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Report Date : |
07.03.2013 |
IDENTIFICATION DETAILS
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Name : |
RAS AL KHAIMAH CERAMICS CO PSC |
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Registered Office : |
Ras Al Khaimah
Dubai Highway, Km 20, P O Box 4714, Ras Al Khaimah |
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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 : |
26.03.1989 |
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Com. Reg. No.: |
8425, Ras Al Khaimah |
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Legal Form : |
Public Shareholding Company |
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Line of Business : |
Manufacturers of ceramic floor and wall tiles |
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No. of Employees : |
2000 |
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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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
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
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.
|
Source : CIA |
Company Name : RAS AL KHAIMAH CERAMICS CO PSC
Doing Business As : RAK CERAMICS
Country of Origin : Ras Al Khaimah, United Arab Emirates
Legal Form : Public Shareholding Company
Registration Date : 26th March 1989
Commercial Registration Number : 8425, Ras Al Khaimah
Trade Licence Number : 7
Chamber Membership Number : 17705
Issued Capital : UAE Dh 743,202,000
Paid up Capital : UAE Dh 743,202,000
Total Workforce : 2,000
Activities : Manufacturers of ceramic floor and wall tiles.
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
RAS AL KHAIMAH
CERAMICS CO PSC
RAK CERAMICS
Registered &
Physical Address
Location : Ras Al Khaimah Dubai Highway, Km
20
PO Box : 4714
Town : Ras Al Khaimah
Country : United Arab Emirates
Telephone : (971-7) 2445046
Facsimile : (971-7) 2445270
Email : rakceram@emirates.net.ae / mktgservices@rakceram.com
Premises
Subject operates
from a suite of offices, a factory, warehouse and a showroom, covering
1,500,000 square metres that are owned and located in the Industrial Area of
Ras Al Khaimah.
Branch Office (s)
Location Description
·
Salahuddin
Street Rented
showroom premises
Dubai
Tel: (971-4) 2623569
Fax: (971-4) 2683944
·
King
Faisal Street Rented
showroom premises
Sharjah
Tel: (971-6) 5338236
Fax: (971-6) 5328675
·
Madinat
Zayed Rented
showroom premises
Abu Dhabi
Tel: (971-2) 6314893
Fax: (971-2) 6317454
Name Position
·
Sheikh
Mohammad Bin Saud Al Qassimi Chairman
·
Dr
Khater Massaad Managing
Director
·
Sheikh Ahmad
Bin Humaid Al Qassimi Director
·
Hamad
Abd Allah Al Muttawa Director
·
Dr
Mohammad Abdullatif Director
·
Khaled
Abdullah Yousef Director
·
M P
Nair Commercial
Manager
·
M Manoj Finance
Manger
·
Maher
Al Safadi Personnel
& Administration Manager
·
Vincent
Raj Accounts
Manager
·
Fredric
Diras Sales
Manager
Date of Establishment : 26th
March 1989
History : Subject was established in 1989 as a Limited
Liability Company under the name of “Ras Al Khaimah Ceramics Ltd”. Production
at subject’s manufacturing facilities began in June 1991.
In 1998, subject was transformed into its
current status of a Public Shareholding Company.
Legal Form :
Public Shareholding Company
Commercial Reg. No. : 8425, Ras Al
Khaimah
Trade Licence No. : 7
Chamber Member No. : 17705
Issued Capital : UAE Dh 743,202,000
Paid up Capital : UAE Dh 743,202,000
Name of Shareholder
(s) Percentage
·
Sheikh
Mohammad Bin Saud Al Qassimi 20.00%
·
Emirates
Rocks & Marble Co 20.00%
·
Government
of Ras Al Khaimah 4.97%
·
Ras Al
Khaimah Poultry & Feeding Co ]
PO Box: 184 ]
Ras Al Khaimah ]
Tel: (971-7) 2462222 ] 55.03%
]
·
Members
of the general public and private investors ]
numbering approximately 400 in total.
Name Percentage Held
·
Al
Jazeera Utility Services LLC 100%
·
RAK
Ceramics 100%
Abu Dhabi
·
RAK
(Gao Yao) Ceramics Co Ltd 100%
China
·
Ceramic
Ras Al Khaimah Sudanese Investment Co
Ltd 100%
Sudan
·
Elegance
Ceramics LLC 100%
United Arab Emirates
·
Prestige
Tiles Pty Limited 100%
Australia
·
RAK
Bathware Pty Limited 100%
Australia
·
Acacia
Hotels LLC 100%
United Arab Emirates
·
RAK
Ceramics Holding LLC 100%
United Arab Emirates
·
RAK
Ceramics India Private Limited 90.00%
India
·
RAK
Ceramics PJSC Limited 80.00%
Iran
·
RAK
Ceramics Bangladesh Limited 72.59%
Bangladesh
·
Electro
RAK LLC 51.04%
United Arab Emirates
Activities: Engaged in the manufacture of ceramic floor
and wall tiles, Gres Porcellanato (porcelain / vitrified tiles) and sanitary
ware products.
RAK Ceramics started its operations with one production line in June 1991 with an output of 8,500 square metres per day. It presently has 18 production lines, 14 kilns and 16 large presses engaged in the production of 200,000 square metres per day of ceramic and gres porcellanato tiles.
The sanitary wares factory produces 5,000 pieces of quality
products per day, including complete bathroom sets with water closets,
washbasins, bidets, bathtubs, shower trays, and all related accessories in a
wide range of colours and designs. The factory is equipped with 5 kilns,
including one kiln dedicated exclusively for decoration. The company has also
added the Robot Spraying Machine to give the pieces an
even finish.
Subject has started its new plant that is exclusively dedicated to the
production of Gres Porcellanato. The company has installed the world’s largest
hydraulic press – PH 7200 to produce gres porcellanato tiles, of all sizes
including slabs of up to 120 x 180 cm with 15-20 mm thickness. The plant is
equipped with 2 spray dryers, computerised granulation plant, moveable silos,
and double feeding system on presses, to produce any type of gres porcellanato
tiles. All the production lines are fully equipped with the latest rotomatrix
colour decoration machines to give the tiles a fine and natural print. The
plant has six polishing and smoothing lines and is able to process 80% of the
company’s output.
Subject is in the process of commissioning a new ceramic
plant in Bangladesh and has started construction on new headquarters that will
be located at the current plant. It will include
a large showroom and ultramodern offices. The new premises will cover office
space of over 1,000 square metres, plus showroom space of over 1,500 square
metres incorporating three conference rooms.
In mid January 2002, RAK Ceramics' 7th tile factory was commissioned, which will produce 10 x 10 cm (glued tiles), 15 x 15 and 20 x 20 cm high tech granite tiles at a capacity of 2000 m2 per day, making the total production capacity to 112,000 m2 per day.
In December 2002, subject commissioned its 8th tile factory. The new
plant has a capacity of 30,000 sq.m. ceramic wall and floor tiles per in sizes
20x30 ,25x33,33x33,40x40 and 50x50 cm sizes. It has 4 presses' & 2 kilns,
and a host of cutting edge ceramic technologies.
One of RAK Ceramics' more recent projects is the plan to install a US$100 million power station with a view to covering its electrical power needs. The station's capacity will be 120MW. This follows conclusion of an agreement between Ras Al Khaimah Gas Organization and Dolphin Power under which Dolphin will sell supplies of natural gas to the Emirate as of March 2005.
Subject was accredited with the ISO 9001 certification by CICS (Ceramic Industry Certification Scheme), UK in 1997.
The company also received the Arabian Business Company 2004 Award and the Mohammed Bin Rashid Al Maktoum Business Award for Industry in 2005.
Subject has produced tiles for the Askabat Mosque in Turkmenistan,
Wonderland Amusement Park & Resort
in Nigeria and Siam Paragon Shopping Centre in Thailand.
Import
Countries:
Italy, France, the United Kingdom and Spain.
Export
Countries : The
company’s products are being exported to more than 150 countries across 5
continents. The sales breakdown by area
for 2000 was as follows:
- GCC 33%
- UAE 27%
-
Europe 15%
- Asia 11%
- America 6%
- Africa 6%
- Australia 2%
Operating Trend: Steady
Subject has a
workforce of approximately 2,000 employees.
Financial
highlights provided by local sources are given below:
Currency: United
Arab Emirates Dirham (UAE Dh 000’s)
Consolidated Balance Sheet 31/12/2011
31/12/2010
Assets
Non-current assets
Property, plant and
equipment 1,234,592 1,538,284
Intangible assets 7,932 7,848
Investment property 153,221 40,132
Investments in
equity accounted investees 665,061 523,295
Deferred tax assets 792 516
Total non-current
assets 2,061,598 2,110,075
Current assets
Inventories 1,118,983 1,065,426
Accounts receivable 1,240,632 1,290,511
Contract work in
progress 53,559 35,351
Due from related
parties 867,413 812,903
Investments at air
value through profit and loss 145 309
Cash 340,422 592,829
Assets held for
sale 42,860 44,581
Total current
assets 3,664,014 3,841,910
Total assets 5,725,612 5,951,985
Shareholders’
equity and liabilities
Shareholders’
equity
Share capital 743,202 675,639
Reserves 1,338,461 1,341,334
Equity attributable
to owners of the company 2,081,663 2,016,973
Non controlling
interest 155,612 190,546
Total equity 2,237,275 2,207,519
Non-current
liabilities
Long term bank
borrowings 911,744 954,967
Staff terminal
benefits 62,197 48,444
Deferred tax
liabilities 9,033 23,228
Total non-current
liabilities 982,974 1,026,639
Current liabilities
Short term loans
& overdrafts 1,255,400 1,252,088
Accounts payable 1,117,949 1,219,678
Provisions 50,899 42,659
Due to related
parties 73,574 183,008
Derivative
financial instruments 6,132 18,985
Liabilities held
for sale 1,409 1,409
Total current
liabilities 2,505,363 2,717,827
Total liabilities 3,488,337 3,744,466
Total equity and
liabilities 5,725,612 5,951,985
Consolidated Income Statement
Revenue 3,336,757
3,336,722
Cost of sales (2,553,166)
(2,505,873)
Gross profit 783,591
830,849
Other income 67,843
50,388
Administrative
and general expenses (318,775)
(184,587)
Selling and
distribution expenses (336,212)
(291,986)
Results from
operating activities 196,447
404,664
Finance costs (157,190)
(154,068)
Finance income 27,337
27,101
Share in profit
of equity accounted investees 156,961
68,021
Profit before
income tax 223,555
345,718
Income tax
expense (1,150)
(31,542)
Profit for the year 222,405
314,176
Local sources
consider subject’s financial condition to be Good.
·
Mashreq
Bank Plc
Al Nakheel Branch
Ras Al Khaimah
Tel: (971-7) 2221695
Fax: (971-7) 2221880
·
National
Bank of Ras Al Khaimah
NBRAK Building
PO Box: 5300
Ras Al Khaimah
Tel: (971-7) 2221127
Fax: (971-7) 2224202
No complaints
regarding subject’s payments have been reported.
Ras Al Khaimah Ceramics
Co PSC was incorporated in 1989 and has fast established itself as one of the
world’s leading producers of high quality ceramic wall & floor tiles, gres
porcellanato, and sanitaryware. It has a product range that covers 4,000 models
and exports its products to over 125 countries around the world.
Local
correspondents found no detrimental payment history and the subject refused to
divulge any information concerning their payments to suppliers.
During the course
of this investigation nothing detrimental was uncovered regarding subject’s
operating history or the manner in which payments are fulfilled. As such the
company is considered to be a fair trade risk.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.71 |
|
UK Pound |
1 |
Rs.82.79 |
|
Euro |
1 |
Rs.71.43 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
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NB |
New Business |
---- |
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.