MIRA INFORM REPORT

 

 

Report Date :

23rd February, 2007

 

IDENTIFICATION DETAILS

 

Name :

AL OTHMAN INDUSTRIAL MARKETING LTD CO (IMCO)

 

 

Registered Office :

Doha Road, PO Box: 867 & 39052, Al Khobar 31952, Saudi Arabia

 

 

Country :

Saudi Arabia

 

 

Date of Incorporation :

1978

 

 

Com. Reg. No.:

1010156962, Riyadh

 

 

Legal Form :

Limited Liability Partnership

 

 

Line of Business :

Engaged in the import and distribution of steel products, including pipes, tubes, valves, fittings, flanges, stud bolts, A/C refrigeration spare parts, stainless steel and all other materials related to Industrial and Petrochemical projects.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

US$ 750,000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

 

 

 

SUMMARY

 

 

 

Company Name

AL OTHMAN INDUSTRIAL MARKETING LTD CO (IMCO)

Also Known As

INDUSTRIAL MARKETING CENTER AL OTHMAN  (IMCO)

Country of Origin

Saudi Arabia

Legal Form

Limited Liability Partnership

Registration Date

1978

Commercial Registration Number

1010156962, Riyadh

Issued Capital

SR 5,000,000

Paid up Capital

SR 5,000,000

Total Workforce

200

Line of Business

Distributors of steel products.

Financial Condition

Good

Payments

Nothing detrimental uncovered

Operating Trend

Steady

 

 

 

 

 

COMPANY NAME

 

AL OTHMAN INDUSTRIAL MARKETING LTD CO (IMCO)

 

 

ALSO KNOWN AS

 

INDUSTRIAL MARKETING CENTER AL OTHMAN (IMCO)

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : Doha Road

PO Box             : 867 & 39052

Town                 : Al Khobar 31952

Country             : Saudi Arabia

Telephone         : (966-3) 8875000 / 8828343

Facsimile          : (966-3) 8871188

Email                : imco@ogertel.com

 

 

Premises

 

Subject operates from a large suite of offices and a warehouse covering an area of 25,000 square metres that are owned and located in the Suburban Business Area of Al Khobar.

 

 

Branch Office (s)

 

     Location                                                                   Description

 

·       PO Box: 1884                                                           Office & distribution centre covering

Jubail 31951                                                             an area of 5,000 square metres

Tel   : (966-3) 3621545

Fax : (966-3) 3612663

 

·       PO Box: 89708                                                         Office & distribution centre covering

     Riyadh 11692                                                            an area of 15,000 square metres

Tel   : (966-1) 4764801 / 4742641

Fax : (966-1) 4770740

 

·       PO Box: 16790                                                         Office & distribution centre covering

Jeddah 21474                                                           an area of 4,000 square metres

Tel   : (966-2) 6604858

Fax : (966-2) 6604858

 

·       Yanbu                                                                      Office & distribution centre

 

Tel   : (966-4) 3223174

Fax : (966-4) 3223174

 

·       PO Box: 2441                                                           Office & distribution centre

Manama

Bahrain

     Tel   : (973) 736322

     Fax : (973) 730878

 

·       PO Box: 40700                                                         Office & distribution centre

Doha

Qatar

 

 

KEY PRINCIPALS

 

·       Mohamed Abdullah Al Othman                                   Managing Partner

 

·       Bassam H. Darraj                                                      Partner

 

·       Othman Z. Al Othman                                                Commercial & Admin. Manager

 

·       Edwin M. Deray                                                        Sales Manager

 

·       Mohamed Nour                                                         Finance Manager

 

·       Abdullah Al Nahde                                                     Personnel Manager

 

·       Ehab Kamal                                                              Jubail Branch Manager

 

·       Sabri Jihad Asfour                                                     Riyadh Branch Manager

 

·       George Zayat                                                            Jeddah Branch Manager

 

·       Ed Gatdula                                                               Yanbu Branch Manager

 

·       Suhaib Al Ghoul                                                        Manama Branch Manager

 

·       Abdulnassar Al Qassas                                             Doha Branch Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1978

 

Legal Form                  : Limited Liability Partnership

 

Commercial Reg. No.  : 1010156962, Riyadh (Although subjects head office is in Al Khobar

                                                           it was actually registered in Riyadh).

 

Issued Capital              : SR 5,000,000

 

Paid up Capital            : SR 5,000,000

 

 

Name of Partner (s)

 

·       Mohamed Abdullah Al Othman

 

·       Bassam H. Darraj

 

Notes to the legal Form

A Limited Liability Partnership is a private entity formed by two or more partners who are liable for company debts to the extent of their contributed capital. A maximum of 50 partners are allowed in such a company. The total share capital must be SR 500,000 or more, divided into non-negotiable shares of equal value. The company may not include in its objects the conduct of banking, insurance or savings.

 

 

AFFILIATED COMPANIES

 

·       Al Othman Agricultural Producing & Processing Co (NADA)

Al Hofuf

PO Box : 1065

Al Hasa 31982

Tel               : (966-3) 5331133 / 5320000

Fax              : (966-3) 5331505 / 5323335

Email           : nada@alothman.com

 

 

LINE OF BUSINESS

 

Operations : Engaged in the import and distribution of steel products, including pipes, tubes, valves, fittings, flanges, stud bolts, A/C refrigeration spare parts, stainless steel and all other materials related to Industrial and Petrochemical projects.

 

The company has prestigious clients including Saudi Aramco, SCECO, and the Sabic Group.

 

Subject was awarded the ISO 9002 certificate in December 1998.

 

Import Countries : Europe, the Far East and the United States of America.

 

International Suppliers:

 

·       Ernefittings                                       Austria

·       Nova Hut                                          Czech Republic

·       Deltinox                                            France

·       Dalmine Siderca Tamsa (DST)            Italy

·       Schulz                                             Germany

·       Tubos Reunidos (TR)             Spain

·       Straub Werke AG                              Switzerland

·       Brasimet Industries Corporation          Japan

·       Nippon Steel Corporation                   Japan

·       Korea Flange Co., Ltd. (KOFCO)        Korea

·       The SWAGELOK Companies United States of America

·       Parker - Fluid Connectors                  United States of America

·       Mueller Steam Specialty                    United States of America

 

Operating Trend : Steady

 

Subject has a workforce of approximately 200 employees.

 

 

FINANCIAL HIGHLIGHTS

 

Financial highlights provided by outside sources are given below :

 

Currency : Saudi Riyals (SR)

                                                Year Ending 31/12/04:                Year Ending 31/12/05:

 

Total Revenue                            SR 57,850,000                           SR 60,130,000

 

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

 

 

BANKERS

 

·       National Commercial Bank

PO Box : 1

Al Khobar 31952

Tel : (966-3) 8949669

     Fax : (966-3) 8646474

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                  December 2002                        October 2003

Credit amount                            300,000                         393,960

Amount overdue             0                                              0

Payment terms                          60 days                                     60 days

Payment Method                       Letters of Credit                         Letters of Credit

Paying record                            No Complaints                           No Complaints

Currency                                   US Dollars                                 Canadian Dollars

 

 

GENERAL COMMENTS

 

Established in 1978, subject is involved in the import and distribution of steel products, including pipes, tubes, valves, fittings, flanges and stainless steel.

 

The company is run in a professional manner and deals with a host of reputable international suppliers.

 

According to local sources, subject’s financial condition is satisfactory whilst payments are made in a timely manner. The company’s operating history is reportedly clear and as such the company is deemed a fair trade risk.

 

Maximum suggested credit figure: US$ 750,000

 

 

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

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

 

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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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