MIRA INFORM REPORT

 

 

Report Date :

17.12.2014

 

IDENTIFICATION DETAILS

 

Name :

NATIONAL COMPANY FOR SPONGE & PLASTIC INDUSTRY LTD

 

 

Registered Office :

Airport Road Al Houban Area 6714 & 6330 Taiz

 

 

Country :

Yemen

 

 

Year of Establishment : 

1974

 

 

Com. Reg. No.:

182/41, Taiz

 

 

Legal Form :

Closed Shareholding Company

 

 

Line of Business :

Manufacture of sponge, plastic pipes and hoses, polyethylene bags, durable plastic household articles, and corrugated cartons, as well as providing tissue conversion and plastic recycling

 

 

No of Employees :

400

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Yemen

C1

C1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

YEMEN - ECONOMIC OVERVIEW

 

Yemen is a low income country that is highly dependent on declining oil resources for revenue. Petroleum accounts for roughly 25% of GDP and 63% of government revenue. Yemen has tried to counter the effects of its declining oil resources and continuing attacks on its oil pipelines by diversifying its economy through an economic reform program initiated in 2006 that is designed to bolster non-oil sectors of the economy and foreign investment. In October 2009, Yemen exported its first liquefied natural gas as part of this diversification effort. In January 2010, the international community established the Friends of Yemen group that aims to support Yemen's efforts toward economic and political reform. In 2012, the Friends of Yemen pledged nearly $7 billion in assistance to Yemen. The Yemeni Government also endorsed a Mutual Accountability Framework to facilitate the efficient implementation of donor aid. The unrest that began in early 2011 caused GDP to plunge almost 11% in 2011. Availability of basic services, including electricity, water, and fuel, has improved since the transition, but progress toward achieving more sustainable economic stability has been slow and uneven. Yemen continues to face difficult long-term challenges, including declining water resources, high unemployment, severe food scarcity, and a high population growth rate.

 

Source : CIA

SUMMARY

 

Company Name                                    : NATIONAL COMPANY FOR SPONGE & PLASTIC INDUSTRY LTD

                                                              (NCSPI)

Country of Origin                                   : Yemen

Legal Form                                           : Closed Shareholding Company

Registration Date                                  : 1974

Commercial Registration Number           : 182/41, Taiz

Issued Capital                                       : YR 2,100,000,000

Paid up Capital                                     : YR 2,100,000,000

Total Workforce                         : 400

Activities                                               : Manufacture of sponge, plastic pipes and hoses, polyethylene bags,  durable plastic household articles, and corrugated cartons, as well as providing  tissue conversion and plastic recycling

Financial Condition                                : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Amer Abdulrahim, Finance Manager

 

 

 

COMPANY NAME

 

NATIONAL COMPANY FOR SPONGE & PLASTIC INDUSTRY LTD (NCSPI)

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Airport Road

Area                 : Al Houban Area

 

PO Box            : 6714 & 6330

 

Town                : Taiz

Country : Yemen

 

Telephone         : (967-4) 218070 / 218071 / 218072 / 218065 / 218486 / 233249 / 218490 / 218491

Facsimile          : (967-4) 218105 / 218494 / 226534

Mobile              : (967-71) 1193984 / 1771296 (967-77) 7203564

Email                : ncspi@ncspi.com / ncspi@y.net.ye / info@ncspiyemen.com

 

Premises

 

Subject operates from a medium sized suite of offices and production facilities that are owned and located in the Industrial Area of Taiz.

 

Branch Office (s)

 

     Location                                                                                           Description

 

·       Sana’a                                                                                             Owned factory premises

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Ali Mohamed Hayel Saeed Anam                                                       Chairman

 

·       Shehab Saeed Abdo Saeed                                                              General Manager

 

·       Amer Abdulrahim                                                                              Finance Manager

 

·       Abdul Ghani Abdul Rab                                                                    Finance Manager

 

·       Ameen Al Qubati                                                                              Financial Controller

 

·       Shekeeb Saeed Qassim                                                                    Plastic Products Manager

 

·       Abdul Ghawi Fayeq                                                                          Sponge Products Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1974

 

Legal Form                  : Closed Shareholding Company (changed legal form in 2011 from Limited Liability Company)

 

Commercial Reg. No.   : 182/41, Taiz

 

Issued Capital              : YR 2,100,000,000

 

Paid up Capital            : YR 2,100,000,000

 

Name of Shareholder (s)

 

·       Hayel Saeed Anam & Co Ltd

     Anam Building

     Al Mugamma Street

     PO Box: 5927

     Taiz

     Tel: (967-4) 215168 / 215171 / 215172 / 227524 / 228577

     Fax: (967-4) 219869 / 215169 / 212334

 

·       270 private investors

 

 

AFFILIATED COMPANIES

 

Subject is a member of the Hayel Saeed Anam group of companies which was founded by four brothers from a village outside Taiz back in 1938, the family business was consolidated in Aden during the British era and later transferred back to the home base in North Yemen in 1947.

 

The group is headed by Hayel Saeed Anam & Co Ltd which is now chaired by Ali Mohamed Hayel Saeed and his sons, Abdul Wassa, Abdul Gabar and Abdul Rahman who have become the most notable personalities in the group especially after the death of the founder and former chairman of the group, the late Hayel Saeed Anam who passed away in May 1990.

 

The Hayel Saeeds were the first family in Yemen to go into industry, and since 1970 some

YR 300,000,000 has been invested in ventures that include a biscuit factory, a sponge and plastics unit, mineral water factory, and a ghee and soap plant. Two more industrial plants opened in 1985, one capitalised at YR 50,000,000 that produces baby diapers, shampoos and face creams; and the other is capitalised at YR 75,000,000 and produces milk, yoghurt and cheese.

 

The Hayel Saeed Anam Group is rapidly becoming a fully integrated unit. The raw materials for the company’s industrial plants are carried in their own shipping line, Middle East Shipping Company Ltd, and goods are packed in their own carton packing plant and even their factories are constructed by Kirby Building Systems, for which the group is the Yemen agent; other agencies include Rothmans (cigarettes), Shell and Unilever.

 

The group is also well known for their progressive record on labour. They were the first to employ women in factories, a move which attracted considerable attention from local religious leaders. They have also established a technical training institute in Taiz for 100 students and also finance scholarships for others to study overseas.

 

The Hayel Saeed Anam Group of Companies includes the following concerns:

 

·       Yemen Company for Industry and Commerce Ltd (YCIC)                    Yemen

·       Middle East Trading Co (METCO)                                                      Yemen

·       Yemen Company for Ghee and Soap Industry Ltd (YCGSI)                 Yemen

·       National Dairy and Food Company Ltd (NADFOOD)                           Yemen

·       General Industries and Packages Ltd (GENPACK)                              Yemen

·       United Industries Company Ltd (UI)                                                    Yemen

·       Yemen Company for Packaging Industries Ltd                                   Yemen

·       Yemen Company for Motor Oils Industry Ltd                                      Yemen

·       Mass Advertising Agency Ltd                                                            Yemen

·       Arwa Mineral Water Company Ltd (ARWA)                                         Yemen

·       Flora Natco                                                                                      Yemen

·       Middle East Shipping Company Ltd                                                  Yemen

·       Yemen Travel Agencies                                                                     Yemen

·       Yemen Gulf Trading & Contracting Company                         Yemen

·       National Trading Company (NATCO)                                      Yemen

·       Arabia Felix Industries Ltd (AFI)                                                         Yemen

·       United Insurance Co Ltd (UIC)                                                            Yemen

·       Widyan Trading Co Ltd                                                                     Yemen

·       Al Saeed Hospital                                                                             Yemen

·       Al Saeed Sofitel Hotel                                                                      Yemen

·       Aden Flour Mill                                                                                 Yemen

·       Al Saeed Trading Co                                                                         Yemen

·       Hasco Shell Trading Co                                                                    Yemen

·       Yemen Co for Agricultural Development & Livestock (YCALD)            Yemen

·       Yemen Refreshment & Industry Co (SKI)                                            Yemen

·       Pacific Inter-Link Sdn Bhd                                                                 Malaysia

·       Stamrate Ltd                                                                                    United Kingdom

·       Longulf Trading (UK) Ltd                                                                   United Kingdom

·       Quintin’s Snack Food Ltd                                                                  United Kingdom

·       Arma for Food Industries                                                                  Egypt

·       Frimex Trading Co LLC                                                                     Dubai, UAE

·       National Biscuits & Confectionery Co Ltd                                           Saudi Arabia

·       National Food Industries Co Ltd                                                        Saudi Arabia

·       United Carton Industries Co                                                               Saudi Arabia

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of sponge, plastic pipes and hoses, polyethylene bags, durable plastic

     household articles, and corrugated cartons, as well as providing tissue conversion and plastic recycling.

 

Subject has attempted to diversify in recent years by expanding its products base. It constructed a recycling plant so that various types of plastic waste can be collected from the different locations of Yemeni Governorates to be sorted, washed, ground and granulated to be used for producing articles of non-food

     application.

 

On the 7th of May 1998, the company was granted ISO 9002 certification by the International Standards Organization, Houston, USA under Certificate No. 33095.

 

Import Countries: The Netherlands

 

Operating Trend: Steady

 

Subject has a workforce of approximately 400 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Yemeni Riyal (YR)

 

                                                Year Ending 31/12/12:               Year Ending 31/12/13:

 

Total Sales                                YR 19,400,000,000                    YR 21,000,000,000

 

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

 

The above figures were provided by Mr Amer Abdulrahim, Finance Manager

 

 

BANKERS

 

·       Arab Bank Plc

Jamal Abdul Nasser Street

PO Box: 5234

Taiz

Tel: (967-4) 231523

       Fax: (967-4) 212347

 

·       Yemen Bank for Reconstruction & Development

26 September Street

PO Box: 541

Sana’a

Tel: (967-1) 271621 / 271626

Fax: (967-1) 271684

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Established in 1974, National Company For Sponge & Plastic Industry Ltd (NCSPI) is a leading concern, which has activities including the manufacture of sponge, plastic pipes and hoses, polyethylene bags, durable plastic household articles, and corrugated cartons, as well as providing tissue conversion and plastic recycling.

 

Subject is a member of the well known and financially strong Hayel Saeed Anam Group of Companies which through its diversified activities has become by far the largest business group in Yemen.

 

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.63.41

UK Pound

1

Rs.99.03

Euro

1

Rs.79.00

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

ANK

 

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.