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Report Date : |
23.10.2012 |
IDENTIFICATION DETAILS
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Name : |
SAUDI CERAMIC COMPANY (SCC) |
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Registered Office : |
Al Amin Abdullah Al Ali Al Noaim Street, Al Malaz District, PO Box:
3893, Riyadh 11481 |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
14.07.1977 |
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Com. Reg. No.: |
1010014590 |
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Legal Form : |
Joint Stock Company |
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Line of Business : |
Production and
marketing of ceramics, sanitary ware products and water |
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No. of Employees : |
3,300 |
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RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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Saudi Arabia |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
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
SAUDI CERAMIC COMPANY (SCC)
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.
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
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%
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 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
No complaints regarding subject’s payments have been reported.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.53.67 |
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1 |
Rs.86.04 |
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Euro |
1 |
Rs.70.06 |
INFORMATION DETAILS
|
Report
Prepared by : |
SDA |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.