MIRA INFORM REPORT

 

 

Report Date :

05.04.2013

 

IDENTIFICATION DETAILS

 

Name :

AL ITTEFAQ STEEL PRODUCTS COMPANY

 

 

Registered Office :

Al Twairqi Complex Building, Shahrah Street, Second Industrial City, P O Box 7600, Dammam 31472

 

 

Country :

Saudi Arabia

 

 

Date of Incorporation :

14.08.1989

 

 

Com. Reg. No.:

2050019125, Dammam

 

 

Legal Form :

Closed Shareholding Company

 

 

Line of Business :

Manufacture and marketing of sheet iron angles and iron profiles

 

 

No. of Employees :

850

 

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                                    : AL ITTEFAQ STEEL PRODUCTS COMPANY

Country of Origin                                   : Saudi Arabia

Legal Form                                           : Closed Shareholding Company

Registration Date                                  : 14th August 1989

Commercial Registration Number           : 2050019125, Dammam

Chamber Membership Number               : 71030

Issued Capital                                       : SR 1,350,000,000

Paid up Capital                                     : SR 1,350,000,000

Total Workforce                                     : 850

Activities                                               : Manufacture and marketing of sheet iron angles and iron profiles

Financial Condition                                : Undetermined

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady


COMPANY NAME

 

AL ITTEFAQ STEEL PRODUCTS COMPANY

 

 

Company ADDRESS

 

Registered & Physical Address

Building            : Al Twairqi Complex Building

Street               : Shahrah Street

Area                 : Second Industrial City

PO Box            : 7600

Town                : Dammam 31472

Country             : Saudi Arabia

 

Telephone         : (966-3) 8121143 / 8579922

Facsimile          : (966-3) 8121059 / 8579014

Email                : ispc@altuwairqi.com / hturki@altuwairqi.com

 

Premises

Subject operates from a medium sized suite of offices, a warehouse and a factory that are owned and located in the Industrial Area of Dammam.

 

Branch Office (s)

Subject has branches in Riyadh and Jeddah.

 

 

KEY PRINCIPALS

 

     Name                                                                       Nationality                    Position

 

·       Hilal Hussain S. Al Tuwairqi                                          Saudi                         Managing Director

·       Yousef Hilal Hussain S Al Tuwairqi                               Saudi                         Director

·       Khalid Hilal Hussain S Al Tuwairqi                                 Saudi                         Director

·       Abdullah Hilal Hussain S Al Tuwairqi                             Saudi                         Director

·       Abdul Rahman Hilal Hussain S. Al Tuwairqi                   Saudi                         General Manager

·       Sharjeel Azhar                                                                -                             Executive Officer

·       Abdul Raouf Al Matar                                                     -                             Commercial Manager

·       Emad Al Turab                                                               -                             Finance Controller

·       Abdul Gafour Al Matar                                                    -                             Finance Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 11/01/1410 Hijri (corresponding to 14th August 1989)

 

Legal Form                  : Closed Shareholding Company

 

Commercial Reg. No.   : 2050019125, Dammam

 

Chamber Member No.  : 71030

 

Issued Capital              : SR 1,350,000,000

 

Paid up Capital            : SR 1,350,000,000

 

Name of Shareholder (s)

 

·       Al Tuwairqi Holding

Dammam

 

·       Al Obeikan Investment

Riyadh

 

·       Al Mulhim Group

Riyadh

 

 

AFFILIATED COMPANIES

 

·       Direct Reduced Iron Company

·       National Steel Company Limited

·       Al Faisal Steel Products Company

·       The International Electrical Products Company

·       Al Tuwairqi Trading & Contracting

·       Thamesteel Limited

·       Tuwairqi Steel Mills Limited

 

 

OPERATIONS

 

Activities: Engaged in the manufacture and marketing of sheet iron angles and iron profiles.

 

Production Capacity: 70,500 tonnes per year.

 

Import Countries: Germany and the United States of America.

 

Subject has a workforce of approximately 850 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 British Bank

PO Box: 109

Jeddah 21411

Tel: (966-2) 6512121

 

·       National Commercial Bank

Airport Road

PO Box: 2800

Riyadh 11461

Tel: (966-1) 4772281

Fax: (966-1) 4730322

 

 

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.54.65

UK Pound

1

Rs.82.41

Euro

1

Rs.70.08

 

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.