MIRA INFORM REPORT

 

 

Report Date :

23.01.2007

 

IDENTIFICATION DETAILS

 

Name :

UNITED FOOD INDUSTRIES CORPORATION LTD (UFIC)

 

 

Registered Office :

Pepsi Cola Street (28th Street), Dammam Industrial Estate, Phase II, P O Box 64, Dammam 31952

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2006

 

 

Date of Incorporation :

1984

 

 

Com. Reg. No.:

2050012095, Dammam

 

 

Legal Form :

Limited Liability Partnership

 

 

Line of Business :

Engaged in food processing and packaging.

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

US$ 700,000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

SUMMARY

 

Company Name                         : UNITED FOOD INDUSTRIES CORPORATION LTD (UFIC)

Country of Origin                                    : Saudi Arabia

Legal Form                                            : Limited Liability Partnership

Registration Date                                   : 1984

Commercial Registration Number            : 2050012095, Dammam

Membership Number                              : 2709

Issued Capital                                        : SR 2,750,000

Paid up Capital                                      : SR 2,750,000

Total Workforce                                     : 350

Line of Business                                    : Processors and packagers of foodstuffs.

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                         : Steady

 

 

 

COMPANY NAME

 

UNITED FOOD INDUSTRIES CORPORATION LTD (UFIC)

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Pepsi Cola Street (28th Street)

Area                 : Dammam Industrial Estate, Phase II

PO Box             : 64

Town                 : Dammam 31952

Country             : Saudi Arabia

Telephone         : (966-3) 8870111 / 8171103

Facsimile          : (966-3) 8870222 / 8870223

 

 

Premises

 

Subject operates from a large suite of offices that are owned and located in the Suburban Business Area of Dammam.

 

 

Branch Office (s)

 

     Location                                                                               Description

 

·       PO Box: 7932                                                                       Owned processing Plant

Dammam 31472

Tel: (966-3) 8121103

Fax: (966-3) 8121168

 

·       PO Box: 11219                                                                     Distribution centre

Jeddah 21453

Tel : (966-2) 6558719

Fax : (966-2) 6558872

 

·       East Circle Road, Exit 3                                                        Distribution centre

Al Kharj Industrial Estate

PO Box: 3654

Riyadh 11481

Tel : (966-1) 2432555 / 4981435 / 2652000

Fax : (966-1) 2432444 / 4981011 / 2651011

 

Subject also operates further distribution centres located at Khamis Mushait, Abha, Madinah, Jizan and Qassim.

 

 

 

KEY PRINCIPALS

 

·       Khalid Yousef Al Haj                                                              Managing Partner

 

·       Tariq Khalid Yousef Al Haj                                                      Partner

 

·       Walid Khalid Yousef Al Haj                                                    Partner

 

·       Bader Al Anzi                                                                       General Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 18/05/1404 Hijri (Corresponding to 1984)

 

Legal Form                  : Limited Liability Partnership

 

Commercial Reg. No.  : 2050012095, Dammam

 

Membership No.          : 2709

 

Issued Capital              : SR 2,750,000

 

Paid up Capital            : SR 2,750,000

 

 

Name of Partner (s)

 

·       Khalid Yousef Al Haj

 

·       Tariq Khalid Yousef Al Haj

 

·       Walid Khalid Yousef Al Haj

 

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

 

Subject is a member of the United Group of Companies that consists of the following concerns:

 

·       United Trading Corporation

UTC Building, 2nd Floor

Prince Faisal Bin Fahd Street

PO Box: 64

Al Khobar 31932

Tel: (966-3) 8870111

Fax: (966-3) 8870222

Email contact@unitedgroup.com.sa

 

·       United Food Services

PO Box: 64

Al Khobar 31932

Tel: (966-3) 8870111

Fax: (966-3) 8870222

Email: mmahfoud@unitedgroup.com.sa

 

·       United Restaurant Development

PO Box: 64

Al Khobar 31932

Tel: (966-3) 8870111

Fax: (966-3) 8870222

     Email: urd@unitedgroup.com.sa

 

·       Arabian Gulf Systems (AGS)

PO Box: 11219

Jeddah 21453

Tel : (966-2) 6558719

Fax : (966-2) 6558872

 

 

LINE OF BUSINESS

 

Operations: Engaged in food processing and packaging. Subject is the Middle East’s leading producer of processed cheese but also deals in ketchup, beans and tea.

 

Manufacturing activities are conducted under a “production and technical support agreement" with Schreiber Foods Inc. of the USA and all operations conform to ISO 9002 standards.

 

Clients include: McDonald's, Burger King, Kudu, Herfy, Fuddruckers, and Subway.

 

Import Countries: United States of America

 

Brand Names: ASEEL, CHEF and DEEMAH.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 350 employees.

 

 

FINANCIAL HIGHLIGHTS

 

Financial highlights provided by outside sources are given below :

 

Currency: Saudi Riyals (SR)

 

                                                Year Ending 31/12/05                 Year Ending 31/12/06

 

Total Revenue                            SR 83,000,000                           SR 89,250,000

 

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

 

 

BANKERS

 

·       Arab National Bank

PO Box : 37

Dammam 31952

Tel : (966-3) 8948660

     Fax : (966-3) 8942752

 

·       National Commercial Bank

PO Box : 1

Dammam 31952

Tel : (966-3) 8949669

Fax : (966-3) 8646474

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction         October 2000                 June 2004                     January 2007

Credit amount                200,000             123,894             81,000

Amount overdue 0                                  0                                  0

Payment terms              90 days                         90 days                         30 days

Payment Method           Letters of Credit             Letters of Credit             Letters of Credit

Paying record                No Complaints               No Complaints               Still pending

Currency                       US Dollars                     Canadian Dollars            Pounds Sterling

 

 

GENERAL COMMENTS

 

Established in 1984, subject is owned and managed by members of the Al Haj family who are well respected in the local business community.

 

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.

 

Maximum suggested credit figure: US$ 700,000

 

 

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

 

 

 

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