MIRA INFORM REPORT

 

 

Report Date :

30.01.2013

 

IDENTIFICATION DETAILS

 

Name :

AL ABDULKARIM HOLDING CO (AKH)

 

 

Registered Office :

Al Abdulkarim Building, King Faisal Street (9th Street) / King Abdulaziz Street, PO Box      845 & 5777, Dammam 31411

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

01.02.1981

 

 

Com. Reg. No.:

2050003048

 

 

Legal Form :

Limited Liability Partnership

 

 

Line of Business :

Import and distribution of electrical and electromechanical products, as well as providing installation and maintenance services

 

 

No. of Employees :

1,350

 

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

(31.03.2012)

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 ABDULKARIM HOLDING CO (AKH)

Country of Origin                                    : Saudi Arabia

Legal Form                                            : Limited Liability Partnership

Registration Date                                   : 1st February 1981

Commercial Registration Number            : 2050003048, Dammam

Chamber Membership Number                : 77000

Issued Capital                                        : SR 3,000,000

Paid up Capital                                      : SR 3,000,000

Total Workforce                                     : 1,350

Activities                                               : Import and distribution of electrical and electromechanical products, as well as providing installation and maintenance services

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Mohamed Madkhoum, Commercial Manager

 

 

 


COMPANY NAME

 

AL ABDULKARIM HOLDING CO (AKH)

 

 

ADDRESS

 

Registered & Physical Address

 

Building             : Al Abdulkarim Building

Street               : King Faisal Street (9th Street) / King Abdulaziz Street

PO Box             : 845 & 5777

Town                 : Dammam 31411

Country             : Saudi Arabia

 

Telephone         : (966-3) 8337110 / 8331999 / 8277777

Facsimile          : (966-3) 8338242 / 8321422 / 8334046 / 8279900

Mobile               : (966-50) 5844158

Email                : info@akh.com.sa

 

Premises

 

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

 

Prince Mosaid Street                                                                  Showroom

Sulaimaniyah

PO Box: 57792

Riyadh 11584

Tel: (966-1) 4778218 / 4790484

Fax: (966-1) 4782176

 

Riyadh                                                                                      Rented Sales Office

Tel: (966-1) 2060555

Fax: (966-1) 2062333                                                                

 

Sitten Tower, 6th Floor                                                                 Rented Sales Office

PO Box: 2732

Jeddah 21441

Tel: (966-2) 6601877 / 6670179

Fax: (966-2) 6605319

 

Jeddah                                                                                      Rented Sales office

Tel: (966-2) 6685100

Fax: (966-2) 6685200

 

Khashoggi Building, 9th Floor                                                       Rented Sales office

Dhahran Street

PO Box: 31377

Al Khobar 31952

Tel: (966-3) 8892085

Fax: (966-3) 8892086

 

Al Mashoor Street                                                                      Rented Sales Office

PO Box: 1752

Jubail 31951

Tel: (966-3) 3626123 / 3622582

Fax: (966-3) 3624022

 

Al Bahr                                                                                     Rented Sales Office

PO Box: 1104

Yanbu

Tel: (966-4) 3910085

Fax: (966-4) 3910656

 

Madina                                                                                      Rented Sales Office

Tel: (966-4) 8263893

Fax: (966-4) 8263892

 

BMTC Building, 2nd Floor, Suite No. 29                                         Rented Sales Office

PO Box: 62240

Dubai

United Arab Emirates

Tel: (971-4) 2652550

Fax: (971-4) 2624742

 

Al Hilal Offices, Suite 2                                                               Rented Sales Office

PO Box: 23340

Doha

Qatar

Tel: (974) 4654878 / 4657826

Fax: (974) 4657795

 

Building 169, Suite No 136                                                          Rented Sales Office

1405 Lulu Avenue

PO Box: 2135

Manama

Bahrain

Tel: (973-17) 264046

Fax: (973-17) 264045

 

 

KEY PRINCIPALS

 

            Name                                                                                       Position

 

Khalid Abdulrahman Al Albdulkarim                                                         Managing Partner

 

Abdullah Abdulrahman Al Albdulkarim                                                      Partner

 

Abdulaziz Abdulrahman Al Albdulkarim                                                    Partner

 

Bader Mohamed Al Abdulkarim                                                               Partner

 

Mohamed Madkhoum                                                                             Commercial Manager

 

Mohamed Saleem                                                                                  Marketing Manager

 

Said Fahmy                                                                                           Finance Manager

 

Fahaim Gaffari                                                                                       Administration Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 26/03/1401 Hijri (corresponding to 1st February 1981)

 

Legal Form                  : Limited Liability Partnership

 

Commercial Reg. No.  : 2050003048, Dammam

 

Chamber Member No. : 77000

 

Issued Capital              : SR 3,000,000

 

Paid up Capital            : SR 3,000,000

 

Name of Partner (s)

 

Khalid Abdulrahman Al Albdulkarim

 

Abdullah Abdulrahman Al Albdulkarim

 

Abdulaziz Abdulrahman Al Albdulkarim

 

Bader Mohamed Al Abdulkarim

 

 

OPERATIONS

 

Activities: Engaged in the import and distribution of electrical and electromechanical products, including switchgears, cables, transformers, panels, lighting systems and pipe fittings.

 

The business also provides electro-mechanical installation and maintenance services. All of subject’s services are ISO 9002 certified.

 

The market segments that are targeted by the subject include Oil & Gas, petrochemicals, electrical, utilities, telecommunication, instrumentation, plant automation, and industrial and commercial construction.

 

Subject’s clients include Saudi Consolidated Electricity Company of the Eastern Province (Sceco East), Saudi Aramco, Sasref, ABB Lummus, Sabic, Chiyoda, Mitsui and Fouzan Company.

 

Major Contracts & Supply Agreements

 

Client

Project

Products/Services

SABIC MANAGEMENT ORG. (S.M.O.)

Blanket Supply Agreement

Electrical, Telecom, Piping, R&D Supplies and IT Services

SAUDI ELECTRIC COMPANY (SCECO)

Warehousing & Long Term Supply Agreements

Electrical & Telecom Supplies

SAUDI ARAMCO / SNAMPROGETTI

Khursaniyah Producing Facilities

Electrical, Telecom, Piping, R&D Supplies and IT Services

SAUDI ARAMCO / SNAMPROGETTI

Hawiyah NGL Recovery Plant

Electrical, Telecom, Piping, R&D Supplies and IT Services

SAUDI ARAMCO / PETRORABIGH

Petrochemicals

Electrical, Telecom, Piping, R&D Supplies and IT Services

SAUDI ARAMCO

Khurais Producing & Offsite

Electrical, Telecom, Piping and R&D Supplies

SAUDI ARAMCO

Manifa Offshore Producing

Electrical, Telecom, Piping and R&D Supplies

SAUDI ARAMCO

Shaybah Crude Increment/GOSP

Electrical, Telecom and Piping

SABIC YANSAB-YANBU

Ethylene/Olefins Plant

Electrical, Telecom and Piping

SAUDI ARAMCO / SAFANIYAH

Offshore Platform

Electrical, Telecom and Piping

SAUDI KAYAN PETROCHIMICAL CO.

HDPE/LDPE/Polypropylene Plants

Electrical, Telecom and Piping

SIPCHEM

Olefins/Acetyls Plant

e-Learning, LIMS & OTS

IBN ZAHR

Polypropylene Plants

Flare Systems & Tank Gauging Upgrade

TANSEE PETROCHIMICAL / TECNIMONT S.P.A.

HDPE/LDPE Plants

Electrical and Piping Supplies

GULF FARABI

N-Paraffins & LAB Plant

Electrical and Piping Supplies

SEC / RIYADH

Power Plant # PP9

Electrical Piping

Saudi Aramco-Saipem (STAR) / Eastern Trading Contracting Group

Dammam Yard Set-Up (Under Ground, Above Ground, and Indoor Industrial Utilities)

Supply, Installation, Testing & Commissioning of Electro-Mechanical Systems

Jubail Energy Services Co. (JESCO)

Engineering, Supply, Installation, Testing & Commissioning of Lighting & Electrical Systems

Engineering, Supply, Installation, Testing & Commissioning of Lighting & Electrical System

TECHNO CONTRACTING CO. LTD. (A subsidiary of Al Abdulkarim Holding Co.)

Various Hospital Turn-Key Project

Supply and Installation of Electro-Mechanical Works

 

Import Countries: The United States of America, Canada, Japan and Europe

 

International Suppliers:

 

Pass & Seymour                                                           United States of America

Hubble Inc                                                                     United States of America

Hoke Inc                                                                       United States of America

Siemens Milltronics Process Instruments Inc                   Canada

Chalmit Lighting                                                             United Kingdom

Oliver Valves Ltd                                                            United Kingdom

LVF                                                                              Italy

Galli & Cassina SpA                                                      Italy

Zwick GmbH                                                                  Germany

Delair                                                                            Netherlands

Enviro Tech                                                                   Netherlands

Kawasaki Steel                                                              Japan

 

Operating Trend: Steady

 

Subject has a workforce of approximately 1,350 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Saudi Riyals (SR)

 

                                                Year Ending 31/12/10:              Year Ending 31/12/11:

 

Total Sales                                SR 391,000,000             SR 400,000,000

 

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

 

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

 

 

BANKERS

 

Saudi American Bank

PO Box: 3113

Dammam 31471

Tel: (966-3) 8337171

 

National Commercial Bank

PO Box: 13

Dammam 31411

Tel: (966-3) 8331188

Fax: (966-3) 8336058

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                     November 2002              November 2003              November 2006

Credit amount                            500,000             500,000             203,000

Amount overdue             0                                  0                                  0

Payment terms                          60 days                         60 days                         30 days

Payment Method                       Letters of Credit             Letters of Credit             Letters of Credit

Paying record                            No Complaints               No Complaints               No Complaints

Currency                                   Canadian Dollars            Canadian Dollars            Euros

 

 

GENERAL COMMENTS

 

Al Abdulkarim Holding Co (AKH) has operations dating back approximately 20 years and is well established in the local market with branches in the major cities of the Kingdom. It is engaged in the import and distribution of electrical and electromechanical products, as well as providing installation and maintenance services.

 

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.53.70

UK Pound

1

Rs.84.35

Euro

1

Rs.72.21

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.