MIRA INFORM REPORT

 

 

Report Date :

25.08.2014              

 

IDENTIFICATION DETAILS

 

Name :

AL KAFAA TRADING COMPANY

 

 

Registered Office :

Street No. 9, Labour City Area, King Fahd Road, Madinat Al Ommal, 7170 Dammam 31462

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

04.05.1983

 

 

Com. Reg. No.:

2050013593, Dammam

 

 

Legal Form :

Limited Liability Partnership

 

 

LINE OF BUSINESS :

ENGAGED IN THE IMPORT AND DISTRIBUTION OF STEEL PIPES AND RELATED PRODUCTS FOR THE GAS, OIL, PETROCHEMICAL AND WATER INDUSTRIES.

 

 

No. of Employees :

145

 

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 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Saudi Arabia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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

Source : CIA

 

 

 

SUMMARY

 

Company Name                                     : AL KAFAA TRADING COMPANY

Country of Origin                                    : Saudi Arabia

Legal Form                                            : Limited Liability Partnership

Registration Date                                   : 4th May 1983

Commercial Registration Number            : 2050013593, Dammam

Chamber Membership Number                : 8145

Issued Capital                                        : SR 5,240,000

Paid up Capital                                      : SR 5,240,000

Total Workforce                                     : 145

Activities                                               : Distributors of steel pipes.

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Ahmed Alaa Eddine, Finance Manager

 

 

 

COMPANY NAME

 

AL KAFAA TRADING COMPANY

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : Street No. 9, Labour City Area, King Fahd Road

Area                 : Madinat Al Ommal

 

PO Box             : 7170

 

Town                 : Dammam 31462

Country             : Saudi Arabia

 

Telephone         : (966-3) 8260994 / 8269296

Facsimile          : (966-3) 8290288 / 8270126

Mobile               : (966-50) 7439897

Email                : mosaad@solmail.net / abdullah@alkafaa.com / gms@alkafaa.com / alkafaa@alkafaa.com

                          ceo@alkafaa.com / fin.mgr@akafaa.com

 

Premises

 

Subject operates from a large suite of offices and a warehouse that are rented and located in the Industrial Area of Dammam.

 

Branch Office (s)

 

     Location                                                                                           Description

 

·       Al Malaz District                                                                               Rented sales office

PO Box: 6629

Riyadh 11452

Tel: (966-1) 4778673 / 4779463 / 2426410

Fax: (966-1) 4772154 / 2702143

 

·       Suhaili Centre                                                                                   Rented sales office

Baladiya Street

PO Box: 3300

Jeddah 21471

Tel: (966-2) 6648113

Fax: (966-2) 6648760

 

·       Yanbu                                                                                              Rented sales office

Tel: (966-4) 3907467

Fax: (966-4) 3915432

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Mosaad Abdullah Al Arifi                                                                    Managing Partner

 

·       Abdullah  Mosaad Abdullah Al Arifi                                                     Partner

 

·       Khalid Al Saadan Al Saadan                                                              Partner

 

·       Saud Bin Saad Abdullah Al Saadan                                                    Partner

 

·       Ahmed Alaa Eddine                                                                           Finance Manager

 

·       Ahmed Daragma                                                                               Financial Controller

 

·       Mohamed Najjar                                                                                Purchasing Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 20/07/1403 Hijri (corresponding to 4th May 1983)

 

Legal Form                  : Limited Liability Partnership

 

Commercial Reg. No.  : 2050013593, Dammam

 

Chamber Member No. : 8145

 

Issued Capital              : SR 5,240,000

 

Paid up Capital            : SR 5,240,000

 

Name of Partner (s)

 

·       Mosaad Abdullah Al Arifi

 

·       Abdullah Mosaad Abdullah Al Arifi

 

·       Khalid Al Saadan Al Saadan

 

·       Saud Bin Saad Abdullah Al Saadan

 

AFFILIATED COMPANIES

 

·       Mosaad Al Arifi Trading Est

Dammam

 

 

OPERATIONS

 

Activities: Engaged in the import and distribution of steel pipes and related products for the gas, oil, petrochemical and water industries.

 

Subject deals in stainless steel pipes, fittings, flanges and valves of all sizes. Subject has expanded its operations and started dealing with carbon steel products such as carbon steel pipes and fittings and flanges, stainless steel sheets/plates, aluminium sheets and other materials needed in the oil industry, refineries, gas plants, water desalination plants, petrochemical plants and dairies.

 

Import Countries: Spain, France, Japan, China, Bahrain and the United Arab Emirates.

 

Clients:

 

·       Saudi Aramco

 

International Suppliers:

 

·       Tubacex                   Spain

·       Delcorte                   France

·       Somitomo                 Japan

·       Jing Yang                 China

·       Jing Hu                     China

·       Garmco                    Bahrain

·       Arrow Pipe                United Arab Emirates

 

Operating Trend: Steady

 

Subject has a workforce of approximately 145 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 Revenue                            SR 139,500,000                         SR 142,270,000

 

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

 

The above financial figures are based on estimations by our local sources.

 

 

BANKERS

 

·       Saudi British Bank

PO Box: 1618

Dammam 31411

Tel: (966-3) 8331553

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Established in 1983, subject is involved in the import and distribution of steel pipes for the gas, oil, petrochemical and water industries.

 

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.60.43

UK Pound

1

Rs.100.23

Euro

1

Rs.80.35

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

PDT

 

               

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.