|
|
|
MIRA INFORM REPORT
|
Report No. : |
488442 |
|
Report Date : |
02.02.2018 |
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) : |
31.12.2016 |
|
|
|
|
Date of Incorporation : |
27.05.1995 |
|
|
|
|
Legal Form : |
Public Shareholding Company |
|
|
|
|
Line of Business : |
Subject is 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 Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A |
|
Credit Rating |
Explanation |
Rating Comments |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
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
|
Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
|
United Arab Emirates |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
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. 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.
|
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 559,020,000
Paid up Capital :
UAE Dh 559,020,000
Total Workforce :
150
Activities :
Producers of cement and other construction materials.
Financial Condition :
Fair
Payments :
Regular
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
/ shamma@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
Jamal Salem Bin Darwish Al Nuaimi Director
Saje Thomas Director
Ahmed Ali Anoon Al Nuaimi 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
559,020,000
Paid up Capital : UAE Dh 559,020,000
Name of
Shareholder (s) Percentage
Chimera Investment LLC 18.78%
Ali Hussain A Al Sada 17.92%
Abdulaziz Rabee Shaheen Al Muhairi 12.15%
Emirati businessmen and private investors 51.15%
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 31/12/16 31/12/15
Assets
Non-current assets
Property, plant and equipment 387,563,112 405,216,304
Intangible assets 1,403,438 1,464,598
Investment in a associate 46,553,984 53,684,922
Investments carried at fair value through other income 50,095,263 48,099,182
Due from an associate 1,399,800 -
Total non-current assets 487,015,597 508,465,006
Current assets
Inventories 72,421,232 64,216,904
Due from an associate 7,597,100 9,423,407
Trade and other receivables 65,865,700 57,530,465
Bank balances and cash 2,321,402 35,222,809
Total current assets 148,205,434 166,393,585
Total assets 635,221,031 674,858,591
Equity and liabilities
Share capital 559,020,000 559,020,000
Treasury shares (47,711,881) (24,247,846)
Statutory shares 67,399,612 66,815,091
Voluntary reserve 41,137,807 54,879,159
Cumulative changes in fair value (35,308,054) (36,701,120)
Retained earnings 4,676,166 11,942,864
Total equity 589,213,650 631,708,148
Non-current liabilities
Provision for employee’s end of service indemnity 3,808,200 3,370,874
Current liabilities
Short term borrowings from bank 10,870,862 8,935,562
Trade and other payables 31,328,319 30,844,007
Total current liabilities 42,199,181 39,779,569
Total liabilities 46,007,381 43,150,443
Total equity and liabilities 635,221,031 674,858,591
Income Statement
|
Revenue |
|
229,510,681 |
225,096,924 |
|
Costs of revenue |
|
(196,630,113) |
(191,608,904) |
|
Gross profit |
32,880,568 |
33,488,020 |
|
|
Selling, general and administrative expenses |
|
(21,890,013) |
(20,212,556) |
|
Finance costs |
|
(635,234) |
(355,036) |
|
Investment income |
|
2,514,343 |
2,371,110 |
|
Share of loss in an associate |
|
(3,549,138) |
(507,099) |
|
Impairment loss on investment in an associate |
|
(3,581,800) |
- |
|
Other income |
|
106,482 |
144,141 |
|
PROFIT FOR THE YEAR |
5,845,208 |
14,928,580 |
|
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
Regular
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.
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 63.61 |
|
|
1 |
INR 90.17 |
|
Euro |
1 |
INR 78.95 |
|
UAE Dh |
1 |
INR 17.42 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
VIV |
|
|
|
|
Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
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
·
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.