MIRA INFORM REPORT

Report Date :

09.08.2011

IDENTIFICATION DETAILS

Name :	THE NATIONAL AGRICULTURAL DEVELOPMENT CO (NADEC)

Registered Office :	Moraba’a, P O Box 2557, Riyadh 11461

Country :	Saudi Arabia

Financials (as on) :	31.12.2010

Date of Incorporation :	01.06.1981

Com. Reg. No.:	1010018795, Riyadh

Legal Form :	Joint Stock Company

Line of Business :	Operators of cow farms, distributors of dairy and agricultural products, honey production and processing of dates.

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	US$ 1,750,000
Status :	Good
Payment Behaviour :	No Complaints
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 – March 31^st, 2011

Country Name

Previous Rating

(31.12.2010)

Current Rating

(31.03.2011)

Saudi Arabia

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

SUMMARY

Company Name : THE NATIONAL AGRICULTURAL DEVELOPMENT CO (NADEC)

Country of Origin : Saudi Arabia

Legal Form : Joint Stock Company

Registration Date : 1^st June 1981

Commercial Registration Number : 1010018795, Riyadh

Chamber Membership Number : 7310

Issued Capital : SR 600,000,000

Paid up Capital : SR 600,000,000

Total Workforce : 4,600

Activities : Operators of cow farms, distributors of dairy and agricultural products,

honey production and processing of dates.

Financial Condition : Fair

Payments : Nothing detrimental uncovered

Operating Trend : Steady

Recommended Credit Limit : US$ 1,750,000

COMPANY NAME

THE NATIONAL AGRICULTURAL DEVELOPMENT CO (NADEC)

company ADDRESS

Registered & Physical Address

Location : Moraba’a

PO Box : 2557

Town : Riyadh 11461

Country : Saudi Arabia

Telephone : (966-1) 4040000 / 4043421

Facsimile : (966-1) 4012193 / 4055522

Email : info@nadec.com.sa

Premises

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

KEY PRINCIPALS

Name Position

· Sulaiman Abdulaziz Al Rajhi Chairman

· Mohammed Abdullah Al Shiha Director

· Samir Ali Kabbani Director

· Moussaed Ben Hamad Al Dawe Director

· Fahad Thunayan Althunayan Director

· Abdulwahab Saleh Al Rajhi Director

· Abdulaziz Albabtain Director

· Abdulaziz Alowain General Manager

· Fahad A Al Shaqha Sales Manager

· Ahmed Al Shamari Marketing Manager

· Abdullah Alkanhal Finance Manager

LEGAL FORM & OWNERS

Date of Establishment : 1^st June 1981

Legal Form : Joint Stock Company

Commercial Reg. No. : 1010018795, Riyadh

Chamber Member No. : 7310

Issued Capital : SR 600,000,000

Paid up Capital : SR 600,000,000

Name of Shareholder (s) Percentage

· Government of Saudi Arabia 20%

· Members of the Saudi General Public 80%

AFFILIATED COMPANIES

· Pure Breed Poultry Co

· National Seed Manufacturing Co

· United Dairy Farms Co

· United Co for Poultry Marketing

· National Hide Tanning and Manufacturing Co

OPERATIONS

Activities: Engaged in the operation of cow farms, distributors of dairy and agricultural products, honey

production and processing of dates.

Subject owns 5 cow farms, containing 25,000 cattle.

Import Countries: Europe and the United States of America.

Operating Trend: Steady

Subject has a workforce of approximately 4,600 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: Saudi Riyals (SR 000’s)

Balance Sheet 31/12/08 31/12/09 31/12/10

Current assets 436,121 368,967 374,142

Inventories 361,686 412,197 311,212

Investments 7,728 7,728 7,728

Fixed assets 1,246,364 1,603,508 1,544,259

Other assets 390,401 117,842 137,195

Total assets 2,442,300 2,510,242 2,374,536

Current liabilities 1,322,025 1,327,309 1,006,864

Non-current liabilities 61,241 207,618 395,975

Shareholders’ equity 1,059,034 975,315 971,697

Total liabilities & shareholders’ equity 2,442,300 2,510,242 2,374,536

Statement of Income

Sales 1,338,627 1,334,500 1,447,559

Cost of sales 861,702 911,559 969,150

Total income 476,925 422,941 478,409

Other revenue 16,209 0 15,730

Total revenue 493,134 422,941 494,139

Admin & marketing expenses 345,651 365,617 397,344

Depreciation 40,565 46,324 44,833

Other expenses 30,280 40,452 34,685

Total expenses 416,496 452,393 476,862

Net income before Zakat 76,638 (29,452) 17,277

Zakat 7,841 8,965 6,815

Net income 68,797 (38,417) 10,462

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

BANKERS

· National Commercial Bank

Airport Road

PO Box: 2800

Riyadh 11461

Tel: (966-1) 4772281

Fax: (966-1) 4730322

· Arab National Bank (ANB)

King Faisal Street

PO Box: 56921

Riyadh 11564

Tel: (966-1) 4029000

Fax: (966-1) 4027747

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

GENERAL COMMENTS

Established in 1981, subject is involved in the operation of cow farms, distributors of dairy and agricultural products, honey production and processing of dates.

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	Rs.44.96
UK Pound	1	Rs.73.94
Euro	1	Rs.64.56

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	Capability to overcome financial difficulties seems comparatively below average.	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

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.