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MIRA INFORM REPORT
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Report No. : |
498101 |
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Report Date : |
19.03.2018 |
IDENTIFICATION DETAILS
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Name : |
RAS AL KHAIMAH CERAMICS CO PJSC |
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Registered Office : |
Ras Al Khaimah Dubai Highway, Km 20, 4714, 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 : |
26.03.1989 |
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Com. Reg. No.: |
8425 |
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Legal Form : |
Public Joint Stock Company |
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Line of Business : |
Subject Engaged in the manufacture of ceramic floor and
wall tiles, Gres Porcellanato (porcelain / vitrified tiles) and sanitary ware
products |
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No. of Employees : |
7 |
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 :
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 858,398,000
Paid up Capital :
UAE Dh 858,398,000
Total Workforce :
8,000
Activities :
Manufacturers of ceramic floor and wall tiles.
Financial Condition :
Good
Payments :
Regular
Operating Trend :
Steady
COMPANY
NAME
RAS AL KHAIMAH
CERAMICS CO PJSC
DOING BUSINESS AS: RAK CERAMICS
ADDRESS
Registered & Physical Address
Location :
Ras Al Khaimah Dubai Highway, Km 20
PO Box :
4714
Town :
Ras Al Khaimah
Country : United Arab
Emirates
Telephone : (971-7)
2445046 / 2467505 / 2467000 / 2445270 / 2445246
Facsimile :
(971-7) 2445270 / 2446157
Mobile :
(971-55) 1028912
Email : rakceram@emirates.net.ae
/ mktgservices@rakceramics.com
Premises
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
KEY
PRINCIPALS
Name Position
Sheikh Khaled Bin Saud Al Qassimi Chairman
Shirish Saraf Vice
Chairman
Sheikh Ahmad Bin Humaid Al Qassimi Director
Khalid Ali Saif Al Yahmadi Director
Fawaz Sulaiman Al Rajhi Director
Khaled Abdulla Yousef Al Abdulla Director
Wassim Moukahhal 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
LEGAL
FORM & OWNERS
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 858,398,000
Paid up Capital :
UAE Dh 858,398,000
Name of Shareholder (s) Percentage
Samena Limestone Co 19.06%
Oman Investment Fund 6.41%
Fab Investment LLC 6.01%
General Authority for Pensions and Insurance 5.50%
Local businessmen and private investors 63.02%
AFFILIATED
COMPANIES
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
OPERATIONS
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.
eramic 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
DATA
Financial highlights provided by local sources are given
below:
Currency: United Arab Emirates Dirham (UAE Dh 000’s)
Consolidated
Balance Sheet 31/12/17 31/12/16 31/12/15
Assets
Non-current
assets
Property, plant and equipment 1,136,424 1,159,693 1,065,530
Capital work in progress 89,001 66,841 182,271
Goodwill - 61,780 50,356
Intangible assets 27,929 28,332 18,032
Investment properties 1,190,350 1,169,060 1,158,899
Investments in equity accounted
investees 41,764 112,378 127,563
Long term receivables from
related parties 105,767 98,409 127,642
Deferred tax asset 1,007 2,753 298
2,592,242 2,699,246 2,730,591
Current
assets
Inventories 1,214,702 1,179,320 1,141, 156
Trade and other receivables 1,291,178 1,132,739 1,207,338
Contract work-in-progress 7,048 13,271 15,442
Due from related parties 168,873 301,274 523,778
Derivative financial instruments 7,452 5,944 -
Cash in hand and at bank 516,478 424,460 363,470
Assets held for sale 2,975 - -
3,208,706 3,057,008 3,251,184
Total
assets 5,800,948 5,756,254 5,981,775
Equity
and liabilities
Equity
Share capital 858,398 858,398 817,522
Reserves 1,805,859 1,645,905 1,950,636
Equity
attributable to owners of the Company 2,664,257 2,504,303 2,768,158
Non-controlling interests 186,638 175,777 169,294
Total
equity 2,850,895 2,680,080 2,937,452
Non-current
liabilities
Islamic bank financings 375,023 415,630 -
Long-term bank loans 869,116 892,299 1,309,706
Provision for employees’ end of
service benefits 85,743 83,780 78,285
Deferred tax liabilities 8,187 6,128 8,323
1,338,069 1,397,837 1,396,314
Current
liabilities
Short-term bank borrowings 680,233 776,240 663,391
Trade and other payables 732,219 715,041 835,944
Billings in excess of valuation - 866 2,791
Provision for taxation 151,439 136,739 122,606
Due to related parties 44,275 49,451 23,227
Liabilities held for sale 3,818 - -
1,611,984 1,678,337 1,648,009
Total
liabilities 2,950,053 3,076,174 3,044,323
Total
equity and liabilities 5,800,948 5,756,254 5,981,775
Consolidated
Income Statement
Revenue 2,854,901 2,793,078 3,078,857
Cost of sales (1,931,326) (1,920,976) (2,210,839)
Write
off and provision for inventories (21,828) (88,732) -
Gross
profit 901,747 783,370 868,018
Administrative and general
expenses (217,663) (247,837) (220,751)
Selling and distribution expenses
(410,519) (380,975) (332,099)
Impairment
of trade receivables (45,528) (74,604) -
Other income 76,512 51,673 60,254
Profit /(loss) on net monetary
position - - -
Results
from operating activities 304,549 131,627 375,422
Finance expense (71,323) (84,487) (84,503)
Finance income 33,198 3,561 6,352
Share in profit of equity
accounted investees 9,535 (4,038) 16,525
Gain on disposal of subsidiary 3,818 - (28,773)
Gain on disposal of equity
accounted investees 57,899 - 48,965
Gain on settlement of related
party balances - - -
Profit
before tax from continuing operations 337,676 46,663 333,988
Tax expense (22,158) (15,821) (22,371)
Profit
from continuing operations 315,518 30,842 311,617
Local sources consider subject’s financial condition to be
Good.
BANKERS
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
PAYMENT
HISTORY
Regular
GENERAL
COMMENTS
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.
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 64.87 |
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1 |
INR 90.49 |
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Euro |
1 |
INR 79.91 |
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UAE DH |
1 |
INR 17.75 |
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
·
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.