MIRA INFORM REPORT

 

 

Report Date :           

19.05.2011

 

IDENTIFICATION DETAILS

 

Name :

SAUDI ARABIAN ADHESIVE FACTORY CO. LTD. 

 

 

Registered Office :

SAAF Building, Al Kharj Road, 7, Near Al Manakh Area, New Industrial Area

P.O.Box No.8822, Riyadh 11492

 

 

Country :

Saudi Arabia

 

 

Year of Establishment :

1976

 

 

Com. Reg. No.:

1010182454

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacturers, distributors and exporters of water and petroleum based glues and adhesives.

 

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 :

SR 3,000,000

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 – December 31, 2010

 

Country Name

Previous Rating

                   (30.09.2010)                  

Current Rating

(31.12.2010)

Saudi Arabia

a2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 Bottom of Form

 

Company NAME

 

Saudi Arabian Adhesive Factory Co. Ltd.

 

 

Company ADDRESS

 

Building   : SAAF Building

Street     : Al Kharj Road

Area       : Kilo 7, Near Al Manakh Area, New Industrial Area

P.O.Box No.: 8822

Town       : Riyadh 11492

Country    : Saudi Arabia

Telephone  : (966 1) 495 1844 / 495 1024

Fax        : (966 1) 495 3565

E-Mail     : akabeer@banawihenkel.com / asetouhi@saaftech.com

 

Shortform Name : SAAF

 

Formerly Known As : Saudi Arabian Adhesive Factory Est.

 

Also Known As : Saudi Arabian Adhesive Factory (SAAF) / Saudi Arabian Glue Factory

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                            Position

 

1. Sheikh Ali Mohammed Al Banawi                    Chairman (group)

 

2. Hussain Ali Mohammed Al Banawi                  Chairman

 

3. Walid Ali Mohammed Al Banawi                      Vice Chairman

 

3. Adnan Al Natour                                                         Managing Director

 

4. Adel Hassan Al Setouhi                                  Financial Manager

 

5. Hammad Al Taher                                          Chief Accountant

 

6. Majduddine Al Barghouti                                 Regional Sales Manager

 

Total Employees :   107 (subject)

                  3,000 plus (group)

 

 

PAYMENTS

 

No complaints have been heard regarding payments from local suppliers

or banks.

 

Subject is a member of the Banawi Group of Companies, Saudi Arabia, with revenues in the region of SR 800 million. The group is operating since 1956 and employing more than 8,000 people.

 

We consider it is acceptable to deal with subject for LARGE amounts.

 

Opinion on maximum credit : SR 3,000,000 (associations inspire

                            confidence for higher amounts if

                            required).

 

Trade risk assessment : Normal

 

 

PRINCIPAL BANKERS

 

NAME     : SABB (FMLY SAUDI BRITISH BANK)

Branch   : Main branch

PO Box   : 29074

Town     : Riyadh 11461

Telephone: (966 1) 479 4400

Fax      : (966 1) 479 4400

 

The company also has an account with the following banks :

 

1. National Commercial Bank (Al Ahli)

   Al Batha

   PO Box 34

   Riyadh 11495

   Telephone: (966 1) 402 5084

   Fax      : (966 1) 402 0981 / 403 6500

 

2. Banque Saudi Fransi

   Ma'ther Street

   PO Box 56006

   Riyadh 11554

   Telephone: (966 1) 404 2222

   Fax      : (966 1) 404 2311

 

3. Al Rajhi Bank

   Main branch

   PO Box 28

   Riyadh 11411

   Telephone: (966 1) 405 4244

   Fax      : (966 1) 405 2950

 

 

FINANCIAL INFORMATION

 

Private companies in Saudi Arabia are not required to publish or

disclose balance sheets. However, the subject interviewed offered

the following information :

 

Sales Turnover : SR  57,000,000 - 2003 - exact

               : SR  65,000,000 - 2004 - exact

               : SR  75,000,000 - 2005 - exact

               : SR  80,000,000 - 2006 - exact

               : SR 112,000,000 - 2007 - exact

               : SR 123,000,000 - 2008 - exact

               : SR 160,000,000 - 2009 - exact

               : SR 140,000,000 - 2010 – exact *

               : SR 150,000,000 – 2011 - projected

 

Net Profit     : SR  12,000,000 - 2006 - exact

               : SR  17,000,000 - 2007 - exact

               : SR  22,000,000 - 2008 - exact

               : SR  23,000,000 - 2009 - exact

               : SR  20,000,000 – 2010 – exact

               : SR  22,000,000 – 2011 – projected

 

Total Invested Capital : SR 8,500,000 (as of May 2011)

 

* Decrease in sales turnover in 2010 was due to unfavourable market conditions.

 

Financial year ends 31 December.

 

The following information applies to the group (latest available):

 

Sales Turnover               : SR 450,000,000 - 2004 - exact

                        : SR 495,000,000 - 2005 - exact

                        : SR 590,000,000 - 2006 - exact

                        : SR 800,000,000 - 2007 - exact

 

Net Profit          : not given but stated to be profitable

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started : 1976

 

History : Subject was established in Saudi Arabia in 1976 as a Proprietorship under the name Saudi Arabian Adhesive Factory Est. owned by Prince Abdul Rahman Bin Abdallah Al Saud. In 2004 subject was converted into a Limited Liability Company under the present name with the following shareholders : Prince Abdul Rahman Bin Abdallah Al Saud  and undisclosed shareholders. In March 2005 subject was bought by the local Al Banawi Group and Henkel KGA, Germany. Andrea Chantaner, former General Manager, left the company in 2006. In 2009 subject's shareholding structure changed to the present.

 

C.R. No. : 1010182454 (issue date: 16/11/2002 / 11/09/1423 H)

           / expiry date: 28/07/2012 / 09/09/1433 H)

 

RCCI Membership No.: 128685

 

Authorised Capital : SR 10,000,000 (increased from SR 5,000,000)

 

Paid up Capital : SR 10,000,000 (increased from SR 5,000,000)

 

Limited Liability Company with the following shareholders :

 

                                                                   Percentage    

                       

1. Ashwa Technologies Ltd                                    50%

   Adham Comm. Center, Medina Road

   PO Box 6420

   Jeddah 21472

   Telephone: (966 2) 637 3969

   Fax      : (966 2) 637 9229

   (owned by BIG (Bahrain) and Banawi Industrial Group)

 

2. Banawi Industrial Group                                   50%

   (fmly Banawi Trade & Industrial Group Ltd.)

   Adham Centre

   Medina Road

   Business District

   PO Box 8281

   Jeddah 21482

   Telephone: (966 2) 651 8253 / 651 7529 / 651 7693

   Fax      : (966 2) 651 8257

 

Affiliated companies of Saudi Arabian Adhesive Factory (SAAF) :

 

Associates

 

Subject is a member of the Banawi Group of Companies, Saudi Arabia,

which also includes the following companies :

 

1. Continental Steel Industries

   PO Box 6420

   Jeddah

 

2. National Cups & Containers Co. Ltd

   PO Box 470 

   Jeddah

 

3. Concrete Products Factory

   PO Box 3150

   Jeddah

 

4. Overseas Industrial Trading

   Dusseldorf

   Germany

 

5. National Paper Products Co.

   PO Box 538 

   Dammam

 

6. Badypak Ltd

   PO Box 4712

   Dammam

 

7. United Package Company

   PO Box 4711

   Dammam

 

8. Banawi Container Group Ltd

   Banawi Container Building

   Industrial Area Street aka Medina Highway

   Near National Defence, Jeddah Industrial Estate, Phase No. 1

   PO Box 4720 / 8281

   Jeddah 21412

   Telephone:  (966 2) 651 3937 ext. 121 / 636 0150 / Mobile (966 50)  

                587 5471

   Fax      :  (966 2) 636 2096 / 638 0051

   E-Mail   :  info@banawigroup.com

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Manufacturers, distributors and exporters of water and petroleum

based glues and adhesives.

 

NACE Code : 2052

 

Annual Production Capacity : 10,000 tonnes of glues and adhesives.

 

Imports worldwide, mainly from USA, China, India, Japan, Germany, Greece, Italy, UK, France and Switzerland.

 

Exports to Sudan, Algeria, Morocco, Tunisia, Yemen, Iran, Turkey,

Egypt, Lebanon, Syria and GCC countries.

 

 

FACILITIES

 

The Company has the following facilities :

 

Owned premises comprising administrative offices and a manufacturing unit with integrated storage facilities located at the heading address as well as 7 branch offices located elsewhere in Saudi Arabia

(see Branch Offices section).

 

Subject previously used P.O. Box 85, Riyadh 11494, as well as telephone and fax numbers (966 1) 480 7923 and 480 7883 respectively.

 

 

BRANCH OFFICES

 

1. Jeddah

   Telephone: (966 2) 679 1735 / 679 4684

   Fax      : (966 2) 628 6402

 

2. Al Khobar

   Telephone: (966 3) 890 2328

   Fax      : (966 3) 890 2372

 

3. Khamis Mushayt

   Telephone: (966 7) 233 0688

   Fax      : (966 7) 233 0917

 

4. Medina

   Telephone: (966 4) 839 0723

   Fax      : (966 4) 839 1260

 

5. Tabuk

 

6. Buraidah

 

7. Riyadh

 

 

SPECIAL NOTE

 

Interviewed: Adel Hassan Al Setouhi (Financial Manager).

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.08

UK Pound

1

Rs.73.45

Euro

1

Rs.64.30

 

 

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.