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Report Date : |
20.12.2012 |
IDENTIFICATION DETAILS
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Name : |
PAPER SACKS FACTORY DIVISION OF SHARJAH CEMENT & INDUSTRIAL DEVELOPMENT CO PSC (SCIDC) |
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Registered Office : |
Al Hisn Tower, 14th Floor, Bank Street, PO Box : 2083, Sharjah |
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Country : |
United Arab Emirates |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
12.05.1976 |
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Reg. No.: |
4413 |
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Legal Form : |
Public Shareholding Company |
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Line of Business : |
Subject is engaged in the manufacture of ordinary Portland cement |
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No. of Employees : |
700 |
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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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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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 |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
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 based on oil and gas output to 25%. Since the discovery of oil in the UAE more than 30 years ago, the UAE 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. In April 2004, the UAE signed a Trade and Investment Framework Agreement with Washington and in November 2004 agreed to undertake negotiations toward a Free Trade Agreement with the US, however, those talks have not moved forward. The country's Free Trade Zones - offering 100% foreign ownership and zero taxes - are helping to attract foreign investors. The global financial crisis, 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. The UAE Central Bank and Abu Dhabi-based banks bought the largest shares. In December 2009 Dubai received an additional $10 billion loan from the emirate of Abu Dhabi. The economy is expected to continue a slow rebound. Dependence on oil, a large expatriate workforce, and growing inflation pressures are significant long-term challenges. The UAE''s strategic plan for the next few years focuses on diversification and creating more opportunities for nationals through improved education and increased private sector employment.
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Source : CIA |
Company Name : SHARJAH
CEMENT & INDUSTRIAL DEVELOPMENT CO PSC (SCIDC)
Country of Origin :
Sharjah, United Arab Emirates
Legal Form :
Public Shareholding Company
Registration Date :
12th May 1976
Commercial Registration Number :
4413, Sharjah
Trade Licence Number :
312
Chamber Membership Number :
2461
Issued Capital :
UAE Dh 552,958,000
Paid up Capital :
UAE Dh 552,958,000
Total Workforce :
700
Activities :
Subject operates several divisions (see below for details)
Financial Condition :
Fair
Payments :
Nothing detrimental uncovered
Operating Trend :
Steady
SHARJAH CEMENT & INDUSTRIAL DEVELOPMENT CO PSC (SCIDC)
Registered &
Physical Address
Building : Al Hisn
Tower, 14th Floor
Street : Bank Street
PO Box : 2083
Town : Sharjah
Country : United Arab
Emirates
Telephone : (971-6) 5684681
/ 5686102 / 5686103 / 5695666 / 5311899
Facsimile : (971-6)
5683171
Email : scidcho@emirates.net.ae
Premises
Subject operates from a large suite of offices that are rented and
located in the Central Business Area of Sharjah.
Branch Office (s)
Location Description
Al Roumi & Al Saqabi Building Rented
sales office
Abdullah Al Mubarak Street
Mirqab
PO Box: 23679
Safat 13097
Kuwait
Tel: (965) 22412813 / 22412815
Fax: (965) 22418559
Name Position
Ahmad Abdullah Al Noman Chairman
Mohammad Abdulla Al Khayal Vice
Chairman
Abdulaziz Naser Al Saqabi Director
Obaid Rashed Al Shamsy Director
Abdulaziz Ibrahim Al Faris Director
Obaid Ahmad Al Tenaijy Director
Othman Mohamed Sharif Zaman Director
Jasem Mohamed Abdullah Al Khayal Director
Mohamed Abdulaziz Ibrahim Al Fares Director
P J Batavia General
Manager
S A K Tareen Commercial
Manager
Date of Establishment : 12th
May 1976
Legal Form : Public
Shareholding Company
Commercial Reg. No. : 4413, Sharjah
Trade Licence No. : 312
Chamber Member No. : 2461
Issued Capital : UAE Dh
552,958,000
Paid up Capital : UAE Dh 552,958,000
Name of Shareholder
(s) Percentage
Sharjah Cement & Agricultural Development Co 56.83%
Government of Sharjah 16.26%
Abu Dhabi Cooperative Society 5.04%
Local businessmen and private investors 21.87%
Name Percentage Held
Auto Line Industrial Parks Limited
30.89%
India
Activities: Subject’s operations are performed through the following divisions:
Sharjah Cement Factory
Address: Umm
Al Tarafa Area
PO
Box: 5419
Sharjah
Tel:
(971-6) 5311583 / 5311584 / 5311899
Fax:
(971-6) 5311181 / 5683171
Email:
shjcemnt@emirates.net.ae
Activities: Engaged in the manufacture of ordinary
Portland cement to BS12 and ASTM C-150 Type 1 specification, as well as
sulphate resisting cement to BS 4027 and ASTM C-150 Type V specification
In the last quarter of 2000, subject awarded
two Japanese companies Ishikawajima-Harima Heavy Industries Ltd. and Nissho
Iwai Corp. a US$ 120m turnkey contract to raise the capacity of its plant from
200,000 tonnes per annum (tpa) to 1 million tpa. The work was completed in
mid-2002
Cement Sales Year Sales (metric tonnes)
1996 666,033
1997 653,846
1998 837,041
1999 855,241
2000 700,572
2001 680,457
2002 700,411
2003 965,428
2004 1,380,338
Paper Sacks Factory
Manufacturers of multiwall, glued/pasted valve type empty paper sacks
for packing of cement, fertilizers, chemicals, flavours, sugar, and minerals.
Annual Capacity: 120 million paper sacks
Subject is ISO 9002 certified
Import Countries: Germany and Japan
International Suppliers:
Windmoller & Holscher Germany
Export Countries: Subject exports to all GCC countries, Republic of
Yemen, Sudan, Ethiopia, Reunion, Madagascar, Tanzania, India, Sri Lanka,
Bangladesh, Mauritius, Uganda, and Pakistan.
Operating Trend: Steady
Subject has a workforce of approximately 700 employees.
Financial highlights provided by local sources are given below:
Currency: United Arab Emirates Dirhams (UAE Dh 000’s)
Balance Sheet 31/12/11 31/12/10
Assets
Property, plant and equipment 827,752 873,428
Investment properties 116,989 118,983
Investment in associate 36,322 36,322
Available for sale investments 289,367 339,131
1,270,430 1,367,864
Current assets
Inventories 290,114 260,088
Accounts receivable and
prepayments 175,545 188,147
Trading securities 9,349 19,367
Bank balances and cash 25,684 11,788
500,692 479,390
Total assets 1,771,122 1,847,254
Equity and Liabilities
Capital and reserves
Share capital 552,958 552,958
Statutory reserve 334,091 334,091
General reserve 226,373 226,373
Retained earnings 180,664 227,047
Cumulative changes in fair value 38,942 33,952
Proposed cash dividend - 27,648
Total equity 1,333,028 1,402,069
Non-current liabilities
Term loans - 14,877
Employee’s end of service benefits 18,922 20,291
18,922 35,168
Current liabilities
Accounts payable and accruals 143,099 147,123
Payable against construction of
property,
plant and equipment 9,135 17,821
Bank overdrafts 17,082 20,890
Current portion of term loans 14,796 55,070
Short term loans 235,060 169,113
419,172 410,017
Total liabilities 438,094 445,185
Total equity and liabilities 1,771,122 1,847,254
Income Statement
Sales 586,448 573,599
Cost of sales (560,650) (526,008)
Gross profit 25,798 47,591
General and administration expenses (19,247) (19,421)
Selling and distribution costs (4,223) (3,875)
Finance costs (15,032) (12,503)
Investment income 11,407 19,586
Miscellaneous income 4,022 4,068
Impairment of available for sale investments (49,108) -
Loss (profit) for the year (46,383) 35,446
Local sources consider subject’s financial condition to be Fair.
The above financial figures were released by the subject.
Standard Chartered Bank
Al Boorj Avenue
PO Box: 5
Sharjah
Tel: (971-6) 5357788
Fax: (971-6) 5335500
No complaints regarding subject’s payments have been reported.
Date of transaction November
2005
Credit amount 150,000
Amount overdue 0
Payment terms 60
days
Payment Method Letters
of Credit
Paying record No
Complaints
Currency US
Dollars
Sharjah Cement & Industrial Development Co (SCIDC) was founded in
1976 and operates 2 divisions engaged in the manufacture of cement and paper
sacks. The company enjoys an excellent reputation for the quality of its
products and is a leading concern in the sector.
During the course of this investigation nothing detrimental was
uncovered regarding the manner in which payment obligations are fulfilled. The
operating history is clear and the financial situation is satisfactory. As such
we are of the opinion that the subject is a fair trade risk.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.54.73 |
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|
1 |
Rs.89.02 |
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Euro |
1 |
Rs.72.48 |
INFORMATION DETAILS
|
Report
Prepared by : |
SDA |
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 |
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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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.