MIRA INFORM REPORT

 

 

Report Date :

02.01.2015

 

IDENTIFICATION DETAILS

 

Name :

UNITED ELECTRONICS COMPANY

 

 

Registered Office :

King Faisal Road, Al Rawabi District 76688 Al Khobar 31952

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

02.01.2002

 

 

Com. Reg. No.:

2051029841

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Engaged in the import and distribution of electrical products, including televisions, computers, mobile telephones, digital imaging products, household and domestic appliances

 

 

No. of Employee :

1,600

 

 

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

 

Maximum Credit Limit :

US$ 7,500,000

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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                                    : UNITED ELECTRONICS COMPANY

Doing Business As                                : EXTRA SUPERSTORE

Country of Origin                                   : Saudi Arabia

Legal Form                                           : Joint Stock Company

Registration Date                                  : 2nd January 2002

Commercial Registration Number           : 2051029841, Al Khobar

Chamber Membership Number               : 120476

Issued Capital                                       : SR 300,000,000

Paid up Capital                                     : SR 300,000,000

Total Workforce                         : 1,600

Activities                                               : Distributors of electrical products

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Recommended Credit Limit                    : US$ 7,500,000

 

 

Company name

 

COMPANY NAME: UNITED ELECTRONICS COMPANY

 

DOING BUSINESS AS: EXTRA SUPERSTORE

 

 

company ADDRESS

 

Registered & Physical Address

 

Street               : King Faisal Road

Area                 : Al Rawabi District

 

PO Box            : 76688

 

Town                : Al Khobar 31952

Country : Saudi Arabia

 

Telephone         : (966-3) 8478888 / 8581532

Facsimile          : (966-3) 8587799 / 8581653

Email                : ghorab.m@extra.com / investors@extra.com

 

Premises

 

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

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Abdullah Abdullatif Al Fozan                                                             Managing Director

 

·       Khalid Abdullatif Al Fozan                                                                 Director

 

·       Waleed Abdulaziz Al Saghyir                                                             Director

 

·       Fozan Mohammad Al Fozan                                                              Director

 

·       Hisham Abdulaziz Al Saghyir                                                             Director

 

·       Basil Mohammad Al Gadhib                                                              Director

 

·       Mohamed Galal Ali Fahmy                                                                Director

 

·       Abdulmohsen A Latif Alissa                                                              Director

 

·       Ahmed Yousief Ahmed Al Sager                                                       Director

 

·       Karim Mansour Dahbi                                                                       Chief Executive Offier

 

·       Ahmad Youssif Al Belbeisi                                                                Chief Financial Officer

 

·       Kevin A Lalonde                                                                               Chief Operating Officer

 

·       Mujeeb Hazzaa                                                                                 Commercial Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 17/10/1422 Hijri (corresponding to 2nd January 2002)

 

History                         : Subject was originally registered in Riyadh under the CR No. 1010175357. However in

  2004, subject’s registered office was transferred to Al Khobar and it re-registered under the

  CR No. 2051029841.

 

Legal Form                  : Joint Stock Company

 

Commercial Reg. No.   : 2051029841, Al Khobar

 

Chamber Member No.  : 120476

 

Issued Capital              : SR 300,000,000

 

Paid up Capital            : SR 300,000,000

 

Name of Shareholder (s)                                                       Percentage

 

·       Al Fozan Holding Co                                                             45.40%

 

·       Abdulaziz Al Saghyir Commercial Investment Co                    14.90%

 

·       Local businessmen and private investors                               39.70%

 

 

AFFILIATED COMPANIES

 

     Name                                                                                                   Percentage Held

 

·       United Electronics Company – Extra SPC                                                      100%

Bahrain

 

·       United Electronics Company – Extra LLC                                                       100%

Oman

 

·       United Computers Maintenance and Electronics Company Ltd                          99%

Saudi Arabia

 

·       Abdul Latif & Mohamed Al Fozan Co                                                                  -

Saudi Arabia

 

·       Arnon Plastic Industries Company                                                                      -

Saudi Arabia

 

·       Building and Construction Company                                                                   -

Saudi Arabia

 

·       Al Oula Development Company                                                                          -

Saudi Arabia

 

·       Injaz Projects                                                                                                     -

Saudi Arabia

 

·       Gulf Farabi Petrochemical Company                                                                   -

Saudi Arabia

 

·       ARC Engineering Consultants                                                                             -

Saudi Arabia

 

·       Dhahran International Exhibitions Company                                                         -

Saudi Arabia

 

·       MADAR Building Material – Jordan                                                                     -

Jordan

 

·       MADAR Building Material – Sudan                                                                      -

Sudan

 

·       MADAR Emirates for Building Materials Company                                               -

UAE

 

·       Madar Holding                                                                                                   -

UAE

 

·       Paris Gallery                                                                                                      -

Saudi Arabia

 

·       Projects and Supplies Company                                                                        -

Saudi Arabia

 

·       Sara Corporation                                                                                               -

Saudi Arabia

 

·       United Transformers Electric Company                                                               -

Saudi Arabia

 

·       Amwal Al Khaleej Commercial Investment Company                                            -

Saudi Arabia

 

 

OPERATIONS

 

Activities: Engaged in the import and distribution of electrical products, including televisions, computers, mobile

     telephones, digital imaging products, household and domestic appliances.

 

Import Countries: Europe and GCC countries.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 1,600 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Saudi Riyals (SR)

 

Consolidated Balance Sheet                                                        31/12/13         31/12/12             31/12/11

 

ASSETS

Current assets

Cash and cash equivalents                                                        34,817,939        48,245,039        64,575,855

Trade receivable                                                                        15,811,428        12,372,179        5,319,318

Inventories                                                                                480,032,668      416,935,719      340,834,458

Prepayments and other debit balances                                       63,212,556        78,118,505        46,448,849

Total current assets                                                                   593,874,591      555,671,442      457,178,480

Non-current assets

Investments in subsidiaries                                                        297,000 297,000             797,000

Property and equipment                                                            459,048,573      390,469,923      317,080,974

Total non-current assets                                                             459,345,573      390,766,923      317,877,974

TOTAL ASSETS                                                                        1,053,220,164    946,438,365      775,056,454

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Murabaha finance                                                                      40,000,000        -                       -

Dividends payable                                                                    52,500,000        -                       -          

Trade payables and other liabilities                                             433,519,529      438,648,664      369,717,448

Total current liabilities                                                                526,019,529      438,648,664      369,717,448

Non-current liabilities

Deferred revenue on extended service plan                                6,096,883          8,421,712          9,392,109

End-of-service indemnities                                                         33,045,563        26,858,909        20,599,333

Total non-current liabilities                                                          39,142,446        35,280,621        29,991,442

Stockholders' equity

Share capital                                                                             300,000,000      240,000,000      240,000,000

Statutory reserve                                                                       49,066,485        32,334,056        16,475,057

Retained earnings                                                                      138,995,356      200,203,499      118,872,507

Foreign exchange translation adjustment                                    (3,652)              (28,475)            -

Total stockholders' equity                                                          488,058,189      472,509,080      375,347,564

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                   1,053,220,164    946,438,365      775,056,454

 

Consolidated Statement of Income

 

Revenue                                                                                   3,387,673,631    3,015,037,766    2,461,510,481

Cost of revenue                                                                                    2,786,082,421    2,484,531,963    2,026,238,040

Gross profit                                                                              601,591,210      530,505,803      435,272,441

 

Selling and distribution expenses                                               331,497,717      262,480,180      215,961,656

General and administrative expenses                                          97,743,863        104,485,946      83,401,019

Operating income                                                                      172,349,630      163,539,677      135,909,766

Finance charges                                                                        (818,334)           (262,081)           (661,520)

Other (expenses) / income                                                         513,193 (36,134)            215,338

Net income before Zakat                                                            167,324,286      163,241,462      135,463,584

Zakat                                                                                        (4,720,203)        (4,651,471)        (3,383,203)

Net income                                                                               167,324,286      158,589,991      132,080,381

 

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

 

 

BANKERS

 

·       National Commercial Bank

Airport Road

PO Box: 2800

Riyadh 11461

Tel: (966-11) 4772281

Fax: (966-11) 4730322

 

·       Saudi American Bank

PO Box: 833

Riyadh 11471

Tel: (966-11) 4774770

 

·       National Commercial Bank

PO Box: 1

Al Khobar 31952

Tel: (966-13) 8949669

Fax: (966-13) 8646474

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

 

GENERAL COMMENTS

 

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.63.32

UK Pound

1

Rs.98.63

Euro

1

Rs.76.59

 

INFORMATION DETAILS

 

Analysis Done by :

KRN

 

 

Report Prepared by :

DPT

 

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.