MIRA INFORM REPORT

 

 

Report No. :

315212

Report Date :

01.04.2015

 

IDENTIFICATION DETAILS

 

Name :

DUBAI CABLE CO (PVT) LTD (DUCAB)

 

 

Registered Office :

Sheikh Zayed Road, Jebel Ali Free Zone, 11529, Dubai

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

12.08.1989

 

 

Com. Reg. No.:

18111

 

 

Legal Form :

Private Joint Stock Company

 

 

Line of Business :

Engaged in the manufacture of low and medium voltage copper cables, as well as electrical circuit protection cables, cables and accessories, and electrical fittings.

 

 

No of Employees :

550

 

 

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 :

Regular

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

UAE

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

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

 


SUMMARY

 

Company Name                                    : DUBAI CABLE CO (PVT) LTD (DUCAB)

Country of Origin                                   : Dubai, United Arab Emirates

Legal Form                                           : Private Joint Stock Company

Start Date                                             : 1979

Registration Date                                  : 12th August 1989

Commercial Registration Number           : 18111, Dubai

Trade Licence Number                           : 220211

Chamber Membership Number               : 6428

Issued Capital                                       : UAE Dh 25,000,000

Paid up Capital                                     : UAE Dh 25,000,000

Total Workforce                                     : 550

Activities                                               : Manufacturers of electrical cables and wiring.

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Manoharan Raghavan  , Human Resources Manager


Company name

 

DUBAI CABLE CO (PVT) LTD (DUCAB)

 

 

company ADDRESS

 

Registered & Physical Address

 

Street               : Sheikh Zayed Road

Area                 : Jebel Ali Free Zone

 

PO Box            : 11529

 

Town                : Dubai

Country             : United Arab Emirates

 

Telephone         : (971-4) 8082500 / 8158888 / 8081533

Facsimile          : (971-4) 8082511 / 8158111 / 8081544

Email                : ducab@ducab.ae / manoharan.raghavan@ducab.com

 

Premises

 

Subject operates from a suite of offices and a factory on a site covering 590,000 square metres that is leased and located in the Jebel Ali Free Zone.

 

Branch Office (s)

 

     Location                                                                                          Description

 

·       Mohamed Saeed Hareb Building                                                       Office premises

Al Ittihad Road

Port Saeed

PO Box: 683

Dubai

Tel: (971-4) 2667400

Fax: (971-4) 2668955

 

·       PO Box: 9171                                                                                   Office & factory premises

Mussafah 1 Factory

Abu Dhabi

Tel: (971-2) 5027777

Fax: (971-2) 5027755

 

·       PO Box: 9171                                                                                   Office & factory premises

Mussafah 1 Factory

Abu Dhabi

Tel: (971-2) 5500774

Fax: (971-2) 5500979

 

·       PO Box: 3542                                                                                   Office premises

Ruwi 112

Muscat

Oman

Tel: (968) 24565178

Fax: (968) 24564302

 

·       PO Box: 14039                                                                                 Office premises

Doha

Qatar

Tel: (974) 44421924

Fax: (974) 44419003

 

·       Prince Mohammad Bin Fahad Road                                                   Office premises

Dammam 31482

Saudi Arabia

Tel: (966-13) 8355305

Fax: (966-13) 8355307

 

 

KEY PRINCIPALS

 

     Name                                                           Nationality                    Position

 

·       Dr Jamal Salem Al Daheri                                 -                               Chairman

 

·       Ahmed Bin Hassan Al Shaikh                            -                               Vice Chairman

 

·       Andrew Shaw                                               British                           Managing Director

 

·       Jonathan Vail                                                   -                               Technical Manager

 

·       Arif Choksy                                                      -                               Finance Manager

 

·       Graham Cheetam                                              -                               Manufacturing Manager

 

·       Ali Al Shamsi                                                    -                               Financial Planning Manager

 

·       Ali Asghar                                                        -                               Finance Manager

 

·       Mohamed Yousef Ali Ahmed                             -                               Purchasing Manager

 

·       Ashish Chattervedi                                            -                               Marketing Manager

 

·       Duraid Hamad                                                  -                               Export Manager

 

·       Manoharan Raghavan                                       -                               Human Resources Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : Subject's operations date back to 1979, however it was registered on 12th August 1989.

 

History                         : Ducab was set up in 1979 as a joint venture with the Dubai Government holding

  60% and BICC Cables of the United Kingdom 40%. On 17th June 1997, an

  agreement was signed in Abu Dhabi under which General Industries Corp (GIC)

  acquired a 35 per cent stake. Dubai's shareholding was diluted to 35 per cent

  and BICC's to 30 per cent. BICC was subsequently taken over by Balfour

  Beatty who withdrew from the company after assigning its shares to the current owners.

 

Legal Form                  : Private Joint Stock Company

 

Commercial Reg. No.   : 18111, Dubai

 

Trade Licence No.        : 220211

 

Chamber Member No.  : 6428

 

Issued Capital              : UAE Dh 25,000,000

 

Paid up Capital            : UAE Dh 25,000,000

 

Name of Shareholder (s)                                        Percentage

 

·       Investment Corporation of Dubai (ICD)                      50%

Dubai

 

·       General Holding Corporation (GHC)                           50%

Abu Dhabi

 

 

AFFILIATED COMPANIES

 

·       Arkan Building Materials Co

Abu Dhabi

 

·       Al Khaznah Tannery 

Abu Dhabi

 

·       Agthia

Abu Dhabi

 

·       Abu Dhabi Basic Industries Corporation (ADBIC)

Abu Dhabi

 

·       National Petroleum Construction Company (NPCC)

Abu Dhabi

 

·       Royal Jet LLC

Abu Dhabi

 

·       Al Foah Company

Abu Dhabi

 

·       Emirates Steel Industries (ESI)

Abu Dhabi

 

·       DAMCO Abu Dhabi LLC

Abu Dhabi

 

·       National Petroleum Construction Company Ltd (NPCC)

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of low and medium voltage copper cables, as well as electrical circuit protection cables, cables and accessories, and electrical fittings. The company supplies such well known clients as the Ministry of Electricity & Water in the UAE, Kuwait Oil Co and Bahrain Petroleum Company.

 

In April 2002, Dubai Cable Company Pvt Ltd. (Ducab), announced that it has been awarded a contract worth UAE Dh 16 million by the Federal Electricity and Water Authority (FEWA). The contract entails the supply of 300km of 33kV cables to FEWA.

 

In October 2004, Ducab was awarded an annual supply contract for the year 2005 with the UAE Federal     Electricity and Water Authority (FEWA), worth AED 36 million. The contract calls for supplying the Authority with 33 kV single core cables for its expanding power grid network in the Northern Emirates. The contract will see Ducab supply 450 kilometres of single core copper, 500 square millimetre cables within 2005.

 

In March 2005, subject inaugurated a new production plant located in Abu Dhabi. It will have a production     capacity of 25,000 copper tonnes. The new plant is Ducab’s biggest investment since its inception and was      built as part of Ducab’s corporate strategy of tripling its business to UAE Dh 2 billion by 2010.

 

Subject added a high quality copper rod to its production line in 2008.

 

Subject has provided the cable solutions for the following projects, Bahrain F1 International Circuit, Burj Dubai, Abu Dhabi Grand Mosque, Dubai International Airport, Abu Dhabi Emirates Palace Hotel, Bahrain City Centre, Bahrain Financial Towers, Burj Al Arab, Palm Jumeirah and Dubai Metro.

 

In June 2009 subject was voted as a UAE “Superbrand” for branding excellence.

 

Subject is ISO 9001:2000, ISO 14001 and OHSAS 18001 accredited.

 

Production Capacity : 110,000 tonnes per year.

 

Import Countries: Europe, the Far East and the United States of America.

 

International Suppliers:

 

·       ABB

·       Siemens

·       Bahrain Petroleum Company

·       National Iranian Oil Company

·       Qatar Petroleum

·       Saudi Aramco

·       Abu Dhabi Distribution Company

·       Dubai Municipality

·       Saudi Electric Company

·       Hyundai Engineering

·       Chiyoda Technip

·       Toshiba

·       Bechtel

·       Snamprogetti Spa

·       Dodsal

 

Brand Names: DUCAB and POWERPLUS

 

Export Countries: Singapore, Hong Kong, China, Egypt, Indonesia, Malaysia and the United Kingdom, Iran, India, Jordan and Tanzania.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 550 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: United Arab Emirates Dirham (UAE Dh)

 

                                                Year Ending 31/12/13:              Year Ending 31/12/14:

 

Total Sales                                UAE Dh 5,800,000,000               UAE Dh 6,220,000,000

 

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

 

The above financial figures are based on estimations by our local sources.

 

 

BANKERS

 

·       Commercial Bank of Dubai

Baniyas Street

Deira

PO Box: 1709

Dubai

Tel: (971-4) 2227121 / 2253222

     Fax: (971-4) 2220943 / 2254565

 

·       HSBC Bank Middle East

Deira Souk Branch

     PO Box: 66

     Dubai

     Tel: (971-4) 2535000

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Dubai Cable Co (Pvt) Ltd (Ducab) is jointly owned by the Dubai and Abu Dhabi governments and specialises in the manufacture of electrical cables and wiring. The company enjoys an excellent reputation for the quality of its products and is a leading concern in its field.

 

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. 62.59

UK Pound

1

Rs. 92.45

Euro

1

Rs. 67.51

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

DPT

 

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.