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Report Date : |
14.06.2014 |
IDENTIFICATION DETAILS
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Name : |
METHANOL CHEMICAL COMPANY LTD (CHEMANOL) |
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Formerly Known As : |
SAUDI FORMALDEHYDE CHEMICAL COMPANY LTD (SFCCL) |
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Registered Office : |
Al Moujil Building Al
Dhahran Street PO Box 3139 Dammam 31471 |
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Country : |
Saudi Arabia |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
31.07.1989 |
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Com. Reg. No.: |
2055001870, Dammam |
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Legal Form : |
Saudi Joint Stock Company |
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Line of Business : |
Engaged in the production of premium grade Formaldehyde and derivative
products, including Formalin, Melfores, Paraformaldehyde and Ufores |
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No. of Employees |
530 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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 – March 31, 2014
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Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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Saudi Arabia |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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
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Source
: CIA |
Company Name : METHANOL CHEMICAL COMPANY LTD (CHEMANOL)
Previously Known As : SAUDI FORMALDEHYDE CHEMICAL COMPANY LTD (SFCCL)
Country of Origin : Saudi Arabia
Legal Form : Saudi Joint Stock Company
Registration Date : 31st July 1989
Commercial Registration Number : 2055001870, Dammam
Chamber Membership Number : 405
Issued Capital : SR 1,206,000,000
Paid up Capital : SR 1,206,000,000
Total Workforce : 530
Activities : Producers of Formaldehyde and derivative products.
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
METHANOL CHEMICAL COMPANY LTD (CHEMANOL)
SAUDI FORMALDEHYDE CHEMICAL COMPANY LTD (SFCCL)
Building : Al Moujil
Building
Street : Al Dhahran
Street
PO Box :
3139
Town : Dammam 31471
Country : Saudi Arabia
Telephone : (966-3) 8342397
/ 8338831 / 8337317 / 3589905 / 3581111
Facsimile : (966-3)
8342283
Email : sfccl@saudiform.com
/ fawaz@chemanol.com
/ info@chemanol.com
Subject operates from a large suite of offices that are rented and
located in the Central Business Area of Dammam.
Branch Office (s)
Location Description
· Tareeq 198
Secondary Industries Park Owned
factory premises
Section P, Block
5, Lot No. 4 & 6
PO Box: 2101 /
7953
Jubail 31951
Tel: (966-3)
3584616 / 3581048
Fax: (966-3)
3583592
Name Position
· Abdullah Mohamed
Al Mazrouie Managing Director
· Khalid Al Zamil Director
· Adeeb Al Zamil Director
· Bader Kanoo Director
· Abdul Mohsen Al
Nafsi Director
· Sami Jalal Director
· Hamad Al Manae Director
· Khalid Bin Ibrahim
Al Rabiah General
Manager
· Fawaz Al Abbad Administration
Manager
Date of
Establishment : 28/12/1409 Hijri
(corresponding to 31st July 1989). Production began in 1991
History : Subject was
established in 1989 under the name of “Saudi Formaldehyde Chemical
Company Ltd
(SFCCL)”. However in March 2007, and in order to reflect its expansion into
methanol production the subject was re-registered under the new name of
“Methanol
Chemical Company Ltd (Chemanol)”
Legal Form : Saudi Joint Stock
Company
Commercial Reg.
No. : 2055001870, Dammam
Chamber Member No. : 405
Issued Capital : SR 1,206,000,000
Paid up Capital : SR 1,206,000,000
· Abdullah A Kanoo
Co 11%
· Zamil Group
Holding Co 11%
· Mazen Khalif Ahmed
Al Naeimi & Sons Co 8%
· Mohammad Jalal
& Sons Co 5%
· Al Mazrouie
Holding Co 5%
· Members of the
general public & private investors 60%
· United Gulf Steel
Mill Co Ltd
PO Box: 35344
Dammam
Tel: (966-3) 8343853
Fax: (966-3) 8346627
Activities: Engaged in the production of premium grade Formaldehyde and derivative
products, including Formalin, Melfores, Paraformaldehyde and Ufores.
Subject’s current product range comprises the following chemicals in 26
grades:
- Aqueous Formaldehyde Solutions
(AF-37 / Formalin)
- Urea Formaldehyde Concentrate
(UF-85 / Formurea)
- Hexa Methylene Tetramine (HMT /
Hexamine)
- Paraformaldehyde (Paraform)
- Melamine & Urea
Formaldehyde Resins (Spray Dried)
- Glazing Powder
- Methanolic / Butanolic
Solutions of Formaldehyde
- Sulphonated Naphthalene &
Melamine based Superplasticizers (SNF/SMF)
Production Capacity: 200,000 tonnes per annum
Import Countries : Germany and the United States of America.
Export Countries: More than 80% of its production capacity is
exported to more than 50 countries in the Middle East, Indian Subcontinent, Africa,
Europe, Asia, Australia and North America.
Operating Trend : Steady
Subject has a workforce of approximately 530 employees.
Financial highlights provided by local sources are given below:
Currency: Saudi Riyals (SR)
Balance Sheet 31/12/13 31/12/12
31/12/11
Assets
Current assets
Cash 78,545,791 114,777,303 122,114,884
Margin deposits with bank 500,000 500.000 500,000
Trade receivables 245,767,102 261,468,777 266,928,485
Inventories 127,936,115 121,445,541 117,460,295
Total current assets 478,986,496 533,865,200 507,003,664
Non current assets
Property, plant and equipment 2,265,174,790 2,343,802,441 2,465,144,620
Intangible assets 12,993,750 13,781,250 14,568,750
Deferred charges - 1,768,228 4,741,092
Long term prepaid expenses 25,531,233 30,992,729 36,545,584
Total non-current assets 2,303,699,773 2,390,344,648 2,521,000,046
Total assets 2,782,686,269 2,924,209,848 3,028,003,710
Liabilities and shareholders’ equity
Current liabilities
Trade payables 45,681,459 56,498,531 82,185,438
Short term loans 60,000,000 - 40,000,000
Current portion of long term bank debts 154,560,000 142,625,000 124,790,000
Current portion of long term obligations 1,337,500 3,087,500 5,250,000
Zakat provision 5,000,000 4,901,401 3,996,440
Total current liabilities 316,219,227 247,401,697 256,221,878
Non current liabilities
Long term bank debts 851,805,000 1,075,925,000 1,261,175,000
Long term obligations - - 3,087,500
Employees’ end of service benefits 31,430,811 27,643,478 24,106,278
Total non-current liabilities 883,235,811 1,103,568,478 1,288,368,778
Total liabilities 1,199,455,038 1,350,970,175 1,544,590,656
Shareholders’ equity
Share capital 1,206,000,000 1,206,000,000 1,206,000,000
Share premium 72,850,071 72,850,071 72,850,071
Statutory reserve 40,898,576 33,686,753 24,543,813
Retained earnings 263,482,584 260,702,849 180,019,170
Total shareholders’ equity 1,583,231,231 1,573,239,673 1,483,413,054
Total liabilities and shareholders’ equity 2,782,686,269 2,924,209,848 3,028,003,710
Statement of Income
Sales 873,722,183 920,747,322 829,737,011
Cost of sales (664,218,823) (703,297,587) (637,294,084)
Gross profit 209,503,360 217,449,735 191,812,927
Selling and distribution expenses (66,558,521) (68,991,497) (59,994,571)
General and administrative expenses (24,497,755) (25,590,062) (18,041,480)
Amortisation of deferred charges (1,768,228) (2,972,864) (2,955,265)
Operating income 116,678,856 119,895,312 110,821,611
Other income (2,027,121) 14,077,491 2,332,704
Financial charges (36,871,730) (37,643,403) (39,942,354)
Income before Zakat 77,780,005 96,329,400 73,211,961
Zakat (5,661,774) (4,900,000) (3,000,000)
Net income 72,118,231 91,429,400 70,211,961
Local sources consider subject’s financial condition to be Good.
·
National Commercial Bank
PO Box: 13
Dammam 31411
Tel: (966-3)
8331188
Fax: (966-3)
8336058
·
Arab National Bank (ANB)
King Street
PO Box: 18
Dammam 31411
Tel: (966-3)
8323440
Fax: (966-3)
8337829
No complaints regarding subject’s payments have been reported.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.59.48 |
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1 |
Rs.100.93 |
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Euro |
1 |
Rs.80.71 |
INFORMATION DETAILS
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Analysis Done by
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KAR |
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Report Prepared
by : |
NIS |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.