3decades

MIRA INFORM REPORT

Report No. :	494124
Report Date :	27.02.2018

IDENTIFICATION DETAILS

Name :	TECHNICAL SUPPLIES & SERVICES CO LLC (TSSC)

Registered Office :	Mohamed Khalifa Bin Habtoor Building, Al Maktoum Hospital Street, Al Rigga, Deira, PO Box: 69, Dubai

Country :	United Arab Emirates

Financials (as on) :	31.12.2017

Date of Incorporation :	1961

Com. Reg. No.:	40214, Dubai

Legal Form :	Limited Liability Company - LLC

Line of Business :	· Subject is engaged in the import, distribution, installation and maintenance of catering and kitchen equipment, laundry equipment, chocolate and coffee making equipment, and refrigeration equipment · Subject also manufactures doors and windows

No. of Employees :	65

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

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

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

United Arab Emirates

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
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.

Source : CIA

SUMMARY

Company Name : TECHNICAL SUPPLIES & SERVICES CO LLC (TSSC)

Country of Origin : Dubai, United Arab Emirates

Legal Form : Limited Liability Company - LLC

Start Date : 1961

Registration Date : 31st January 1968

Commercial Registration Number : 40214, Dubai

Trade Licence Number : 206797

Chamber Membership Number : 336

Issued Capital : UAE Dh 300,000

Paid up Capital : UAE Dh 300,000

Total Workforce : 65

Activities : Import and distribution of air conditioning, laundry,

refrigeration, catering and dry cleaning equipment

Financial Condition : Fair

Payments : No complaints

Operating Trend : Steady

COMPANY NAME

TECHNICAL SUPPLIES & SERVICES CO LLC (TSSC)

ADDRESS

Registered & Physical Address

Building : Mohamed Khalifa Bin Habtoor Building

Street : Al Maktoum Hospital Street

Area : Al Rigga, Deira

PO Box : 69

Town : Dubai

Country : United Arab Emirates

Telephone : (971-4) 2223211

Facsimile : (971-4) 2271659

Mobile : (971-50) 3660047 / 9611233

Email : tssc@emirates.net.ae / info@tsscuae.com

Premises

Subject operates from a medium sized suite of offices that are rented and located in the Central Business Area of Dubai.

Branch Office (s)

Location Description

· Sheikh Majid Building, Ground Floor, Showroom No. 1 Showroom premises

Sheikh Zayed Road, Between Interchanges 1 & 2

Dubai

Tel: (971-4) 3431100

Fax: (971-4) 3438226

· Warehouse No. 12 Workshop & warehouse premises

Plot No. B-690

Al Quoz

Sheikh Zayed Road

Dubai

Tel: (971-4) 3474658

Fax: (971-4) 3472084

· Dubai Investment Park Factory premises

PO Box: 77031

Dubai

Tel: (971-4) 8850474

Fax: (971-4) 8850343

KEY PRINCIPALS

Name Nationality Position

· Basil Kazim Bahar American Managing Director

· Hassan Niaz Ahmed Emirati Director

· Omar Bahar - General Manager

· Robertson Bent - Finance Manager

· Salem Abraha - Sales Manager

LEGAL FORM & OWNERS

Date of Establishment : 1961, however subject was registered on 31^st January 1968

Legal Form : Limited Liability Company - LLC

Commercial Reg. No. : 40214, Dubai

Trade Licence No. : 206797 (Expires 03/05/2018)

Chamber Member No. : 336

Issued Capital : UAE Dh 300,000

Paid up Capital : UAE Dh 300,000

Name of Shareholder (s) Nationality Percentage

· Hassan Niaz Ahmed Emirati 51%

· Basil Kazim Bahar American 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.

AFFILIATED COMPANIES

· Technical Supplies and Services Co Ltd

Industrial Area No. 10

PO Box: 1818

Sharjah

Tel: (971-6) 5341344

Fax: (971-6) 5341686

· Thermostores & Steel Construction Co Ltd

PO Box: 43135

Abu Dhabi

Tel: (971-2) 6768748

Fax: (971-2) 6773726

OPERATIONS

Activities: Engaged in the import, distribution, installation and maintenance of catering and kitchen equipment, laundry equipment, chocolate and coffee making equipment, and refrigeration equipment.

Subject also manufactures doors and windows.

Subjects clients include a large number of hotels, restaurants and private clubs.

Import Countries: Europe and the Far East

Brands: ELRO, EURO GRILL, MERRY CHEF, NAYATI, HUPFER, SUZUMO, SALVIS, FAEMA, ANIMO and MEIKO

Operating Trend: Steady

Subject has a workforce of 65 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 80,500,000

Year Ending 31/12/16: UAE Dh 84,850,000

Year Ending 31/12/17: UAE Dh 89,300,000

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

· Emirates National Bank of Dubai

Baniyas Street

PO Box: 777

Dubai

Tel: (971-4) 2222555

Fax: (971-4) 2221110

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

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

Currency	Unit	Indian Rupees
US Dollar	1	INR 64.66
UK Pound	1	INR 90.65
Euro	1	INR 79.70
UAE Dh	1	INR 17.68

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	NIS

Report Prepared by :	SYL

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
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)

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.