MIRA INFORM REPORT

Report Date :

24.09.2012

IDENTIFICATION DETAILS

Name :	FILLING & PACKING MATERIALS MANUFACTURING CO (FIPCO)

Registered Office :	Second Industrial Area, P O Box 8762, Riyadh 11492

Country :	Saudi Arabia

Financials (as on) :	31.12.2011

Date of Incorporation :	16.06.1991

Com. Reg. No.:	1010084155, Riyadh

Legal Form :	Joint Stock Company

Line of Business :	Manufacturers of woven bags, sacks, containers, cable filler, twine and strapping bands

No. of Employees :	800 employees

RATING & COMMENTS

MIRA’s Rating :

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 – March 31^st, 2012

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Saudi Arabia

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 : FILLING & PACKING MATERIALS MANUFACTURING CO (FIPCO)

Country of Origin : Saudi Arabia

Legal Form : Joint Stock Company

Registration Date : 16^th June 1991

Commercial Registration Number : 1010084155, Riyadh

Issued Capital : SR 115,000,000

Paid up Capital : SR 115,000,000

Total Workforce : 800

Activities : Manufacturers of woven bags, sacks, containers, cable filler, twine and

strapping bands.

Financial Condition : Fair

Payments : Nothing detrimental uncovered

Operating Trend : Steady

COMPANY NAME

FILLING & PACKING MATERIALS MANUFACTURING CO (FIPCO)

company ADDRESS

Registered & Physical Address

Location : Second Industrial Area

PO Box : 8762

Town : Riyadh 11492

Country : Saudi Arabia

Telephone : (966-1) 2652299 / 2651978

Facsimile : (966-1) 2651275

Email : marketing@fipco.com.sa / info@fipco.com.sa

Premises

Subject operates from a suite of offices and a factory covering 75,000 square metres that are rented and located in the Industrial Area of Riyadh.

KEY PRINCIPALS

Name Position

· Abdul Mohsin M Al Saleh Chairman

· Adeeb Abdulrahman Alsowaillem Director

· Abbas T Al Abrahim Director

· Abdul Mohsin A Alsowaillem Director

· Loay Hassan Hamdallah Director

· Fahad Saleh Al Musabhi Director

· Khalifa Ahmed Al Dossary Director

· Fahad Faiea Al Saif General Manager

LEGAL FORM & OWNERS

Date of Establishment : 04/12/1411 Hijri (corresponding to 16^th June 1991)

Legal Form : Joint Stock Company

Commercial Reg. No. : 1010084155, Riyadh

Issued Capital : SR 115,000,000

Paid up Capital : SR 115,000,000

Name of Shareholder (s)

· Abdul Mohsin M Al Saleh

· Adeeb Abdulrahman Alsowaillem

· Abbas T Al Abrahim

· Abdul Mohsin A Alsowaillem

· Loay Hassan Hamdallah

· Fahad Saleh Al Musabhi

· Khalifa Ahmed Al Dossary

· Saudi businessmen & private investors

OPERATIONS

Activities: Engaged in the manufacture of woven bags, sacks, containers, cable filler, twine and strapping bands.

Import Countries: Europe and the Far East.

Operating Trend: Steady

Subject has a workforce of approximately 800 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: Saudi Riyals (SR 000’s)

Balance Sheet 31/12/09 31/12/10 31/12/11

Current Assets	42,398	43,563	74,092
Inventory	26,175	28,510	26,299
Investments	38,025	29,199	5,817
Fixed Assets	58,427	69,428	76,671
Other Assets	1,932	17,435	17,286
Total Assets	166,957	188,135	200,165
Current Liabilities	21,264	23,740	25,859
Non-Current Liabilities	19,252	17,655	24,254
Other Liabilities	0	0	0
Shareholder's Equity	126,441	146740	150,052
Total Liabilities & Shareholder Equity	166,957	188,135	200,165

Statement of Income

Sales	138,307	170,652	205,837
Sales Cost	110,197	134,999	173,845
Total Income	28,110	35,653	31,992
Other Revenues	2,629	1,007	(254)
Total Revenues	30,739	36,660	31,738
Admin and Marketing Expenses	8,377	12,272	13,377
Depreciation	445	577	588
Other Expenses	0	0	0
Total Expenses	8,822	12,849	13,965
Net Income Before Zakat	21,917	23,811	17,773
Zakat	2,120	2,182	2,050
Net Income	19,797	21,629	15,723
Balance First Period	27,431	9,462	27,597
Reserves	1,980	2,163	1,572
Cash Dividends	0	0	11,500
Other Distributions	35,786	1,331	12,411
Balance End Period	9,462	27,597	17,837

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

BANKERS

· National Commercial Bank

Malaz Branch

PO Box: 42536

Riyadh 11551

Tel: (966-1) 4776450

Fax: (966-1) 4769502

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

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.53.91
UK Pound	1	Rs.87.60
Euro	1	Rs.70.01

INFORMATION DETAILS

Report Prepared by :

MNL

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.