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MIRA INFORM REPORT
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Report No. : |
495282 |
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Report Date : |
07.03.2018 |
IDENTIFICATION DETAILS
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Name : |
KARAMAN VETERINARY MEDICINES CO LLC |
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Registered Office : |
Abraj Al Mamzar Building, Office No. 607, 6th
Floor, Block A, Al Mamzar Area, Po box -19948 |
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Country : |
United Arab Emirate |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
03.05.1995 |
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Com. Reg. No.: |
44821 |
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Legal Form : |
Limited Liability Company - LLC |
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Line of Business : |
Engaged in the import and distribution of veterinary medicines,
equipment and apparatus, including veterinary medicines & equipments such
as anti-infective, anti-inflammatory & pain killers, skin care
preparations, mastitis, animal hygiene & prevention products, vitamins,
nutritional supplements, parasiticides, anthalmentics, livestock vaccines,
wild animal-health care products, bio security programs,water soluble
antibiotics, poultry vaccines, enzymes, toxin binders, mould inhibitors,
anticoccidials, pet healthcare products & pet animal vaccines |
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No. of Employees : |
20 |
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 Emirate |
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
EMIRATE - 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 :
KARAMAN VETERINARY MEDICINES CO LLC
Country of Origin :
Dubai, United Arab Emirates
Legal Form :
Limited Liability Company - LLC
Registration Date :
3rd May 1995
Commercial Registration Number :
44821, Dubai
Trade Licence Number :
237739
Chamber Membership Number :
33943
Issued Capital :
UAE Dh 300,000
Paid up Capital :
UAE Dh 300,000
Total Workforce :
20
Activities :
Import and distribution of veterinary medicines, equipment
and apparatus
Financial Condition :
Fair
Payments :
No Complaints
Operating Trend :
Steady
COMPANY
NAME
KARAMAN VETERINARY MEDICINES CO
LLC
ADDRESS
Registered & Physical Address
Building : Abraj Al Mamzar Building, Office No. 607, 6th Floor, Block A
Area : Al Mamzar Area
PO Box :
19948
Town : Dubai
Country : United Arab Emirates
Telephone : (971-4) 2632885
Facsimile : (971-4) 2632359
Mobile : (971-50) 6452704
Email : kvmedco@emirates.net.ae / kvmedco1@gmail.com
Please note that the subject’s previous address was, Ghedair Saeed
Ghedair Building, Al Qusais Street, Al Qusais Industrial Area, Dubai.
Premises
Subject operates from a small suite of offices and a warehouse that are
rented and located in the Industrial Area of Dubai.
Branch Office (s)
Location Description
Al Ain Sales Office
Tel: (971-3) 7660620
Al Wathba Market Sales
Office
Abu Dhabi
Tel: (971-52) 9952433
KEY
PRINCIPALS
Name Nationality Position
Dr Ali Abdullah Ali Arab Emirati Managing Director
Farid Mahrous Abdul Majeed Ibrahim Deeyab Egyptian Director
Ali Ashgar - General
Manager
Sami Bedha - Commercial
Manager
Dr Ahmed Najdi - Abu
Dhabi Branch Manager
Sankit Desai - Finance
Manager
LEGAL
FORM & OWNERS
Date of Establishment : 3rd
May 1995
Legal Form : Limited Liability
Company - LLC
Commercial Reg. No. : 44821, Dubai
Trade Licence No. : 237739 (Expires
01/05/2018)
Chamber Member No. : 33943
Issued Capital : UAE Dh 300,000
Paid up Capital : UAE Dh 300,000
Name of Shareholder (s) Percentage
Dr Ali Abdullah Ali Arab 76%
Farid Mahrous Abdul Majeed Ibrahim Deeyab 24%
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
Al Hajjan General Trading Est
Ghedair Saeed Ghedair
Building
Al Qusais Street
Al Qusais Area
PO Box: 19948
Dubai
Tel: (971-4) 2632885 /
3452745
Fax: (971-4) 2632359 /
3452746
Email: kvmedco@emirates.net.ae
Al Mashreq Veterinary Medicines Est
PO Box: 59121
Al Ain
Tel: (971-3) 7660620
Fax: (971-3) 7660690
OPERATIONS
Activities: Engaged in the import and distribution of veterinary medicines,
equipment and apparatus, including
veterinary medicines & equipments such as anti-infective,
anti-inflammatory & pain killers, skin care preparations, mastitis, animal
hygiene & prevention products, vitamins, nutritional supplements,
parasiticides, anthalmentics, livestock vaccines, wild animal-health care
products, bio security programs,water soluble antibiotics, poultry vaccines,
enzymes, toxin binders, mould inhibitors, anticoccidials, pet healthcare
products & pet animal vaccines.
Import Countries: Canada, Australia, New Zealand, Germany, Belgium,
Austria, Netherlands, France, Norway,
Switzerland, United Kingdom,
and Brazil
International Suppliers:
Richter Pharma AG Austria
Eurovet Animal Health BV Netherlands
Farvet Netherlands
Pfizer Animal Health SA France
Alpharma AS Norway
Essex Chemie AG Switzerland
Antec International Ltd United
Kingdom
MSD Animal Health United Kingdom
Jaapharm Canada Inc Canada
Hi Form Australia Australia
Phibro Saude Animal International Ltd Brazil
VMD Belgium
Jovet Jordan
Pfizer Animal
Health (Zoetis) United
States of America
Clients:
Abu Dhabi Food
Control Authority
Al Rawabi Dairy
Farms
Al Ain Dairy Farms
Dubai Municipality
Operating Trend: Steady
Subject has a workforce of 20 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 11,400,000
Year Ending 31/12/16: UAE
Dh 12,220,000
Year Ending 31/12/17: UAE
Dh 14,000,000
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
Dubai Islamic Bank
PO Box: 1080
Dubai
Tel: (971-4) 2953000
Fax: (971-4) 2954111
PAYMENT
HISTORY
No complaints regarding subject’s payments have been reported.
Date of transaction June
2004 August 2005 August 2007
Credit amount 409,320 243,000 40,000
Amount overdue 0 0 0
Payment terms 90
days 120
days 120 days
Payment Method Letters
of Credit Letters
of Credit Letters
of Credit
Paying record No
Complaints No Complaints No Complaints
Currency Canadian
Dollars Pounds Sterling Pounds Sterling
GENERAL
COMMENTS
During the course of this investigation the following sources were
consulted:
- Internal database
- Journals, directories, media
& web searches
- Local Registry office
Please note that the correct name of the subject is “Karaman Veterinary
Medicines Co LLC” and not “Karaman Vet Medicines Co LLC”.
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 64.99 |
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1 |
INR 89.91 |
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Euro |
1 |
INR 80.21 |
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UAE DH |
1 |
INR 17.67 |
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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PRA |
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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
·
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.