MIRA
INFORM REPORT
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Report Date : |
19.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
RAK CERAMICS INDIA PRIVATE LIMITED |
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Registered Office : |
C/o Price Waterhouse Coopers, 4th Floor, 6-3-550,
Somjiguda, Hyderabad-500082, Andhra Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
09-01-2004 |
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Com. Reg. No.: |
01-42401 |
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CIN No.: [Company
Identification No.] |
U26919AP2004PTC042401 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDR02125E |
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PAN No.: [Permanent
Account No.] |
AACCR6424N |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturers of Polished, Unpolished and Glazed Ceramic Wall and
Floor Tiles, slabs, Gres Procellanato and Sanitary Ware. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 1200000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track. Directors are reported as experienced and respectable businessmen.
Trade relations are reported as fair. Business is active. Payments are
usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
C/o Price Waterhouse Coopers, 4th Floor, 6-3-550,
Somjiguda, Hyderabad-500082, Andhra Pradesh, India |
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E-Mail : |
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Website : |
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Administrative Office : |
H No.69-18-3, Road No.1, Plot No.27, Lalitha Nagar, Galgalapadu,
Kakinada-533004, Andhra Pradesh, India |
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Factory 1 : |
Ida Pedapuram, Adb Road, Samikot-533440, East Godavari District,
Andhra Pradesh, India |
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Tel. No.: |
91-884-5588334 |
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Fax No.: |
91-884-2356570 |
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E-Mail : |
DIRECTORS
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Name : |
Dr. Khater Massaad |
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Designation : |
Director |
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Address : |
P O Box 4714, Ras Al Khaimah, United Arab, Emirates |
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Date of Birth/Age : |
17.06.1953 |
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Date of Appointment : |
09.01.2004 |
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Name : |
Mr. Hamad Abdallah Al Mutawa |
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Designation : |
Director |
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Address : |
P O 4714, Ras Al Khaimah, United Arab, Emirates |
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Date of Birth/Age : |
30.12.1946 |
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Date of Appointment : |
09.01.2004 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
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Mr. R A K Ceramics |
9999 |
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Al Hamra Real Estate Development LLC |
1 |
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Total |
10000 |
All the shares are held by directors or their relatives.
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Polished, Unpolished and Glazed Ceramic Wall and Floor
Tiles, slabs, Gres Procellanato and Sanitary Ware. |
GENERAL
INFORMATION
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Bankers : |
ABN Amro N.V. 6-3-248/1/1A, Banjara Hill, Road No.1, Hyderabad-500034, Andhra
Pradesh, India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Price Waterhouse Chartered Accountants |
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Address : |
6-3-550, 2nd Floor, L B Bhavan, Somajiguda,
Hyderabad-500082, Andhra Pradesh, India |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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45000000 |
Equity Shares |
Rs.10/- each |
Rs.450.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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24497493 |
Equity Shares |
Rs.10/- each |
Rs.244.975
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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244.975 |
0.100 |
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2] Share Application Money |
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62.642 |
64.577 |
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3] Reserves & Surplus |
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0.000 |
0.000 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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307.617 |
64.677 |
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LOAN FUNDS |
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1] Secured Loans |
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999.012 |
218.600 |
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2] Unsecured Loans |
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1274.727 |
880.856 |
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TOTAL BORROWING |
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2273.739 |
1099.456 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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2581.356 |
1164.133 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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77.057 |
48.619 |
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Capital work-in-progress |
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2049.766 |
514.880 |
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INVESTMENT |
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0.000 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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236.383 |
0.000 |
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Sundry Debtors |
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0.000 |
0.000 |
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Cash & Bank Balances |
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119.966 |
177.159 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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106.407 |
495.160 |
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Total
Current Assets |
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462.756 |
672.319 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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236.735 |
102.868 |
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Provisions |
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0.031 |
0.025 |
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Total
Current Liabilities |
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236.766 |
102.893 |
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Net Current Assets |
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225.990 |
569.426 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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Expenditure during Construction period |
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228.543 |
31.208 |
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TOTAL |
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2581.356 |
1164.133 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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NA |
NA |
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Net Profit Margin (PBT/Sales) |
(%) |
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NA |
NA |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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NA |
NA |
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Return on Investment (ROI) (PBT/Networth) |
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NA |
NA |
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Debt Equity Ratio (Total Liability/Networth) |
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8.16 |
18.59 |
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Current Ratio (Current Asset/Current Liability) |
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1.95 |
6.53 |
LOCAL AGENCY
FURTHER INFORMATION
Form 8 Particular for creation or modification of charges
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Corporation identity number or foreign company registrations number of the company |
U26919AP2004PTC042401 |
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Name of the company |
RAK CERAMICS INDIA PRIVATE LIMITED |
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Address |
C/o Price Waterhouse Coopers, 4th Floor, 6-3-550,
Somjiguda, Hyderabad-500082, Andhra Pradesh |
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This Form is for |
Creation of charge |
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Type of Charges |
Book debts Floating charge |
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Particular of the charge holder |
ABN Amro N.V. 6-3-248/1/1A, Banjara Hill, Road No.1, Hyderabad-500034, Andhra
Pradesh, India |
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Nature or description of the instrument creating charge |
Facility cum Hypothecation agreement |
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Date of the instrument creating charge |
01.12.2006 |
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Amount Secure by the charge |
Rs.200.000 millions |
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Brief of the principal terms and conditions and extent and operation of the charge |
Rate of interest Overdraft-Interest – At Bank Prime Lending Rate (Presently 12.75% p.a.) Less 2.75% p.a. i.e. 10.00% p.a. Short Term Prime Lending Rate Loans (STPLR) – Interest – AT negotiated rate. Letter of credit (LC)/Bank Guarantee (BG) – Standard Tariff. These rates are subject to change at the discretion of the Bank without prior intimation to the Borrower. Terms of repayment Overdraft – Repayable on demand Short Term Prime Lending Rate Loans – Maximum 12 months Letter of Credit – Validity / Usance – Max.180 days each Bank Guarantee – Max.12 months including claim period. Margin 25%. These can be change at the discretion of the bank. Extent and operation of the charge Hypothecation by way of pari passu charge on stocks and book debts of the company. |
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Particulars of the Property charged |
Hypothecation by way of pari passu charge on stocks and book debts of the company. |
Website Details :
Incorporated in 1989, Subject within a short span of over ten years firmly
established itself as one of the world's leading producers of high quality
Ceramic wall & floor tiles, Gres Porcellanato, and Sanitary ware.
The company is located 20 km. south of
Ras Al Khaimah city along the highway to Dubai and is an hour drive from the
Dubai airport.
Subject went public in 1998 and received an overwhelming response from the
general public who showed immense confidence in the company. With a total
investment capital of over US $ 250 million, the company opted for a long-term
policy; to produce quality products, to be a respectable partner and to keep
its clients satisfied.
R.A.K Ceramics' drive for excellence and an insatiable appetite for quality and
customer satisfaction were accredited with the ISO 9001 certification by CICS (Ceramic
Industry Certification Scheme), UK in 1997 At present, the company's products
are being exported to more than 135 countries across five continents. Subject
started its operations with one production line in June 1991 with an output of
5000 sq.m. per day. With continued expansion programs and usage of
sophisticated machinery from the world leaders in Ceramic technology such as
Sacmi, Barbieri & Tarrozzi. R.A.K Ceramics, UAE, presently is engaged in
the production of 200,000 sq.m. per day of Ceramic / Gres Porcellanato tiles.
Moreover, two presses and three kilns are being used exclusively to produce
special items like decors, Listellos, skirting, etc.
Headquarters at Ras Al Khaimah
The Sanitary ware factories between them produce 7,000 pieces of quality
products per day, including complete bathroom sets with water closets, wash
basins, bidets, bathtubs, shower trays, and all related accessories in a wide
range of colors and designs. The factories are equipped with five kilns,
including one kiln dedicated exclusively for decoration. The company has also
added the Robot Spraying Machine to give the pieces an even finish.
An Extremely Comprehensive Product Line
Subject offers one of the most comprehensive product lines in the ceramic tile
industry, all manufactured by the company. The Company produces one of the
industry's largest offerings of colors, textures and finishes as well as an
extensive array of coordinating trim and angle pieces.
In the Ceramic range, the company produces ceramic wall tiles, ceramic
floor tiles, matching decor tiles, listellos, and pencils & cappings and a
few other related items.
In Gres Porcellanato (porcelain / vitrified tiles), the company produces
thousands of models in soluble salt ,salt & pepper and glazed, covering
finishes such as polished, semi polished, unpolished , rustic, stone, mosaic,
travertino, etc. Some unique patterns and finishes are acquired through new
technologies such as roto printing, double charge, Granitech ,advanced MDR,
technoslate, twin press, glazed before pressing & dry glaze . Some unique
"antique style" finishes in tiles have been possible due to advanced
gresporcellanto technology. The company manufactures the largest slabs in the
industry with sizes ranging up to 125cm x 185 cm (2 cm thick).
Water jet cutting technology also facilitates unique water jet designs
and diamonds cutting machine tools help make beautiful vanity tops from gres
porcellanato slabs. The tiles are manufactured in very wide range of sizes.
In Sanitary ware various models are produced in wash basins (mounted as
well as pedestals), water closets
(WC), bidets, bathroom sets, bath tubs, shower trays, kitchen sinks, bathroom
cabinets ,accessories and decorated sets.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.41.67 |
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UK Pound |
1 |
Rs.83.41 |
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Euro |
1 |
Rs.56.61 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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45 |
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 and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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