MIRA INFORM REPORT

 

 

Report No. :

355607

Report Date :

22.12.2015

 

IDENTIFICATION DETAILS

 

Name :

SAUDI MECHANICAL INDUSTRIES CO

 

 

Registered Office :

Street No. 234 Second Industrial City 59799 Riyadh 11535

 

 

Country :

Saudi Arabia

 

 

Date of Incorporation :

31.08.1982

 

 

Com. Reg. No.:

1010045582, Riyadh

 

 

Legal Form :

Limited Liability Partnership

 

 

Line of Business :

Subject is engaged in the manufacture of industrial products and equipment, including turbines, pumps, generators and steel bars.

 

 

No. of Employee :

850

 

 

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 :

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 – 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, 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. 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                                    : SAUDI MECHANICAL INDUSTRIES CO

Country of Origin                                   : Saudi Arabia

Legal Form                                           : Limited Liability Partnership

Registration Date                                  : 31st August 1982

Commercial Registration Number           : 1010045582, Riyadh

Chamber Membership Number               : 21209

Issued Capital                                       : SR 250,000,000

Paid up Capital                                     : SR 250,000,000

Total Workforce                         : 850

Activities                                               : Manufacturers of industrial products and equipment.

Financial Condition                                : Undetermined

Payments                                             : No complaints

Person Interviewed                                : Bassam Al Gaddan, Human Resources Manager

 

COMPANY NAME

 

SAUDI MECHANICAL INDUSTRIES CO

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Street No. 234

Area                 : Second Industrial City

 

PO Box            : 59799

 

Town                : Riyadh 11535

Country : Saudi Arabia

 

Telephone         : (966-11) 2651979

Facsimile          : (966-11) 2651494

Email                : info@smi.com.sa

 

Premises

 

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

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Basil Yousef Al Hizami                                                                      Managing Partner

 

·       Sameer Yousef Al Hizami                                                                  Partner

 

·       Ahmad A Khraishi                                                                             Chief Operations Officer

 

·       Bassam Al Gaddan                                                                           Human Resources Manager

 

·       Ibrahim Barakat                                                                                 Commercial Manager

 

·       Mamoun A. Afaneh                                                                           Financial Manager

 

·       Allen Hobratch                                                                                  Technical Manager                                

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 31st August 1982

 

Legal Form                  : Limited Liability Partnership

 

Commercial Reg. No.   : 1010045582, Riyadh

 

Chamber Member No.  : 21209

 

Issued Capital              : SR 250,000,000

 

Paid up Capital            : SR 250,000,000

 

Name of Partner (s)                                                       

 

·       Basil Yousef Al Hizami

 

·       Sameer Yousef Al Hizami

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of industrial products and equipment, including turbines, pumps, generators and steel bars.

 

                 Subject is ISO 9001:2008 accredited.

 

Import Countries: Europe and the United States of America.

 

International Suppliers:

 

·       National Pumps        United States of America

·       Johnson Gear           United States of America

·       Saab Scania             Sweden

 

Subject has a workforce of approximately 850 employees.

 

 

FINANCIAL DATA

 

 

Companies registered in Saudi Arabia are not legally required to make their accounts public and no financial information was released by the company or submitted by outside sources.

 

 

BANKERS

 

·       Al Bank Al Saudi Al Hollandi

Al Dhabab Street

PO Box: 1467

Riyadh 11431

     Tel: (966-11) 4067888

 

·       National Commercial Bank

Malaz Branch

PO Box: 42536

Riyadh 11551

Tel: (966-11) 4776450

     Fax: (966-11) 4769502

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

 

GENERAL COMMENTS

 

According to local sources, subject enjoys a good reputation for the quality of its products with nothing detrimental uncovered regarding the manner in which operations are conducted. As such the company is considered to be a fair trade risk.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.66.32

UK Pound

1

Rs.98.99

Euro

1

Rs.72.13

UAE Dh

1

Rs.18.05

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

HNA

 

 

Report Prepared by :

ANK

 

 

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.