MIRA INFORM REPORT

 

 

Report Date :

24.12.2012

 

IDENTIFICATION DETAILS

 

Name :

UNITED WOOD PRODUCTS CO LTD

 

 

Registered Office :

Al Kharj Road,  2nd Industrial Area, PO Box: 240, Riyadh 11383

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

1988

 

 

Com. Reg. No.:

1010180530

 

 

Legal Form :

Closed Shareholding Co

 

 

Line of Business :

Manufacture of wooden doors, windows, skirting, architraves and panelling

 

 

No. of Employees :

360

 

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

 

Status :

Satisfactory

 

 

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 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Saudi Arabia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 


 

 

Saudi Arabia  - ECONOMIC OVERVIEW

 

Saudi Arabia has an oil-based economy with strong government controls over major economic activities. It possesses about one-fifth of the world's proven petroleum reserves, ranks as the largest exporter of petroleum, and plays a leading role in OPEC. The petroleum sector accounts for roughly 80% of budget revenues, 45% of GDP, and 90% of export earnings. Saudi Arabia is encouraging the growth of the private sector in order to diversify its economy and to employ more Saudi nationals. Diversification efforts are focusing on power generation, telecommunications, natural gas exploration, and petrochemical sectors. Almost 6 million foreign workers play an important role in the Saudi economy, particularly in the oil and service sectors, while Riyadh is struggling to reduce unemployment among its own nationals. Saudi officials are particularly focused on employing its large youth population, which generally lacks the education and technical skills the private sector needs. Riyadh has substantially boosted spending on job training and education, most recently with the opening of the King Abdallah University of Science and Technology - Saudi Arabia''s first co-educational university. As part of its effort to attract foreign investment, Saudi Arabia acceded to the WTO in December 2005 after many years of negotiations. The government has begun establishing six "economic cities" in different regions of the country to promote foreign investment and plans to spend $373 billion between 2010 and 2014 on social development and infrastructure projects to advance Saudi Arabia''s economic development.

                                                                               

Source : CIA


SUMMARY

 

Company Name                                    : UNITED WOOD PRODUCTS CO LTD

Country of Origin                                   : Saudi Arabia

Legal Form                                           : Closed Shareholding Co

Start Date                                             : 1988

Registration Date                                  : 29th October 2004

Commercial Registration Number           : 1010180530, Riyadh

Chamber Membership Number               : 149525

Issued Capital                                       : SR 25,680,000

Paid up Capital                                     : SR 25,680,000

Total Workforce                                     : 360

Activities                                               : Manufacture of wooden doors, windows, skirting, architraves and panelling

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Hazem Maroof Al Zamamiri, Finance Manager


COMPANY NAME

 

UNITED WOOD PRODUCTS CO LTD

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Al Kharj Road

Area                 : 2nd Industrial Area

PO Box                        : 240

Town                : Riyadh 11383

Country : Saudi Arabia

 

Telephone         : (966-1) 2657777 / 2651559 / 2650999

Facsimile          : (966-1) 2651108

Email                : info@uwpco.com / unitedwood@akmas.com

 

Premises

 

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

 

 

KEY PRINCIPALS

 

            Name                                                                                       Position

 

Abdullah Abdulaziz Al Rabieh                                                     Managing Partner

 

Essa Al Turki                                                                             Administration Manager

 

Yousef Al Tuwaijiri                                                                                 Factory Manager

 

Hazem Maroof Al Zamamiri                                                                    Finance Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : Subject’s operations date back to 1988, however it was registered on 29th October 2004

 

Legal Form                  : Closed Shareholding Co

 

Commercial Reg. No.   : 1010180530, Riyadh

 

Chamber Member No.  : 149525

 

Issued Capital              : SR 25,680,000

 

Paid up Capital            : SR 25,680,000

 

Name of Partner (s)                                                      Percentage

 

Bawan Holding                                                              95%

 

Abdullah Abdulaziz Al Rabieh                                          5%

 

 

OPERATIONS

 

Activities:         Engaged in the manufacture of wooden doors, windows, skirting, architraves and panelling.

 

                        Subject was ISO 9001 accredited in 1998.

 

Import Countries: Europe and the United States of America

 

International Suppliers:

 

Interwood Mobel Pvt Ltd            Pakistan

Halspan Ltd                              United Kingdom

 

Operating Trend:                      Steady

 

Subject has a workforce of approximately 360 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 136,000,000             SR 129,000,000

 

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

 

The above financial figures were confirmed by Hazem Al Zababri, Finance Manager.

 

 

BANKERS

 

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.

 

Date of transaction                                January 2008                             April 2009

Credit amount                                       206,480                         616,250

Amount overdue                                    0                                              0

Payment terms                                      60 days                                                90 days

Payment Method                                   Letters of Credit                                    Letters of Credit

Paying record                                       No Complaints                          No Complaints

Currency                                               Canadian Dollars                       Canadian Dollars

 

 

GENERAL COMMENTS

 

Established in 1988, subject is engaged in the manufacture of wooden doors and windows.

 

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.55.08

UK Pound

1

Rs.89.53

Euro

1

Rs.72.77

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.