MIRA INFORM REPORT

 

 

Report Date :

23.04.2013

 

IDENTIFICATION DETAILS

 

Name :

Al SawanI Food & Industrial Supply Co Ltd (FISCO)

 

 

Formerly Known As :

AL SAWANI GROUP

 

 

Registered Office :

Al Sawani Building, Sari Street, Sharafia District, P O Box 9411, Jeddah 21413

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

04.04.1994

 

 

Com. Reg. No.:

4030024340, Jeddah

 

 

Legal Form :

Limited Liability Partnership

 

 

Line of Business :

Distributors of Readymade Garments, Clothing Accessories and Fashion Items.

 

 

No. of Employees :

575

 

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                         : AL SAWANI FOOD & INDUSTRIAL SUPPLY CO LTD (FISCO)

Also Known As                                      : AL SAWANI GROUP

Country of Origin                                    : Saudi Arabia

Legal Form                                            : Limited Liability Partnership

Start Date                                             : 1976

Registration Date                                   : 4th April 1994

Commercial Registration Number            : 4030024340, Jeddah

Chamber Membership Number                : 30660

Issued Capital                                        : SR 40,500,000

Paid up Capital                                      : SR 40,500,000

Total Workforce                                     : 575

Activities                                               : Distributors of readymade garments, clothing accessories and fashion

                                                  items.

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                         : Steady

Person Interviewed                                 : Ahmed Al Azhari, Finance Manager

 

 

 

COMPANY NAME

 

AL SAWANI FOOD & INDUSTRIAL SUPPLY CO LTD (FISCO)

 

 

ALSO KNOWN AS

 

AL SAWANI GROUP

 

 

ADDRESS

 

Registered & Physical Address

 

Building             : Al Sawani Building

Street               : Sari Street

Area                 : Sharafia District

 

PO Box             : 9411

 

Town                 : Jeddah 21413

Country             : Saudi Arabia

 

Telephone         : (966-2) 6912612 / 6912913

Facsimile          : (966-2) 6911320

Email                : info@al-sawani.com

 

Premises

 

Subject operates from a large suite of offices, a showroom and storage facilities that are owned and located in the Central Business Area of Jeddah.

 

Branch Office (s)

 

Subject operates approximately 170 retail units located throughout Saudi Arabia.

 

 

KEY PRINCIPALS

 

     Name                                                                                              Position

 

·       Mohamed Abdul Qader Othman Hafiz                                     Managing Partner

 

·       Abdul Qader Othman Hafiz                                                                 Partner

 

·       Gamal Othman Hafiz                                                                         Partner

 

·       Mohamed Abdul Qader Hafiz                                                              General Manager

 

·       Al Hassan Madani                                                                             Commercial Manager

 

·       Ahmed Al Azhari                                                                               Finance Manager

 

·       Dr Fawazan Al Harthi                                                             Human Resources Manager

 

·       Abdullah Nazzer                                                                                Public Relations Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment              : Subject’s operations date back to 1976, however it was registered on 23/10/1414 Hijri

            (corresponding to 4th April 1994).

 

Legal Form                              : Limited Liability Partnership

 

Commercial Reg. No.              : 4030024340, Jeddah

 

Chamber Member No.             : 30660

 

Issued Capital                          : SR 40,500,000

 

Paid up Capital                        : SR 40,500,000

 

Name of Shareholder (s)

 

·       Mohamed Abdul Qader Othman Hafiz

 

·       Abdul Qader Othman Hafiz

 

·       Gamal Othman Hafiz

 

·       Hayat Abdullatif Jameel

 

·       Salah Sulaiman

 

 

OPERATIONS

 

Activities:                     Engaged in the import and distribution of readymade garments, clothing accessories and fashion items for ladies, gents and children.

 

Import Countries:         Europe and the United States of America.

 

Brand Names:              BENNETON, ESPRIT, CALVIN KLEIN, GUESS, BETTY BARCLAY, U2 and MAX MARA

 

Operating Trend:         Steady

 

Subject has a workforce of approximately 575 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Saudi Riyals (SR)

 

                                                Year Ending 31/12/11:                Year Ending 31/12/12:

 

Total Sales                                SR 550,000,000             SR 575,000,000

 

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

 

The above financial figures are based on estimations by our local sources.

 

 

BANKERS

 

·       National Commercial Bank

Palestine Square

PO Box: 7161

Jeddah 21462

Tel: (966-2) 6697384

Fax: (966-2) 6697388

 

·       Arab National Bank (ANB)

Madinah Road

PO Box: 9463

Jeddah 21413

Tel: (966-2) 6600272

Fax: (966-2) 6650202

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Al Sawani Foodstuff & Industrial Equipment Supply Co Ltd is well established in the local market with approximately 170 stores located throughout Saudi Arabia. It is engaged in the import and retail of ready made garments, clothing accessories and fashion items for ladies, gents and children, dealing with many well known brands.

 

The company is run in a professional manner with no problems recorded regarding the manner in which payment obligations are met. As such the subject is deemed a sound trade risk.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.17

UK Pound

1

Rs.82.45

Euro

1

Rs.70.70

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIT

 

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.