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MIRA
INFORM REPORT
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Report Date : |
18.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
SOUTHERN PROVINCE CEMENT COMPANY (SPCC) |
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Registered Office : |
Umm Ari, Khamis Highway , PO Box
548, Abha |
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Country : |
United Arab Emirates |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
23.06.1978 |
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Com. Reg. No.: |
1443, Abha |
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Legal Form : |
Joint Stock
Company |
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Line of Business : |
Manufacture of
Cement and Associated Products |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
US$ 5,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
SUMMARY
Company Name : SOUTHERN PROVINCE
CEMENT COMPANY (SPCC)
Country of Origin : Saudi
Arabia
Legal Form :
Joint Stock Company
Registration Date : 23rd
June 1978
Commercial
Registration Number : 1443,
Abha
Issued Capital : SR
1,400,000,000
Paid up Capital : SR
1,400,000,000
Total Workforce : 1,250
Activities :
Manufacture of cement and associated products.
Financial Condition : Good
Payments :
Nothing detrimental uncovered
Operating Trend : Steady
Recommended Credit
Limit : US$ 5,000,000
COMPANY NAME
SOUTHERN PROVINCE CEMENT COMPANY (SPCC)
ADDRESS
Registered & Physical Address
Location : Umm Ari,
Khamis Highway
PO Box : 548
Town : Abha
Country : Saudi Arabia
Telephone : (966-7) 2245814
/ 2271500
Facsimile : (966-7)
2271003
Email : spcc_abha@spcc.com.sa
Premises
Subject operates from a large suite of offices and a factory that are
owned and located in the Industrial Area of Abha.
Branch Office (s)
Subject has branch offices located in Jeddah, Jizan
and Bisha.
KEY PRINCIPALS
Name Position
· Khalid Bin Turki
Al Saud Chairman
· Abdullah Bin
Mosaed Bin Abdulrahman Al Saud Vice Chairman
· Safar
Mohamed Dhufayer Managing
Director
· Abdullah
Bin Musaed Director
· Dr.
Hamad Albazi Director
· Mansoor
Salih Al Mayman Director
· Saad
Bin Abdul Rahman Al Rmyh Director
· Ahmed
Abdullah Al Ageel Director
· Saad
Falih Al Arjani Director
· Abdul
Aziz Salih Al Anbar Director
· Mohammed
Bin Nasir Al Nabit Director
· Amer Saeed Bargan General
Manager
· Saeed Ali Hadi Assistant
General Manager
· Mohamed Saeed Al
Gahtani Sales
Manager
LEGAL FORM & OWNERS
Date of Establishment : 23rd June 1978
Legal Form : Joint Stock
Company
Commercial Reg.
No. : 1443, Abha
Issued Capital : SR 1,400,000,000
Paid up Capital : SR 1,400,000,000
Name of Shareholder (s)
· Khalid Bin Turki
Al Saud
· Abdullah Bin
Mosaed Bin Abdulrahman Al Saud
· Local businessmen
and private investors
OPERATIONS
Activities: Engaged in the manufacture of cement and associated products.
Subject has a fleet of approximately 200
vehicles.
Import Countries: Europe and the Far East.
Export Countries: Africa and GCC countries.
Operating Trend: Steady
Subject has a workforce of approximately 1,250 employees.
FINANCIAL DATA
Financial highlights provided by local sources are given below:
Currency : Saudi Riyals (SR’000s)
Balance Sheet
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31/12/2005 |
31/12/2006 |
31/12/2007 |
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Current Assets |
710,107 |
788,247 |
680,996 |
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Inventory |
52,907 |
69,198 |
65,982 |
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Investments |
365,749 |
117,756 |
119,603 |
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Fixed Assets |
1,095,130 |
1,505,917 |
1,760,023 |
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Other Assets |
5,881 |
9,601 |
21,648 |
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Total Assets |
2,229,774 |
2,490,719 |
2,648,252 |
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Current Liabilities |
205,595 |
234,038 |
243,553 |
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Non-Current Liabilities |
51,576 |
56,149 |
60,234 |
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Other Liabilities |
0 |
0 |
0 |
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Shareholder's Equity |
1,972,603 |
2,200,532 |
2,344,465 |
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Total Liabilities & Shareholders Equity |
2,229,774 |
2,490,719 |
2,648,252 |
Statement of Income
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31/12/2005 |
31/12/2006 |
31/12/2007 |
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Sales |
0 |
1,026,274 |
1,154,925 |
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Sales Cost |
0 |
393,527 |
433,380 |
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Total Income |
643,135 |
632,747 |
721,545 |
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Other Revenues |
36,446 |
43,471 |
36,977 |
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Total Revenues |
679,581 |
676,218 |
758,522 |
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Admin and Marketing Expenses |
26,529 |
25,510 |
30,369 |
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Depreciation |
0 |
0 |
0 |
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Other Expenses |
6,232 |
3,209 |
4,075 |
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Total Expenses |
32,761 |
28,719 |
34,444 |
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Net Income Before Zakat |
646,820 |
647,499 |
724,078 |
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Zakat |
31,851 |
23,277 |
20,193 |
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Net Income |
614,969 |
624,222 |
703,885 |
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Reserves |
0 |
62,422 |
70,389 |
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Cash Dividends |
357,000 |
560,000 |
630,000 |
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Other Distributions |
1,800 |
1,800 |
1,800 |
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Balance End Period |
278,447 |
0 |
1,696 |
Local sources consider subject’s financial condition to be Good.
BANKERS
·
National Commercial Bank
PO Box : 12
Abha
Tel : (966-7)
2241912
Fax : (966-7) 2243916
PAYMENT HISTORY
No complaints regarding subject’s payments have been reported.
GENERAL COMMENTS
Opinion on the credit figure of US$ 150,000:
Established in 1978, Southern Province Cement Company (SPCC) is a leading
manufacturer of cement in Saudi Arabia.
During the course of this investigation nothing detrimental was
uncovered regarding the manner in which payment obligations are fulfilled. The
operating history is clear and the financial situation is satisfactory. As such
we are of the opinion that the subject is a fair trade risk and the above
credit figure is within subject’s financial means.
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)