MIRA INFORM REPORT

 

 

Report Date :

27.11.2013

 

IDENTIFICATION DETAILS

 

Name :

ROLACO TRADING & CONTRACTING CO

 

 

Registered Office :

Al Sulaiman Building, Madinah Road, Kilo 3, PO Box : 222, Jeddah 21411

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

1968

 

 

Com. Reg. No.:

4030005944, Jeddah

 

 

Legal Form :

Limited Liability Partnership

 

 

Line of Business :

Subject’s operations are performed through the following divisions: Hotel Supplies Division, Automotive Division, Building Materials Division, Electrical & Lighting Division, Shipping Division

 

 

No. of Employees :

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 – 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                         : ROLACO TRADING & CONTRACTING CO

Country of Origin                                    : Saudi Arabia

Legal Form                                            : Limited Liability Partnership

Registration Date                                   : 1968

Commercial Registration Number            : 4030005944, Jeddah

Membership Number                              : 196

Issued Capital                                        : SR 66,000,000

Paid up Capital                                      : SR 36,000,000

Total Workforce                                     : 350

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

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                         : Steady

Person Interviewed                                 : Ibrahim Al Madi, Financial Controller

 

 

 


COMPANY NAME

 

ROLACO TRADING & CONTRACTING CO

 

 

ADDRESS

 

Registered & Physical Address

 

Building             : Al Sulaiman Building

Street               : Madinah Road, Kilo 3

PO Box             : 222

Town                 : Jeddah 21411

Country             : Saudi Arabia

 

Telephone         : (966-2) 6518028 / 6518264 / 6528456 / 6290202 / 6534403

Facsimile          : (966-2) 6534280 / 6290404 / 6534403

Mobile               : (966-50) 8202489

Email                : info@rolaco.net

 

Premises

 

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

 

Branch Office (s)

 

Location                                                                                  Description

 

PO Box: 4493                                                                            Sales office and warehouse

Dammam 31419

Tel: (966-3) 8573299

Fax: (966-3) 8573274

 

PO Box: 388                                                                             Sales office and warehouse

Madinah

Tel: (966-4) 8474126

 

Al Khurais Road                                                             Sales office and warehouse

Riyadh 11421

Tel: (966-1) 4912220

Fax: (966-1) 4932782

 

Al Sulamaniya District                                                                Sales office and warehouse

Jeddah

Tel: (966-2) 2523456

Fax: (966-2) 2524499

 

Subject also has branches located in Taif, Tabuk, Yanbu, and Khamis Mushait.

KEY PRINCIPALS

 

Name                                                                           Position

 

Sheikh Abdul Aziz Abdullah Al Sulaiman                         Managing Partner

 

Sheikh Saud Abdul Aziz Al Sulaiman                              Partner

 

Fattahullah Bajouri                                                         Purchasing Manager

 

Rafi Koulaiyian                                                               Automotive Division Manager

 

Mohanad Abdul Ghani                                                    Computer Division Manager

 

Ali Abo Samaha                                                             Electrical Division & Building Division Manager

 

Ibrahim Al Madi                                                              Financial Controller

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  :           1968

 

Legal Form      :                       Limited Liability Partnership

 

Commercial Reg. No.  :           4030005944, Jeddah

 

Membership No.          :           196

 

Issued Capital              :           SR 66,000,000

 

Paid up Capital            :           SR 36,000,000

 

Name of Partner (s)

 

·         Sheikh Abdul Aziz Abdullah Al Sulaiman

 

·         Sheikh Saud Abdul Aziz Al Sulaiman

 

·         Abdul Aziz Al Sulaiman & Co Ltd

PO Box: 222

Jeddah

Tel: (966-2) 6820129

 

 


AFFILIATED COMPANIES

 

Subject is a member of the Al Sulaiman Group of Companies, which includes the following concerns:

 

Name                                                                                                   Country

 

Arabian Cement Company                                                                      Saudi Arabia

Arabian Steel Manufacturing Co                                                              Saudi Arabia

Saudi Chemicals Industry Co                                                                  Saudi Arabia

Bank Al Jazira                                                                                       Saudi Arabia

Zahran Contracting Co Ltd                                                                      Saudi Arabia

Al Hamrani & Al Sulaiman United Co                                                       Saudi Arabia

Saudi British Bank                                                                                 Saudi Arabia

Cement Products Industry Company                                                        Saudi Arabia

Saudi Corp                                                                                            Saudi Arabia

Saudi Arabian Refining Company (Sarco)                                     Saudi Arabia

Saudi National Electric Company                                                            Saudi Arabia

La Fonciere Jeddah Insurance                                                                 Saudi Arabia

Al Sulaimaniyah Real Estate                                                                   Saudi Arabia

Construction Equipment Supply International Ltd (CESI)                            Saudi Arabia

Castel Et Fromaget                                                                                France

FRAB Bank Paris                                                                                  France

Cofra                                                                                                     France

Puutalo Oy                                                                                            Finland

Rauma – Repola Oy                                                                               Finland

FRAB Holdings of Luxembourg                                                                Luxembourg

 

 

OPERATIONS

 

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

 

Hotel Supplies Division

 

Address:           Shohada Street

                        Al Hamra District

                        Jeddah

                        Tel: (966-2) 6648272 / 6645035

                        Fax: (966-2) 6632685

 

Activities:          This division specialises in the import and distribution of hotel supplies including bathroom amenities,

                        beddings, bath & bed linen, F&B linen and other accessories.

 

Automotive Division

 

Address :          Mecca-Medinah Highway

                        Al Sulaimaniyah District

                        PO Box: 1044

                        Jeddah

                        Tel: (966-2) 6290202

                        Fax: (966-2) 6290404

 

Activities :         The division’s product portfolio is diversified from Light to Heavy Duty U D Trucks (ranging from 7 ton to 55 ton) an array of Nissan Forklifts with choice of Diesel, Gasoline, Gasoline / LPG and Electric engines, varying from 1.5 ton to 7 ton). The company also offer Forklift attachments from CASCADE and FIAMM Batteries/ Chargers for the electrical forklifts.


Subject also deals in Kato rough and mobile cranes range from 20 - 70 ton, plus a full range cab – back BONFIGLIOLI Truck Cranes. The Concrete machinery section includes SERMAC concrete pumps ranging from 37 - 65 meters, and BETICO Industrial Compressors for concrete blowers.

 

Building Materials Division

 

Address :          Madinah Road, Kilo 3

                        Jeddah

                        Tel: (966-2) 6518028

                        Fax: (966-2) 6534280

 

Activities :         Under this division the company specialises in steel products and are one of the largest importers and bulk distributors of cement in the Kingdom. ROLACO has widened its expertise to include Pre-cast Concrete Accessories, Scaffolding & Formwork System, Gypsum Board & their Accessories, Cement Board, Concrete Repair Floor, Roof Cover, Wall & Ceiling Tiles, as well as associated building materials

 

Electrical & Lighting Division

 

Activities :         The division’s product portfolio ranges from cables to cable laying machinery, from the electrical panel to thrust boring and from single light bulbs to all electrical equipments supply.

 

Shipping Division

 

Activities :         Engaged in the provision of shipping agency services

 

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

 

International Suppliers:

 

Hunter Watertech Pty Ltd                       Australia

 

Brand Names: NISSAN DIESEL, KATO CRANES, LES CABLES DE LYON, NISSAN MOTORS, BRIAB,

GOLDSTAR, FERROSTAAL, PRECIA, BOYER, MANUTENTION, MARUBENI & TOPCON

 

Operating Trend: Steady

 

Subject has a workforce of approximately 350 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 311,000,000             SR 320,000,000

 

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

Madinah Road

PO Box: 490

Jeddah 21411

Tel: (966-2) 6603993

 

Al Bank Al Saudi Al Hollandi

King Abdulaziz Street

PO Box: 67

Jeddah

Tel: (966-2) 6446849

 

Al Bank Al Saudi Al Fransi

Madinah Road

PO Box: 1

Jeddah 21411

Tel: (966-2) 6515151

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Rolaco Trading & Contracting Co is a leading Saudi company with diversified operations covering heavy equipment, building materials, automotives, electrical products and computers. It deals with many leading suppliers from around the globe and enjoys an excellent reputation for the quality of its products.

 

The company is owned by wealthy and respected Saudi businessmen, namely Sheikh Abdul Aziz Abdullah Al Sulaiman and Sheikh Saud Abdul Aziz Al Sulaiman and is a member of the well known Al Sulaiman Group of Companies.

 

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.62.45

UK Pound

1

Rs.100.86

Euro

1

Rs.84.50

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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.