MIRA
INFORM REPORT
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Report Date : |
05.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
PIONEER CEMENT INDUSTRIES LLC |
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Registered Office : |
Al Ghail Area, P O Box : 4714 & 4423, Ras Al Khaimah, |
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Country : |
United Arab Emirates |
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Date of Incorporation : |
23.06.2004 |
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Com. Reg. No.: |
20710, Ras Al Khaimah |
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Legal Form : |
Sharikat Thet Massouliya Mahdoudeh (Limited Liability Company
- LLC) |
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Line of Business : |
Company is Engaged as operators of a cement plant |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
US$ 600,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
SUMMARY
Company Name :
PIONEER CEMENT INDUSTRIES LLC
Country of Origin :
Ras Al Khaimah, United Arab Emirates
Legal Form :
Limited Liability Company - LLC
Registration Date :
23rd June 2004
Commercial Registration Number :
20710, Ras Al Khaimah
Trade License Number :
21377
Membership Number :
65169
Issued Capital :
UAE Dh 150,000,000
Paid up Capital :
UAE Dh 150,000,000
Total Workforce :
350
Line of Business :
Operators of a cement plant.
Financial Condition :
Undetermined
Payments :
Nothing detrimental uncovered
COMPANY NAME
PIONEER CEMENT INDUSTRIES LLC
ADDRESS
Registered & Physical Address
Location : Al Ghail Area
PO Box : 4714 &
4423
Town : Ras Al
Khaimah
Country : United Arab
Emirates
Telephone : (971-7) 2584333
Facsimile : (971-7)
2584222
Email : contact@pioneercements.com
Premises
Subject operates from a large suite of offices and a factory that are
rented and located in the Industrial Area of Ras Al Khaimah.
KEY PRINCIPALS
Dr Khater Massad Chairman
P Prathap Reddy Managing
Director
Ram Mohan Rao Chief
Executive Officer
Subra Manian Production
Manager
LEGAL FORM & OWNERS
Date of Establishment : 23rd
June 2004
Legal Form : Sharikat Thet
Massouliya Mahdoudeh (Limited Liability Company - LLC)
Commercial Reg. No. : 20710, Ras Al
Khaimah
Trade Licence No. : 21377 (Expires 27th
June 2008)
Membership No. : 65169
Issued Capital : UAE Dh
150,000,000
Paid up Capital : UAE Dh 150,000,000
Name of Shareholder (s)
Percentage
RAK Investment Authority (RAKIA) 51%
United Arab Emirates
Penna Cement Industries Ltd 49%
India
Note to the Legal Form
A Limited Liability Company (LLC) is defined in the Company Law as a
company incorporated with not less than
two and not more than fifty shareholders, each responsible only for the
liabilities of the company to the extent of their share participation in the
capital of the company.
The Company Law provides that the capital of a Limited Liability Company
(LLC) should not be less than UAE Dh
300,000, which should be divided into equal shares of a value not less than UAE
Dh 100 each.
This type of company may engage in any form of legitimate business, with
the exception of insurance, banking and investment of funds.
Non UAE Participation
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.
Under this arrangement the above ownership may not reflect the actual
profit distribution within the company, as the company may have internal
management agreements in place that provides full management of the company in
return for a share of the company’s assets and profits. This internal
relationship may or may not be recognised by law depending on the way the
internal agreement is made.
LINE OF BUSINESS
Operations : Engaged as
operators of a cement plant.
Production Capacity : 1 million tonnes per year.
Import Countries : Europe and the
Far East.
Subject has a workforce of approximately 350 employees.
FINANCIAL HIGHLIGHTS
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
National Bank of Ras Al Khaimah
NBRAK Building
PO Box : 5300
Ras Al Khaimah
Tel : (971-7) 2221127
Fax : (971-7) 2224202
PAYMENT HISTORY
No complaints regarding subject’s payments have been reported.
GENERAL COMMENTS
Established in 2004, subject operates a cement plant with an annual
production capacity of 1 million tonnes.
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 business is deemed a fair trade risk.
Maximum suggested credit figure: US$ 600,000
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. |
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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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%)