MIRA INFORM REPORT

 

 

Report Date :

17.06.2014

 

IDENTIFICATION DETAILS

 

Name :

GULF UNION FOOD COMPANY LTD

 

 

Registered Office :

Al Kharj Road Industrial Area, Phase 3 365 Riyadh 11383

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

1996

 

 

Com. Reg. No.:

1010149731, Riyadh

 

 

Legal Form :

Limited Liability Partnership

 

 

Line of Business :

Engaged in the production of fruit juices and carbonated water. It operates 120 sales trucks

 

 

No. of Employees

580

 

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Saudi Arabia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

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

 

Source : CIA

SUMMARY

 

Company Name                                    : GULF UNION FOOD COMPANY LTD

Also Known As                                     : GULF UNION JUICE FACTORY

Country of Origin                                   : Saudi Arabia

Legal Form                                           : Limited Liability Partnership

Registration Date                                  : 1996

Commercial Registration Number           : 1010149731, Riyadh

Chamber Membership Number               : 76900

Issued Capital                                       : SR 200,000,000

Paid up Capital                                     : SR 200,000,000

Total Workforce                                     : 580

Activities                                               : Production of fruit juices and carbonated water.

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Salah Eddine Monaz, Finance Manager

 

 

 

 

COMPANY NAME

 

GULF UNION FOOD COMPANY LTD

 

 

ALSO KNOWN AS

 

GULF UNION JUICE FACTORY

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Al Kharj Road

Area                 : Industrial Area, Phase 3

PO Box            : 365

Town                : Riyadh 11383

Country             : Saudi Arabia

 

Telephone         : (966-1) 2652855

Facsimile          : (966-1) 2652779

Email                : info@gulf-union.com

 

Premises

 

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

 

Branch Office (s)

 

     Location                                                                                           Description

 

·       PO Box: 6408                                                                                   Office premises

Riyadh 11442

 

·       Jeddah                                                                                            Office premises

Tel: (966-2) 6237630

Fax: (966-2) 6230156

 

·       Makkah                                                                                            Office premises

Tel: (966-2) 5365779

Fax: (966-2) 5365404

 

·       Dammam                                                                                         Office premises

Tel: (966-3) 8145316

Fax: (966-3) 8145317

 

·       Qassim                                                                                            Office premises

Tel: (966-6) 3220166

Fax: (966-6) 5344559

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Dr Sulaiman Al Roshaidi                                                                   Managing Partner

 

·       Abdulrahman Al Qassim                                                                    Partner

 

·       Saad Ibrahim Al Moshah                                                                   Partner

 

·       Amira Mohamed Al Hail                                                                     Partner

 

·       Noura Ibrahim Mohamed Al Mojil                                                       Partner

 

·       Salah Eddine Monaz                                                                         Finance Manager

 

·       Atif Al Khattab                                                                                  Marketing Manager

 

·       Fadel Al Rahim                                                                                 Production Manager

 

·       Abdul Khaliq Mansour                                                                       Commercial Manager

 

·       Abdulaziz Al Mohamed                                                                     Administration Executive

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1996 (Production began in 1999)

 

Legal Form                  : Limited Liability Partnership

 

Commercial Reg. No.   : 1010149731, Riyadh

 

Chamber Member No.  : 76900

 

Issued Capital              : SR 200,000,000

 

Paid up Capital            : SR 200,000,000

 

Name of Partner (s)                                                               Percentage

 

·       Gulf Food Beverages Investment Company (JADWA)            30%

Riyadh

 

·       Abdulrahman Al Qassim                                                        29%

 

·       Noura Ibrahim Mohamed Al Mojil                                           20%

 

·       Dr Sulaiman Al Roshaidi                                                       14%

 

·       Amira Mohamed Al Hail                                                           5%

 

·       Saad Ibrahim Al Moshah                                                         2%

 

 

OPERATIONS

 

Activities: Engaged in the production of fruit juices and carbonated water. It operates 120 sales trucks.

 

Import Countries: Europe and the United States of America.

 

Export Countries: GCC countries, Canada, United Kingdom, Indian Subcontinent.

 

Brand Names: MAAZA, CAPTAIN, COOL UP, ANHAR and ORIGINAL

 

Operating Trend: Steady

 

Subject has a workforce of approximately 580 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 556,500,000                         SR 647,880,000

 

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

 

The above figures were provided by Mr Salah Eddine Monaz, Finance Manager

 

 

BANKERS

 

·       National Commercial Bank

Malaz Branch

PO Box: 42536

Riyadh 11551

Tel: (966-1) 4776450

     Fax: (966-1) 4769502

 

·       Al Rajhi Banking & Investment Corporation

PO Box: 28

Riyadh 11411

Tel: (966-1) 4054647 / 4054244

     Fax: (966-1) 4044753 / 4052950

     Account No. 16254/2

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                   October 2002                            June 2004                                 March 2012

Credit amount                           100,000                                     100,000                                     113,000

Amount overdue                        0                                              0                                              0

Payment terms                          30 days                                    30 days                                    30 days

Payment Method                       Letters of Credit                        Letters of Credit                        Letters of Credit

Paying record                           No Complaints                          No Complaints                          No Complaints

Currency                                   Euros                                       US Dollars                                Euros

 

 

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.60.01

UK Pound

1

Rs.101.99

Euro

1

Rs.81.25

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

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.