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MIRA
INFORM REPORT
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Report Date : |
10.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
DUBAI ALUMINIUM
CO LTD (DUBAL) |
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Registered Office : |
Industrial Port
Street, Jebel Ali Free Zone, P O Box 3627, Dubai |
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Country : |
United Arab Emirates |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
1st February 1979 |
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Com. Reg. No.: |
417, Dubai |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Manufacturers of aluminium and desalinised water. Manufacture of aluminium ingots. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
US$ 5,000,000 |
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Status : |
Very Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
SUMMARY
Company Name : DUBAI ALUMINIUM CO LTD (DUBAL)
Country of Origin : Dubai, United Arab Emirates
Legal Form : Limited Liability Company
Start Date : 1st February 1979
Registration Date : 1985
Commercial Registration Number : 417, Dubai
Trade Licence Number : 300191
Membership Number : 4001
Issued Capital : UAE Dh 1,800,000,000
Paid up Capital : UAE Dh 1,800,000,000
Total Workforce : 3,600
Line of Business : Manufacturers of aluminium and desalinised water
Financial Condition : Strong
Payments : Prompt
Operating Trend : Steady
COMPANY NAME
DUBAI ALUMINIUM CO
LTD (DUBAL)
ADDRESS
Registered & Physical Address
Street : Industrial Port Street
Area : Jebel Ali Free Zone
PO Box : 3627
Town : Dubai
Country : United Arab Emirates
Telephone : (971-4) 8846666 / 8846668
Facsimile : (971-4) 8846292 / 8846646
Email : info@dubal.ae
Premises
Subject operates from
a suite of offices and manufacturing facilities on a 480-hectare site that is
rented and located in the Jebel Ali Free Zone.
KEY PRINCIPALS
·
H.H. Sheikh
Hamdan Bin Rashid Al Maktoum Chairman
·
H E Ahmed Humaid
Al Tayer Vice
Chairman
·
Mohamed Abdullah
Al Ghurair Managing
Director
·
Abdullah Salem
Mohamed Al Mana Director
·
Abdul Wahed
Mohamed Al Fahim Director
·
Hilal Khalfan Bin
Dhaher Director
·
Saeed Mohamed
Ahmed Al Tayer Director
· Tariq Hussein Khansahebb Director
·
Abdullah
Kalban Chief
Executive Officer
LEGAL FORM & OWNERS
Date of Establishment :
Subject was originally established on 1st February 1979 under the
name of “Gulf Resources International Trade Centre”. In 1985 the company was
incorporated as a Limited Liability
Company under the new name of “Dubai Aluminium Company Ltd”.
Legal Form :
Limited Liability Company
Commercial Reg. No. : 417, Dubai
Trade Licence No. : 300191
(Expires 1st March 2008)
Membership No. : 4001
Issued Capital : UAE Dh 1,800,000,000
Paid up Capital : UAE Dh 1,800,000,000
Name of Shareholder (s)
Percentage
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Government of
the Emirate of Dubai 100%
LINE OF BUSINESS
Operations : Engaged in the manufacture of aluminium ingots
in purities ranging from 99.7 PCT to 99.9 PCT, extrusion billets, homogenised,
in alloys equivalent to AA6063 and AA6463 in diameters 152mm, 155mm, 178mm,
203mm and 229mm and foundry alloy ingots in A356.2.
In May 1999 DUBAL gained the environmental management standard
ISO 14001 certification for its entire operations following an alignment
process that extended over a three
year period.
Production
Capacity : 861,000 tonnes
of aluminium per year. (2006 figures)
25 million gallons of water per
day.
Export Countries
: Subject exports to over
44 countries worldwide, including Europe, Japan, Taiwan, Thailand, Korea
and the United States of America. Nearly
35% of our total production goes to the Far East, 11% to South-East Asia, 25% to
the Middle East, 20% to Europe and 10% to North America. The number of our
direct customers has gone up from 190 in 1996 to 280 in 2006.
Operating Trend
: Steady
Subject has a
workforce of approximately 3,600 employees.
FINANCIAL HIGHLIGHTS
Financial
highlights provided by outside sources are given below :
Currency : United
Arab Emirates Dirham (UAE Dh)
Year
Ending 31/12/05: Year
Ending 31/12/06:
Total Sales UAE Dh
4,750,000,000 UAE
Dh 5,050,000,000
Local sources
consider subject’s financial condition to be Strong.
BANKERS
·
National Bank
of Dubai Ltd
Baniyas Street Branch
PO Box : 777
Dubai
Tel : (971-4) 2222241
·
Emirates Bank
International Ltd
Baniyas Street Branch
PO Box : 2923
Dubai
Tel : (971-4) 2256256 / 2256900
Fax : (971-4) 2268005 / 2267718
·
Abu
Dhabi Commercial Bank
Al
Rigga Road
PO Box : 5550
Dubai
Tel : (971-4) 2958888 / 3228141
Fax : (971-4) 2959310 / 3279632
PAYMENT HISTORY
Subject’s payment
record is reported to be met in a generally prompt manner.
Date of transaction May 2004 June 2005 June 2007
Credit amount 139,120 167,000 475,000
Amount overdue 0 0 0
Payment terms 30
days 60 days 30 days
Payment Method Letters
of Credit Letters of Credit Letters of Credit
Paying record Prompt Prompt Prompt
Currency Canadian
Dollars Pounds Sterling Pounds Sterling
GENERAL COMMENTS
Opinion on the
credit figure of US$ 150,000:
Subject is a
well-established concern, 100% owned by the Government of the Emirate of Dubai,
deemed trustworthy for respecting all of its financial trade commitments.
Extrusion billets,
a mainstay of the construction industry, account for around half of Dubal’s
output, while foundry alloys, supplied in ingots of various sizes, account for
nearly 45% of the smelter’s production. Dubal is the world’s largest supplier
of foundry alloys to the automobile industry.
The Dubai Aluminium Company (DUBAL) is ranked as the 7th largest global producer in the industry with a current production capacity of 861,000 tonnes per annum by the end of 2006 and the capacity is expected to reach 920,000 tonnes by the end of 2008.
Nothing detrimental
has been heard regarding the manner in which payment obligations are met and
the financial position is considered to be strong. As such the subject is
deemed a fair trade risk and the above credit figure is within subjects
financial means.
Maximum suggested
credit figure: US$ 5,000,000
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%)