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MIRA INFORM REPORT
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Report No. : |
500068 |
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Report Date : |
30.03.2018 |
IDENTIFICATION DETAILS
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Name : |
LALS RETAIL LLC |
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Registered Office : |
Plot No. S20125, Road S-216, Jebel Ali Free Zone South, PO Box 74926, Dubai |
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Country : |
United Arab Emirates |
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Date of Incorporation : |
06.12.1981 |
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Legal Form : |
Limited Liability Company – LLC |
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Line of Business : |
Subject is engaged in the wholesale and retail of readymade garments, footwear
and other general merchandise. |
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No. of Employees : |
300 |
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 :
LALS RETAIL LLC
Country of Origin :
Dubai, United Arab Emirates
Legal Form :
Limited Liability Company - LLC
Registration Date :
6th December 1981
Trade Licence Number :
204135
Chamber Membership Number :
8719
Issued Capital :
UAE Dh 1,000,000
Paid up Capital :
UAE Dh 1,000,000
Total Workforce :
300
Activities :
Wholesalers and retailers of readymade garments, footwear and other
general merchandise
Financial Condition :
Undetermined
Payments :
No Complaints
COMPANY
NAME
LALS RETAIL LLC
ADDRESS
Registered &
Physical Address
Location : Plot No.
S20125, Road S-216, Jebel Ali Free Zone South
PO Box :
74926
Town : Dubai
Country : United Arab Emirates
Telephone : (971-4) 8133822
/ 8133777 / 3213000
Facsimile : (971-4)
8133888
Mobile : (971-50)
1396665
Email : algroup@emirates.net.ae
Premises
Subject operates from a large suite of offices that are rented and
located in the Central Business Area of Dubai.
Branch Office (s)
Location Description
PO Box: 11096 Showroom
premises
Tel: (971-4) 2821555
Dubai
Plot 262-3104 Showroom
premises
Dubai
Tel: (971-4) 8133777
Fax: (971-4) 8133888
Plot 124959 Showroom
premises
Dubai
Tel: (971-4) 3213000
Fax: (971-4) 3213222
Plot 1241085 Showroom
premises
Dubai
Dubai Showroom
premises
Tel: (971-4) 2325920
Fax: (971-4) 2325921
Plot 373-917 Showroom
premises
Dubai
Plot 129-171 Showroom
premises
Dubai
Plot 2623104 Showroom
premises
Dubai
Plot 317-893 Showroom
premises
Dubai
Plot 319-134 Showroom
premises
Dubai
Plot 345-897 Showroom
premises
Dubai
Plot 319-260 Showroom
premises
Dubai
KEY
PRINCIPALS
Name Nationality Position
Mohamed Issa Mohamed Al Samt Emirati Managing
Director
Kumar Indian Director
LEGAL
FORM & OWNERS
Date of Establishment : 6th
December 1981
Legal Form : Limited Liability
Company - LLC
Trade Licence No. : 204135 (Expires
05/12/2018)
Chamber Member No. : 8719
Issued Capital : UAE Dh 1,000,000
Paid up Capital : UAE Dh 1,000,000
Name of Shareholder
(s) Nationality Percentage Holding
Mohamed Issa Mohamed Al Samt Emirati 51%
Lals International Limited FZCO Emirati
29%
Kumar Indian 20%
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 wholesale and retail of readymade garments, footwear and
other general merchandise.
Import Countries: Europe and the Far East
Subject has a workforce of 300 employees.
FINANCIAL
DATA
Companies registered in Dubai, United Arab Emirates are not legally
required to make their accounts public and no financial information was
released by the company or submitted by outside sources.
BANKERS
Citibank
Khalid Bin Waleed Street
Bur Dubai
PO Box: 749
Dubai
Tel: (971-4) 2522100
Fax: (971-4) 2524942
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.
Local sources report that the subject’s operating history is clear with
payment obligations met in a generally timely manner. The financial position is
satisfactory and the company is deemed 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 65.04 |
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1 |
INR 92.28 |
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Euro |
1 |
INR 80.62 |
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UAE Dh |
1 |
INR 17.71 |
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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VAR |
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Report Prepared
by : |
TPT |
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.