MIRA INFORM REPORT

 

 

Report No. :

509236

Report Date :

18.05.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

MOHSEN LINE GENERAL TRADING LLC

 

 

Registered Office :

Twin Towers, 16th Floor, Office No. 1601 Baniyas Street Deira PO Box 35151 & 182466 Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2017

 

 

Date of Incorporation :

02.03.2005

 

 

Com. Reg. No.:

72629

 

 

Legal Form :

Limited Liability Company - LLC

 

 

Line of Business :

Subject is engaged in the import and distribution of general foodstuff products, including rice, tea, sugar, corn oil, canned pineapple, canned olives, and tomato paste.

 

 

No. of Employees :

20

 

 

 

 

 

 

RATING & COMMENTS

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

 

MIRA’s Rating :

A

 

Credit Rating

Explanation

Rating Comments

A

Acceptable Risk

Business dealings permissible with moderate risk of default

 

Maximum Credit Limit :

US$ 150,000

 

 

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.

 

 

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                                    : MOHSEN LINE GENERAL TRADING LLC

Country of Origin                                   : Dubai, United Arab Emirates

Legal Form                                           : Limited Liability Company - LLC

Registration Date                                  : 2nd March 2005

Commercial Registration Number           : 72629, Dubai

Trade Licence Number                           : 566481

Chamber Membership Number               : 95159

Issued Capital                                       : UAE Dh 600,000

Paid up Capital                                     : UAE Dh 600,000

Total Workforce                                                : 20

Activities                                               : Distributors of general foodstuff products

Financial Condition                                : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Recommended Credit Limit                    : US$ 150,000

Person Interviewed                                : M S Harline, Accountant

 

 

 

COMPANY NAME

 

MOHSEN LINE GENERAL TRADING LLC

 

 

ADDRESS

 

Registered & Physical Address

 

Building                        : Twin Towers, 16th Floor, Office No. 1601

Street               : Baniyas Street

Area                 : Deira

 

PO Box                        : 35151 & 182466

 

Town                : Dubai

Country             : United Arab Emirates

 

Telephone         : (971-4) 2288499

Facsimile          : (971-4) 2288733

Mobile              : (971-50) 4641279 / 6567373

Email                : mohsengt@emirates.net.ae / info@mohsen.ae

 

Please note that subject’s previous address was, United Arab Agencies Building, Al Rigga, Deira, Dubai.

 

Premises

 

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

 

 

KEY PRINCIPALS

 

     Name                                                                       Nationality                     Position

 

·       Ahmed Mohsen Sarrafan Chaharsoughi                     Iranian                           Managing Director

 

·       Mohamed Mohsen Sarrafan Chaharsoughi                 Iranian                           Director

 

·       Ali Mohsen Sarrafan Chaharsoughi                            Iranian                           Director

 

·       Abdulaziz Abdullah Mohamed Abdullah Ahli               Emirati                          Director

 

·       Azizullah Kuladari                                                            -                             Commercial Manager

 

·       Abbas Ibrahim                                                                -                             Financial Controller

 

·       M S Harline                                                                    -                             Accountant

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 2nd March 2005

 

Legal Form                  : Limited Liability Company - LLC

 

Commercial Reg. No.   : 72629, Dubai

 

Trade Licence No.        : 566481 (Expires 01/03/2019)

 

Chamber Member No.  : 95159

 

Issued Capital              : UAE Dh 600,000

 

Paid up Capital            : UAE Dh 600,000

 

Name of Shareholder (s)                                     Percentage

 

·       Abdulaziz Abdullah Mohamed Abdullah Ahli                    51%

 

·       Ahmed Mohsen Sarrafan Chaharsoughi                          17%

 

·       Mohamed Mohsen Sarrafan Chaharsoughi                      16%

 

·       Ali Mohsen Sarrafan Chaharsoughi                                 16%

 

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 general foodstuff products, including rice, tea, sugar, corn oil,

                  canned pineapple, canned olives, and tomato paste.

 

Import Countries: India, Pakistan, Sri Lanka, Spain, Thailand, & Greece

 

International Suppliers:

 

·       Akbar Brothers         Sri Lanka

·       Silan Fresh Tea         Sri Lanka

 

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 12,600,000                  

 

Year Ending 31/12/16:                           UAE Dh 13,250,000                  

 

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

 

·       Bank Saderat Iran

Al Maktoum

PO Box: 4182

Dubai

Tel: (971-4) 2221161

 

·       Emirates National Bank of Dubai

Baniyas Street

       PO Box: 777

       Dubai

       Tel: (971-4) 2222241

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

 

Established in 2005, subject is involved in the import and distribution of general foodstuff products, including rice, tea and sugar.

 

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

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 67.72

UK Pound

1

INR 91.65

Euro

1

INR 79.89

UAE DH

1

INR 18.52

 

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

NIS

 

 

Report Prepared by :

TRU

                                                


 

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)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.