MIRA INFORM REPORT

 

 

Report Date :

30.01.2013

 

IDENTIFICATION DETAILS

 

Name :

ALAA INDUSTRIAL EQUIPMENT FACTORY

 

 

Registered Office :

Dammam Khobar Highway Industrial Area PO Box 9998 Dammam 31423

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

27.09.1987

 

 

Com. Reg. No.:

2050017233, Dammam

 

 

Legal Form :

Limited Liability Partnership

 

 

Line of Business :

Production of industrial equipment

 

 

No. of Employees :

400

 

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 :

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 – 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                                     : ALAA INDUSTRIAL EQUIPMENT FACTORY

Country of Origin                                    : Saudi Arabia

Legal Form                                            : Limited Liability Partnership

Registration Date                                   : 27th September 1987

Commercial Registration Number            : 2050017233, Dammam

Chamber Membership Number                : 1578

Issued Capital                                        : SR 3,500,000

Paid up Capital                                      : SR 3,500,000

Total Workforce                                     : 400

Activities                                               : Production of industrial equipment

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Hussain Mahmoud Al Rai, Finance Manager

 

 

 

COMPANY NAME

 

ALAA INDUSTRIAL EQUIPMENT FACTORY

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Dammam Khobar Highway

Area                 : Industrial Area

 

PO Box             : 9998

 

Town                 : Dammam 31423

Country             : Saudi Arabia

 

Telephone         : (966-3) 8470033 / 8470177 / 8474319 / 8570330

Facsimile          : (966-3) 8470077 / 8571331 / 8473184

Email                : afi@afi.com.sa / afi@alaa4u.com

 

Premises

 

Subject operates from a large suite of offices and a factory that are owned and located in the Industrial Area of Dammam.

 

Branch Office (s)

 

     Location                                                                                           Description

 

·       PO Box: 61043                                                                                 Office premises

Riyadh 11565

Tel: (966-1) 4484482

Fax: (966-1) 4488717

 

·       PO Box: 2128                                                                                   Office premises

Jubail 31951

Tel: (966-3) 5864319

Fax: (966-3) 3614547

 

·       PO Box: 41524                                                                                 Office premises

Jeddah 21521

Tel: (966-2) 6231912

Fax: (966-2) 6242888

 

·       PO Box: 107                                                                                     Office premises

Yanbu 41315

Tel: (966-4) 4628665

Fax: (966-4) 3914108

 

·       PO Box: 42425                                                                                 Office premises

Safat 70655

Kuwait

Tel: (965) 24819744

Fax: (965) 24819755

 

·       PO Box: 37202                                                                                 Warehouse premises

Manama

     Bahrain

     Tel: (973-17) 772900

     Fax: (973-17) 777803

 

·       PO Box: 11884                                                                                 Office premises

Doha

Qatar

Tel: (974) 4684442

Fax: (974) 4684443

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Ibrahim Ali Al Roshodi                                                                       Managing Partner

 

·       Abdul Fattah Abdulwahid Al Khala                                                      Partner

 

·       Amjad Ali Khan                                                                                 Production Manager

 

·       Hussain Mahmoud Al Rai                                                                   Finance Manager

 

·       Mostafa Melwahim                                                                            Sales Manager

 

·       Abdul Rasheed                                                                                 Purchasing Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 03/02/1408 Hijri (corresponding to 27th September 1987)

 

Legal Form                  : Limited Liability Partnership

 

Commercial Reg. No.  : 2050017233, Dammam

 

Chamber Member No. : 1578

 

Issued Capital              : SR 3,500,000

 

Paid up Capital            : SR 3,500,000

 

Name of Partner (s)

 

·       Ibrahim Ali Al Roshodi

 

·       Abdul Fattah Abdulwahid Al Khala

 

 

AFFILIATED COMPANIES

 

·       Alaa Chemical International Co

 

·       Alaa International Trading Services

 

·       Al Dhahran Sealant Factory

 

 

OPERATIONS

 

Activities: Engaged in the production of industrial equipment, including plastic and PVC products, sealants, hydraulic and pneumatic equipment, transportation and transmission equipment, hoses and fittings.

 

                 Subject has acquired the ISO 9002 certificate for the quality of its products.

 

Import Countries: Europe and the United States of America

 

Major Clients:

 

·       AYTB

·       Saudi Chevron

·       Flour Daniel

·       Sabic Terminal Services

·       Flexion

·       Sabtank Yanbu

·       Saudi Arabian Ductile Iron Pipe

·       Ibn Zahr

·       Ibn Sina

·       Ibn Baytar

·       Sasref

·       Faisal Electro Mechanical Company

 

Brand Names: AFI

 

Operating Trend: Steady

 

Subject has a workforce of approximately 400 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 62,650,000                           SR 65,000,000

 

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

 

The above figures were provided by Mr Hussain Mahmoud Al Rai, Finance Manager

 

 

BANKERS

 

·       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.

 

 

GENERAL COMMENTS

 

Alaa Industrial Equipment Factory Co is well established in the local business market with operations dating back to 1987. It is engaged in the production of a wide range of industrial equipment and serves many prestigious clients throughout the Gulf region.

 

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 :

PRL

 

 

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.