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MIRA INFORM REPORT
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Report No. : |
501349 |
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Report Date : |
05.04.2018 |
IDENTIFICATION DETAILS
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Name : |
UNION CEMENT COMPANY PSC |
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Registered Office : |
United Cement Building, Al Rams Road, Khor Khwair Industrial Area, PO
Box 170, Ras Al Khaimah |
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Country : |
United Arab Emirates |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
01.01.1972 |
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Legal Form : |
Public Shareholding Company |
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Line of Business : |
Subject Engaged in the production of all types of cement and clinker |
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No. of Employees : |
580 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January
2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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United Arab Emirates |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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 from the oil and gas sector to 30%.
Since the discovery of oil in the UAE nearly 60 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 2008-09, 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 Government that was refinanced in March 2014.
The UAE’s dependence on oil is a significant long-term challenge, although the UAE is one of the most diversified countries in the Gulf Cooperation Council. Low oil prices have prompted the UAE to cut expenditures, including on some social programs, but the UAE has sufficient assets in its sovereign investment funds to cover its deficits. The government reduced fuel subsidies in August 2015, and has announced plans to introduce excise and value-added taxes by January 1, 2018. The UAE's strategic plan for the next few years focuses on economic diversification, promoting the UAE as a global trade and tourism hub, developing industry, and creating more job opportunities for nationals through improved education and increased private sector employment.
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Source
: CIA |
SUMMARY
Company Name :
UNION CEMENT COMPANY PSC
Country of Origin :
Ras Al Khaimah, United Arab Emirates
Legal Form :
Public Shareholding Company
Registration Date :
1st January 1972
Issued Capital :
UAE Dh 669,438,000
Paid up Capital :
UAE Dh 669,438,000
Total Workforce :
580
Activities :
Producers of cement and clinker
Financial Condition :
Good
Payments :
Regular
Operating Trend :
Steady
COMPANY
NAME
UNION CEMENT COMPANY PSC
ADDRESS
Registered & Physical Address
Building : United Cement
Building
Street : Al Rams Road
Area : Khor Khwair
Industrial Area
PO Box : 170
Town : Ras Al Khaimah
Country : United Arab
Emirates
Telephone : (971-7) 2668166
Facsimile : (971-7)
2668635
Email : uccrak@emirates.net.ae / unccrak@eim.ae
Premises
Subject operates from a large suite of offices and a factory that are
owned and located in the Industrial Area of Ras Al Khaimah.
KEY
PRINCIPALS
Name Position
Sheikh Omar Saqr Bin Khalid Humaid Al Qassimi Chairman
Sheikh Ramy Bin Khaled Al Qassimi Vice
Chairman
Musabah Khamees Al Mazrouie Director
Abdullah Bin Abdullah Mohammed Al Qassimi Director
Yousef Ali Mohammed Ghuloom Al Balooshi Director
Sreenath Savoor Director
Manoj Kumar Gandhi Director
Abdullah Sayah Chief Executive
Officer
Hamed Khalfan Hamed Al Marri General Manager
Emad Radwan Finance Manager
Faisal Al Kas Commercial Manager
LEGAL
FORM & OWNERS
Date of Establishment : 1st
January 1972
Legal Form : Public
Shareholding Company
Issued Capital : UAE Dh
669,438,000
Paid up Capital : UAE Dh 669,438,000
Name of Shareholder (s) Percentage
Government of Ras Al Khaimah 40.84%
Sheikh Khalid Abdullah Mohamed Salim Al Qassimi 22.91%
Abu Dhabi Investment Authority 20.35%
Local businessmen and private investors 15.90%
AFFILIATED
COMPANIES
Name Percentage Held
Union Cement Norcem Company Ltd LLC 60%
RAK Energy LLC 38%
OPERATIONS
Activities: Engaged in the production of all types of cement and clinker.
Production Capacity: 2.1 million tonnes of cement per year.
2.3 million tonnes of clinker per
year.
Operating Trend: Steady
Subject has a workforce of approximately 580 employees.
FINANCIAL
DATA
Financial highlights provided by local sources are given below:
Currency: United Arab Emirates Dirham (UAE Dh 000’s)
Balance Sheet 31/12/17 31/12/16 31/12/15
Property, plant and equipment 712,985 761,716 807,710
Investment in an associate 71,491 73,975 89,597
Trade receivables 3,148 4,110 4,110
Total non-current assets 787,624 839,801 901,417
Inventories 152,536 119,221 125,447
Trade receivables 153,193 134,587 126,299
Due from a related party 37,789 37,120 29,635
Cash 239,964 230,015 186,034
Total current assets 583,482 520,943 467,415
Total assets 1,371,106 1,360,744 1,368,832
Share capital 669,438 669,438 669,438
Reserves 390,964 372,390 357,286
Cumulative changes in fair value (95,537) (93,053) (77,431)
Retained earnings 277,393 279,984 302,694
Net shareholders’ equity 1,242,258 1,228,759 1,251,987
Non-controlled interest 1,500 1,500 2,707
Total equity 1,243,758 1,230,259 1,254,694
End of service benefits 11,407 12,189 11,797
Trade and other payables 115,941 118,296 102,341
Total liabilities 127,348 130,485 114,138
Total equity and liabilities 1,371,106 1,360,744 1,368,832
Consolidated Income Statement
Revenue 599,878 563,446 640,472
Cost of sales (474,425) (440,792) (480,267)
Gross profit 125,453 122,654 160,205
Selling, general and administrative expenses (51,728) (50,303) (65,084)
Reversal of allowance of spare parts and
other inventories 12,922 - -
Investment income 7,765 9,171 7,611
Other income 8,772 2,879 968
Finance costs - - (29)
Profit for the year 103,184 84,401 103,671
Local sources consider subject’s financial condition to be Good.
BANKERS
National Bank of Ras Al Khaimah
NBRAK Building
Oman Street
Al Nakheel
PO Box: 5300
Ras Al Khaimah
Tel: (971-7) 2221127
Fax: (971-7) 2224202
National Bank of Abu Dhabi
Sheikh Khalifa Street
PO Box: 4
Abu Dhabi
Tel: (971-2) 6345777 / 6327113 / 6335262
Fax: (971-2) 6336078
ANZ Grindlays Bank Plc
United Kingdom
PAYMENT
HISTORY
Regular
GENERAL
COMMENTS
The subject and its shareholders/owners have been searched in the following
databases; Office of Foreign Assets Control (OFAC), United Nations Security
Council Sanctions, Australian Sanctions List, US Consolidated Sanctions List,
EU Financial Sanctions List and UK Financial Sanctions List and nothing adverse
could be found on the exact names listed within the report.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.02 |
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1 |
INR 91.49 |
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Euro |
1 |
INR 79.79 |
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UAE DH |
1 |
INR 17.69 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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VIV |
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Report Prepared
by : |
KET |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
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Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.