MIRA INFORM REPORT

 

 

Report Date :

17.04.2012

 

IDENTIFICATION DETAILS

 

Name :

BANAWI CONTAINERS GROUP CO LTD (BCG)

 

 

Registered Office :

Adham Centre, 14th Floor Madinah Highway Industrial Area PO Box 8281 & 4720 Jeddah 21482

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2011

 

 

Year of Establishment :

1972

 

 

Com. Reg. No.:

4030101949, Jeddah

 

 

Legal Form :

Limited Liability Partnership

 

 

Line of Business :

Subject operates several divisions like Corrugated Carton Division, Folding Cartons Division, Liquid Packaging Division

 

 

No. of Employees :

2,500

 

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$ 1,800,000

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 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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                                     : BANAWI CONTAINERS GROUP CO LTD (BCG)

Country of Origin                                    : Saudi Arabia

Legal Form                                            : Limited Liability Partnership

Start Date                                             : 1972

Registration Date                                   : 13th February 1994

Commercial Registration Number                        : 4030101949, Jeddah

Chamber Membership Number                : 71001

Issued Capital                                        : SR 11,000,000

Paid up Capital                                      : SR 11,000,000

Total Workforce                                     : 2,500

Activities                                               : Subject operates several divisions (see below for details)

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Recommended Credit Limit                     : US$ 1,800,000

Person Interviewed                                 : Mohamed Abbas, Finance Manager

 

 

 

COMPANY NAME

 

BANAWI CONTAINERS GROUP CO LTD (BCG)

 

 

ADDRESS

 

Registered & Physical Address

 

Building             : Adham Centre, 14th Floor

Street               : Madinah Highway

Location            : Industrial Area

 

PO Box             : 8281 & 4720

 

Town                 : Jeddah 21482

Country             : Saudi Arabia

 

Telephone         : (966-2) 6513937 / 6518253

Facsimile          : (966-2) 6518257 / 6515444

Email                : ceo@banawigroup.com

 

Premises

 

Subject operates from a large suite of offices that are rented and located in the Industrial Area of Jeddah.

 

Branch Office (s)

 

     Location                                                                                           Description

 

·       Industrial City, Phase 3                                                                      Owned factory premises

PO Box: 922

Jeddah 21421

     Tel: (966-2) 6362096 / 6360150

     Fax: (966-2) 6377985 / 6380051

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Sheikh Walid Ali Al Banawi                                                                Managing Partner

 

·       Sheikh Hussein Ali Al Banawi                                                            Partner

 

·       Sheikh Ali Al Banawi                                                                         Partner

 

·       John Abi Najem                                                                                 General Manager

 

·       Mohamed Farooq                                                                              Commercial Manager

 

·       Mohamed Abbas                                                                               Finance Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1972, however subject was registered on 03/09/1414 Hijri (corresponding to 13th February 1994)

 

History                         : Subject was originally established in 1972 under the name of “Banawi Industrial Group”.

  However, during 2000 subject changed its name to the current style of “Banawi Containers  Group Co Ltd”.

 

Legal Form                  : Limited Liability Partnership

 

Commercial Reg. No.  : 4030101949, Jeddah

 

Chamber Member No. : 71001

 

Issued Capital              : SR 11,000,000

 

Paid up Capital                        : SR 11,000,000

 

Name of Partner (s)

 

·       Sheikh Walid Ali Al Banawi

 

·       Sheikh Hussein Ali Al Banawi

 

·       Sheikh Ali Al Banawi

 

 

AFFILIATED COMPANIES

 

·       Ashwa Adhesives Industries Ltd

     Industrial Estate, Phase No. 2

     PO Box: 6420

     Jeddah 21442

     Saudi Arabia

     Tel: (966-2) 6373969 / 6370870

     Fax: (966-2) 6379229

 

·       Henkel Adhesives Egypt SAE

Industrial Area No. 5, Plot No. 90/A

PO Box: 71

Sixth of October City

Egypt

Tel: (20-11) 341394 / 341395 / 341396

Fax: (20-11) 341328

Email: henkeleg@sixoct.ie-eg.com

 

·       Henkel Adhesives Middle East

PO Box: 29073

Dubai

     United Arab Emirates

     Tel: (971-4) 6519499

     Fax: (971-4) 6520960

 

·       Al Banawi Industrial Trading Group Ltd

Khalid Ibn Walid Road

Dubai

United Arab Emirates

Tel: (971-4) 3970499

Fax: (971-4) 3972194

 

 

OPERATIONS

 

Activities: Subject’s operations are performed through the following divisions:

 

·       Corrugated Carton Division

 

       Engaged in the production and marketing of corrugated cartons and boxes, as well as sheets and rolls.

 

·       Folding Cartons Division

 

     Engaged in the production of folding cartons for use in a variety of industries.

 

·       Liquid Packaging Division

 

       Engaged in the production of packaging materials for liquid products such as milk and detergents.

 

Production Capacity: 7,000 metric tonnes of cartons per annum.

 

Import Countries: United States of America and Germany

 

Operating Trend: Steady

 

Subject has a workforce of approximately 2,500 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Saudi Riyals (SR)

 

                                                Year Ending 31/12/10:                Year Ending 31/12/11:

 

Total Sales                                SR 180,000,000             SR 182,300,000

 

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

 

The above figures were provided by Mr Mohamed Abbas, Finance Manager

 

 

BANKERS

 

·       National Commercial Bank

Al Balad Branch

King Abdulaziz Street

PO Box: 5066

Jeddah 21422

Tel: (966-2) 6434777

Fax: (966-2) 6441686

 

·       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      June 2003                    June 2004                    June 2005                    July 2006

Credit amount                370,948             373,368             345,235             69,000

Amount overdue 0                                  0                                  0                                  0

Payment terms              60 days                         60 days                         60 days                         120 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            Pounds Sterling

 

 

GENERAL COMMENTS

 

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.51.66

UK Pound

1

Rs.81.79

Euro

1

Rs.67.18

 

 

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.