MIRA INFORM REPORT

 

 

Report Date :

26.12.2014

 

IDENTIFICATION DETAILS

 

Name :

UNITED INDUSTRIAL INVESTMENT CO LTD (UNIVEST)

 

 

Registered Office :

2nd Industrial Estate, Phase 3 PO Box 7532 Riyadh 11472

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

30.11.2014

 

 

Date of Incorporation :

18.05.1978

 

 

Com. Reg. No.:

1010011456, Riyadh

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is engaged in the manufacture of decorative, industrial and automotive coatings

 

 

No. of Employees :

500

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

Payment Behaviour :

Regular

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                                    : UNITED INDUSTRIAL INVESTMENT CO LTD (UNIVEST)

Country of Origin                                   : Saudi Arabia

Legal Form                                           : Limited Liability Company

Registration Date                                  : 18th May 1978

Commercial Registration Number           : 1010011456, Riyadh

Chamber Membership Number               : 5495

Issued Capital                                       : SR 43,000,000

Paid up Capital                                     : SR 43,000,000

Total Workforce                         : 500

Activities                                               : Manufacturers of decorative, industrial and automotive coatings.

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Person Interviewed                                : Mohamed Riyaz, Finance Manager

 

 

 

COMPANY NAME

 

 UNITED INDUSTRIAL INVESTMENT CO LTD (UNIVEST)

 

 

ADDRESS

 

Registered & Physical Address

 

Location           : 2nd Industrial Estate, Phase 3

PO Box            : 7532

Town                : Riyadh 11472

Country : Saudi Arabia

 

Telephone         : (966-11) 2650078 / 2560078

Facsimile          : (966-11) 2650723 / 2650740

Email                : info@univest.com.sa / riyaz@univest.com.sa

 

Premises

 

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

 

Branch Offices

 

Location                                                                                           Description

 

·       PO Box: 19730                                                                                 Office premises

Jeddah 21445

Tel: (966-2) 6776270

Fax: (966-2) 6776421

 

·       PO Box: 1273                                                                                   Office premises

Buraidah

Tel: (966-6) 3230548

Fax: (966-6) 3230364

 

·       PO Box: 5795                                                                                   Office premises

Dammam 31432

Tel: (966-3) 8100231

Fax: (966-3) 8144642

 

·       Khamis Mushait                                                                                Office premises

Tel: (966-7) 2330531

Fax: (966-7) 2330531

 

·       Madinah                                                                                           Office premises

Tel: (966-4) 8280146

Fax: (966-4) 8279348

 

 

KEY PRINCIPALS

 

·       Abdullah Ibrahim Al Hobiaib                                                              Managing Director

 

·       Fahd Ibrahim Al Hobiaib                                                                    Director

 

·       Ali Abdullah Alyan                                                                            General Manager

 

·       Mohsin Jaffari                                                                                  Commercial Manager

 

·       Mohamed Riyaz                                                                                Finance Manager

 

·       Mihraj Ali                                                                                          Purchasing Manager

 

·       Mohamed Abdul Jawad                                                                    Production Manager

 

·       Sayed Mohsin Jaffari                                                                                    Marketing Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 18th May 1978

 

Legal Form                  : Limited Liability Company

 

Commercial Reg. No.   : 1010011456, Riyadh

 

Chamber Member No.  : 5495

 

Issued Capital              : SR 43,000,000

 

Paid up Capital            : SR 43,000,000

 

NAME OF PARTNER (S)                                               PERCENTAGE

 

·       Al Motazireen Holding Co (Alliance Holding Co)              95%

     Riyadh

 

·       The Manufacturing Co Ltd                                                5%

     Riyadh

 

 

AFFILIATED COMPANIES

 

·       Saudi Industrial Paints Co (SIPCO)

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of decorative, industrial and automotive coatings.

 

The product portfolio ranges covers Decorative, Protective Coatings, Nitro Cellulose, Wood and Metal Finishes, Industrial Finishes, Can Coatings, Coil Coatings and Adhesives.

 

                 Subject is ISO 9002 accredited.

 

Production Capacity: 100,000 tonnes per annum

 

International Suppliers:

 

·       Petrochem Middle East                     United Arab Emirates

·       Watania Plastic Industry                    Saudi Arabia

·       Synthomer                                       Saudi Arabia

 

Brand Names: DYRUP, SIPCO, A.D, XEDEX, BESTALL and STIKTITE

 

Import Countries: Kuwait, Bahrain, Yemen, Syria, Lebanon, Qatar, Egypt, Libya, UAE, Morocco and Sudan.

 

Subject has a workforce of approximately 500 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Saudi Riyals (SR)

 

                                                Year Ending 31/12/13:               Period Ending 30/11/14:

 

Total Sales                                SR 231,360,607             SR 180,000,000

 

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

 

The above figures were provided by Mr Mohamed Riyaz, Finance Manager

 

 

BANKERS

 

·       Arab National Bank

King Faisal Street

PO Box: 56921

Riyadh 11564

Tel: (966-11) 4029000

Fax: (966-11) 4027747

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                               August 2008                             August 2009

Credit amount                                       300,000                         300,000

Amount overdue                                    0                                              0

Payment terms                                      120 days                                   120 days

Payment Method                                   Letters of Credit                                    Letters of Credit

Paying record                                       No Complaints                          No Complaints

Currency                                               Euros                                       Euros

 

 

 

GENERAL COMMENTS

 

Established in 1978, subject is involved in the manufacture of decorative, industrial and automotive coatings.

 

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.63.45

UK Pound

1

Rs.98.88

Euro

1

Rs.77.62

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NIS

 

               

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.