MIRA INFORM REPORT

 

 

Report Date :

29.01.2011

 

IDENTIFICATION DETAILS

 

Name :

DANUBE COMPANY LIMITED

 

 

Registered Office :

Al Serafi Mega Mall, Al Sitteen Street, Cross Tahlia Street, P O Box 766 & 51280, Jeddah 21543

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2009

 

 

Date of Incorporation :

25.01.1993

 

 

Com. Reg. No.:

4030093169, Jeddah

 

 

Legal Form :

Limited Liability Partnership

 

 

Line of Business :

Import, wholesale and retail of general foodstuff

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

US$ 1,300,000

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                                     : DANUBE COMPANY LIMITED

Also Known As                                      : DANUBE FOR FOODSTUFF & COMMODITIES CO

Country of Origin                                    : Saudi Arabia

Legal Form                                            : Limited Liability Partnership

Start Date                                             : 1987

Registration Date                                   : 25th January 1993

Commercial Registration Number            : 4030093169, Jeddah

Membership Number                              : 43034

Issued Capital                                        : SR 10,000,000

Paid up Capital                                      : SR 10,000,000

Total Workforce                                     : 1,300

Activities                                               : Import, wholesale and retail of general foodstuff

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Recommended Credit Limit                     : US$ 1,300,000

 

COMPANY NAME

 

DANUBE COMPANY LIMITED

 

 

ALSO KNOWN AS

 

DANUBE FOR FOODSTUFF & COMMODITIES CO

 

 

company ADDRESS

 

Registered & Physical Address

Building             : Al Serafi Mega Mall

Street               : Al Sitteen Street, Cross Tahlia Street

PO Box             : 766 & 51280

Town                 : Jeddah 21543

Country             : Saudi Arabia

Telephone         : (966-2) 2844950 / 6580602

Facsimile          : (966-2) 2845410

Email                : danube@danubeco.com / amsaad82@hotmail.com

 

Premises

Subject operates from a large suite of offices and a hypermarket with storage facilities that are owned and located in the Central Business Area of Jeddah.

 

Branch Office (s)

Subject operates 18 supermarkets, 7 pastry shops and 2 restaurants, located in Jeddah, Makkah and Madinah, including the following locations:

 

     Location                                                                                          Description

 

·       Al Badriya Towers                                                                             Supermarket

Khalidiah District

Jeddah 21543

Tel: (966-2) 6060613 / 6061132

Fax: (966-2) 6060682

 

·       Bugshan Center                                                                                Supermarket

Tahlia Street

Al Andalus District

Jeddah

Tel: (966-2) 6696676 / 6670668

Fax: (966-2) 6614959

 

·       Heraa Street                                                                                     Supermarket

Al Nahda District

Jeddah

Tel: (966-2) 6944977

Fax: (966-2) 6945218

 

·       Amir Motaeb Street                                                                           Supermarket

Al Rehab District

Jeddah

Tel: (966-2) 6715815

Fax: (966-2) 6716987

 

 

KEY PRINCIPALS

 

     Name                                                                                              Position

 

·       Sheikh Abdul Khaliq Bin Dawood                                                        Managing Partner

 

·       Sheikh Abdul Razzaq Bin Dawood                                                      Partner

 

·       Sheikh Abdullah Bin Dawood                                                              Partner

 

·       Sheikh Ahmed Bin Dawood                                                                Partner

 

·       Sheikh Khalid Bin Dawood                                                                 Partner

 

·       Sheikh Sulaiman Bin Dawood                                                 Partner

 

·       Dawood Bin Dawood                                                                          General Manager

 

·       Abdul Razzaq Saad                                                                           Operations Manager

 

·       Mohamed Othman                                                                             Purchasing Manager

 

·       Nizam Mohamed                                                                               Finance Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : Subject’s operations date back to 1987, however it was registered on 02/08/1413 Hijri

  (corresponding to 25th January 1993)

 

History                         : In mid-2001, subject merged with Bindawood Superstores, another chain of    supermarkets. The merger created the largest supermarket chain in the Western Province of Saudi Arabia, with 18 supermarkets, 7 pastry shops and 2 restaurants.

 

Legal Form                  : Limited Liability Partnership

 

Commercial Reg. No.  : 4030093169, Jeddah

 

Membership No.          : 43034

 

Issued Capital              : SR 10,000,000

 

Paid up Capital            : SR 10,000,000

 

Name of Partner (s)

 

·       Sheikh Abdul Khaliq Bin Dawood

 

·       Sheikh Abdul Razzaq Bin Dawood

 

·       Sheikh Abdullah Bin Dawood

 

·       Sheikh Ahmed Bin Dawood

 

·       Sheikh Khalid Bin Dawood

 

·       Sheikh Sulaiman Bin Dawood

 

 

AFFILIATED COMPANIES

 

·       Al Danube Star for Bakeries & Marketing Co

PO Box: 766

Jeddah

Tel: (966-2) 6607282

Fax: (966-2) 6541097

Commercial Reg No. 4030086333

 

 

OPERATIONS

 

Activities: Subject currently operates 18 supermarkets, 7 pastry shops and 2 restaurants, located in Jeddah, Makkah and Madinah.

 

The company specialises in the import, wholesale and retail of general foodstuff including cheese, milk, vegetables, macaroni, ketchup, mayonnaise, garlic and cereals.

 

Subject also imports tea and coffee sets, cutlery and kitchen accessories, house ware, vases and trays

 

Subject has over 20,000 customers visit its supermarkets every day.

 

Import Countries: United States of America, the United Kingdom, Germany, Italy and France

 

International Suppliers:

 

·       Kellogg                     United States of America

·       Quavers                    United States of America

·       Heinz                       United States of America

·       Stafershield              United Kingdom

 

Operating Trend: Steady

 

Subject has a workforce of approximately 1,300 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Saudi Riyals (SR)

 

                                                Year Ending 31/12/08:                Year Ending 31/12/09:

 

Total Sales                                SR 458,600,000             SR 465,000,000

 

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

 

 

BANKERS

 

·       National Commercial Bank

Palestine Square

PO Box: 7161

Jeddah 21462

Tel: (966-2) 6697384

Fax: (966-2) 6697388

 

·       Arab National Bank

Madinah Road

PO Box: 9463

Jeddah 21413

Tel: (966-2) 6600272

Fax: (966-2) 6650202

 

·       Saudi American Bank

Madinah Road

PO Box: 490

Jeddah 21411

Tel: (966-2) 6603993

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction      March 2004                  March 2005                  June 2006                    October 2007

Credit amount                199,860             186,120             167,280             147,690

Amount overdue 0                                  0                                  0                                  0

Payment terms              60 days                         60 days                         60 days                         60 days

Payment Method           Letters of Credit             Letters of Credit             Letters of Credit             Letters of Credit

Paying record                No Complaints               No Complaints               No Complaints               No Complaints

Currency                       Canadian Dollars            Canadian Dollars            Canadian Dollars            Canadian Dollars

 

 

GENERAL COMMENTS

 

Incorporated in 1993, Danube Company Limited is well established in the local foodstuff retail market. The company deals with a number of well known international organisations and enjoys a good reputation for the quality of its products.

 

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.45.74

UK Pound

1

Rs.72.73

Euro

1

Rs.62.73

 

 

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.