MIRA INFORM REPORT

 

 

Report Date :

11.06.2013

 

IDENTIFICATION DETAILS

 

Name :

SALEH & ABDULAZIZ ABAHSAIN CO LTD

 

 

Registered Office :

Abahsain Centre King Abdulaziz Street PO Box  209 & 40 Al Khobar 31952

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2012

 

 

Year of Incorporation :

1946

 

 

Com. Reg. No.:

2051000622, Al Khobar

 

 

Legal Form :

Limited Liability Partnership

 

 

Line of Business :

Subject operates several divisions like Omega Factory for Luminaires Poles & Galvanizing Division, Automotive Division, Contracting Division, Foodstuff Division, Heavy Equipment Division, Chemical Division

 

 

No. of Employees :

800

 

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 – March 31st 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 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

 

 

 

 

SUMMARY

 

Company Name                                    : SALEH & ABDULAZIZ ABAHSAIN CO LTD

Country of Origin                                   : Saudi Arabia

Legal Form                                           : Limited Liability Partnership

Start Date                                             : 1946

Registration Date                                  : 25th March 1959

Commercial Registration Number           : 2051000622, Al Khobar

Membership Number                             : 2340

Issued Capital                                       : SR 50,000,000

Paid up Capital                                     : SR 50,000,000

Total Workforce                                     : 800

Activities                                               : Subject operates several divisions (see below for details)

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : John M John, Finance Manager

 


COMPANY NAME

 

SALEH & ABDULAZIZ ABAHSAIN CO LTD

 

 

Company ADDRESS

 

Registered & Physical Address

Building            : Abahsain Centre

Street               : King Abdulaziz Street

PO Box            : 209 & 40

Town                : Al Khobar 31952

Country             : Saudi Arabia

 

Telephone         : (966-3) 8984045 / 8984015 / 8983856 / 8981986 / 8951160

Facsimile          : (966-3) 8990114 / 8954236 / 8991557

Email                : omega@awalnet.net.sa  / info@abahsain.net

 

Premises

Subject operates from a large suite of offices and a warehouse that are owned and located in the Central Business Area of Al Khobar.

 

Branch Office (s)

 

     Location                                                                                          Description

 

·       PO Box: 42127                                                                                 Office premises

Riyadh 11541

Tel: (966-1) 4950104

Fax: (966-1) 4594900

 

·       PO Box: 22258                                                                                 Office premises

Riyadh 11495

Tel: (966-1) 4984587

Fax: (966-1) 4982383

 

·       PO Box: 1300                                                                                   Office premises

Jeddah 21431

Tel: (966-2) 6820944

Fax: (966-2) 6833124

 

·       PO Box: 15139                                                                                 Office premises

Abha

Tel: (966-7) 2270780

Fax: (966-7) 2271499

 

·       PO Box: 11766                                                                                 Office premises

Jubail 31961

Tel: (966-3) 3415845

Fax: (966-3) 3416113

 

·       PO Box: 209                                                                                    Office premises

Al Khobar 31952

Tel: (966-3) 8572296

Fax: (966-3) 8588241

 

·       PO Box: 690                                                                                    Office premises

Yanbu

Tel: (966-4) 3224200

Fax: (966-4) 3227877

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Abdulaziz Ibrahim Abahsain                                                               Managing Partner

 

·       Ibrahim Saleh Ibrahim Abahsain                                                         Partner

 

·       Mohamed Saleh Ibrahim Abahsain                                                     Partner

 

·       Abdul Mohsen Saleh Ibrahim Abahsain                                              Partner

 

·       Abdullah Saleh Ibrahim Abahsain                                                       Partner

 

·       Hailah Saleh Ibrahim Abahsain                                                           Partner

 

·       Jawhara Saleh Ibrahim Abahsain                                                        Partner

 

·       Ruqayya Saleh Ibrahim Abahsain                                                       Partner

 

·       Noura Saleh Ibrahim Abahsain                                                           Partner

 

·       Hissa Saleh Ibrahim Abahsain                                                           Partner

 

·       Suhail Qusus                                                                                    Factory Manager

 

·       Prevez Aziz Khan                                                                              Commercial Manager

 

·       John M John                                                                                    Finance Manager

 

·       Said Khan                                                                                        Administrative Executive

 

LEGAL FORM & OWNERS

 

Date of Establishment  : Subject’s operations date back to 1946, however it was registered on 16/09/1378 Hijri

  (corresponding to 25th March 1959).

 

Legal Form                  : Limited Liability Partnership

 

Commercial Reg. No.   : 2051000622, Al Khobar

 

Membership No.           : 2340

 

Issued Capital              : SR 50,000,000

 

Paid up Capital            : SR 50,000,000

 

Name of Partner (s)                                                      Percentage

 

·       Abdulaziz Ibrahim Abahsain                                            50%

 

·       Ibrahim Saleh Ibrahim Abahsain                                        8%

 

·       Mohamed Saleh Ibrahim Abahsain                                    8%

 

·       Abdullah Saleh Ibrahim Abahsain                                      8%

 

·       Abdul Mohsen Saleh Ibrahim Abahsain                             6%

 

·       Hailah Saleh Ibrahim Abahsain                                          4%

 

·       Jawhara Saleh Ibrahim Abahsain                                       4%

 

·       Ruqayya Saleh Ibrahim Abahsain                                      4%

 

·       Noura Saleh Ibrahim Abahsain                                          4%

 

·       Hissa Saleh Ibrahim Abahsain                                          4%

 

 

AFFILIATED COMPANIES

 

·       Abahsain Trading Co

King Abdulaziz Street

       PO Box: 40

       Al Khobar 31952

       Tel: (966-3) 8645643

       Fax: (966-3) 8645844

 

·       Saleh and Abdulaziz Abahsain Chemical Manufacturing Industries

2nd Industrial City

     PO Box: 209

     Al Khobar 31952

     Tel: (966-3) 8984045

     Fax: (966-3) 8984045

 

 

OPERATIONS

 

Activities: Subject’s operations are performed through the following divisions:

 

·       Omega Factory for Luminaires Poles & Galvanizing Division

 

       Established in 1982, this division is engaged in the manufacture of lighting fixtures and fittings, galvanized steel poles, hot dip galvanised steel poles, steel poles used for electrical transmission networks and street lighting, as well as the galvanising of sheet metal.

 

     Annual Production Capacity – 20,000 tonnes

 

·       Automotive Division

 

       The Automotive Division was established in 1988 and represents SAAB Automobile AG, Sweden, MACK Trucks Inc., USA, Lubrication Engineers Inc. USA, MARANGONI Tyres SpA, Italy and MARANGONI Pneumatici, Italy. New showrooms were inaugurated in early 2001 for SAAB and MACK has been opened covering an area of about 3,000 square meters.

 

       The division also operates a fully equipped workshop with the latest computerized diagnostic computers and test equipment providing, backed up by Body Shop that provides body repairs and painting to manufacturer standards. There is also a wide range of spare parts held within the branch network

 

·       Contracting Division

 

     Engaged as general contractors, specialising in electrical projects and road construction.

 

·       Foodstuff Division

 

     Distributors of general foodstuff and consumable products.

 

·       Heavy Equipment Division

 

       Distributors of heavy construction equipment, including generators and batteries, as well as hydraulic cranes, material handling equipment, loaders, excavators, and industrial forklifts.

 

·       Chemical Division

 

     Engaged in the distribution of chemical materials for the gas and energy industries.

 

Import Countries: Europe and the United States of America.

 

International Suppliers:

 

·       Detroit Diesel Corporation                 United States of America

·       Mack Trucks Inc                                United States of America

·       Hudson Products Corporation           United States of America

·       Lincoln Electric                                 United States of America

·       Parker Hannifin Corporation               United States of America

 

Export Countries: Bahrain, Kuwait, Qatar, Yemen, Lebanon, Jordan, Syria and the United Arab Emirates.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 800 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 266,700,000                         SR 270,000,000

 

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

PO Box: 1

Al Khobar 31952

Tel: (966-3) 8949669

Fax: (966-3) 8646474

 

·       Arab National Bank

PO Box: 37

Al Khobar 31952

Tel: (966-3) 8948660

     Fax: (966-3) 8942752

 

·       Al Bank Al Saudi Al Hollandi

King Abdulaziz Street

PO Box: 342

Al Khobar

Tel: (966-3) 8649140

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                               June 2007

Amount overdue                                    0

Payment terms                                      180 days

Payment Method                                   Letters of Credit

Paying record                                       No Complaints

Currency                                               Pounds Sterling

 

 

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.57.78

UK Pound

1

Rs.89.71

Euro

1

Rs.76.24

 

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.