MIRA INFORM REPORT

 

 

Report No. :

305816

Report Date :

04.02.2015

 

IDENTIFICATION DETAILS

 

Name :

SAUDI CABLE COMPANY (SCC)

 

 

Registered Office :

Al Hamra District, Al Musadyah Area, PO Box 4403 & 2824, Jeddah 21491

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

01.01.1975

 

 

Com. Reg. No.:

4030009931

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Subject’s operations are performed through the following divisions:

 

Manufacturing Division

Manufacturers of electrical wires, power cables (overhead lines, insulated power cables, building wires and speciality cables), telecom cables, fibre optics, primary and secondary network cables, copper and aluminium conductors and rods, PVC compounds, wooden reels and electrical devices. All of subject’s operations are ISO 9002 certified.

 

 

No. of Employees :

800

 

 

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 :

Slow but correct

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 CABLE COMPANY (SCC)

Country of Origin                                    : Saudi Arabia

Legal Form                                            : Joint Stock Company

Registration Date                                   : 1st January 1975

Commercial Registration Number            : 4030009931, Jeddah

Chamber Membership Number                : 13677

Issued Capital                                        : SR 760,000,000

Paid up Capital                                      : SR 760,000,000

Total Workforce                                     : 800

Activities                                               : Subject operates several divisions (see below for details)

Financial Condition                                 : Poor

Payments                                             : Nothing detrimental uncovered

 

 

 


COMPANY NAME

 

SAUDI CABLE COMPANY (SCC)

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : Al Hamra District, Al Musadyah Area

PO Box             : 4403 & 2824

Town                 : Jeddah 21491

Country             : Saudi Arabia

Telephone         : (966-12) 6380080 / 6380002 / 6694060 / 6087666

Facsimile          : (966-12) 6379877 / 6354026 / 6352220 / 6352202 / 6355916 / 6377991

Email                : info@saudicable.com

 

Premises

 

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

 

Branch Office (s)

 

Location                                                                                              Description

 

Industrial Estate, Phase II                                                                       Owned warehouse premises

PO Box: 9903

Jeddah 21491

Tel: (966-12) 6370189 / 6379877

 

Xenel Building                                                                                        Rented office premises

Thalateen Street

Olaya

PO Box: 6793

Riyadh 11452

Tel: (966-11) 4649080

Fax: (966-11) 4644148

 

King Abdulaziz Street, 10th Cross                                                            Rented office premises

PO Box: 2449

Al Khobar 31952

Tel: (966-13) 8947544

Fax: (966-13) 8982991

 

 


KEY PRINCIPALS

 

Name                                                                                       Position

 

Khalid Ahmed Yousuf Zainal Alireza                                            Chairman

 

Waheeb A Linjawi                                                                      Managing Director

 

Shaukat Aziz Sheikh Abdulaziz                                                  Director

 

Yousif A Alireza                                                                         Director

 

Adnan A Maimani                                                                      Director

 

Abdulhadi A Shaif                                                                      Director

 

Mansour M Abdulghaffar                                                             Director

 

Abdullah H Masri                                                                       Director

 

Saleh Eaid Al Hosaini                                                                 Director

 

Abdullah A Maimani                                                                   Director

 

Mohamed Jaroon Al Attass                                                         General Manager

 

Zuhair Mansoor Al Agail                                                              Operations Manager

 

Mahmood Al Mutairi                                                                   Public Relations Manager

 

Guillermo P Varela                                                                     Finance Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1st January 1975

 

History : Subject was formed in January 1975 and registered as a Limited Liability Partnership

  between the following foreign and Saudi partners:

 

-  Chevron Inc (USA)

-  NFK Group (Netherlands)

-  Xenel Industries

-  HRH Prince Badr Bin Abdul Muhsin Bin Abdul Aziz

-  Sheikh Abdul Karim Bakr Ahmed

-  Sheikh Mansour Bin Fahd Al Gheshiyan

-  Eng. Omar Hashim Khalifati

 

In December 1986, the five local partners bought out Chevron Inc of the USA and NFK Group of the Netherlands.

 

In April 1987 the Ministry of Commerce gave its approval for the company to offer shares to the public and to be converted into a Public Joint Stock Company. A public flotation was handled by the Saudi Investment Bank and Consulting Center for Finance and Investment. The issue was SR 134 million amounting to 725,000 shares priced at SR 184.80 – SR 185.0 each with investors having to take a minimum of 1,000 shares. The offer date was 10th November 1987 and the issue was fully subscribed.

 

Legal Form                  : Joint Stock Company

 

Commercial Reg. No.  : 4030009931, Jeddah

 

Chamber Member No. : 13677

 

Issued Capital              : SR 760,000,000

 

Paid up Capital            : SR 760,000,000

 

Name of Shareholder (s)                                                                    Percentage

 

Xenel Industries                                                                                     16.60%

PO Box: 2824

Jeddah

 

HRH Prince Badr Bin Abdul Muhsin Bin Abdul Aziz                      ]

                                                                                                ]

Sheikh Abdul Karim Bakr Ahmed                                                ]

                                                                                                ]

Sheikh Mansour Bin Fahd Al Gheshiyan                                      ]           83.40%

                                                                                                ]

Omar Hashim Khalifati                                                                ]

                                                                                                ]

Members of the general public and private investors                      ]

 

 

AFFILIATED COMPANIES

 

Subject is a member of the SCC Group of Companies, which includes the following concerns:

 

Name                                                                                       Stake Held

 

Demirer Kablo Tesisleri Sanayi & Ticaret AS                                100.00 %

Tesisleri Ve Ticaret AS

Barrbaros Bulvari 49

Besiktas

Istanbul

Turkey

Tel: (90-1) 1615163

 

Saudi Cable Company Marketing Co (SCCM)                                           100.00 %

Madinah Road

Rawdah Area

PO Box: 9903

Jeddah 21423

Saudi Arabia

Tel: (966-12) 6694174

Fax: (966-12) 6695581

 

Mastel Communication & Information Network Systems Ltd                       100.00 %

PO Box: 50808

Jeddah 21533

Tel: (966-12) 6834888

Fax: (966-12) 6621858

 

Mass Projects Limited                                                                            100.00 %

PO Box: 4403

Jeddah 21491

Tel: (966-12) 6652400

 

Mass Centres Limited                                                                            100.00 %

PO Box: 4403

Jeddah 21491

Tel: (966-12) 6600731

Fax: (966-12) 6611607

 

Mass Holding AS                                                                                   100.00 %

Turkey

 

Mass Kablo AS                                                                                    100.00 %

Turkey

            Tel: (90-212) 2615163

            Fax: (90-212) 2618486

 

Kavel Kablo Elektrik Malzamesi AS                                                         100.00 %

Turkey

            Tel: (90-212) 2776426

            Fax: (90-212) 2778976

 

Mass International Trading Co                                                                 100.00 %

            Ireland

 

Mass International Corp                                                                          100.00 %

United States of America

 

Midal Cables Ltd                                                                                       50.00 %

PO Box: 5939

Manama

Bahrain

Tel: (973-17) 662050 / 830111

Fax: (973-17) 660259 / 830168

 

Aluminium Wheel Co                                                                                 41.20 %

Manama

Bahrain

 

Aluminium Technic Co                                                                               41.20 %

Manama

Bahrain

 

Saudi Information Development Industries                                        22.50 %

PO Box: 32411

Jeddah

Tel: (966-12) 6623332

Fax: (966-12) 6827091

 

Alujan Corp                                                                                              17.60 %

Jeddah

 

 

OPERATIONS

 

Activities: Subject’s operations are performed through the following divisions:

 

Manufacturing Division

 

Manufacturers of electrical wires, power cables (overhead lines, insulated power cables, building wires and speciality cables), telecom cables, fibre optics, primary and secondary network cables, copper and aluminium conductors and rods, PVC compounds, wooden reels and electrical devices. All of subject’s operations are

ISO 9002 certified.

 

            Subject operates the following factories:

 

            Power Cable Plant

            Industrial Estate, Phase II

            PO Box: 4403

            Jeddah

            Tel: (966-12) 6380080

 

            Copper Rod Plant

            Industrial Estate, Phase II

            PO Box: 4403

            Jeddah

 

            PVC Compounds & Reel Plants

Industrial Estate, Phase II

            PO Box: 4403

            Jeddah

            Tel: (966-12) 6370189 / 6370196

 

            Telecom Cable Plant

            Industrial Estate, Phase III

            PO Box: 30091

            Jeddah 21477

            Tel: (966-12) 6376060

            Fax: (966-12) 6375462

 

Production Capacity per Annum

 

            Product                                                            Capacity

            Copper                                                              26,000 units

            Aluminium wires                                                26,000 units

            PVC Compounds                                               19,000 units

            Wooden cable pulleys                                        62,000 units

            Telephone cables                                                 4,500 units

            Conductors LV                                                        700 units

            Electrical cables                                                  2,900 units

            Telecom cables                                                 10,080 units

 

Hub-Jamshoro Project

 

This contract was awarded to SCC by the Pakistani government and covered the linking of the recently built Hub River electrical power generation plant to Pakistan’s electricity network grid. When completed the project accounted for 13% of Pakistan’s total electric supply.

 

XE-NYL Plastics

 

XE-NYL Plastics is an operating division of Saudi Cable Company with manufacturing facilities in Jeddah’s industrial area. Production capacity currently stands at 12,000 tonnes of cable grade PVC compounds per annum, but the plant’s design is such that this output could be doubled.

 

Import Countries: United States of America, the Far East, Europe, Russia, Zambia and Iran

 

International Suppliers:

 

Memaco Services Ltd     United Kingdom

Mare Rich Ltd                United Kingdom

BP Chemicals               Greece

 

Export Countries: Subject exports products to over 50 countries, particularly the Indian subcontinent, as well as other GCC members and the Middle East

 

Subject has a workforce of approximately 800 employees.

 

 


FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Saudi Riyals (SR 000’s)

 

Balance Sheet                                                                   31/12/13          31/12/12          31/12/11         31/12/10

 

Current Assets

1,227,353

1,582,244

1,792,189

1,501,757

Inventory

520,470

786,964

994,018

864,574

Investments

440,224

419,829

401,692

405,455

Fixed Assets

857,832

919,761

873,885

856,734

Other Assets

166,172

65,295

45,278

14,025

Total Assets

3,212,051

3,774,093

4,107,062

3,642,545

Current Liabilities

2,168,760

2,256,645

2,619,001

1,978,521

Non-Current Liabilities

365,141

589,081

466,660

464,398

Other Liabilities

-

0

0

0

Shareholders’ Equity

678,150

928,367

1,021,401

1,199,626

Minority Interests

-

-

-

-

Total Liabilities and Shareholder Equity

3,212,051

3,774,093

4,107,062

3,642,545

 

Profit & Loss Account

 

Sales

2,447,859

2,687,850

3,199,565

1,857,106

Sales Cost

2,315,621

2,546,143

2,997,458

1,756,576

Total Income

132,238

141,707

202,107

100,530

Other Revenues

124,877

70,472

88,544

144,851

Total Revenues

257,115

212,179

290,651

245,381

Admin and Marketing Expenses

166,045

175,755

144,496

161,901

Depreciation

77,300

74,104

66,910

90,860

Other Expenses

213,548

114,414

71,376

69,921

Total Expenses

456,893

364,273

282,782

322,682

Net Income Before Zakat

-199,778

-152,094

7,869

-77,301

Zakat

29,339

4,311

2,766

10,515

Net Income

-229,117

-156,405

5,103

-87,816

Balance First Period

63,464

219,869

272,276

360,092

Reserves

0

0

510

0

Cash Dividends

0

0

57,000

0

Other Distributions

0

0

0

0

Balance End Period

-165,653

63,464

219,869

272,276

 

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

 

 


BANKERS

 

Riyad Bank

Prince Fahad Street

PO Box: 9324

Jeddah 21413

Tel: (966-12) 6513333

 

Saudi British Bank

PO Box: 109

Jeddah 21411

Tel: (966-12) 6512121

 

National Commercial Bank

Al Balad Branch

King Abdulaziz Street

PO Box: 5066

Jeddah 21422

Tel: (966-12) 6434777

Fax: (966-12) 6441686

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Saudi Cable Company was established in 1975 as a Limited Liability Partnership. It was converted into a Public Joint Stock Company in 1988 and floated on the Stock Exchange. It is engaged in the manufacture and supply of electrical and telecommunications cables, copper rod, PVC compounds, wooden reels and related products.

 

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.61.74

UK Pound

1

Rs.92.71

Euro

1

Rs.69.94

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.