Fax: (971-4) 2220943 / 2254565
PAYMENT
HISTORY
No complaints regarding subject’s payments have been reported.
GENERAL
COMMENTS
During the course of this investigation the following sources were
consulted:
- Internal database
- Journals, directories,
media & web searches
- Local Registry office
- Interview with Mohamed Sajid, Sales Manager
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.
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.
COUNTRY
OUTLOOK
The
economy continues to experience a slowdown in economic growth as a result of
low oil prices. Real GDP achieved sustained growth of over 6 % per year in recent
decades, with oil surpluses invested into the non-oil economy. In particular,
the country has managed to develop the Dubai financial and real-estate centres,
international airline hubs in Dubai and Abu Dhabi, and sports-tourism in a
number of Emirates as well as light manufacturing and transport and retail
trade services. However, since June 2014, it has been affected by the
plummeting of global oil prices which has resulted in a drop-in hydrocarbon
exports and revenues. While it managed to sustain growth rates of 4.6% in 2014,
growth in 2015 is estimated to have declined to 3.4%.
Fiscal
and external balances are deteriorating and macro-financial risks are
increasing. A drop-in hydrocarbon revenues coupled with expansionary fiscal
policy has pushed the fiscal balance down from a surplus of 10.4% of GDP in
2013 to a 5% surplus in 2014 and to an estimated deficit of -4.3% of GDP by
end-2015. The fiscal deficit of 2015 is the first since the financial crisis of
2009 when the real estate bubble in Dubai burst. The current account surplus
fell from 18.4% of GDP in 2013 to 13.7% of GDP in 2014 and to a mere 0.2% of
GDP by end-2015.
Monetary
policy is tightening, as is liquidity in the banking system. The Central Bank
raised the interest rate on its certificates of deposit by 25 basis points in
December 2015 in response to the United States’ Federal Reserve rate increase.
It is expected to continue mirroring the Fed’s interest rate hikes. At the same
time, reduced government deposits are resulting in reduced liquidity in the
banking sector.
The
growth outlook is one of slow recovery, averaging 2.5 % between 2016 and 2018.
Oil production will increase as a result of investment in oilfield development.
Non-hydrocarbon growth will rise as megaproject implementation ramps up ahead
of Dubai’s hosting of Expo 2020, and as the lifting of sanctions on Iran
translates into increased commerce, trade, and investment between Iran and the
UAE (particularly Dubai). These developments will jointly help to narrow the
current account deficit from an estimated deficit of –1.7% of GDP in 2016 to a
forecasted deficit of -0.2% of GDP in 2018.
Fiscal policy will continue to tighten,
but ensuring fiscal sustainability will require additional policy measures to
cut spending, develop new revenue streams, and manage fiscal risks. The UAE
government has reported that it will
be
implementing a value-added tax (VAT) at the latest by 2018, along with other
GCC countries. It is also considering the introduction of a corporate tax. This
will help improve the fiscal balance. Other consolidation measures are needed,
including a reduction in electricity and water subsidies and a gradual slowdown
in the implementation of GRE’s (Government Related Entities) megaprojects.
Key Economic Indicators 2014 2015 2016* 2017*
Real GDP Growth (%) 4.6
3.4 2.0 2.4
Inflation Rate (%) 2.3
4.1 3.1 3.4
Fiscal Balance (% of GDP) 5.0 -4.3 -5.2 -2.1
Current Account Balance (% of GDP) 13.7 0.2 -1.7 -0.4
* forecast
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 66.02 |
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1 |
INR 92.73 |
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Euro |
1 |
INR 81.46 |
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UAE DH |
1 |
INR 18.03 |
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
·
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.