MIRA INFORM REPORT

 

 

Report Date :

15.01.2011

 

IDENTIFICATION DETAILS

 

Correct Name :

ABDULLAH SALEH AL OTHAIM MARKETS CO (OMC)

 

 

Registered Office :

West of Eastern Ring Road, Exit 14 & 15, Al Rabwa District, P O Box 41700, Riyadh 11531

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2009

 

 

Date of Incorporation :

21.05.1980

 

 

Com. Reg. No.:

1010031185, Riyadh

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Subject operates 77 stores, including 44 supermarkets, 21 corner shops & 7 wholesale centre

 

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$ 10,000,000

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 – June 30, 2010

 

Country Name

Previous Rating

                   (01.04.2010)                  

Current Rating

(30.06.2010)

Saudi Arabia

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

SUMMARY

 

Company Name                                     : ABDULLAH SALEH AL OTHAIM MARKETS CO (OMC)

Country of Origin                                    : Saudi Arabia

Legal Form                                            : Joint Stock Company

Registration Date                                   : 21st May 1980

Commercial Registration Number            : 1010031185, Riyadh

Chamber Membership Number                : 14062

Issued Capital                                        : SR 225,000,000

Paid up Capital                                      : SR 225,000,000

Total Workforce                                     : 5,250

Activities                                               : Subject operates 77 stores, including 44 supermarkets, 21 corner

shops & 7 wholesale centre

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Recommended Credit Limit                     : US$ 10,000,000

 

COMPANY NAME

 

ABDULLAH SALEH AL OTHAIM MARKETS CO (OMC)

 

 

company ADDRESS

 

Registered & Physical Address

Street               : West of Eastern Ring Road, Exit 14 & 15

Area                 : Al Rabwa District

PO Box             : 41700

Town                 : Riyadh 11531

Country             : Saudi Arabia

Telephone         : (966-1) 2445871 / 4919999 / 2547000

Facsimile          : (966-1) 2415560 / 4937778 / 4933264

Email                : info@othaimmarkets.com

 

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

 

·       Abdullah Saleh Al Othaim                                                                  Chairman

 

·       Abdulaziz Saleh Al Othaim                                                                Managing Director

 

·       Fahd Abdullah Al Othaim                                                                   Director

 

·       Yousef Mohamed Al Qifari                                                                  General Manager

 

·       Attiya Abdullah Al Moyilah                                                                 Assistant General Manager

 

·       Bander Sulaiman                                                                               Administration Manager

 

·       Baha Eddine Bualaa                                                                          Operations Manager

 

 

LEGAL FORM & OWNERS

 

 

Date of Establishment  : 21st May 1980

 

Legal Form                  : Joint Stock Company

 

Commercial Reg. No.  : 1010031185, Riyadh

 

Chamber Member No. : 14062

 

Issued Capital              : SR 225,000,000

 

Paid up Capital            : SR 225,000,000

 

Name of Shareholder (s)                                     Percentage

 

·       Al Othaim Holding Co                                                     49%

 

·       Abdullah Saleh Al Othaim                                                 6%

 

·       Fahd Abdullah Saleh Al Othaim                                         5%

 

·       Huda Abdullah Saleh Al Othaim                                         5%

 

·       Abeer Abdullah Saleh Al Othaim                                        5%

 

·       Saudi businessmen & private investors                             30%

 

 

OPERATIONS

 

 

Activities: Subject operates 77 stores, including 44 supermarkets, 21 corner shops & 7 wholesale centre, specialising

     in the wholesale and retail of foodstuff and beverages and general consumer products.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 5,250 employees.

 

 

FINANCIAL DATA

 

 

Financial highlights provided by local sources are given below:

 

Currency: Saudi Riyals (SR)

 

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

 

ASSETS

 

 

 

Current assets

Cash and cash equivalents

 

107,261,008

26,694,549

Inventories

 

220,220,504

216,915,046

Prepayments and other receivables

 

89,998,718

77,882,031

Due from related parties

 

-

57,413,119

Total current assets

                            417,480,230

              378,904,745

Non-current assets

Investment in associated company and other

 

99,231,576

89,609,090

Property and equipment, net

 

455,979,291

365,883,639

Projects in progress

 

264,791,837

246,302,423

Total non-current assets

                            820,002,704

              701,795,152

TOTAL ASSETS

                          1,237,482,934

            1,080,699,897

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

Current Liabilities

Short term and loans Murabaha

 

6,273,497

262,777,052

Current portion of long term loans

 

88,418,864

13,290,699

Trade payables

                            471,682,305

              426,526,512

Due to related parties

 

-

8,540,414

Accruals and other payables

 

64,212,117

45,664,637

Total current liabilities

                            630,586,783

              756,799,314

Non-current liabilities

End-of-service indemnities

                            21,872,396

              16,034,543

Long term loans

 

 242,182,317

8,797,044

Total non-current liabilities

                            264,054,713

              24,831,587

Total liabilities

                            894,641,496

              781,630,901

Shareholders' equity

Share capital

 

225,000,000

225,000,000

Statutory reserve

 

25,781,233

18,028,989

Voluntary reserve

 

12,453,336

-

Retained earnings

                            79,606,869

              56,040,007

Total shareholders' equity

                            342,841,438

              299,068,996

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

                           1,237,482,934

             1,080,699,897

 

Statement of Income

 

Revenues

Sales

                           3,065,135,835

              2,840,513,903

Rent

 

73,375,088

59,565,062

Total revenues

                           3,138,510,923

              2,900,078,965

Cost of revenues

                         (2,922,607,462)

             (2,722,311,991)

Gross profit

                           215,903,461

              177,766,974

Selling and distribution expenses

 

(73,327,745)

(80,175,728)

General and administrative expenses

 

(53,404,882)

(40,264,473)

Income from main operations

                            89,170,834

              57,326,773

Company's share in the net profit of associated company

 

 6,222,486

4,609,090

Other (expenses) income, net

 

(15,520,878)

2,080,811

Income before zakat

                            79,872,442

               64,016,674

Zakat

 

(2,350,000)

(1,750,000)

NET INCOME

                            77,522,442

               62,266,674

 

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

 

 

BANKERS

 

 

·       Arab National Bank (ANB)

PO Box: 12965

Riyadh 11564

Tel: (966-1) 4029000

Fax: (966-1) 4027535

 

PAYMENT HISTORY

 

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

 

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.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.30

UK Pound

1

Rs.71.73

Euro

1

Rs.60.40

 

 

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

----

NB

New Business

----

 

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.