MIRA INFORM REPORT

 

 

Report Date :

10.10.2012

 

IDENTIFICATION DETAILS

 

Name :

MIDDLE EAST BATTERY COMPANY LTD (MEBC)

 

 

Registered Office :

Fluor Arabia Building, King Abdul Aziz Street, 360, Dhahran Airport 31932, Dammam

 

 

Country :

Saudi Arabia

 

 

Date of Incorporation :

April 1996

 

 

Com. Reg. No.:

2050030781, Dammam

 

 

Legal Form :

Limited Liability Partnership

 

 

Line of Business :

Manufacture and marketing of batteries.

 

 

No. of Employees :

320

 

 

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 :

Good

Payment Behaviour :

Regular

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                                    : MIDDLE EAST BATTERY COMPANY LTD (MEBC)

Country of Origin                                   : Saudi Arabia

Legal Form                                           : Limited Liability Partnership

Registration Date                                  : April 1996

Commercial Registration Number           : 2050030781, Dammam

Chamber Membership Number               : 217

Issued Capital                                       : SR 57,500,000

Paid up Capital                                     : SR 57,500,000

Total Workforce                                     : 320

Activities                                               : Manufacture and marketing of batteries.

Financial Condition                                : Undetermined

Payments                                             : Nothing detrimental uncovered

 

 

 


COMPANY NAME

 

MIDDLE EAST BATTERY COMPANY LTD (MEBC)

 

 

ADDRESS

 

Registered & Physical Address

 

Building            : Fluor Arabia Building

Street               : King Abdul Aziz Street

 

PO Box                        : 360, Dhahran Airport 31932

 

Town                : Dammam

Country : Saudi Arabia

 

Telephone         : (966-3) 8578577 ext. 2701

Facsimile          : (966-3) 8578577 ext. 2702

Email                : info@mebco.com

 

Premises

 

Subject operates from a large suite of offices that are rented and located in the Suburban Business Area of Dammam.

 

Branch Office (s)

 

     Location                                                                                           Description

 

·       Dammam – Al Hasa Highway                                                            Owned factory premises

     2nd Industrial Area                                                                              covering an area of 100,000

     PO Box: 13441                                                                                 square metres

     Dammam 31493

     Tel: (966-3) 8121221

     Fax: (966-3) 8121246

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Khalid Abdullah Al Zamil                                                                   Chief Executive Officer

 

·       Talal Al Zamel                                                                                   General Manager

 

·       Ahmad Sarrar                                                                                   Finance Manager

 

·       Bader El-Houssami                                                                           Marketing & Sales Manager

 

·       Abdulaziz Abdullah Marghi                                                                Manufacturing Manager

 

·       Raouf Klibi                                                                                       Engineering Manager

 

·       Yasser Al Nass                                                                                 Purchasing Manager

 

·       Ali Al Awdah                                                                         Administration Manager

 

·       Ahmad Katerji                                                                                   Business Development Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : April 1996 (Production began in mid-January 1999)

 

Legal Form                  : Limited Liability Partnership

 

Commercial Reg. No.   : 2050030781, Dammam

 

Chamber Member No.  : 217

 

Issued Capital              : SR 57,500,000

 

Paid up Capital            : SR 57,500,000

 

Name of Partner (s)                                                        Percentage

 

·       Arabian Battery Holding Co *                                        49.00%

 

·       Al Zamil Group Co                                                       14.73%

     Prince Talal Bin Abdulaziz Street

     PO Box: 9

     Al Khobar 31952

     Saudi Arabia

     Tel: (966-3) 8824888 / 8641299

     Fax: (966-3) 8822509 / 8871663

     Mob: (966-55) 800619

 

·       Al Mutlaq Trade & Development Co                              14.73%

Al Mutlaq Group Building, 4th Floor

Sitteen Street

Malaz

PO Box: 1321

Riyadh

Saudi Arabia

Tel: (966-1) 4770644

Fax: (966-1) 4775677

 

·       Saudi Automotive Services Co                                       7.94%

Al Akkariyah Centre

Al Olaya Street

PO Box: 51880

Riyadh 11553

Saudi Arabia

Tel: (966-1) 4634403

 

·       Abdullatif Alissa Group                                                  6.80%

PO Box: 193

Al Khobar

Saudi Arabia

 

·       Al Jomaih Holding Co                                                    6.80%

PO Box: 132

Riyadh

Saudi Arabia

 

*    Arabian Battery Holding Co is a subsidiary of Johnson Controls Inc.

 

Johnson Controls Inc.
5757 N. Green Bay Avenue
PO Box: 591
Milwaukee, WI 53201

United States of America
Tel: (1-414) 5241200

 

 

OPERATIONS

 

Activities: Engaged in the manufacture and marketing of maintenance free (Delco-Freedom) batteries for the

     automotive, marine and commercial markets.

 

     The MEBC plant was built at a cost of SR 210 million.

 

Production Capacity :   1,100,000 batteries per annum.

 

Import Countries: United States of America and Germany.

 

Export Countries : Subject exports to GCC countries as well as Egypt, Lebanon, Sudan, Jordan, Syria and Yemen.

 

Brand Names: AC DELCO and FREEDOM

 

Subject has a workforce of approximately 320 employees.

 

 


FINANCIAL DATA

 

Companies registered in Saudi Arabia are not legally required to make their accounts public and no financial information was released by the company or submitted by outside sources.

 

 

BANKERS

 

·       Saudi American Bank

PO Box: 3113

Dammam 31471

Tel: (966-3) 8337171

 

·       Saudi British Bank

PO Box: 35

Al Khobar 31932

Tel: (966-3) 8642868

     Acc No. 041 010455 082

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                   July 1999                                  May 2002

Credit amount                           240,399                         100,000

Amount overdue                        0                                              0

Payment terms                          60 days                                                60 days

Payment Method                       Letters of Credit                                    Letters of Credit

Paying record                           No Complaints                          No Complaints

Currency                                   Pounds Sterling                                    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.52.37

UK Pound

1

Rs.83.99

Euro

1

Rs.67.99

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.