MIRA INFORM REPORT

 

 

Report Date :

20.03.2013

 

IDENTIFICATION DETAILS

 

Name :

DUBAI ALUMINIUM CO LTD (DUBAL)

 

 

Formerly Known as:

Gulf  Resources International Trade Centre

 

 

Registered Office :

Industrial Port Street, Jebel Ali Free Zone, P O Box 3627, Dubai

 

 

Country :

United Arab Emirates  

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

01.02.1979

 

 

Com. Reg. No.:

417, Dubai

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacturers of aluminium

 

 

No. of Employees :

4000

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

Payment Behaviour :

No  Complaints 

 

 

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

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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


SUMMARY

 

Company Name                                    : DUBAI ALUMINIUM CO LTD (DUBAL)

Country of Origin                                   : Dubai, United Arab Emirates

Legal Form                                           : Limited Liability Company

Registration Date                                  : 1st February 1979

Commercial Registration Number           : 417, Dubai

Trade Licence Number                           : 300191

Chamber Membership Number               : 4001

Issued Capital                                       : UAE Dh 3,000,000,000

Paid up Capital                                     : UAE Dh 3,000,000,000

Total Workforce                                     : 4,000

Activities                                               : Manufacturers of aluminium

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Venod Vijayan , Accountant

 


 

COMPANY NAME

 

DUBAI ALUMINIUM CO LTD (DUBAL)

 

 

Company 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 / 8023449

Facsimile          : (971-4) 8846919 / 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

 

     Name                                                                                               Position

 

·       HH Sheikh Hamdan Bin Rashid Al Maktoum                                       Chairman

 

·       HE 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 Khansaheb                                                                  Director

 

·       Abdullah Kalban                                                                               Chief Executive Officer

 

·       Walid Al Attar                                                                                   Marketing & Sales Manager

 

·       Anopama Sridharan                                                                          Finance Manager

 

·       Venod Vijayan                                                                                  Accountant      

 

 

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

 

Chamber Member No.  : 4001

 

Issued Capital              : UAE Dh 3,000,000,000

 

Paid up Capital            : UAE Dh 3,000,000,000

 

Name of Shareholder (s)                                               Percentage

 

·       Investment Corporation Of Dubai (IDC)                          100%

 

Please note that Investment Corporation of Dubai (IDC) is 100% owned by the Government of Dubai.

 

 

AFFILIATED COMPANIES

 

·       Emirates Aluminium Co Ltd

Dubai

 

·       Companhia de Alumina do Pará

Brazil

 

·       Guinea Alumina Corporation

Republic of Guinea

 

·       Cameroon Alumina Limited

Cameroon

 

·       Raykal

India

 

 

OPERATIONS

 

 

Activities: Subject owns and operates one of the world's largest aluminium smelters. Built on a 480-hectare site in Jebel Ali, the complex's major facilities comprise a one million metric tonne per annum primary aluminium

smelter, a 2,350 megawatt power station (at 30°C), a large carbon plant, casting operations with a

capability of more than 1,161,000 metric tonnes per annum, a 30 million gallon per day seawater

desalination plant, laboratories, port and storage facilities.

 

The Jebel Ali site has the capacity to produce more than one million metric tonnes of high quality finished      aluminium products a year, in three main forms: foundry alloy for automotive applications; extrusion billet for construction, industrial, forging and transportation purposes; and high purity aluminium for the electronics and aerospace industries. More than 300 customers are served in at least 45 countries predominantly in the Far East, Europe, the ASEAN region, the Middle East and Mediterranean region, and North America.

Subject holds ISO 9001, ISO/TS 16949, ISO/IEC 27001, ISO/IEC 20000, ISO 14001 and OHSAS 18001           certification.

 

Export Countries : Subject exports to over 45 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.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 4,000 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: United Arab Emirates Dirham (UAE Dh)

 

                                                Year Ending 31/12/11:               Year Ending 31/12/12:

 

Total Sales                                UAE Dh 9,180,000,000               UAE Dh 9,700,000,000

 

Local sources consider subject’s financial condition to be Good.

 

The above figures were provided by Mr Venod Vijayan, Accountant

 

 

BANKERS

 

·       Emirates National Bank of Dubai Ltd

Baniyas Street Branch

PO Box: 777

Dubai

Tel: (971-4) 2222241

 

·       Abu Dhabi Commercial Bank

Al Rigga Road

PO Box: 5550

Dubai

Tel: (971-4) 2958888 / 3228141

Fax: (971-4) 2959310 / 3279632

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                   June 2005                     June 2007                     June 2008

Amount overdue                        0                                  0                                  0

Payment terms                          60 days                                    30 days                                    60 days

Payment Method                       Letters of Credit                        Letters of Credit                        Letters of Credit

Paying record                           Prompt                         Prompt                         No Complaints

Currency                                   Pounds Sterling                        Pounds Sterling                        Euros

 

 

GENERAL COMMENTS

 

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.

 

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.54.26

UK Pound

1

Rs.81.94

Euro

1

Rs.70.21

 

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

----

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.