MIRA INFORM REPORT

 

 

Report No. :

318563

Report Date :

22.04.2015

 

 

IDENTIFICATION DETAILS

 

Name :

GULF STEEL WORKS FACTORY

 

 

Registered Office :

National Commercial Bank Building, 3rd Floor, King Abdul Aziz Street, P O Box: 2473, Al Khobar 31952

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

08.05.1414 Hijri (Corresponding to 23rd October 1993)

 

 

Com. Reg. No.:

2055003300, Al Khobar

 

 

Legal Form :

Limited Liability Partnership

 

 

Line of Business :

Subject is engaged as steel fabricators of process equipment and heavy steel structure for the hydrocarbon processing industries.

 

 

No. of Employees :

900

 

 

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, telecommuncations, 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. In 2014 the Kingdom ran its first budget deficit since 2009, and faces budget deficits for the foreseeable future because it requires an oil price greater than $100 per barrel to balance its budget. Although the Kingdom can finance high deficits for several years by drawing down its considerable foreign assets or borrowing, it probably will begin to reduce capital spending if oil prices stay low through the next year.

 

Source : CIA

 

 

 

 

SUMMARY

 

Company Name                                    : GULF STEEL WORKS FACTORY

Also Known As                                     : SAUDI PAN GULF TRADING CO LTD

Country of Origin                                   : Saudi Arabia

Legal Form                                           : Limited Liability Partnership

Registration Date                                  : 23rd October 1993

Commercial Registration Number           : 2055003300, Al Khobar

Chamber Membership Number               : 2804

Issued Capital                                       : SR 28,000,000

Paid up Capital                                     : SR 28,000,000

Total Workforce                                     : 900

Activities                                               : Steel fabricators

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Ali Al Masood, Government Relations Manager

 

COMPANY NAME

 

GULF STEEL WORKS FACTORY

 

 

ALSO KNOWN AS

 

SAUDI PAN GULF TRADING CO LTD

 

 

ADDRESS

 

Registered & Physical Address

 

Building                        : National Commercial Bank Building, 3rd Floor

Street               : King Abdul Aziz Street

 

PO Box                        : 2473

 

Town                : Al Khobar 31952

Country             : Saudi Arabia

 

Telephone         : (966-3) 8670444

Facsimile          : (966-3) 8672497

Mobile              : (966-50) 6942812 / (966-55) 5807639

Email                : sales@gulfsteelworks.com

 

Premises

 

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

 

Branch Office (s)

 

     Location                                                                                          Description

 

·       GSW Building                                                                                   Owned factory premises covering

Road No. 130, Street No. 263/128                                                     an area of 147,400 square meters

Jubail Industrial City

PO Box: 10143

     Jubail 31961

     Tel: (966-3) 3419594

     Fax: (966-3) 3410327

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Fahd Mohamed Ibrahim Al Saja                                                         Managing Partner

 

·       Khalid Abdulaziz Al Hamdan                                                              Partner

 

·       Zafer John Jehaa                                                                              General Manager

 

·       Medan Mohan                                                                                  Finance Manager

 

·       Mohamed Turab Ali                                                                           Chief Financial Officer

 

·       Zayed Ahmed                                                                                   Commercial Manager

 

·       Ali Al Masood                                                                                  Government Relations Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 08/05/1414 Hijri (corresponding to 23rd October 1993)

 

Legal Form                  : Limited Liability Partnership

 

Commercial Reg. No.   : 2055003300, Al Khobar

 

Chamber Member No.  : 2804

 

Issued Capital              : SR 28,000,000

 

Paid up Capital            : SR 28,000,000

 

Name of Partner (s)

 

·       Fahd Mohamed Ibrahim Al Saja

 

·       Khalid Abdulaziz Al Hamdan

 

·       Saudi Pan Gulf Holding Co Ltd (SPG)

     Oraifi Tower, 4th Floor

     Corniche Al Khobar Road

     PO Box: 2473

     Al Khobar 31952

     Tel: (966-3) 8670444 / 8670333

     Fax: (966-3) 8962497

     Email: corp@pangulfholding.com

 

·       Saudi Pan Gulf Investment Co

Al Khobar 31952

 

 

AFFILIATED COMPANIES

 

·       Saudi Pan Gulf Welding Solutions

 

·       Saudi Pan Gulf Steel

 

·       Saudi Pan Gulf Industrial Systems

 

·       Saudi Pan Gulf Industrial Fabrication Co

 

·       Saudi Pan Gulf Piping System Ltd

 

·       Saudi Pan Gulf Food Ltd

 

·       Saudi Pan Gulf Valves

 

·       Saudi Pan Gulf Technologies Pvt Ltd

 

·       Hamdan Consultancy

 

·       Aker Kaverner Gulf Ltd

 

·       Sunace Gulf

 

·       General Automotive Services

 

·       Al Sanbok Restaurant Trading Co

 

·       Gulf Korea Inspection & Testing

 

 

OPERATIONS

 

Activities: Engaged as steel fabricators of process equipment and heavy steel structure for the hydrocarbon

     processing industries.

 

     Gulf Steel Works is an ISO 9001 - 2000 accredited facility and ASME certified for manufacturing of

     pressure vessels, heat exchangers & process equipments with “U” stamp and pressure piping

     with “PP” stamp.

 

     GSW is on the approved lists of SAUDI ARAMCO, SABIC, SAUDI ELECTRIC COMPANY, SWCC and

     other international EPC contractors and consultants.

 

Production Capacity: 1,300 metric tonnes per month

 

Import Countries: Europe and Asia

 

Operating Trend: Steady

 

Subject has a workforce of approximately 900 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 250,000,000                         SR 263,000,000

 

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

 

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

 

 

BANKERS

 

·       Arab National Bank

London

United Kingdom

 

·       National Commercial Bank

PO Box: 1

Al Khobar 31952

Tel: (966-13) 8949669

Fax: (966-13) 8646474

 

·       Saudi Hollandi Bank

PO Box: 70

Dammam 31411

Tel: (966-13)

Fax: (966-13) 8323212

 

 

PAYMENT HISTORY

 

Regular

 

Date of transaction                               March 2014

Credit amount                                       199,123

Amount overdue                                    0

Payment terms                                      90 days

Payment Method                                   Letters of Credit

Paying record                                       No Complaints

Currency                                               Euros

 

 

GENERAL COMMENTS

 

Local sources report that payment obligations are met in a generally timely manner and the operating history is clear. As such the company is deemed a fair trade risk.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.92

UK Pound

1

Rs.93.57

Euro

1

Rs.67.34

 

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%)

 

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.