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MIRA INFORM REPORT
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Report No. : |
508816 |
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Report Date : |
10.05.2018 |
IDENTIFICATION DETAILS
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Name : |
DUBAI CABLE CO
(PVT) LTD (DUCAB) |
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Registered Office : |
Sheikh Zayed
Road, Jebel Ali Free Zone, P O Box: 11529, Dubai |
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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 : |
Subject's
operations date back to 1979, however it was registered on 12.08.1989. |
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Com. Reg. No.: |
18111, Dubai |
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Legal Form : |
Private Joint
Stock Company |
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Line of Business : |
Manufacture of
low and medium voltage copper cables, as well as electrical circuit
protection cables, cables and accessories, and electrical fittings. |
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No. of Employees : |
550 |
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
|
Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
|
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.
|
Source
: CIA |
SUMMARY
Company Name : DUBAI
CABLE CO (PVT) LTD (DUCAB)
Country of Origin : Dubai,
United Arab Emirates
Legal Form :
Private Joint Stock Company
Start Date :
1979
Registration Date : 12th
August 1989
Commercial
Registration Number : 18111,
Dubai
Trade Licence
Number : 220211
Chamber Membership
Number : 6428
Issued Capital : UAE Dh
25,000,000
Paid up Capital : UAE Dh
25,000,000
Total Workforce :
550
Activities :
Manufacturers of electrical cables and wiring
Financial Condition : Good
Payments :
Regular
Operating Trend : Steady
COMPANY NAME
DUBAI CABLE CO
(PVT) LTD (DUCAB)
ADDRESS
Registered & Physical Address
Street : Sheikh Zayed Road
Area : Jebel Ali Free
Zone
PO Box : 11529
Town :
Country :
Telephone : (971-4) 8082500 / 8158888 / 8081533
Facsimile : (971-4) 8082511 / 8158111 / 8081544
Mobile : (971-50) 6402747
Email : ducab@ducab.ae
/ manoharan.raghavan@ducab.com
/ ali.asgar@ducab.com
Premises
Subject operates
from a suite of offices and a factory on a site covering 590,000 square metres
that is leased and located in the Jebel Ali Free Zone Area of Dubai.
Branch Office
(s)
Location Description
·
Port Saeed
PO Box: 683
Tel: (971-4) 2667400
Fax: (971-4) 2668955
·
PO Box:
9171 Office
& factory premises
Mussafah 1 Factory
Abu Dhabi
Tel: (971-2) 5027777
Fax: (971-2) 5027755
·
PO Box:
9171 Office
& factory premises
Mussafah 1 Factory
Abu Dhabi
Tel: (971-2) 5500774
Fax: (971-2) 5500979
·
PO Box:
3542 Office
premises
Ruwi 112
Tel: (968) 24565178
Fax: (968) 24564302
·
PO Box:
14039 Office
premises
Doha
Qatar
Tel: (974) 44421924
Fax: (974) 44419003
·
Prince
Mohammad Bin Fahad Road Office
premises
Dammam 31482
Saudi Arabia
Tel: (966-13) 8355305
Fax: (966-13) 8355307
KEY PRINCIPALS
Name Nationality Position
·
Dr
Jamal Salem Al Daheri - Chairman
·
Ahmed
Bin Hassan Al Shaikh - Vice
Chairman
·
Andrew
Shaw British Managing Director
·
Jonathan
Vail - Technical
Manager
·
Arif Choksy - Finance
Manager
·
Graham
Cheetam - Manufacturing
Manager
·
Ali Al
Shamsi - Financial
Planning Manager
·
Ali
Asghar - Finance
Manager
·
Mohamed
Yousef Ali Ahmed - Purchasing
Manager
·
Ashish
Chattervedi
- Marketing
Manager
·
Nirmal Singh - Human Resources Manager
·
Manoharan
Raghavan - Human
Resources Officer
LEGAL FORM & OWNERS
Date of Establishment : Subject's
operations date back to 1979, however it was registered on 12th
August 1989.
History :
Ducab was set up in 1979 as a joint venture with the Dubai Government holding
60% and BICC Cables of the United
Kingdom 40%. On 17th June 1997, an
agreement was signed in Abu Dhabi under which General Industries Corp
(GIC) acquired a 35 per cent stake. Dubai's shareholding was diluted to 35 per
cent and BICC's to 30 per cent. BICC was subsequently taken over by Balfour
Beatty who withdrew from the company after assigning its shares to the current
owners.
Legal Form : Private Joint Stock Company
Commercial Reg. No. : 18111, Dubai
Trade Licence No. : 220211
Chamber Member No. : 6428
Issued Capital : UAE Dh 25,000,000
Paid up Capital : UAE Dh 25,000,000
Name of Shareholder (s) Percentage
·
Investment Corporation of Dubai (ICD) 50%
Dubai
·
Senaat
Co 50%
Abu Dhabi
AFFILIATED COMPANIES
·
Arkan
Building Materials Co
Abu Dhabi
·
Al
Khaznah Tannery
Abu Dhabi
·
Agthia
Abu Dhabi
·
Abu
Dhabi Basic Industries Corporation (ADBIC)
Abu Dhabi
·
National
Petroleum Construction Company (NPCC)
Abu Dhabi
·
Royal
Jet LLC
Abu Dhabi
·
Al Foah
Company
Abu Dhabi
·
Emirates
Steel Industries (ESI)
Abu Dhabi
·
DAMCO
Abu Dhabi LLC
Abu Dhabi
·
National
Petroleum Construction Company Ltd (NPCC)
OPERATIONS
Activities: Engaged in the manufacture of low and medium
voltage copper cables, as well as electrical circuit protection cables, cables
and accessories, and electrical fittings. The company supplies such well known
clients as the Ministry of Electricity & Water in the UAE, Kuwait Oil Co
and Bahrain Petroleum Company.
In April 2002,
Dubai Cable Company Pvt Ltd. (Ducab), announced that it has been awarded a
contract worth UAE Dh 16 million by the Federal Electricity and Water Authority
(FEWA). The contract entails the supply of 300km of 33kV cables to FEWA.
In March 2005,
subject inaugurated a new production plant located in Abu Dhabi. It will have a
production capacity of 25,000 copper tonnes. The new plant is Ducab’s biggest
investment since its inception and was built as part of Ducab’s corporate
strategy of tripling its business to UAE Dh 2 billion by 2010.
Subject added a
high quality copper rod to its production line in 2008.
Subject has
provided the cable solutions for the following projects, Bahrain F1
International Circuit, Burj Dubai, Abu Dhabi Grand Mosque, Dubai International
Airport, Abu Dhabi Emirates Palace Hotel, Bahrain City Centre, Bahrain
Financial Towers, Burj Al Arab, Palm Jumeirah and Dubai Metro.
In June 2009
subject was voted as a UAE “Superbrand” for branding excellence.
Subject is ISO
9001:2000, ISO 14001 and OHSAS 18001 accredited.
Production
Capacity : 110,000 tonnes per
year.
Import
Countries: Europe, the Far
East and the United States of America
Clients include:
·
ABB
·
Siemens
·
Bahrain
Petroleum Company
·
National
Iranian Oil Company
·
·
Saudi
Aramco
·
Abu
Dhabi Distribution Company
·
·
Saudi
Electric Company
·
Hyundai
Engineering
·
Chiyoda
Technip
·
Toshiba
·
Bechtel
·
Snamprogetti
Spa
·
Dodsal
Brand Names: DUCAB and POWERPLUS
Export
Countries: Singapore, Hong
Kong, China, Egypt, Indonesia, Malaysia and the United Kingdom, Iran, India,
Jordan and Tanzania
Operating Trend: Steady
Subject has a
workforce of approximately 550 employees.
FINANCIAL DATA
Financial
highlights provided by local sources are given below:
Currency: United
Arab Emirates Dirham (UAE Dh)
Year Ending 31/12/16: Year Ending 31/12/17:
Total Sales UAE Dh 4,104,518,000 UAE Dh 4,400,000,000
Local sources
consider subject’s financial condition to be Good.
The above financial
figures are based on estimations by our local sources.
BANKERS
·
Commercial
Bank of
Deira
PO Box: 1709
Dubai
Tel: (971-4) 2227121 / 2253222
Fax:
(971-4) 2220943 / 2254565
·
HSBC
Bank
Deira Souk Branch
PO Box: 66
Tel: (971-4) 2535000
PAYMENT HISTORY
Regular
GENERAL COMMENTS
Dubai Cable Co
(Pvt) Ltd (Ducab) is jointly owned by the Dubai and Abu Dhabi governments and
specialises in the manufacture of electrical cables and wiring. The company
enjoys an excellent reputation for the quality of its products and is a leading
concern in its field.
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 67.38 |
|
|
1 |
INR 91.09 |
|
Euro |
1 |
INR 79.75 |
|
UAE Dh |
1 |
INR 18.36 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
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 |
|
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 |
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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.