MIRA INFORM REPORT

 

 

Report Date :

18.06.2014

 

IDENTIFICATION DETAILS

 

Name :

AL OTHMAN AGRICULTURAL PRODUCING & PROCESSING CO (NADA) 

 

 

Registered Office :

Al Hofuf, Al Jaran Area, P O Box 1065, Al Hasa 31982

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2013

 

 

Year of Establishment :

1990

 

 

Com. Reg. No.:

2250022001, Al Hasa

 

 

Legal Form :

Limited Liability Partnership

 

 

Line of Business :

Engaged in the production of dairy products, including milk, cheese and yoghurt.

 

 

No of Employees :

640 (Approximately)

 

 

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                                    : AL OTHMAN AGRICULTURAL PRODUCING & PROCESSING CO

(NADA)

Country of Origin                                   : Saudi Arabia

Legal Form                                           : Limited Liability Partnership

Registration Date                                  : 1990

Commercial Registration Number           : 2250022001, Al Hasa

Chamber Membership Number               : 1666

Issued Capital                                       : SR 20,033,000

Paid up Capital                                     : SR 20,033,000

Total Workforce                         : 640

Activities                                               : Producers of dairy products.

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

 

 

 


COMPANY NAME

 

AL OTHMAN AGRICULTURAL PRODUCING & PROCESSING CO (NADA)

 

 

company ADDRESS

 

Registered & Physical Address

Location           : Al Hofuf, Al Jaran Area

PO Box            : 1065

Town                : Al Hasa 31982

Country : Saudi Arabia

Telephone         : (966-3) 5331133 / 5320000

Facsimile          : (966-3) 5331505 / 5323335 / 5324410

Email                : nada@alothman.com / nada@nadadairy.com / riyash@nadadairy.com

 

Premises

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

 

Branch Office (s)

 

     Location                                                                                          Description

 

·       Taba Complex                                                                                  Office premises           

Prince Sultan Street

PO Box: 402

Al Khobar 31952

Tel: (966-3) 8875000

Fax: (966-3) 8825173

 

Subject also has distribution outlets located in Riyadh, Jeddah, Dammam and Manama, Bahrain.

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Mohamed Abdullah Al Othman                                                          Managing Partner

 

·       Abdullah Mohamed Abdullah Al Othman                                            Partner

 

·       Abdulmohsen Mohamed Abdullah Al Othman                                     Partner

 

·       Kumar Danada                                                                                 Production Manager

 

·       Hosni Mubarak                                                                                 Sales Manager

 

·       Bakheet Al Zahrani                                                                            Administration Manager

 

·       Hamd Al Shoshan                                                                             Human Resources Manager

 

·       Waleed Nasser                                                                                 Accounts Manager

 

·       Hussain Zain Al Abdin                                                                       Personnel Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1990

 

History                         : Subject was established in 1990 as the Sole Proprietorship of Mr Mohamed Abdullah Al

  Othman trading as “Al Othman Agricultural Producing & Processing Est (Nada)” under

  commercial registration number 2051001261.

 

At the start of 2002 subject re-registered as a Limited Liability Partnership with the addition of Mr Mohamed Abdullah Al Othman’s two sons, Abdullah and Abdulmohsen, and Al Othman Holding Co

 

Legal Form                  : Limited Liability Partnership

 

Commercial Reg. No.   : 2250022001, Al Hasa

 

Membership No.           : 1666

 

Issued Capital              : SR 20,033,000

 

Paid up Capital            : SR 20,033,000

 

Name of Partner (s)                                                 Percentage

 

·       Al Othman Holding Co                                              90%

Al Khobar

 

·       Mohamed Abdullah Al Othman                                  10%

 

 

AFFILIATED COMPANIES

 

Subject belongs to the Al Othman group of companies that consists of the following concerns:

 

·       Nada Dairy

·       Nada International School

·       Nada Farm Village

·       Al Othman Plastic Products

·       SAAF Advanced Fabrics

·       Al Othman Ultrapak

·       United Steel Grating

·       Systems of Strategic Business Solutions

·       Al Othman Industrial Marketing Company

·       Industrial Material Supply

·       Clean Environment Technologies

·       Gas & Oil Technologies

·       AMO & Partners Engineering Co

·       Al Othman Travel & Tours

·       Mohammed Abdullah Al Othman Contracting and Trading Est

·       Gulf Desert Chemical Co

·       United Steel Grating (USG)

·       Takween Advance Industries

·       Al Othman Plastic Products

·       Al Riyadha Aloula

 

 

OPERATIONS

 

Activities: Engaged in the production of dairy products, including milk, cheese and yoghurt.

 

                 Subject is ISO 9001 and HCAP accredited.

 

Import Countries: Europe and the United States of America.

 

Export Countries: Bahrain, Qatar, United Arab Emirates and Kuwait

 

Brand Names: NADA

 

Operating Trend: Steady

 

Subject has a workforce of approximately 640 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 Revenue                           SR 724,327,000             SR 782,300,000

 

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

 

The above figures were provided by Mr. Waleed Nasser, Accounts Manager

 

BANKERS

 

·       National Commercial Bank

Al Baladiyah Street

Al Hasa

Tel: (966-3) 8331188

Fax: (966-3) 8330311

 

 

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.60.37

UK Pound

1

Rs.102.48

Euro

1

Rs.81.87

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

Report Prepared by :

MNL

 

 

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.