MIRA INFORM REPORT

 

 

Report No. :

336446

Report Date :

18.08.2015

 

 

IDENTIFICATION DETAILS

 

Name :

DELMON COMPANY LTD

 

 

Registered Office :

Delmon Tower, 4th Floor, Dammam - Al Khobar Express Highway, Khalidiya District, P O Box: 6800, Dammam 31452

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

06.04.1417 Hijri (Corresponding to 21st August 1996)

 

 

Com. Reg. No.:

2050021815, Dammam

 

 

Legal Form :

Limited Liability Partnership

 

 

Line of Business :

Subject is engaged as oil and gas contractors.

 

 

No. of Employees :

150

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

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, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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                                    : DELMON COMPANY LTD

Country of Origin                                   : Saudi Arabia

Legal Form                                           : Limited Liability Partnership

Registration Date                                  : 21st August 1996

Commercial Registration Number           : 2050021815, Dammam

Chamber Membership Number               : 2365

Issued Capital                                       : SR 15,000,000

Paid up Capital                                     : SR 15,000,000

Total Workforce                                     : 150

Activities                                               : Oil and gas contractors

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Gamal Hakim, Finance Manager

 


COMPANY NAME

 

DELMON COMPANY LTD

 

 

ADDRESS

 

Registered & Physical Address

 

Building                        : Delmon Tower, 4th Floor

Street               : Dammam - Al Khobar Express Highway

Area                 : Khalidiya District

 

PO Box                        : 6800

 

Town                : Dammam 31452

Country             : Saudi Arabia

 

Telephone         : (966-13) 8577777 / 8471777

Facsimile          : (966-13) 8471683

Email                : info@delmon.com.sa / delmon@delogss.com / accounts@delomon.com / nabil@delmon.com

                          fenil@delmon.com

 

Premises

 

Subject operates from a medium sized suite of offices that are owned and located in the Central Business Area of Dammam.

 

Branch Office (s)

 

     Location                                                                                           Description

 

·       PO Box: 4616                                                                                   Office premises

Riyadh 11423

       Tel: (966-11) 4612823

       Fax: (966-11) 4644861

 

·       PO Box: 132352                                                                               Office premises

Jeddah 21382

       Tel: (966-12) 6311642

       Fax: (966-12) 6311642

 

·       2nd Industrial Area                                                                              Office premises

Dammam

Tel: (966-13) 8121771

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Ahmed Sulaiman Abdullah Al Ghonaim                                              Managing Partner

 

·       Mohamed Sulaiman Abdullah Al Ghonaim                                          Partner

 

·       Abdul Wahab Abdullah Al Ghonaim                                                   Partner

 

·       Gamal Hakim                                                                                    Finance Manager

 

·       Nabil Abdulazim                                                                               Assistant Finance Manager

 

·       Safar Abdulrahman                                                                           Financial Controller

 

·       Mohamed Fenil                                                                                 Senior Accountant

 

·       Ergun Taj                                                                                         Commercial Manager

 

·       Hareth Mohamed                                                                              Jeddah Branch Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 06/04/1417 Hijri (corresponding to 21st August 1996)

 

Legal Form                  : Limited Liability Partnership

 

Commercial Reg. No.   : 2050021815, Dammam

 

Chamber Member No.  : 2365

 

Issued Capital              : SR 15,000,000

 

Paid up Capital            : SR 15,000,000

 

Name of Partner (s)

 

·       Ahmed Sulaiman Abdullah Al Ghonaim

 

·       Mohamed Sulaiman Abdullah Al Ghonaim

 

·       Abdul Wahab Abdullah Al Ghonaim

 

 

AFFILIATED COMPANIES

 

·       Delmon Chemical Industries Factory

     2nd Industrial City

     PO Box: 6800

     Dammam 31452

     Tel: (966-13) 8581659 / 8121771

     Fax: (9661-3) 8581653 / 8121705

     Email: dcichem@delmon.com.sa

 

·       Delmon Salt Factory

 

·       Delmon Gasket Factory

 

·       National Factory for Processing & Treating Minerals

 

·       Delmon Travel & Tours Company

 

 

OPERATIONS

 

Activities: Engaged as oil and gas contractors.

 

Import Countries: Europe and the United States of America

 

Operating Trend: Steady

 

Subject has a workforce of approximately 150 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 541,627,000             SR 546,302,000

 

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

 

The above figures were provided by Mr Gamal Hakim, Finance Manager

 

 

BANKERS

 

·       Riyad Bank

Prince Mohammed Street

PO Box: 2123

Dammam

Tel: (966-13) 8323440

     Fax: (9661-3) 8337829

     Acc No. 3020768169901

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Established in 1996, subject is owned and managed by members of the Al Ghonaim family who are well respected in the local business community.

 

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.65.22

UK Pound

1

Rs.102.23

Euro

1

Rs.72.39

 

 

 

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

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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