MIRA INFORM REPORT

 

 

Report Date :

07.02.2014

 

IDENTIFICATION DETAILS

 

Name :

THE NATIONAL AGRICULTURAL DEVELOPMENT CO (NADEC)

 

 

Registered Office :

Moraba’a PO Box 2557 Riyadh 11461

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

01.06.1981

 

 

Com. Reg. No.:

1010018795, Riyadh

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Subject is engaged in the operation of cow farms, distributors of dairy and agricultural products, honey production and processing of dates

 

 

No. of Employees :

4,600

 

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, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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 17% 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 5 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                                     : THE NATIONAL AGRICULTURAL DEVELOPMENT CO (NADEC)

Country of Origin                                    : Saudi Arabia

Legal Form                                            : Joint Stock Company

Registration Date                                   : 1st June 1981

Commercial Registration Number            : 1010018795, Riyadh

Chamber Membership Number                : 7310

Issued Capital                                        : SR 600,000,000

Paid up Capital                                      : SR 600,000,000

Total Workforce                                     : 4,600

Activities                                               : Operators of cow farms, distributors of dairy and agricultural products,

                                                              honey production and processing of dates.

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

 

 

 


 

COMPANY NAME

 

THE NATIONAL AGRICULTURAL DEVELOPMENT CO (NADEC)

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : Moraba’a

PO Box             : 2557

Town                 : Riyadh 11461

Country             : Saudi Arabia

 

Telephone         : (966-1) 4040000 / 4043421

Facsimile          : (966-1) 4012193 / 4055522

Email                : info@nadec.com.sa

 

Premises

 

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

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Sulaiman Abdulaziz Al Rajhi                                                              Chairman

 

·       Mohammed Abdullah Al Shiha                                                            Director

 

·       Samir Ali Kabbani                                                                             Director

 

·       Fahad Thunayan Althunayan                                                              Director

 

·       Abdulwahab Saleh Al Rajhi                                                                Director

 

·       Abdulaziz Albabtain                                                                           Director

 

·       Abdulaziz Alowain                                                                             General Manager

 

·       Fahad A Al Shaqha                                                                           Sales Manager

 

·       Ahmed Al Shamari                                                                            Marketing Manager

 

·       Abdullah Alkanhal                                                                             Finance Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1st June 1981

 

Legal Form                  : Joint Stock Company

 

Commercial Reg. No.  : 1010018795, Riyadh

 

Chamber Member No. : 7310

 

Issued Capital              : SR 600,000,000

 

Paid up Capital            : SR 600,000,000

 

Name of Shareholder (s)                                            Percentage

 

·       Public Investment Fund                                              20.0%

 

·       Abdullah Abdulaziz Al Rajhi                                         8.3%  

 

·       Sulaiman Abdulaziz Al Rajhi                                        6.5%  

 

·       Members of the general public                                    65.2%

 

 

AFFILIATED COMPANIES

 

·       Pure Breed Poultry Co

 

·       National Seed Manufacturing Co

 

·       United Dairy Farms Co

 

·       United Co for Poultry Marketing

 

·       National Hide Tanning and Manufacturing Co

 


 

OPERATIONS

 

Activities: Engaged in the operation of cow farms, distributors of dairy and agricultural products, honey

                 production and processing of dates.

 

Subject owns 5 cow farms, containing 25,000 cattle.

 

Import Countries: Europe and the United States of America.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 4,600 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Saudi Riyals (SR 000’s)

 

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

 

Current Assets

374,142

335,926

380,967

Inventory

311,212

312,137

319,629

Investments

7,728

7,728

7,728

Fixed Assets

1,544,259

1,514,271

1,683,240

Other Assets

137,195

171,679

220,885

Total Assets

2,374,536

2,341,741

2,612,449

Current Liabilities

1,006,864

991,010

793,096

Non-Current Liabilities

395,975

287,758

736,422

Other Liabilities

0

0

0

Shareholder's Equity

971,697

1,062,973

1,082,931

Total Liabilities & Shareholder Equity

2,374,536

2,341,741

2,612,449

 

Statement of Income

 

Sales

1,447,559

1,555,656

1,727,472

Sales Cost

969,150

1,007,811

1,090,932

Total Income

478,409

547,845

636,540

Other Revenues

15,730

27,914

18,784

Total Revenues

494,139

575,759

655,324

Admin and Marketing Expenses

397,344

387,184

470,238

Depreciation

44,833

42,275

44,073

Other Expenses

34,685

42,001

32,071

Total Expenses

476,862

471,460

546,382

Net Income Before Zakat

17,277

104,299

108,942

Zakat

6,815

13,023

13,284

Net Income

10,462

91,276

95,658

 

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

 

Please note that figures for the year ending 31st December 2013 were not yet available.

 

 

BANKERS

 

·       National Commercial Bank

Airport Road

PO Box: 2800

Riyadh 11461

Tel: (966-1) 4772281

Fax: (966-1) 4730322

 

·       Arab National Bank (ANB)

King Faisal Street

PO Box: 56921

Riyadh 11564

Tel: (966-1) 4029000

Fax: (966-1) 4027747

 

·       Riyad Bank

Trade Finance Centre

PO Box: 111

Riyadh 11372

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

 

GENERAL COMMENTS

 

Established in 1981, subject is involved in the operation of cow farms, distributors of dairy and agricultural products, honey production and processing of dates.

 

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.62.50

UK Pound

1

Rs.101.92

Euro

1

Rs.84.50

 

 

INFORMATION DETAILS

 

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.