MIRA INFORM REPORT

 

 

Report No. :

302654

Report Date :

12.01.2015

 

IDENTIFICATION DETAILS

 

Name :

ARAB PAPER MANUFACTURING COMPANY (WARAQ)

 

 

Registered Office :

Makkah Street, Road 139, 2nd Industrial City, P. O Box: 9840, Dammam 31423

 

 

Country :

Saudi Arabia

 

 

Date of Incorporation :

18.06.1994

 

 

Com. Reg. No.:

2050028130, Dammam

 

 

Legal Form :

Closed Joint Stock Company

 

 

LINE OF BUSINESS :

MANUFACTURE OF PAPER PRODUCTS AND CORRUGATED BOXES.

 

 

No. of Employees :

180

 

 

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 – 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                                    : ARAB PAPER MANUFACTURING COMPANY (WARAQ)

Country of Origin                                   : Saudi Arabia

Legal Form                                           : Closed Joint Stock Company

Registration Date                                  : 18th June 1994

Commercial Registration Number           : 2050028130, Dammam

Chamber Membership Number               : 1620

Issued Capital                                       : SR 310,000,000

Paid up Capital                                     : SR 310,000,000

Total Workforce                                     : 180

Activities                                               : Manufacturers of paper products.

Financial Condition                                : Undetermined

Payments                                             : Nothing detrimental uncovered

Person Interviewed                                : Osama Kamal, Financial Manager


COMPANY NAME

 

ARAB PAPER MANUFACTURING COMPANY (WARAQ)

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Makkah Street, Road 139

Area                 : 2nd Industrial City

 

PO Box            : 9840

 

Town                : Dammam 31423

Country             : Saudi Arabia

 

Telephone         : (966-13) 8121255 / 8121924

Facsimile          : (966-13) 8121251

Email                : marketing@waraq.com / info@waraq.com / waraq@athaar.net.sa

 

Premises

 

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

 

Branch Office (s)

 

     Location                                                                               Description

 

·       Al Mahger Area                                                                     Rented office premises

Jeddah

     Tel: (966-12) 6364080

     Fax: (966-12) 6350614

 

·       Al Hassa Road                                                                     Rented office premises

Abqaiq

Dammam 31423

 

 

KEY PRINCIPALS

 

     Name                                                                                   Position

 

·       Mohamed Ahmed Issa Al Hashim                                          Chairman

 

·       Nasser Al Mubarak                                                                General Manager

 

·       Atol Kual                                                                              Commercial Manager

 

·       Abbass Al Nasri                                                                   Purchasing Manager

 

·        Osama Kamal                                                                      Financial Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 09/01/1415 Hijri (corresponding to 18th June 1994)

 

Legal Form                  : Closed Joint Stock Company

 

Commercial Reg. No.   : 2050028130, Dammam

 

Chamber Member No.  : 1620

 

Issued Capital              : SR 310,000,000

 

Paid up Capital            : SR 310,000,000

 

Name of Shareholder (s)                                             

 

·       Yousef Al Dossary & Sons Co

 Dammam

 

·       Abdullatif Al Fozan Co

Al Khobar

 

·       Mohamed Ahmed Issa Al Hashim

 

·       Local businessmen and private investors

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of paper products and corrugated boxes.

 

Subject produces Fluting, Testliner, Whitetop Testliner, Whitetop Kraftliner and Kraftliner which are essesential components of corrugated cartons. WARAQ also produces Unbleached CorEboard which is converted into textile bobbins and paper tubes for various applications.

 

Production Capacity: 200,000 tonnes per year.

 

Import Countries: France, Germany and the United Kingdom

 

Brand Names: WARAQ

 

Subject has a workforce of 180 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

 

·       National Commercial Bank

PO Box: 13

Dammam 31411

Tel: (966-3) 8331188

Fax: (966-3) 8336058

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                               June 2014

Credit amount                                       7,925

Amount overdue                                    0

Payment terms                                      30 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.62.40

UK Pound

1

Rs.94.17

Euro

1

Rs.73.61

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.