MIRA INFORM REPORT

 

 

Report Date :

16.01.2014

 

IDENTIFICATION DETAILS

 

Name :

ABDULLAH SALEH AL OTHAIM MARKETS CO (OMC)

 

 

Registered Office :

West of Eastern Ring Road, Exit 14 & 15, Al Rabwa District, PO Box : 41700, Riyadh 11531

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

21.05.1980

 

 

Com. Reg. No.:

1010031185, Riyadh

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Subject operates 77 stores, including 44 supermarkets, 21 corner shops & 7 wholesale centre, specialising in the wholesale and retail of foodstuff and beverages and general consumer products.

 

 

No. of Employees :

5,250

 

 

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                                     : ABDULLAH SALEH AL OTHAIM MARKETS CO (OMC)

Doing Business As                                : AL OTHAIM MARKETS COMPANY

Country of Origin                                    : Saudi Arabia

Legal Form                                            : Joint Stock Company

Registration Date                                   : 21st May 1980

Commercial Registration Number            : 1010031185, Riyadh

Chamber Membership Number                : 14062

Issued Capital                                        : SR 225,000,000

Paid up Capital                                      : SR 225,000,000

Total Workforce                                     : 5,250

Activities                                               : Subject operates 77 stores, including 44 supermarkets, 21 corner shops & 7 wholesale centre

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

 

COMPANY NAME

 

ABDULLAH SALEH AL OTHAIM MARKETS CO (OMC)

 

DOING BUSINESS AS: AL OTHAIM MARKETS COMPANY

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : West of Eastern Ring Road, Exit 14 & 15

Area                 : Al Rabwa District

PO Box             : 41700

Town                 : Riyadh 11531

Country             : Saudi Arabia

 

Telephone         : (966-1) 2445871 / 4919999 / 2547000 / 2547454

Facsimile          : (966-1) 2415560 / 4937778 / 4933264 / 4937454

Email                : info@othaimmarkets.com

 

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

 

Abdullah Saleh Al Othaim                                                                       Chairman

 

Abdulaziz Saleh Al Othaim                                                                     Managing Director

 

Fahd Abdullah Al Othaim                                                                        Director

 

Yousef Mohamed Al Qifari                                                                      General Manager

 

Attiya Abdullah Al Moyilah                                                                      Assistant General Manager

 

Bander Sulaiman                                                                                   Administration Manager

 

Baha Eddine Bualaa                                                                               Operations Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  :           21st May 1980

 

Legal Form      :                       Joint Stock Company

 

Commercial Reg. No.  :           1010031185, Riyadh

 

Chamber Member No. :           14062

 

Issued Capital              :           SR 225,000,000

 

Paid up Capital            :           SR 225,000,000

 

Name of Shareholder (s)                                              Percentage

 

Al Othaim Holding Co                                                     27.60%

 

Abdullah Saleh Al Othaim                                               6.00%

 

Ashmore EMM/Swap Agreement                                     5.10%

 

Saudi businessmen & private investors                              61.30%

 

 

AFFILIATED COMPANIES

 

Name                                                                                       Percentage Held

 

Haley Holding Co                                                                       99%

 

Universal Marketing Center Co                                                    99%

 

Seven Services Co                                                                     99%

 

Bayt Alwatan Co                                                                        99%

 

 

OPERATIONS

 

Activities:                     Subject operates 77 stores, including 44 supermarkets, 21 corner shops & 7 wholesale centre, specialising in the wholesale and retail of foodstuff and beverages and general consumer products.

 

Operating Trend:         Steady

 

Subject has a workforce of approximately 5,250 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Saudi Riyals (SR)

 

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

 

ASSETS

Current assets

Cash on hand and at banks                                                       63,478,659                    43,619,168

Inventories, net                                                                          321,789,805                  311,353,260

Prepayments and other receivables                                             79,885,395                    105,464,896

Total current assets                                                                   465,153,859                  460,437,324

Non-current assets

Investments in associated companies and others                          174,018,032                  118,945,249

Property and equipment, net                                                       1,075,859,844                1,024,756,613

Projects in progress                                                                   36,517,123                    58,260,734

Intangible assets, net                                                                 11,876,824                    13,215,328

Total non-current assets                                                             1,298,271,823                1,215,177,924

TOTAL ASSETS                                                                        1,763,425,682                1,675,615,248

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities

Short-term loans and Murabahas                                                 78,193,602                    61,432,944

Current portion of long-term loans and Murabahas                         105,399,512                  103,346,089

Trade payables                                                                          656,122,209                  694,779,387

Other payables and accrued expenses                                        101,337,415                  83,062,487

Total current liabilities                                                                 941,052,738                  942,620,907

Non-current liabilities

Provision for End-of-service benefits                                             41,068,395                    35,461,372

Long-term loans and Murabahas                                                  100,858,757                  166,230,587

Total non-current liabilities                                                          141,927,152                  201,691,959

Total liabilities                                                                            1,082,979,890                1,144,312,866

Shareholders' equity

Share capital                                                                             225,000,000                  225,000,000

Statutory reserve                                                                        74,159,034                    56,982,411

Voluntary reserve                                                                       12,453,336                    12,453,336

Retained earnings                                                                      368,757,084                  236,667,477

Unrealized gains from investments in available-forsale

securities                                                                                  76,338                          199,158

Total shareholders' equity                                                           680,445,792                  531,302,382

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                   1,763,425,682                1,675,615,248

 

Statement of Income

 

Revenues

Sales                                                                                        4,105,198,404                3,942,797,390

Rent                                                                                         160,978,268                  148,115,441

Total revenues                                                                           4,266,176,672                4,090,912,831

Cost of revenues                                                                        (3,940,929,175) (3,767,767,726)

Gross profit                                                                               325,247,497                  323,145,105

Selling and distribution expenses                                                (113,878,296)                (115,020,839)

General and administrative expenses                                           (55,244,940)                  (50,502,628)

Income from continuous main operations                                      156,124,261                  157,621,638

Company’s share in net profits of the

associate companies                                                                 30,151,720                    12,655,583

Impairment of an investment                                                        (929,491)                       -

Finance expenses                                                                      (10,910,445)                  (12,516,125)

Other income (expenses), net                                                     1,080,185                      (4,177,922)

Income before zakat                                                                   175,516,230                  153,583,174

Zakat                                                                                        (3,750,000)                    (3,500,000)

NET INCOME                                                                            171,766,230                  150,083,174

 

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

 

 

BANKERS

 

Arab National Bank (ANB)

PO Box: 12965

Riyadh 11564

Tel: (966-1) 4029000

Fax: (966-1) 4027535

 

 

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.61.59

UK Pound

1

Rs.101.09

Euro

1

Rs.83.99

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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.