MIRA INFORM REPORT

 

 

Report Date :

06.03.2013

 

IDENTIFICATION DETAILS

 

Name :

ASHWA TECHNOLOGIES LTD

 

 

Formerly Known As :

ASHWA ADHESIVES INDUSTRIES LTD

 

 

Registered Office :

Industrial Estate, Phase No. 2, P O Box 6420, Jeddah 21442

 

 

Country :

Saudi Arabia 

 

 

Financials (as on) :

31.12.2011

 

 

Year of Establishment :

1991

 

 

Com. Reg. No.:

4030077756, Jeddah

 

 

Legal Form :

Limited Liability Partnership

 

 

Line of Business :

Subject operates several divisions:-

·         Ashwa Adhesive Division

Ashwa Surface Technologies Division

 

 

No. of Employees :

75 employees

 

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

(31.03.2012)

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                                     : ASHWA TECHNOLOGIES LTD

Previously Known As                              : ASHWA ADHESIVES INDUSTRIES LTD

Country of Origin                                    : Saudi Arabia

Legal Form                                            : Limited Liability Partnership

Registration Date                                   : 1991

Commercial Registration Number            : 4030077756, Jeddah

Chamber Membership Number                : 39581

Issued Capital                                        : SR 10,000,000

Paid up Capital                                      : SR 10,000,000

Total Workforce                                     : 75

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

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Murtada Ismail, Finance Manager

 

 

 


COMPANY NAME

 

ASHWA TECHNOLOGIES LTD

 

 

PREVIOUSLY KNOWN AS

 

ASHWA ADHESIVES INDUSTRIES LTD

 

 

company ADDRESS

 

Registered & Physical Address

Location            : Industrial Estate, Phase No. 2

PO Box             : 6420

Town                 : Jeddah 21442

Country             : Saudi Arabia

Telephone         : (966-2) 6373969 / 6370870 / / 6369990

Facsimile          : (966-2) 6379229

Email                : info@ashwa.com / ashwainfo@sa.henkel.com / ashwainfo@ashwatech.com

 

Premises

Subject operates from a medium sized suite of offices and a factory that are owned and located in the Industrial Area of Jeddah.

 

 

KEY PRINCIPALS

 

     Name                                                                                              Position

·       Sheikh Hussain Ali Mohamed Al Banawi                                             Managing Partner

·       Sheikh Walid Ali Al Banawi                                                                Partner

·       Sami Helmi                                                                                       General Manager

·       Murtada Ismail                                                                                  Finance Manager

·       Jamal Al Magharabi                                                                           Production Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 17/04/1411 Hijri (corresponding to 5th November 1990)

 

History                         : Subject was previously known as “Ashwa Adhesives Industries Ltd” but changed its name to  “Ashwa Technologies Ltd” in June 2008.

 

Legal Form                  : Limited Liability Partnership

 

Commercial Reg. No.  : 4030077756, Jeddah

 

Chamber Member No. : 39581

 

Issued Capital              : SR 10,000,000

 

Paid up Capital            : SR 10,000,000

 

Name of Partner (s)

 

·       Banawi Containers Group Co Ltd

     (Al Banawi Industrial Group)

     Adham Centre, 14th Floor

     Madinah Road

     PO Box: 8281

     Jeddah 21482

     Tel: (966-2) 6513937 / 6518253

     Fax: (966-2) 6518257 / 6515444

     Email: ceo@banawigroup.com

 

·       BIG Capital Investment

Manama

     Bahrain

 

 

AFFILIATED COMPANIES

 

·       Henkel Adhesives Middle East

PO Box: 29073

Dubai

     United Arab Emirates

     Tel: (971-4) 6519499

     Fax: (971-4) 6520960

 

·       Al Banawi Industrial Trading Group Ltd

Khalid Ibn Walid Road

Dubai

     United Arab Emirates

Tel: (971-4) 3970499

Fax: (971-4) 3972194

 

 

OPERATIONS

 

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

 

·       Ashwa Adhesive Division

 

Engaged in the production of a wide range of adhesives and glues for the painting and construction industries.

 

·       Ashwa Surface Technologies Division

 

This division was established in March 2002 under Commercial Registration Number 4030077756/001 in Jeddah. It is engaged in the manufacture of surface coating materials on cans, tins and mineral water bottles.

 

Import Countries: Germany, Spain, Italy and the United Arab Emirates.

 

International Suppliers:

 

·       Henkel KgA              Germany

 

Brand Names: TECHMELT and ADHSIN

 

Operating Trend: Steady

 

Subject has a workforce of 75 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 92,000,000                           SR 96,700,000

 

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

 

The above figures were provided by Mr Murtada Ismail, Finance Manager

 

 

BANKERS

 

·       National Commercial Bank

Al Balad Branch

King Abdulaziz Street

PO Box: 5066

Jeddah 21422

Tel: (966-2) 6434777

Fax: (966-2) 6441686

 

·       Al Bank Al Saudi Al Fransi

Al Sharafiya Branch

Madinah Road

PO Box: 7888

Jeddah 21472

Tel: (966-2) 6605863

 

·       Riyad Bank

Prince Fahad Street

PO Box: 9324

Jeddah 21413

Tel: (966-2) 6513333

 

·       Saudi American Bank

Madinah Road

PO Box: 490

Jeddah 21411

Tel: (966-2) 6603993

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

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.54.65

UK Pound

1

Rs.82.65

Euro

1

Rs.71.20

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

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.