MIRA INFORM REPORT

 

 

Report No. :

315916

Report Date :

04.04.2015

 

IDENTIFICATION DETAILS

 

Name :

SAUDI PAINT COMPANY LTD (PAINTCO)

 

 

Registered Office :

Al Kharj Road, First Industrial City, Phase II, PO Box 2549, Riyadh 11461

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

19.05.1977

 

 

Com. Reg. No.:

1010016778

 

 

Legal Form :

Limited Liability Partnership

 

 

Line of Business :

Engaged in the manufacture of paints, epoxy and polyester for various purposes, as well as varnishes and stains, enamel, printing ink and adhesives.

 

 

No. of Employees :

350

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Saudi Arabia

A2

A2

 

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                                    : SAUDI PAINT COMPANY LTD (PAINTCO)

Country of Origin                                   : Saudi Arabia

Legal Form                                           : Limited Liability Partnership

Registration Date                                  : 19th May 1977

Commercial Registration Number           : 1010016778, Riyadh

Issued Capital                                       : SR 37,600,000

Paid up Capital                                     : SR 10,000,000

Total Workforce                                     : 350

Activities                                               : Manufacture of paints, epoxy and polyester, as well as varnishes and

  stains, enamel, printing ink and adhesives.

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Bara Kamal, Commercial Manager

 

COMPANY NAME

 

SAUDI PAINT COMPANY LTD (PAINTCO)

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Al Kharj Road

Area                 : First Industrial City, Phase II

PO Box            : 2549

Town                : Riyadh 11461

Country             : Saudi Arabia

Telephone         : (966-11) 4462932 / 4462937 / 4465555

Facsimile          : (966-11) 4460611 / 4469644

Mobile              : (966-50) 4250203 / 3209542

Email                : paintco@paintco.net

 

Premises

 

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

 

Branch Office (s)

 

Location                                                                                               Description

 

Second Industrial City, Phase III                                                 Owned factory & storage facilities covering

Riyadh                                                                                      an area of 60,000 square metres

Tel: (966-11) 2651023

 

Jeddah                                                                                                 Distribution outlet

Tel: (966-12) 6711162

 

Dammam                                                                                              Distribution outlet

Tel: (966-13) 8337944

 

Buraidah                                                                                               Distribution outlet

Tel: (966-16) 6231268

 

Khamis Mushait                                                                                     Distribution outlet

Tel: (966-17) 2234760

 

 

KEY PRINCIPALS

 

Name                                                                                       Position

 

Mohamed Abdullah Al Khafrah                                                   Managing Partner

 

Nasser Abdullah Mohamed Al Khafrah                                        Partner

 

Mohamed Nasef                                                                        General Manager

 

Bara Kamal                                                                               Commercial Manager – Paint

 

Ali Abdul Ghani                                                                         Commercial Manager – Ink

 

Mohamed Olaimat                                                                     Finance Manager

 

Salah Abdulrahman                                                                   Financial Controller

 

Dr Motasim Obaid                                                                     Factory Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 30/05/1397 Hijri (Corresponding to 19th May 1977)

 

History : Subject was originally established in 1976 as Limited Liability Partnership between the following partners:

 

              1. Mohamed Abdullah Al Khafrah

              2. Al Khafrah Investment Co Ltd

 

 In September 1996, and under an amendment registered with the Riyadh Public Notary, the  second partner namely Al Khafrah Investment Co Ltd has withdrawn from the business and  assigned all its shares to the first partner and two new partners, namely Nasser Abdullah Mohamed Al Khafrah and United Economy & Development Company.

 

Legal Form                  : Limited Liability Partnership

 

Commercial Reg. No.   : 1010016778, Riyadh

 

Industrial Licence No.  : 170 and 568

 

Issued Capital              : SR 37,600,000

 

Paid up Capital            : SR 10,000,000

 

Name of Partner (s)                                          Percentage

 

Mohamed Abdullah Al Khafrah                              61.75%

 

Nasser Abdullah Mohamed Al Khafrah                   19.55%

 

United Economy & Development Company                       18.70%

 

 

AFFILIATED COMPANIES

 

Al Khafrah Industrial Gases Factories Co Ltd

Second Industrial City

PO Box: 43239

Riyadh 11561

Tel: (966-11) 4980568 / 4980572

Fax: (966-11) 4981284

 

National Lighting Co Ltd

Kuwait Road

Dammam Industrial Area No. 2

PO Box: 353

Dammam 31411

Tel: (966-13) 8348581 / 8221609 / 8122020

Fax: (966-13) 8221895 / 8122250

 

Saudi Chemical Services Company Ltd

Jubail

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of paints, epoxy and polyester for various purposes, as well as varnishes and stains, enamel, printing ink and adhesives.

 

Annual Production Capacity:    50,000 tonnes per annum

 

Import Countries: Italy and Spain

 

Brand Names: PAINTCO

 

Operating Trend: Steady

 

Subject has a workforce of approximately 350 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Saudi Riyals (SR)

 

                                                Year Ending 31/12/13:              Year Ending 31/12/14:

 

Total Sales                                SR 208,000,000                         SR 212,000,000

           

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

 

The above figures were provided by Mr Bara Kamal, Commercial Manager

 

 

BANKERS

 

Riyad Bank

King Faisal Street

Al Batha

PO Box: 229

Riyadh 11411

Tel: (966-11) 4113333

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction        April 2001                     March 2007                   March 2009                   September 2010

Credit amount               52,000                          505,000                         750,000                         250,000

Amount overdue            0                                  0                                  0                                  0

Payment terms              60 days                        180 days                       180 days                       180 days

Payment Method           Letters of Credit            Letters of Credit            Letters of Credit            Letters of Credit

Paying record               No Complaints              No Complaints              No Complaints              No Complaints

Currency                       US Dollars                    Pounds Sterling            Euros                           Euros

 

 

GENERAL COMMENTS

 

Saudi Paint Company Ltd (PAINTCO) commenced operations in 1976 and has established itself as one of the leading manufacturers of paints in the Kingdom, enjoying a good reputation for the quality of its products.

 

The business is owned by members of the Al Khafrah family who are well respected businessmen with interests in a number of ventures throughout Saudi Arabia.

 

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.62.59

UK Pound

1

Rs.92.46

Euro

1

Rs.67.51

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

TPT

 

               


 

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.