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MIRA INFORM REPORT
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Report No. : |
486774 |
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Report Date : |
24.01.2018 |
IDENTIFICATION DETAILS
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Name : |
S S A GENERAL TRADING CO LLC |
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Registered Office : |
Latifa Tower,
West Wing, Office No. 303, Sheikh Zayed Road, 118123
& 114931 |
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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 : |
28.06.2007 |
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Com. Reg. No.: |
1012014 |
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Legal Form : |
Limited Liability Company - LLC |
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Line of Business : |
Subject is
Engaged in the import and distribution of timber, electronic equipment and
general foodstuffs |
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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 : |
Good |
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Payment Behaviour : |
Regular |
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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 (30.06.2017) |
Current Rating (30.09.2017) |
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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
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Source
: CIA |
SUMMARY
Company Name :
S S A GENERAL TRADING CO LLC
Country of Origin :
Dubai, United Arab Emirates
Legal Form :
Limited Liability Company - LLC
Registration Date :
28th June 2007
Commercial Registration Number :
1012014, Dubai
Trade Licence Number :
596968
Chamber Membership Number :
120621
Issued Capital :
UAE Dh 300,000
Paid up Capital :
UAE Dh 300,000
Total Workforce :
8
Activities :
Distributors of timber, electronic equipment and general foodstuffs.
Financial Condition :
Good
Payments :
Regular
Operating Trend :
Steady
Person Interviewed :
Deepan Shu Kumar Jain, General Manager
COMPANY
NAME
S S A GENERAL
TRADING CO LLC
ADDRESS
Registered & Physical
Address
Building : Latifa Tower, West Wing, Office
No. 303
Street : Sheikh Zayed Road
PO Box : 118123 & 114931
Town : Dubai
Country : United Arab Emirates
Telephone : (971-4) 2347123 / 2340226 / 2281368
Facsimile : (971-4) 2347124 / 2340227
Mobile : (971-50) 6254673 / 9553073 /
(971-56) 7265425
Email : info@ssadubai.com / accounts@ssadubai.com
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
·
Arvind Kumar Jain Indian Managing
Director
·
Abdul Amir Shamsi Emirati Director
·
Deepan Shu Kumar Jain - General
Manager
·
Prem
Agarwal - Financial
Controller
·
Gutam
Mudhabary - Commercial
Manager
·
Vivek
Adhikari - Sales
Executive
LEGAL
FORM & OWNERS
Date of Establishment : 28th
June 2007
Legal Form :
Limited Liability Company -
LLC
Commercial Reg. No. : 1012014, Dubai
Trade Licence No. : 596968 (Expires 19/06/2018)
Chamber Member No. : 120621
Issued Capital : UAE Dh 300,000
Paid up Capital : UAE Dh 300,000
Name of
Shareholder (s) Percentage
·
Abdul Amir Shamsi 51%
·
Arvind Kumar Jain 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
·
Sharda
Technology LLC
PO Box: 114931
Dubai
Tel: (971-4) 2281368
OPERATIONS
Activities: Engaged in the import and distribution of
timber, electronic equipment and general foodstuffs.
Import
Countries: Malaysia and
India
International Suppliers:
·
S K G
Timber India
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Stainless
Steel Impex Ltd India
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L K
Telelinks India
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
756,800,000
Year Ending
31/12/16: UAE Dh
749,200,000
Year Ending
31/12/17: UAE Dh
752,000,000
Local sources
consider subject’s financial condition to be Good.
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
·
Habib
Bank AG Zurich
Baniyas Road
PO Box: 3306
Dubai
Tel: (971-4) 2214535
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Standard
Chartered Bank
Khalid Bin Waleed Street
PO Box: 999
Dubai
Tel: (971-4) 2520455
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Emirates
Islamic Bank
PO Box: 6564
Dubai
Tel: (971-60) 0599995
PAYMENT
HISTORY
Regular
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 Deepan Shu Kumar Jain, General Manager, on 23/01/2018
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 63.77 |
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1 |
INR 89.20 |
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Euro |
1 |
INR 78.22 |
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UAE DH |
1 |
INR 17.33 |
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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VIV |
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Report Prepared
by : |
KET |
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
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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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.