MIRA INFORM REPORT

 

 

Report No. :

342122

Report Date :

25.09.2015

 

IDENTIFICATION DETAILS

 

Name :

RAS AL KHAIMAH CEMENT COMPANY

 

 

Registered Office :

Ras Al Khaimah Cement Building, Al Shaem Street, Khor Khwair, Mina Saqr Area, PO Box 2499, Ras Al Khaimah

 

 

Country :

United Arab Emirates

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

27.05.1995

 

 

Legal Form :

Public Shareholding Company

 

 

Line of Business :

Engaged in the production and marketing of grey and white cement, ordinary Portland cement and other construction materials.

 

 

No. of Employees :

150

 

 

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

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

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 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

SUMMARY

 

Company Name                                    : RAS AL KHAIMAH CEMENT COMPANY

Country of Origin                                   : Ras Al Khaimah, United Arab Emirates

Legal Form                                           : Public Shareholding Company

Registration Date                                  : 27th May 1995

Issued Capital                                       : UAE Dh 484,000,000

Paid up Capital                                     : UAE Dh 484,000,000

Total Workforce                                     : 150

Activities                                               : Producers of cement and other construction materials.

Financial Condition                                : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

 

COMPANY NAME

 

RAS AL KHAIMAH CEMENT COMPANY

 

 

ADDRESS

 

Registered & Physical Address

 

Building            : Ras Al Khaimah Cement Building

Street               : Al Shaem Street

Area                 : Khor Khwair, Mina Saqr Area

PO Box            : 2499

Town                : Ras Al Khaimah

Country             : United Arab Emirates

Telephone         : (971-7) 2660111

Facsimile          : (971-7) 2660044 / 2550234 / 2660006

Email                : rakcc@emirates.net.ae / rakcc@rakcc.ae

 

Premises

 

Subject operates from a large suite of offices, a warehouse and a factory that are owned and located in the Industrial Area of Ras Al Khaimah.

 

 

KEY PRINCIPALS

 

Name                                                                                       Position

 

Dr Abdulrahman S Al Sharhan                                                    Chairman

 

Khalifa Yousif Abdullah Khouri                                                   Vice Chairman

 

Ali Hussain Ali Al Sadaa                                                            Director

 

Jamal Salem Bin Darwish Al Nuaimi                                            Director

 

Saje Thomas                                                                             Director

 

Bernard A Munair                                                                       General Manager

 

Jose Soraggi                                                                            Commercial Manager

 

Tunkut Soydan                                                                          Marketing Manager

 

Michael Richardson                                                                   Financial Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 27th May 1995

 

Legal Form                  : Public Shareholding Company

 

Issued Capital              : UAE Dh 484,000,000

 

Paid up Capital            : UAE Dh 484,000,000

 

Name of Shareholder (s)                                                                    Percentage

 

Shimeera Financial Investment LLC                                                         19.91%

 

Chimera Investment LLC                                                                        18.78%

 

Ali H A Al Sada                                                                                     9.11%

 

Mohamed Abdulaziz Rabie Shaheen Al Muhairi                                       8.35%

 

Amer Abdul Jalil Mohamed Abdul Rahim Al Fahim                                    5.84%

 

Emirati businessmen and private investors                                             38.01%

 

 

AFFILIATED COMPANIES

 

Name                                                                              Percentage Held

 

Reem Ready Mix LLC                                                                20%

Abu Dhabi

 

 

OPERATIONS

 

Activities: Engaged in the production and marketing of grey and white cement, ordinary Portland cement and other construction materials.

 

Production Capacity: 902,177 metric tons of clinker per year

                                   932,279 metric tons of cement per year

 

Import Countries: Germany, Spain, Italy and the United Kingdom.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 150 employees.

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: United Arab Emirates Dirham (UAE Dh)

 

Balance Sheet                                                                                                31/12/14                      31/12/13

 

 

 

Income Statement

 

Revenue

 

231,964,359

219,918,568

Costs of revenue

 

(203,577,806)

(198,704,546)

Gross profit

                            28,386,553

21,214,022

Other income

 

1,814,609

345,456

Marketing expenses

 

(1,319,286)

(1,309,515)

Administrative expenses

 

(16,289,017)

(13,774,060)

Finance costs

 

(415,998)

(402,627)

Finance income

 

496,673

1,131,096

Share in profit in an associate

 

1,501,747

672,636

PROFIT FOR THE YEAR

                            14,175,281

              7,877,008

 

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

 

 

BANKERS

 

National Bank of Ras Al Khaimah

NBRAK Building

PO Box: 5300

Ras Al Khaimah

Tel: (971-7) 2221127

Fax: (971-7) 2224202

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Established in 1995, subject is involved in the production and marketing of various types of cement and construction materials.

 

The company enjoys a good reputation for the quality of its products and it is partly owned by the Ras Al Khaimah government, deemed trustworthy for respecting its financial trade commitments.

 

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.66.10

UK Pound

1

Rs.100.89

Euro

1

Rs.73.96

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 

               

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.