MIRA INFORM REPORT

 

 

Report Date :

26.12.2014

 

IDENTIFICATION DETAILS

 

Name :

FAFA ADHESIVE LABELLING INDUSTRY

 

 

Registered Office :

Abqaiq Road, 2nd Industrial City, PO Box 3446, Al Khobar 31952

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

11.03.1998

 

 

Com. Reg. No.:

2051024844

 

 

Legal Form :

Sole Proprietorship

 

 

Line of Business :

Engaged in the manufacture of adhesive labels and flexible laminate packaging.

 

 

No. of Employee :

65

 

 

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)

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                                    : FAFA ADHESIVE LABELLING INDUSTRY

Country of Origin                                   : Saudi Arabia

Legal Form                                           : Sole Proprietorship

Registration Date                                  : 11th March 1998

Commercial Registration Number           : 2051024844, Dammam

Chamber Membership Number               : 33908

Invested Capital                                                : SR 1,000,000

Total Workforce                         : 65

Activities                                               : Manufacturers of adhesive labels and flexible laminate packaging.

Financial Condition                                : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Satish Kumar, Senior Accountant

 

COMPANY NAME

 

FAFA ADHESIVE LABELLING INDUSTRY

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Abqaiq Road

Area                 : 2nd Industrial City

PO Box            : 3446

Town                : Al Khobar 31952

Country : Saudi Arabia

Telephone         : (966-13) 8122105

Facsimile          : (966-13) 8122106

Email                : fafalabel@salmangroup.com / fafa.accounts@salmangroup.com

 

Premises

 

Subject operates from a suite of offices and a factory covering 20,000 square metres that are owned and located in the Industrial Area of Dammam.

 

 

KEY PRINCIPALS

 

Name                                                                                       Position

 

Salman Mohamed Al Jishi                                                          Proprietor & General Manager

 

Mohamed Al Harthy                                                                   Sales Manager

 

Abdulaziz Al Dokhi                                                                    Purchase Manager                                

 

Sayed Madani                                                                           Financial Manager

 

Satish Kumar                                                                            Senior Accountant

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 13/11/1418 Hijri (corresponding to 11th March 1998)

 

Legal Form                  : Sole Proprietorship

 

Commercial Reg. No.   : 2051024844, Dammam

 

Chamber Member No.  : 33908

 

Invested Capital           : SR 1,000,000

 

Mr Salman Mohamed Al Jishi is the sole proprietor of the business.

 

 

AFFILIATED COMPANIES

 

Noor Carton & Packaging Industry

Dammam

Tel: (966-13) 8121988

Fax: (966-13) 8121311

 

Al Raja Printing Press

Dammam

Tel: (966-13) 8991188

Fax: (966-13) 8993377

 

Noor Travel

Al Khobar 31952

Tel: (966-13) 8991777

Fax: (966-13) 8942709

 

Al Raja Advanced Establishment for Commerce

Al Khobar 31952

Tel: (966-13) 8640145

Fax: (966-13) 8672350

 

Al Raja Advance Investment Group

Al Khobar 31952

Tel: (966-13) 8640145

Fax: (966-13) 8672350

 

Fafa Commercial Establishment

Al Khobar 31952

Tel: (966-13) 8954699

Fax: (966-13) 8983448

 

Innova Med

Al Khobar 31952

Tel: (966-13) 8954699

Fax: (966-13) 8983448

 

M J Information Technology Solutions

Al Khobar 31952

Tel: (966-13) 8652870

Fax: (966-13) 8656103

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of adhesive labels and flexible laminate packaging.

 

Subject is ISO 9001 accredited.

 

Production Capacity: 4,000 metric tons per year

 

Import Countries: Europe and GCC countries.

 

International Suppliers:

 

UPM Reflatac                United States of America

Savola Packaging Solution        Saudi Arabia

Arnon Plastic                Saudi Arabia

Tawazon Chemical                     United Arab Emirates

 

Operating Trend: Steady

 

Subject has a workforce of 65 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 36,525,000                           SR 39,000,000

 

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

 

The above figures were provided by Mr Satish Kumar, Senior Accountant

 

 

BANKERS

 

 

National Commercial Bank

PO Box: 13

Dammam 31411

Tel: (966-13) 8331188

Fax: (966-13) 8336058

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

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.63.46

UK Pound

1

Rs.98.51

Euro

1

Rs.77.31

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

TPT

 

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.