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Report Date : |
12.08.2014 |
IDENTIFICATION DETAILS
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Name : |
ARABIAN BUILDING CHEMICALS FACTORY COMPANY LTD |
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Registered Office : |
ABC Building, Old Makkah Road, Kilo 14, AI Muntazahut Area, P O Box 102222, Jeddah 21321 15162, Jeddah 21444 |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
19.08.1982 |
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Com. Reg. No.: |
4030112229 |
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Legal Form : |
Limited Liability Partnership |
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Line of Business : |
Subject is engaged in the manufacture of granulate, wall paints,
putty, sealer, domoplast and domopond, as well as varnishes, road sign
paints, artificial paints and vehicle paints. |
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No. of Employees : |
150 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 1, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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Saudi Arabia |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 16% 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 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 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.
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Source
: CIA |
SUMMARY
Company Name :
ARABIAN BUILDING CHEMICALS FACTORY COMPANY LTD
Country of Origin :
Saudi Arabia
Legal Form :
Limited Liability Partnership
Registration Date :
19th August 1982
Commercial Registration Number :
4030112229, Jeddah
Trade Licence Number :
350 & 580 & 150
Chamber Membership Number :
37493
Issued Capital :
SR 12,960,000
Paid up Capital :
SR 12,960,000
Total Workforce :
150
Activities :
Manufacturers of paint, putty, varnish and sealants.
Financial Condition :
Fair
Payments :
Nothing detrimental uncovered
Operating Trend :
Steady
Person Interviewed :
Ahmed Bahmaid, Purchasing Manager
COMPANY NAME
ARABIAN BUILDING CHEMICALS FACTORY COMPANY LTD
ADDRESS
Registered &
Physical Address
Building : ABC Building
Street : Old Makkah
Road, Kilo 14
Area : Al
Muntazahut Area
PO Box : 102222, Jeddah
21321
15162, Jeddah 21444
Town : Jeddah
Country : Saudi Arabia
Telephone : (966-2) 6244666
/ 6211101 / 6697276 / 6697268 / 6211911
Facsimile : (966-2)
6206341 / 6607639
Email : abc@babader.com
Premises
Subject operates from a suite of offices, a factory and a warehouse
covering an area of 28,000 square metres that are owned and located in the
Suburban Business Area of Jeddah.
Branch Office (s)
Location Description
Dammam Distribution
outlet
Tel: (966-3) 2411843
Riyadh Distribution
outlet
KEY PRINCIPALS
Mahfouz Salem Saleh Babader Managing
Partner
Babader Ahmed Babader Partner
Bader Ahmed Sales
Manager
Ahmed Abu Saif Commercial
Manager
Tawfiq Al Bana Finance
Manager
Maher Al Shendi Assistant
Finance Manager
Ahmed Bahmaid Purchasing
Manager
LEGAL FORM & OWNERS
Date of Establishment : 29/10/1402 Hijri
(Corresponding to 19th August 1982)
History : Subject was originally
established in 1982 as a Sole Proprietorship of Mr Salem Saleh
Babader under the
name of “Arabian Building Chemicals Factory”. After the demise of Mr
Salem
Saleh Babader the business was transferred by inheritance to his legal heirs.
Subsequently
subject was re-registered as a Limited Liability Partnership between the
current
owners under the name of “Arabian Building Chemicals Factory Company Ltd”
Legal Form : Limited Liability Partnership
Commercial Reg. No. : 4030112229,
Jeddah
Industrial Licence No. : 350 & 580
& 150
Chamber Member No. : 37493
Issued Capital : SR 12,960,000
Paid up Capital : SR 12,960,000
Name of Partner
(s)
Mahfouz Salem Saleh Babader
Babader Ahmed Babader
Babader Trading & Industrial Corp
PO Box: 854
Jeddah 21421
Tel: (966-2) 6473125
Fax: (966-2) 6477582
AFFILIATED COMPANIES
Osama Domochemica Co Ltd
West Expressway
PO Box: 15162
Jeddah 21444
Tel: (966-2) 6607639
Plastic Pellets Factory Co Ltd
Makkah Road, Kilo-14
PO Box: 15162
Jeddah 21444
Tel: (966-2) 6240441 / 6322483
Fax: (966-2) 6206341
OPERATIONS
Activities: Engaged in the manufacture of granulate, wall paints, putty, sealer,
domoplast and domopond, as well as varnishes, road sign paints, artificial
paints and vehicle paints.
Subject has signed a contract with Johnstones Paints Plc of the UK under
which the subject produces paint under the brand name of “Johnstones”.
All of subject’s products conform to the Saudi Standards certificate of
quality.
Production Capacity : 45,000 metric tonnes
per annum.
Import Countries: United Kingdom, Italy, Germany and France
International Suppliers:
Vonymall United
Kingdom
ICI United Kingdom
Bayar Germany
Akza Nobel Sweden
Clariant United
Arab Emirates
Crystal Co Saudi
Arabia
Synthomer Middle East Saudi
Arabia
Export Countries : Africa and
Australia.
Brand Names: ROSE, FLAG, JOHNSTONES, MARTENSONS and BABADER
Operating Trend: Steady
Subject has a workforce of approximately 150 employees.
FINANCIAL DATA
Financial highlights provided by local sources are given below:
Currency: Saudi Riyals (SR)
Year Ending 31/12/12: Year Ending 31/12/13:
Total Sales SR
94,125,000 SR
95,250,000
Local sources consider subject’s financial condition to be Fair.
BANKERS
National Commercial Bank
Industrial City Branch
PO Box: 18656
Jeddah 21425
Tel: (966-2) 6368224
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.
Date of transaction October
2005 October 2008 September 2010
Credit amount 137,000 200,000 180,000
Amount overdue 0 0 0
Payment terms 90
days 180 days 90 days
Payment Method Letters
of Credit Letters of Credit Letters of Credit
Paying record No
Complaints No Complaints No Complaints
Currency Pounds
Sterling Euros Euros
GENERAL COMMENTS
Arabian Building Chemicals Factory Company Ltd commenced operations in
1983 and is well established in the local paint manufacturing industry. The
company is engaged in the production of a wide range of paints and related
products under well known brand names such as “Rose” and “Johnstones”.
The business is owned by members of the Babader family who are well
respected businessmen in the local 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
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Indian Rupees |
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US Dollar |
1 |
Rs.61.12 |
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1 |
Rs.102.54 |
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Euro |
1 |
Rs.81.87 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation
is considered normal. Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.