MIRA INFORM REPORT

Report Date :

01.10.2014

IDENTIFICATION DETAILS

Name :	SANA FOR ELECTRICAL & TELEPHONE CO LTD

Registered Office :	Al Batha Street, Al Ghoraibi Electrical Market, P O Box: 7763, Riyadh 11472

Country :	Saudi Arabia

Financials (as on) :	31.12.2013

Date of Incorporation :	Subject’s operations date back to 1976, however it was registered on 09/06/1417 Hijri (Corresponding to 1997).

Com. Reg. No.:	1010143643, Riyadh

Legal Form :	Limited Liability Partnership

Line of Business :	Subject is engaged in the import and distribution of electrical products, telephones and related accessories, as well as cables and network systems.

No. of Employees :	160

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory

Payment Behaviour :	No Complaints

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 – June 1, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Saudi Arabia

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 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 : SANA FOR ELECTRICAL & TELEPHONE CO LTD

Country of Origin : Saudi Arabia

Legal Form : Limited Liability Partnership

Start Date : 1976

Registration Date : 1997

Commercial Registration Number : 1010143643, Riyadh

Chamber Membership Number : 80603

Issued Capital : SR 500,000

Paid up Capital : SR 500,000

Total Workforce : 160

Activities : Distribution of electrical products, telephones and related accessories, as well as cables and network systems

Financial Condition : Fair

Payments : Nothing detrimental uncovered

Operating Trend : Steady

Person Interviewed : Aftab Ahmed Azmi, Financial Controller

COMPANY NAME

SANA FOR ELECTRICAL & TELEPHONE CO LTD

ADDRESS

Registered & Physical Address

Street : Al Batha Street

Area : Al Ghoraibi Electrical Market

PO Box : 7763

Town : Riyadh 11472

Country : Saudi Arabia

Telephone : (966-1) 4050775 / 4034944 / 4041728 / 4034101

Facsimile : (966-1) 4037293

Mobile : (966-50) 4143223 / 5050527

Email : info@4sana.com / info4sanaco@gmail.com

Premises

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

Branch Office (s)

Location Description

· Jeddah Sales office

Tel: (966-2) 6693962

· Al Khobar Sales office

Tel: (966-3) 8991750

· Al Qassim Sales office

Tel: (966-3) 3243844

Subject has 19 warehouse and showroom branches located throughout Saudi Arabia

KEY PRINCIPALS

Name Position

· Abdul Karim Qassim Ibrahim Al Khamees Managing Partner

· Khalid Abdul Karim Qassim Al Khamees Partner

· Omar Abdul Karim Qassim Ibrahim Al Khamees Partner

· Aftab Ahmed Azmi Financial Controller

· Ahmed Al Roshaidan Public Relations Manager

· Mohammad Ghaney Purchasing Manager

LEGAL FORM & OWNERS

Date of Establishment : Subject’s operations date back to 1976, however it was registered

on 09/06/1417 Hijri (Corresponding to 1997).

History : Subject was entered in the Riyadh Commercial Register in 1997 by

the following four Saudi partners:

1. Ahmad Abdul Karim Al Saffoug

2. Othman Qassim Mohamed Al Khamees

3. Abdul Karim Qassim Ibrahim Al Khamees

4. Abdul Rahman Ibrahim Ahmad Al Quraishi

In January 1999, and under an amendment entered with the Riyadh Commercial Register, the second partner, Mr Othman Qassim Mohamed Al Khamees, withdrew from the company and assigned all his shares in the capital to the third partner, namely Mr Abdul Karim Qassim Ibrahim Al Khamees.

Legal Form : Limited Liability Partnership

Commercial Reg. No. : 1010143643, Riyadh

Chamber Member No. : 80603

Issued Capital : SR 500,000

Paid up Capital : SR 500,000

Name of Partner (s) Percentage

· Abdul Karim Qassim Ibrahim Al Khamees 50%

· Khalid Abdul Karim Qassim Al Khamees 25%

· Omar Abdul Karim Qassim Ibrahim Al Khamees 25%

OPERATIONS

Activities: Engaged in the import and distribution of electrical products, telephones and related accessories, as well as cables and network systems.

Subject also provides telecommunication contracting services including installation and maintenance.

Import Countries: Italy, Bulgaria, United Kingdom and Taiwan

Clients:

· Saudi Electricity Company (SCECO)

· Saudi Telecom Company (STC)

· ABB

· Schneider

International Suppliers:

· Kai Suh Suh (KSS) Enterprise Co Ltd Taiwan

· Hitech Taiwan

· CEMBRE Italy

· Martel Italy

· Kanso Bulgaria

· Marconi United Kingdom

· Connectwell India

· Canon Finetech Japan

· Proskits Taiwan

Operating Trend: Steady

Subject has a workforce of 160 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 62,100,000 SR 63,500,000

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

The above financial figures are based on estimations by our local sources.

BANKERS

· National Commercial Bank

Airport Road

PO Box: 2800

Riyadh 11461

Tel: (966-1) 4772281

Fax: (966-1) 4730322

· Al Bank Al Saudi Al Fransi

Mather Road

PO Box: 56006

Riyadh 11554

Tel: (966-1) 4042222

Fax: (966-1) 4042311

· Riyad Bank

King Abdul Aziz Road

PO Box: 22622

Riyadh 11416

Tel: (966-1) 4122243

Fax: (966-1) 4013030

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.61.61
UK Pound	1	Rs.100.28
Euro	1	Rs.78.21

INFORMATION DETAILS

Analysis Done by :	KAR

Report Prepared by :	NIT

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.