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Report Date : |
10.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
STAR CEMENT CO LLC |
|
|
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Registered Office : |
Unit 5004-5005, Al Riqqa Business Centre, 5th Floor, Al
Rigga, Deira, PO Box 81521, Dubai |
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|
|
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Country : |
United Arab Emirates |
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|
|
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Financials (as on) : |
31.12.2012 |
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|
|
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Date of Incorporation : |
23.12.2001 |
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Com. Reg. No.: |
58114, Dubai |
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Legal Form : |
Limited Liability Company |
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|
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Line of Business : |
Producers of cement and gypsum products |
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|
|
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No. of Employees : |
450 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
No complaints |
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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 – March 31st,
2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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 |
UAE - 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 country 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. 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 :
STAR CEMENT CO LLC
Country of Origin :
Dubai, United Arab Emirates
Legal Form :
Limited Liability Company - LLC
Registration Date :
23rd December 2001
Commercial Registration Number :
58114, Dubai
Trade Licence Number :
530909
Chamber Membership Number :
66364
Issued Capital :
UAE Dh 300,000
Paid up Capital :
UAE Dh 300,000
Total Workforce :
450
Activities :
Producers of cement and gypsum products.
Financial Condition :
Fair
Payments :
Nothing detrimental uncovered
Operating Trend :
Steady
Person Interviewed :
Sachin Bangor , Chief Financial Officer
STAR CEMENT CO LLC
Building : Unit
5004-5005, Al Riqqa Business Centre, 5th Floor
Area : Al Rigga,
Deira
PO Box : 81521
Town : Dubai
Country : United Arab
Emirates
Telephone : (971-4) 2609400
Facsimile : (971-4)
2367604
Mobile : (971-50) 7333010
Email : cement@starcement.net / omar.abumuhair@star.adityabirla.com
Please note that subject’s previous address was, Abdullah Ahmad Al
Ghurair Building, Al Muraqqabat Street, Al Muraqqabat, Dubai.
Subject operates from a large suite of offices that are rented and
located in the Central Business Area of Dubai.
Name Nationality Position
· Abdullah Ahmed Al
Ghurair Emirati Managing Director
· C O Promamlka Indian Director
· Ashok Gupta Indian Director
· K C Birla Indian Director
· Ratan Shah Indian Director
· Sanjay Mathour - Chief
Executive Officer
· Sachin Bangor - Chief
Financial Officer
· T V S Chidambaram Technical
Manager
Date of
Establishment : 23rd
December 2001
Legal Form : Limited Liability
Company - LLC
Commercial Reg.
No. : 58114, Dubai
Trade Licence No. : 530909 (Expires 18/12/2013)
Chamber Member No. : 66364
Issued Capital : UAE Dh 300,000
Paid up Capital : UAE Dh 300,000
· Ultra Tech Middle East Cement Ltd 49%
Dubai
· Sun Cements 41%
Dubai
· ETA Cement Trading 10%
Dubai
· Arab Cement
Industry LLC
Abu Dhabi
United Arab
Emirates
· Arabian Gulf
Cement Co WLL
Bahrain
· Arabian Bulk
Terminal Co Ltd
Sudan
· Emirates Cement
Bangladesh Ltd
Bangladesh
· Ajman Cement
Factory LLC
Ajman
Activities:
Engaged as producers of cement and gypsum products, including ordinary
Portland cement, sulphate
resistant cement, moderate
sulphate resistant Portland cement and white cement.
Subject is ISO 9001 and 14001
accredited.
Ultra Tech Cement
said in April 2010 that it would acquire Dubai-based Star Cement Co for an
enterprise value of US$380 million,
giving it direct access to markets in the Middle East and Bangladesh.
Ultra Tech, which is set to become India's
biggest cement producer with 49 million tonnes when it gets regulatory approval
to absorb the cement business of a group firm, said it would have management
control of ETA Star.
It did not specify how much equity it would
buy nor the cost, but said the deal would be funded by a mix of debt and internal accruals.
ETA Star
manufacturing facilities include a 2.3 million tonnes a year clinker plant and
2.1 million tonne grinding plant, both
in the United Arab Emirates, a 0.4-million-tonne grinding plant in Bahrain and
a 0.5-million-tonne grinding plant in Bangladesh.
Ultra Tech said
the transaction was likely to be completed by the end of the June quarter, and
would be accretive to its earnings per share. The
addition of the 3-million tonne capacity would increase revenues by
8-10 billion rupees a year.
It is
understood that management control will come along with Ultra Tech Cement
getting a more than 51% stake in ETA Star Cement. However, details
were not disclosed by the company due to a confidentiality
agreement between the two parties.
Production Capacity: 3.9 million tons per year
Operating Trend: Steady
Subject has a workforce of approximately 450 employees.
Financial highlights provided by local sources are given below:
Currency: United States Dollars (US$)
Year
Ending 31/12/11: Year Ending
31/12/12:
Total Sales US$
4,480,000 US$
5,000,000
Local sources consider subject’s financial condition to be Fair.
The above figures were provided by Mr Sachin Bangor, Chief Financial Officer
·
Emirates National Bank of Dubai
Baniyas Street
PO Box:
777
Dubai
Tel:
(971-4) 2222241
No complaints regarding subject’s payments have been reported.
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.61.92 |
|
UK Pound |
1 |
Rs.99.45 |
|
Euro |
1 |
Rs.83.92 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.