MIRA INFORM REPORT

 

 

Report Date :

23.10.2012

 

IDENTIFICATION DETAILS

 

Name :

SAUDI CERAMIC COMPANY (SCC)

 

 

Registered Office :

 

Al Amin Abdullah Al Ali Al Noaim Street, Al Malaz District, PO Box: 3893, Riyadh 11481

 

 

 

 

Country :

Saudi Arabia

 

 

 

 

Financials (as on) :

31.12.2011

 

 

 

 

Date of Incorporation :

14.07.1977

 

 

 

 

Com. Reg. No.:

1010014590

 

 

 

 

Legal Form :

Joint Stock Company

 

 

 

 

Line of Business :

Production and marketing of ceramics, sanitary ware products and water

 

 

 

 

No. of Employees :

3,300

 

 

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

 

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

(31.03.2011)

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                                     : SAUDI CERAMIC COMPANY (SCC)

Country of Origin                                    : Saudi Arabia

Legal Form                                            : Joint Stock Company

Registration Date                                   : 14th July 1977

Commercial Registration Number            : 1010014590, Riyadh

Chamber Membership Number                : 5361

Issued Capital                                        : SR 250,000,000

Paid up Capital                                      : SR 250,000,000

Total Workforce                                     : 3,300

Activities                                               : Production and marketing of ceramics, sanitary ware products and water

                                                              heaters

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

 

 

 


COMPANY NAME

 

SAUDI CERAMIC COMPANY (SCC)

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Al Amin Abdullah Al Ali Al Noaim Street

Area                 : Al Malaz District

PO Box             : 3893

Town                 : Riyadh 11481

Country             : Saudi Arabia

 

Telephone         : (966-1) 4644244 / 2650265

Facsimile          : (966-1) 4652124 / 2653031 / 4627569

Email                : info@saudiceramics.com

 

Premises

 

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

 

Branch Office (s)

 

            Location                                                                      Description

 

Al Kharj Road                                                                            Manufacturing Facilities

Riyadh Industrial Estate No. II

PO Box: 63629

Riyadh 11526

Tel: (966-1) 4981030

Fax: (966-1) 4981832 / 4981324

 

King Abdulaziz Street                                                                 Sales Office

PO Box: 7958

Dammam 31472

Tel: (966-3) 8340670

Fax: (966-3) 8331764

 

Subject owns and operates 26 showrooms located in Saudi Arabia’s major cities, including Hasa, Buraida, Jeddah, Tabuk and Taif.

 

 

KEY PRINCIPALS

 

            Name                                                                           Position

 

Saad Ibrahim Al Moajel                                                               Chairman

 

Khalid Salih Al Rajhi                                                                   Director

 

Abdullah Al Quhtani                                                                   Director

 

Sulaiman Mohamed Alkhelaifi                                                     Director

 

Abdulmohsin A Alsowelim                                                          Director

 

Fahad Abdullah Al Harbi                                                             Director

 

Sami Ibrahim Alessa                                                                  Director

 

Abdulkarim Ibrahim Alnafie                                                          Chief Executive Officer

 

Ibrahim Mohamed Al Haidary                                                      Sales Manager

 

Abdulaziz Suleiman                                                                   Operations Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 14th July 1977 (Production began in 1979)

 

Legal Form                  : Joint Stock Company

 

Commercial Reg. No.  : 1010014590, Riyadh

 

Chamber Member No. : 5361

 

Issued Capital              : SR 250,000,000

 

Paid up Capital            : SR 250,000,000

 

Name of Shareholder (s)                                                       Percentage

 

General Organisation for Social Insurance                                    15.90%

 

Saleh Abdul Aziz Al Rajhi                                                           14.30%

 

Falcom Financial Services Co                                                     6.80%  

 

Public Investment Fund                                                                5.40%

 

Members of the general public & private investors                         57.60%

 

 

OPERATIONS

 

Activities: Production and marketing of ceramics, sanitary ware products and water heaters.

 

Subject operates 3 production plants: Ceramics, Sanitary Ware and Electric Water Heaters.

 

SCC offers a wide range of bathroom accessories through its showrooms and other sales channels. These accessories include flushing mechanisms W.C., seats & covers, mixers, mirrors, and other accessories.

 

Production Capacity :  Ceramic and Porcelain Tiles        42 million square metres per annum

                                    Vitreous China Sanitary Ware     1.8 million units per annum

                                    Electric Water Heaters               900,000 units per annum

                                    Ceramic Road Markers               1.2 million units per annum

 

Import Countries: Germany and Italy

 

International Suppliers:

 

Hamsoth Karl August Industrie GmbH      Germany

Ludwig Riedhammer GmbH                                 Germany

OMIS SNC                                                        Italy

 

Distributors:

 

Abdul Aziz Khalil Est                                         Bahrain

International Ceramic Centre                               Bahrain

Al Mahmood Co. Ltd WLL                                   Bahrain

Zarmat Marble Factory                                       Jordan

National International Est                                    Jordan

Al Khateeb Trading Group                                   Kuwait

International Ceramics Co                                   Lebanon

Adri Cont. & Inv. Co.                                           Libya

Al Amodi Store                                                  Qatar

Al Fadel International Trading & Services Co         Qatar

Al-Faiz Contracting & Trade Est                          Qatar

Omani Traders Co. LLC                                      Oman

Al Jisr Trading & Contracting                               Oman

Dllwat International Investment Co                       Sudan

Sidra                                                                 Syria

Modern Mosaic & Tiles Factory                           UAE

Porcelain Trading Est                                         UAE

Al-Sallali Est. For Trading & Cont.                       Yemen

 

Export Countries: Middle East, Asia and Africa

 

Operating Trend: Steady

 

Subject has a workforce of approximately 3,300 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Saudi Riyals (SR 000’s)

 

Balance Sheet                                                                                     31/12/11                       31/12/10

 

Assets

Current assets

Cash                                                                                                     64,218              39,002

Accounts receivable                                                                               136,448 100,108

Inventories                                                                                             534,951 424,796

Prepayments and other receivables                                                         57,318              64,659

Total current assets                                                                               792,935 628,565

 

Non-current assets

Investments and financial assets                                                             61,037              51,559 

Projects under construction                                                                    276,975 207,181

Property, plant and equipment                                                                 1,138,054          1,052,077

Loan to associate company                                                                    -                       1,750

Total non-current assets                                                                         1,476,066          1,312,567

Total assets                                                                                          2,269,001          1,941,132

 

Liabilities and Shareholders’ Equity

Current liabilities

Short term loans                                                                                    160,000 172,720

Accounts payable                                                                                  175,008 58,611

Notes payable due within one year                                                          11,754              14,523

Accruals and other liabilities                                                                   78,281              65,179

Current portion of long term loans                                                            194,681 157,767

Total current liabilities                                                                             619,724 468,800

 

Non-current liabilities

Notes payable                                                                                       -                       708

Long term loans                                                                                     453,964 429,592

Employee’s end of service benefits                                                          48,413              37,984

Total non-current liabilities                                                                      502,377 468,284

Total liabilities                                                                                        1,122,101          937,084

 

Shareholders’ equity

Share capital                                                                                         250,000 250,000

Statutory reserve                                                                                    125,000 125,000

Retained earnings                                                                                  769,418 626,303

Unrealized gain from available for sale securities                                       2,482                2,745

Total shareholders’ equity                                                                       1,146,900          1,004,048

Total liabilities and shareholders’ equity                                                   2,269,001          1,941,132         

 

 

 

Income Statement

 

Net sales                                                                                              1,221,345          1,079,833

Cost of sales                                                                                         (774,979)           (686,150)

Gross income                                                                                        446,366 393,683

Selling and marketing expenses                                                              (137,176)           (119,552)

General and administrative expenses                                                       (65,328)            (51,810)

Income from main operations                                                                  243,862 222,321

Finance costs                                                                                        (17,132)            (8,903)

Other revenues and expenses                                                                 12,760              13,472

Net income before Zakat                                                             239,490 226,890

Zakat provision                                                                                       (7,475)              (6,301)

Net income                                                                                            232,015 220,589

 

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

 

 

BANKERS

 

 

National Commercial Bank

Malaz Branch

PO Box: 42536

Riyadh 11551

Tel: (966-1) 4776450

Fax: (966-1) 4769502

 

Saudi American Bank

Malaz Branch

PO Box: 3388

Riyadh 11471

Tel: (966-1) 4774770

 

United Saudi Bank

Malaz Branch

PO Box: 2804

Riyadh 11461

Tel: (966-1) 4772033

Fax: (966-1) 4773709

 

Riyad Bank

King Abdul Aziz Road

PO Box: 22622

Riyadh 11416

Tel: (966-1) 4122243

Fax: (966-1) 4013030

 

Saudi Hollandi Bank

Al Dhabab Street

PO Box: 1467

Riyadh 11431

Tel: (966-1) 4067888

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Saudi Ceramic Company (SCC) is a leading producer of vitreous china sanitary ware, ceramic tiles, and electric water heaters in the Middle East. It operates 26 showrooms located throughout the country as well as a chain of distributors that span the entire Middle East.

 

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.53.67

UK Pound

1

Rs.86.04

Euro

1

Rs.70.06

 

 

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.