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Report No. : |
337912 |
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Report Date : |
25.08.2015 |
IDENTIFICATION DETAILS
|
Name : |
RAS AL KHAIMAH
CERAMICS CO PJSC |
|
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|
|
Registered Office : |
Ras Al Khaimah Dubai Highway, Km 20, P O Box: 4714, Ras Al Khaimah |
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|
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Country : |
United Arab Emirates |
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|
|
|
Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
26.03.1989 |
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|
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Com. Reg. No.: |
8425, Ras Al
Khaimah |
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Legal Form : |
Public Joint Stock Company |
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Line of Business : |
Manufacture of ceramic floor and wall tiles, Gres Porcellanato (porcelain / vitrified tiles) and sanitary ware products. |
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No. of Employees : |
8,000 |
RATING & COMMENTS
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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 |
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|
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|
Payment Behaviour : |
Regular |
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|
|
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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 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
United Arab Emirates |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
|
Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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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 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. The country's free
trade zones - offering 100% foreign ownership and zero taxes - are helping to
attract foreign investors. The global financial crisis of 2008, 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
and ultimately a $20 billion bailout from the UAE Central Bank and Abu
Dhabi-emirate government that was refinanced in March 2014. 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 economic diversification and creating more job opportunities for nationals
through improved education and increased private sector employment.
|
Source
: CIA |
Company Name : RAS AL KHAIMAH
CERAMICS CO PJSC
Doing Business As : RAK CERAMICS
Country of Origin : Ras Al
Khaimah, United Arab Emirates
Legal Form :
Public Joint Stock 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
817,523,000
Paid up Capital : UAE Dh
817,523,000
Total Workforce :
8,000
Activities :
Manufacturers of ceramic floor and wall tiles.
Financial Condition : Good
Payments :
Regular
Operating Trend : Steady
RAS AL KHAIMAH
CERAMICS CO PJSC
RAK CERAMICS
Location : Ras Al Khaimah Dubai Highway, Km 20
PO Box : 4714
Town : Ras Al Khaimah
Country : United Arab Emirates
Telephone : (971-7) 2445046 / 2467505
Facsimile : (971-7) 2445270 / 2446157
Mobile : (971-55) 1028912
Email : rakceram@emirates.net.ae / mktgservices@rakceram.com
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
·
Shirish
Saraf Vice
Chairman
·
Sheikh
Ahmad Bin Humaid Al Qassimi Director
·
Sheikh
Kayed Bin Omar Bin Saqr Al Qassimi Director
·
Ramesh
Venkataraman Director
·
Khaled
Abdullah Yousef Abdulla Aal Abdulla Director
·
Khalid
Ali Saif Al Yahmadi Director
·
Abdallah
Massaad Chief
Executive Officer
·
Pramod
Kumar Chand Chief
Financial Officer
·
Shakti
Arora Chief
Procurement Officer
·
M P
Nair Commercial
Manager
·
M Manoj Finance
Manger
·
Maher
Al Safadi Administration
Manager
·
Luca
Filipetta Human
Resources 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 Joint Stock Company.
Legal Form :
Public Joint Stock Company
Commercial Reg. No. : 8425, Ras Al
Khaimah
Trade Licence No. : 7
Chamber Member No. : 17705
Issued Capital : UAE Dh 817,523,000
Paid up Capital : UAE Dh 817,523,000
·
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%
United Arab Emirates
·
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
·
RAK
Bathware Pty Limited 100%
Australia
·
Acacia
Hotels LLC 100%
United Arab Emirates
·
RAK
Ceramics Holding LLC 100%
United Arab Emirates
·
Ceramin
FZC LLC 100%
United Arab Emirates
·
Prestige
Tiles Pty Limited 95.00%
Australia
·
RAK
Ceramics India Private Limited 90.00%
India
·
RAK
Ceramics PJSC Limited 80.00%
Iran
·
RAK
Ceramics Bangladesh Limited 72.41%
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 8,000 employees.
Financial
highlights provided by local sources are given below:
Currency: United
Arab Emirates Dirham (UAE Dh 000’s)
Consolidated Balance Sheet 31/12/2014 31/12/2013
Assets
Non-current assets
Property, plant and
equipment 1,180,605 1,117,412
Capital work in
progress 73,268 51,568
Goodwill 50,356 50,356
Intangible assets
19,391 20,459
Investment
properties 1,113,879 222,164
Investments in
equity accounted investees 151,276 214,329
Long term
receivables from related parties - 205,162
Deferred tax
asset 268 2,678
2,589,043 1,884,128
Current assets
Inventories 1,139,391 1,115,693
Trade and other
receivables 1,170,055 1,110,656
Contract
work-in-progress 28,598 82,304
Due from related
parties 292,797 965,420
Derivative
financial instruments 29 1,265
Cash in hand and
at bank 448,346 499,518
Assets held for
sale 331,616 20,312
3,410,832 3,795,168
Total assets 5,999,875
5,679,296
Equity and liabilities
Equity
Share capital 817,523 743,202
Reserves 1,990,785 1,730,260
Equity attributable to owners of the Company 2,808,308 2,473,462
Non-controlling
interests 226,505 165,973
Total equity 3,034,813
2,639,435
Non-current liabilities
Long-term bank
loans 770,388 914,791
Provision for
employees’ end of service benefits 78,864 77,939
Deferred tax
liabilities 8,755 7,440
858,007 1,000,170
Current liabilities
Short-term bank
borrowings 1,099,182 909,342
Trade and other
payables 806,915 980,150
Billings in
excess of valuation 3,316 2,330
Provision for
taxation 103,135 87,260
Due to related
parties 63,697 59,109
Liabilities held
for sale 30,810 1,500
2,107,055 2,039,691
Total liabilities 2,965,062
3,039,861
Total equity and liabilities 5,999,875
5,679,296
Consolidated Income Statement
Revenue 3,124,527 3,348,838
Cost of sales (2,315,490) (2,449,972)
Gross profit 809,037
898,866
Administrative
and general expenses (242,400) (250,881)
Selling and
distribution expenses (326,708) (371,126)
Other income 69,022 59,857
Profit /(loss) on
net monetary position 10,524 (659)
Results from operating activities 319,475
336,057
Finance expense (87,190) (92,682)
Finance income 17,250 26,130
Share in profit
of equity accounted investees 38,008 30,619
Gain on disposal
of subsidiary 11,093 -
Loss on disposal
of equity accounted investees (6,812) -
Gain on
settlement of related party balances 59,082 -
Profit before tax from continuing operations 350,906 300,124
Tax expense (23,381) (19,336)
Profit from continuing operations 327,525
280,788
Discontinued operations
Loss from
discontinued operations (45,826) (8,504)
Profit for the year 281,699
272,284
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
Regular
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.66.51 |
|
|
1 |
Rs.104.01 |
|
Euro |
1 |
Rs.76.27 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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|
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Report Prepared
by : |
NIT |
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.