MIRA INFORM REPORT

 

 

Report Date :

16.12.2014

 

IDENTIFICATION DETAILS

 

Name :

AL ABDULLATIF INDUSTRIAL INVESTMENT CO

 

 

Registered Office :

Al Kharj Road, Second Industrial City, P O Box 859, Riyadh 11421

 

 

Country :

Saudi Arabia  

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

22.05.1981

 

 

Com. Reg. No.:

1010073685, Riyadh

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Subject is a fully integrated industrial textiles company specializing in spinning, weaving and colouring of synthetic and natural fibres being used in the production of blankets, rugs, carpets, backings and a wide variety of yarns.

 

 

No of Employees :

1,500 (Approximately)

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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 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 ABDULLATIF INDUSTRIAL INVESTMENT CO

Trading As                                            : AL ABDULLATIF

Country of Origin                                   : Saudi Arabia

Legal Form                                           : Joint Stock Company

Registration Date                                  : 22nd May 1981

Commercial Registration Number           : 1010073685, Riyadh

Membership Number                             : 20872

Issued Capital                                       : SR 812,500,000

Paid up Capital                                     : SR 812,500,000

Total Workforce                         : 1,500 (Approximately)

Activities                                               : Manufacture of textiles.

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

 

 


COMPANY NAME

 

AL ABDULLATIF INDUSTRIAL INVESTMENT CO

 

 

TRADING AS

 

AL ABDULLATIF

 

 

company ADDRESS

 

Registered & Physical Address

Street               : Al Kharj Road

Area                 : Second Industrial City

PO Box            : 859

Town                : Riyadh 11421

Country : Saudi Arabia

Telephone         : (966-1) 2652200 / 2658888 / 2652011

Facsimile          : (966-1) 2659999

Email                : info@carpets.com / saad@carpets.com

 

Premises

Subject operates from a large suite of offices and a factory that are owned and located in the Industrial Area of Riyadh.

 

 

KEY PRINCIPALS

 

     Name                                                           Nationality                    Position

 

·       Sulaiman Omar Al Abdullatif                             Saudi                         Chairman

 

·       Abdullatif Omar Al Abdullatif                            Saudi                         Managing Director

 

·       Bader Omar Al Abdullatif                                 Saudi                         Director

 

·       Fahad Omar Al Abdullatif                                 Saudi                         Director

 

·       Khalid Abdulmohsen Al Khayal                         Saudi                         Director

 

·       Abdulaziz Abdullatif Dulijan                              Saudi                         Director

 

·       Talal Hamzah Al Mansi                                     Saudi                         Director

 

·       Saad Al Qarni                                                      -                            General Manager

LEGAL FORM & OWNERS

 

Date of Establishment  : 22nd May 1981

 

Legal Form                  : Joint Stock Company

 

Commercial Reg. No.   : 1010073685, Riyadh

 

Membership No.           : 20872

 

Issued Capital              : SR 812,500,000

 

Paid up Capital            : SR 812,500,000

 

Name of Shareholder (s)                                         Percentage

 

·       Al Abdullatif Group Holding Co                                 60%

 

·       Omar S S Al Abdullatif                                                6%

 

·       Members of the general public & private investors     34%

 

 

OPERATIONS

 

Activities: Subject is a fully integrated industrial textiles company specializing in spinning, weaving and colouring of synthetic and natural fibres being used in the production of blankets, rugs, carpets, backings and a wide variety of yarns.

 

Import Countries: Europe and Asia.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 1,500 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Saudi Riyals (SR 000’s)

 

Balance Sheet                                                          31/12/13          31/12/12           31/12/11           31/12/10

 

Current Assets

632,549

643,841

545,793

536,047

Inventory

598,212

529,685

496,113

412,751

Investments

76,895

138,725

122,909

48,206

Fixed Assets

495,917

504,479

501,204

493,817

Other Assets

14,977

12,521

14,110

18,471

Total Assets

1,818,550

1,829,251

1,680,129

1,509,292

Current Liabilities

543,750

530,863

386,780

299,144

Non-Current Liabilities

22,319

48,729

83,569

74,167

Other Liabilities

5,192

5,136

5,498

6,429

Shareholders’ Equity

1,247,289

1,244,523

1,204,282

1,129,552

Minority Interests

0

0

0

0

Total Liabilities and Shareholder Equity

1,818,550

1,829,251

1,680,129

1,509,292

 

Statement of Income

 

Sales

1,347,956

1,454,529

1,337,460

1,138,989

Sales Cost

955,702

1,038,863

1,012,011

823,575

Total Income

392,254

415,666

325,449

315,414

Other Revenues

26,208

4,832

4,832

5,281

Total Revenues

418,462

420,498

330,281

320,695

Admin and Marketing Expenses

54,098

71,295

58,946

49,120

Depreciation

63,282

63,024

97,758

99,858

Other Expenses

12,454

0

297

1,794

Total Expenses

129,834

134,319

157,001

150,772

Net Income Before Zakat

288,628

286,179

173,280

169,923

Zakat

21,800

22,500

17,300

17,500

Net Income

266,828

263,679

155,980

152,423

Balance First Period

229,524

215,651

156,519

425,588

Reserves

98

26,368

15,598

15,242

Cash Dividends

81,250

223,438

81,250

406,250

Other Distributions

264,062

0

0

0

Balance End Period

151,138

229,524

215,651

156,519

 

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

 

 


BANKERS

 

·       Riyad Bank

King Abdul Aziz Road

PO Box: 22622

Riyadh 11416

Tel: (966-1) 4122243

Fax: (966-1) 4013030

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                               May 2007

Amount overdue                                    0

Payment terms                                      180 days

Payment Method                                   Letters of Credit

Paying record                                       No Complaints

Currency                                               Pounds Sterling

 

 

GENERAL COMMENTS

 

Al Abdullatif Industrial Investment Co was established in 1981 and is one of the largest companies of its kind in the Middle East and Africa. It is a fully integrated industrial textiles company specializing in spinning, weaving and colouring of synthetic and natural fibres.

 

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.62.65

UK Pound

1

Rs.98.53

Euro

1

Rs.78.02

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

MNL

 

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.