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Report Date : |
05.12.2013 |
IDENTIFICATION DETAILS
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Name : |
METHANOL CHEMICAL COMPANY LTD (CHEMANOL) |
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Formerly Known As : |
SAUDI FORMALDEHYDE CHEMICAL COMPANY LTD (SFCCL) |
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Registered Office : |
Al Moujil Building Al Dhahran Street PO Box 3139 Dammam 31471 |
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Country : |
Saudi Arabia |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
31.07.1989 |
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Com. Reg. No.: |
2055001870, Dammam |
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Legal Form : |
Saudi Joint Stock Company |
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Line of Business : |
Subject is engaged in the production of premium grade Formaldehyde and
derivative products, including Formalin, Melfores, Paraformaldehyde and
Ufores. |
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No. of Employees : |
530 |
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 : |
-- |
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 31st, 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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 17% 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. Over 5 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 2005. 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 : METHANOL CHEMICAL COMPANY LTD (CHEMANOL)
Previously Known As : SAUDI FORMALDEHYDE CHEMICAL COMPANY LTD (SFCCL)
Country of Origin : Saudi Arabia
Legal Form : Saudi Joint Stock Company
Registration Date : 31st July 1989
Commercial Registration Number : 2055001870, Dammam
Chamber Membership Number : 405
Issued Capital : SR 1,206,000,000
Paid up Capital : SR 1,206,000,000
Total Workforce : 530
Activities : Producers of Formaldehyde and derivative products.
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
METHANOL CHEMICAL COMPANY LTD (CHEMANOL)
SAUDI FORMALDEHYDE CHEMICAL COMPANY LTD (SFCCL)
Building : Al Moujil
Building
Street : Al Dhahran
Street
PO Box : 3139
Town : Dammam 31471
Country : Saudi Arabia
Telephone : (966-3) 8342397
/ 8338831 / 8337317 / 3589905 / 3581111
Facsimile : (966-3)
8342283
Email : sfccl@saudiform.com
/ fawaz@chemanol.com
/ info@chemanol.com
Subject operates from a large suite of offices that are rented and
located in the Central Business Area of Dammam.
Branch Office (s)
Location Description
· Tareeq 198
Secondary Industries Park Owned
factory premises
Section P, Block
5, Lot No. 4 & 6
PO Box: 2101 /
7953
Jubail 31951
Tel: (966-3)
3584616 / 3581048
Fax: (966-3)
3583592
Name Position
·
Abdullah Mohamed Al Mazrouie Managing
Director
·
Khalid Al Zamil Director
·
Adeeb Al Zamil Director
·
Bader Kanoo Director
·
Abdul Mohsen Al Nafsi Director
·
Sami Jalal Director
·
Hamad Al Manae Director
·
Khalid Bin Ibrahim Al Rabiah General Manager
·
Fawaz Al Abbad Administration
Manager
Date of
Establishment : 28/12/1409 Hijri
(corresponding to 31st July 1989). Production began in 1991
History : Subject was
established in 1989 under the name of “Saudi Formaldehyde Chemical
Company Ltd
(SFCCL)”. However in March 2007, and in order to reflect its expansion into
methanol production the subject was re-registered under the new name of
“Methanol
Chemical Company Ltd (Chemanol)”
Legal Form : Saudi Joint Stock
Company
Commercial Reg.
No. : 2055001870, Dammam
Chamber Member No. : 405
Issued Capital : SR 1,206,000,000
Paid up Capital : SR 1,206,000,000
· Abdullah A Kanoo
Co 11%
· Zamil Group
Holding Co 11%
· Mazen Khalif Ahmed
Al Naeimi & Sons Co 8%
· Mohammad Jalal
& Sons Co 5%
· Al Mazrouie
Holding Co 5%
· Members of the
general public & private investors 60%
· United Gulf Steel
Mill Co Ltd
PO Box: 35344
Dammam
Tel: (966-3) 8343853
Fax: (966-3) 8346627
Activities: Engaged in the production of premium grade Formaldehyde and derivative
products, including Formalin, Melfores, Paraformaldehyde and Ufores.
Subject’s current product range comprises the following chemicals in 26
grades:
-
Aqueous Formaldehyde Solutions (AF-37 / Formalin)
- Urea Formaldehyde Concentrate
(UF-85 / Formurea)
- Hexa Methylene Tetramine (HMT /
Hexamine)
- Paraformaldehyde (Paraform)
- Melamine & Urea Formaldehyde
Resins (Spray Dried)
- Glazing Powder
- Methanolic / Butanolic
Solutions of Formaldehyde
- Sulphonated Naphthalene &
Melamine based Superplasticizers (SNF/SMF)
Production Capacity: 200,000 tonnes per annum
Import Countries : Germany and the United States of America.
Export Countries: More than 80% of its production capacity is
exported to more than 50 countries in the Middle East,
Indian Subcontinent, Africa, Europe, Asia,
Australia and North America.
Operating Trend : Steady
Subject has a workforce of approximately 530 employees.
Financial highlights provided by local sources are given below:
Currency: Saudi Riyals (SR)
Balance Sheet 31/12/12 31/12/11
31/12/10
Assets
Current assets
Cash 114,777,303 122,114,884 136,169,510
Margin deposits with bank 500.000 500,000 -
Trade receivables 261,468,777 266,928,485 219,157,155
Inventories 121,445,541 117,460,295 83,242,482
Total current assets 533,865,200 507,003,664 438,569,147
Non current assets
Property, plant and equipment 2,343,802,441 2,465,144,620 2,598,882,383
Intangible assets 13,781,250 14,568,750 15,750,000
Deferred charges 1,768,228 4,741,092 7,696,356
Long term prepaid expenses 30,992,729 36,545,584 31,874,992
Total non-current assets 2,390,344,648 2,521,000,046 2,654,203,731
Total assets 2,924,209,848 3,028,003,710 3,092,772,878
Liabilities and shareholders’ equity
Current liabilities
Trade payables 56,498,531 82,185,438 159,168,513
Short term loans - 40,000,000 41,606,587
Current portion of long term bank debts 142,625,000 124,790,000 449,283,766
Current portion of long term obligations 3,087,500 5,250,000 5,250,000
Zakat provision 4,901,401 3,996,440 4,579,858
Total current liabilities 247,401,697 256,221,878 659,888,724
Non current liabilities
Long term bank debts 1,075,925,000 1,261,175,000 988,934,068
Long term obligations - 3,087,500 7,900,000
Employees’ end of service benefits 27,643,478 24,106,278 21,274,205
Total non-current liabilities 1,103,568,478 1,288,368,778 1,018,108,273
Total liabilities 1,350,970,175 1,544,590,656 1,677,996,997
Shareholders’ equity
Share capital 1,206,000,000 1,206,000,000 1,206,000,000
Share premium 72,850,071 72,850,071 72,850,071
Statutory reserve 33,686,753 24,543,813 17,522,617
Retained earnings 260,702,849 180,019,170 118,403,193
Total shareholders’ equity 1,573,239,673 1,483,413,054 1,414,775,881
Total liabilities and shareholders’ equity 2,924,209,848 3,028,003,710 3,092,772,878
Statement of Income
Sales 920,747,322 829,737,011 589,495,283
Cost of sales (703,297,587) (637,294,084) (470,579,263)
Gross profit 217,449,735 191,812,927 118,916,020
Selling and distribution expenses (68,991,497) (59,994,571) (57,516,506)
General and administrative expenses (25,590,062) (18,041,480) (19,170,756)
Amortisation of deferred charges (2,972,864) (2,955,265) (2,184,240)
Operating income 119,895,312 110,821,611 40,044,518
Other income 14,077,491 2,332,704 1,052,119
Financial charges (37,643,403) (39,942,354) (29,007,407)
Income before Zakat 96,329,400 73,211,961 12,089,230
Zakat (4,900,000) (3,000,000) (6,048,248)
Net income 91,429,400 70,211,961 6,040,982
Local sources consider subject’s financial condition to be Good.
·
National Commercial Bank
PO Box: 13
Dammam 31411
Tel: (966-3)
8331188
Fax: (966-3)
8336058
·
Arab National Bank (ANB)
King Street
PO Box: 18
Dammam 31411
Tel: (966-3)
8323440
Fax: (966-3)
8337829
No complaints regarding subject’s payments have been reported.
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.62.33 |
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1 |
Rs.102.18 |
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Euro |
1 |
Rs.84.68 |
INFORMATION DETAILS
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Report
Prepared by : |
NIS |
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.