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Report Date : |
13.10.2014 |
IDENTIFICATION DETAILS
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Name : |
EASTERN TEXTILE COMPANY LTD (ETEX) |
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Registered Office : |
New Industrial Area, PO Box 859, Riyadh 11421 |
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Country : |
Saudi Arabia |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
13.04.2004 |
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Com. Reg. No.: |
1010196700 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject is engaged in the Manufacture of Carpet Backing. |
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No of Employees : |
370 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Saudi Arabia |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 |
Company Name :
EASTERN TEXTILE COMPANY LTD (ETEX)
Country of Origin :
Saudi Arabia
Legal Form :
Limited Liability Company
Start Date :
1994
Registration Date :
13th April 2004
Commercial Registration Number :
1010196700, Riyadh
Chamber Membership Number :
144688
Issued Capital :
SR 36,000,000
Paid up Capital :
SR 36,000,000
Total Workforce :
370
Activities :
Manufacturers of carpet backing
Financial Condition :
Good
Payments :
Nothing detrimental uncovered
Operating Trend :
Steady
Person Interviewed :
Ahmed Khalaf, Finance Manager
EASTERN TEXTILE COMPANY LTD (ETEX)
Registered &
Physical Address
Location : New Industrial
Area
PO Box : 859
Town : Riyadh 11421
Country : Saudi Arabia
Telephone : (966-1) 2654538
/ 2650957 / 2650958
Facsimile : (966-1)
2653818
Email : sales@etex.com
/ martin@etex.com
/ scf@carpets.com
Premises
Subject operates from a large suite of offices and a factory that are
rented and located in the Industrial Area of Riyadh.
Name Position
Kula Martin Luther General
Manager
Ahmed Khalaf Finance
Manager
Krishna Brunik Logistics
Manager
Hassan Al Amin Administration
Manager
Saeed Al Jabri Export
Manager
Date of Establishment : Subject’s
operations date back to 1994, however it was registered on 23/02/1425 Hijri
(corresponding to 13th April 2004)
Legal Form : Limited Liability
Company
Commercial Reg. No. : 1010196700,
Riyadh
Chamber Member No. : 144688
Issued Capital : SR 36,000,000
Paid up Capital : SR 36,000,000
Name of Partner
(s) Percentage
Al Abdullatif Industrial Investment Co 90%
Al Kharj Road
PO Box: 859
Riyadh 11421
Tel: (966-1) 2652200 / 2658888
Fax: (966-1) 2659999
National Spinning Co 10%
PO Box: 859
Riyadh 11421
Tel: (966-1) 2658888
Fax: (966-1) 2659999
Saudi Carpet
PO Box: 859
Riyadh 11421
Adfa Blankets
PO Box: 859
Riyadh 11421
Activities: Engaged in the manufacture of carpet backing.
Subject’s factory contains 290
projectile weaving machines, making it one of the largest manufacturers of
carpet backing outside of Europe and the United States of America.
Subject is ISO 9001:2000 accredited.
Production Capacity: 500 million square metres per year.
Import Countries: Europe and GCC countries.
Operating Trend: Steady
Subject has a workforce of approximately 370 employees.
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
323,310,000 SR 328,650,000
Local sources consider subject’s financial condition to be Good.
The above figures were provided by Mr Ahmed Khalaf,
Finance Manager
Riyad Bank
King Abdul Aziz Road
PO Box: 22622
Riyadh 11416
Tel: (966-1) 4122243
Fax: (966-1) 4013030
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.16 |
|
|
1 |
Rs.98.62 |
|
Euro |
1 |
Rs.77.67 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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|
|
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Report Prepared
by : |
TPT |
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 |
|
<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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.