MIRA INFORM REPORT

 

 

Report Date :

28.03.2013

 

IDENTIFICATION DETAILS

 

Name :

A A TURKI CORPORATION (ATCO)

 

 

Formerly Known As :

ABDULRAHMAN AL TURKI AL TURKI CORP FOR TRADING &   CONTRACTING

 

 

Registered Office :

ATCO Building King Khalid Street PO Box 718 Dammam 31421

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

05.01.1968

 

 

Com. Reg. No.:

2050002046, Dammam

 

 

Legal Form :

Sole Proprietorship

 

 

Line of Business :

Subject operates several divisions like Office 1 Superstore, Commercial Division, Electrical Division, Atco Travel Division, Construction Services & Supply Division, etc.

 

 

No. of Employees :

3,500

 

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 :

Good

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                                    : A A TURKI CORPORATION (ATCO)

Also Known As                                     : ABDULRAHMAN AL TURKI AL TURKI CORP FOR TRADING &

                                                              CONTRACTING

Country of Origin                                   : Saudi Arabia

Legal Form                                           : Sole Proprietorship

Registration Date                                  : 5th January 1968

Commercial Registration Number           : 2050002046, Dammam

Chamber Membership Number               : 491

Invested Capital                                    : SR 25,000,000

Total Workforce                                     : 3,500

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

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Zaki Diaman, Financial Controller

 


COMPANY NAME

 

A A TURKI CORPORATION (ATCO)

 

ALSO KNOWN AS: ABDULRAHMAN AL TURKI AL TURKI CORP FOR TRADING & CONTRACTING

 

 

ADDRESS

 

Registered & Physical Address

 

Building            : ATCO Building

Street               : King Khalid Street

 

PO Box            : 718

 

Town                : Dammam 31421

Country             : Saudi Arabia

 

Telephone         : (966-3) 8335588 / 8332339 / 8345694 / 8826769

Facsimile          : (966-3) 8339881 / 8872701

Email                : info@atco.com.sa

 

Premises

 

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

 

Branch Office (s)

 

     Location                                                                                           Description

 

·       PO Box: 1298                                                                                   Office premises

     Jeddah 21431

     Tel: (966-2) 6910726 / 6911156

     Fax: (966-2) 6913922

 

·       PO Box: 8077                                                                                   Office premises

Riyadh 11482

     Tel: (966-1) 4762241

     Fax: (966-1) 4762485

 

·       London                                                                                            Office premises

United Kingdom

Tel: (44-207) 4913664

Fax: (44-207) 6241120

 

·       Al Khobar                                                                                         Showroom premises

Tel: (966-3) 8827557

Fax: (966-3) 8827095

 

·       Jubail                                                                                               Showroom premises

Tel: (966-3) 3560342

Fax: (966-3) 3560343

 

·       Riyadh                                                                                             Showroom premises

Tel: (966-1) 4748915

Fax: (966-1) 4762485

 

·       Jeddah                                                                                            Showroom premises

Tel: (966-2) 6684217

Fax: (966-2) 6685327

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Abdul Rahman Ali Al Turki                                                                 Proprietor

 

·       Zaid Abdul Rahman Ali Al Turki                                                          General Manager

 

·       Ibrahim Al Somali                                                                             Assistant General Manager

 

·       M S Kumar                                                                                       Commercial Manager

 

·       Mohamed Al Turaiki                                                                          Administration Manager

 

·       Abdullah Muqbil                                                                               Human Resources Manager

 

·       Amin Sheikh                                                                                     Finance Manager

 

·       Zaki Diaman                                                                                     Financial Controller

 

·       Ramy A Ali Sayed                                                                            Branch Manager – Riyadh

 

·       Mohamed Wasif Ali                                                                          Branch Manager – Jeddah

 

·       Liam O’Kirwan                                                                                  Branch Manager – London

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 04/10/1387 Hijri (corresponding to 5th January 1968)

 

Legal Form                  : Sole Proprietorship

 

Commercial Reg. No.   : 2050002046, Dammam

 

Chamber Member No.  : 491

 

Invested Capital           : SR 25,000,000

 

Mr Abdul Rahman Ali Al Turki is the sole proprietor of the business.

 

 

AFFILIATED COMPANIES

 

Subject is a member of the A A Turki Group of Companies, which includes the following concerns:

 

·       Sagr Al Baydaa Trading Agencies Co Ltd

PO Box: 3501

Al Khobar 31952

Tel: (966-3) 8648644

Fax: (966-3) 8649945

 

·       Al Sagr Saudi Insurance Co

PO Box: 3501

Al Khobar 31952

Tel: (966-3) 8595363 / 8596124

Fax: (966-3) 8595490

 

·       East & West Express

PO Box: 718

Dammam 31421

Tel: (966-3) 8332339

Fax: (966-3) 8339881

 

·       Arabian Business Forms Co

     Al Khobar-Dammam Highway

     Al Khalideya Area

     PO Box: 718

     Dammam 31421

     Tel: (966-3) 8588322 / 8330508 / 8335588 / 8332329

     Fax: (966-3) 8588316

 

·       Keller Turki Co Ltd

Saudi Arabia

 

·       Honeywell Turki Arabia Ltd

PO Box: 718

Dammam 31421

Tel: (966-3) 8342442

Fax: (966-3) 8342828

 

·       Redland Industrial Services (Arabia) Ltd

PO Box: 718

Dammam 31421

Tel: (966-3) 8343343 / 8343113 / 8342937

 

·       ATCO Marine Services EC

     Bahrain

 

·       ATCO Development Ltd

               42 Albemarle Street
               London W1X 3FE
               United Kingdom
               Tel: (44-207) 4913664

Fax: (44-207) 6291120

 

·       ATCO Development Inc

11777 Katy Freeway, Suite 300S
Houston

Texas 77079

United States of America

Tel: (1-281) 8701500

Fax: (1-281) 5316000

 

 

OPERATIONS

 

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

 

·       Office 1 Superstore

 

     Address:                  Dhahran Street

                                    PO Box: 718

                                    Al Khobar

                                    Tel: (966-3) 8942255

                                    Fax: (966-3) 8940927

                                    Email: ehabsharif@hotmail.com

 

     Management:           Ehab Al Sharif               General Manager

                                    Mohamed Rajai Armos  Commercial Manager

                                    Dennis Mogboo                        Administrative Executive

 

Activities:                 Established in 2000, this division is engaged in the import and distribution of office machinery and school supplies, under a franchise agreement with Office 1 Superstore of the USA. The division employs 15 workers.

 

·       Commercial Division

 

This division is engaged in the import and distribution of an extensive range of safety relief valves, flame arresters and bursting discs, safety products, turbo machinery controls for controlling centrifugal and axial compressors, steam, and gas turbines.

 

 

·       Electrical Division

 

       ATCO's Electrical Division was established in 1976 to supply quality electrical materials and industrial components. The Electrical Division has a comprehensive range of power transformers, electrical machines, high voltage cables, wires, conduits, fittings, circuit protective devices, safety switches, wiring devices, lighting fixtures, lamps, and tools.

 

·       Atco Travel Division

 

       Engaged in the provision of travel and tourism services, as well as operating as freight forwarders, cargo and shipping activities.

 

·       Construction Services & Supply Division

 

       This division distributes engineering and industrial construction supplies on an exclusive and preferred basis for numerous domestic, regional, and international companies. The subject products include:

 

-  Construction chemicals, including surface treatments, adhesives, grouts, repair compound epoxies, and 

   sealants;

-  3M windows films, including Scotchtint Sun Control and Scotchshield Safety and Security;

-  3M fire protection products, such as intumescent, endothermic and silicone sealants; moldable putty; mortar;

   pipe devices; composite sheets; duct wrap, tape, blanket, and mat; and graphite intumescent seals (GIS);

-  Expanded metal meshes, laths, and beads, including angle / corner beads, plaster stop beads, control joints

   beads, architrave beads, metal lath (coil / sheets / rib-lath), Hy-Rib (construction joint formworks), and steel

   meshes (fencing, caging, and gratings);

-  Block accessories, including block reinforcement mesh, ladder reinforcements, and wall ties of all types;

-  Expansion joint systems, including expansion fillers / fiber boards, cork fillers, backup rods, and sealants;

-  Thermal insulation products, such as extruded polystyrene boards, polyurethane boards, and fiberglass blankets

   or boards, as well as black insulation cork;

-  Waterproofing materials, such as PVC watershops, fiberglass mesh, geotextiles, liquid membranes

   (polyurethane and acrylic), protection boards, as well as other waterproofing materials;

-  Drywall partition and suspended ceiling systems, including gypsum plaster boards; self-adhesive fibertape;

   ready-mixed joint compounds; and studs, runners, and other accessories; and

-  Polyethylene sheets (vapour barrier) with a thickness of 50 microns and above.

 

·       Electromechanical Division

 

       The electromechanical division specialises in contracting services for heating, ventilation and air conditioning (HVAC) works. It also distributes HVAC equipment.

 

·       Water Purification

 

       This division offers water purification and sewage contracting services, as well as distributing pumps, water purification equipment and measuring apparatus.

 

·       Industrial Cleaning

 

     Provision of industrial cleaning services, specialising in factories and commercial offices.

 

 

·       Catering Division

 

       Catering contractors, specialising in the provision of meals and catering requirements for Saudi hospitals and universities, as well as other public institutions and large private companies.

 

·       Marine Works Division

 

       Under this division, subject is engaged in the operation and maintenance of seaports machinery and equipment, as well as offering services related to the marine industry.

 

Import Countries: United States of America, Germany, the United Kingdom and Brazil

 

International Suppliers:

 

·       Energy International Corporation                    United States of America

·       Ametek Drexelbrook                                     United States of America

·       Compressor Controls Corp                           United States of America

·       Honeywell International Inc                            United States of America

·       Galviston Houston Co                                   United States of America

·       Pullen Pumps Ltd                                         United Kingdom

·       Kabel Metal GmbH                                       Germany

·       S & C Electic do Brasil                                 Brazil

 

Operating Trend: Steady

 

Subject has a workforce of approximately 3,500 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 4,000,000,000                                  SR 4,420,000,000

 

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: 13

Dammam 31411

Tel: (966-3) 8331188

Fax: (966-3) 8336058

 

·       Saudi American Bank

PO Box: 3113

Dammam 31471

Tel: (966-3) 8337171

 

·       Al Bank Al Saudi Al Hollandi

Dhahran Street

PO Box: 70

Dammam

Tel: (966-3) 8323212

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                   June 2003                     June 2004                     September 2007

Credit amount                           404,670                         410,490                         1,000,000

Amount overdue                        0                                  0                                  0

Payment terms                          90 days                        90 days                        90 days

Payment Method                       Letters of Credit            Letters of Credit            Letters of Credit

Paying record                           Prompt                         Prompt                         Prompt

Currency                                   Canadian Dollars           Canadian Dollars           Euros

 

 

GENERAL COMMENTS

 

A A Turki Corporation (ATCO) is a very well established business with operations dating back to 1968. It has diversified operations and employs approximately 3,500 people. It is owned by the wealthy Saudi businessman, Mr Abdul Rahman Ali Al Turki, who is very well known in the business community.

 

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.54.27

UK Pound

1

Rs.82.49

Euro

1

Rs.69.88

 

 

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.