MIRA INFORM REPORT

 

 

Report No. :

330286

Report Date :

08.07.2015

 

IDENTIFICATION DETAILS

 

Name :

AL ABDULLATIF INDUSTRIAL INVESTMENT CO

 

 

Registered Office :

Al Kharj Road, Second Industrial City, PO Box 859, Riyadh 11421

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

22.05.1981

 

 

Com. Reg. No.:

1010073685

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Subject is a fully integrated industrial textiles company specializing in spinning, weaving and colouring of synthetic and natural fibres being used in the production of blankets, rugs, carpets, backings and a wide variety of yarns.

 

 

No. of Employees :

3,800

 

 

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 :

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                                    : AL ABDULLATIF INDUSTRIAL INVESTMENT CO

Trading As                                            : AL ABDULLATIF

Country of Origin                                   : Saudi Arabia

Legal Form                                           : Joint Stock Company

Registration Date                                  : 22nd May 1981

Commercial Registration Number           : 1010073685, Riyadh

Membership Number                             : 20872

Issued Capital                                       : SR 812,500,000

Paid up Capital                                     : SR 812,500,000

Total Workforce                                     : 3,800

Activities                                               : Manufacture of textiles.

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

 

 

 


COMPANY NAME

 

AL ABDULLATIF INDUSTRIAL INVESTMENT CO

 

 

TRADING AS

 

AL ABDULLATIF

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Al Kharj Road

Area                 : Second Industrial City

PO Box            : 859

Town                : Riyadh 11421

Country             : Saudi Arabia

Telephone         : (966-11) 2652200 / 2658888 / 2652011

Facsimile          : (966-11) 2659999

Email                : info@carpets.com / saad@carpets.com

 

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                                                               Nationality                    Position

 

Sulaiman Omar Al Abdullatif                                 Saudi                         Chairman

 

Abdullatif Omar Al Abdullatif                                 Saudi                         Managing Director

 

Fahad Omar Al Abdullatif                                      Saudi                         Director

           

Khalid Abdulmohsen Al Khayal                             Saudi                         Director

 

Abdulaziz Abdullatif Dulijan                                   Saudi                         Director

 

Talal Hamzah Al Mansi                                         Saudi                          Director

 

Mazn Mohammed Mosa Al Hamad                        Saudi                         Director

 

Saad Al Qarni                                                     -                                  General Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 22nd May 1981

 

Legal Form                  : Joint Stock Company

 

Commercial Reg. No.   : 1010073685, Riyadh

 

Membership No.           : 20872

 

Issued Capital              : SR 812,500,000

 

Paid up Capital            : SR 812,500,000

 

Name of Shareholder (s)                                               Percentage

 

Al Abdullatif Group Holding Co                                      60%

 

Omar S S Al Abdullatif                                                  6%

 

Members of the general public & private investors          34%

 

 

AFFILIATED COMPANIES

 

Name                                                                 Nationality

 

Eastern Textile Co                                                         100%

 

Western Textile Co                                                        100%

 

Nadeen Arabian Co                                                       100%

 

National Spinning Co                                                     100%

 

Shahad Paper Tube Factory                                           100%

 

Ritaj Al Waseel Co                                                         100%

 

Al Abdullatif Training Co                                                100%

 

Adfa Blanket Co                                                            100%

 

First Carpet Company                                                    100%

OPERATIONS

 

Activities: Subject is a fully integrated industrial textiles company specializing in spinning, weaving and colouring of synthetic and natural fibres being used in the production of blankets, rugs, carpets, backings and a wide variety of yarns.

 

Import Countries: Europe and Asia.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 3,800 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Saudi Riyals (SR 000’s)

 

Balance Sheet                                                           31/12/14       31/12/13           31/12/12         31/12/11

 

Current Assets

709,243

632,549

643,841

545,793

Inventory

524,835

598,212

529,685

496,113

Investments

121,987

76,895

138,725

122,909

Fixed Assets

529,954

495,917

504,479

501,204

Other Assets

14,424

14,977

12,521

14,110

Total Assets

1,900,443

1,818,550

1,829,251

1,680,129

Current Liabilities

650,801

543,750

530,863

386,780

Non-Current Liabilities

0

22,319

48,729

83,569

Other Liabilities

5,067

5,192

5,136

5,498

Shareholders’ Equity

1,244,575

1,247,289

1,244,523

1,204,282

Minority Interests

0

-

-

-

Total Liabilities and Shareholder Equity

1,900,443

1,818,550

1,829,251

1,680,129

 

Statement of Income

 

Sales

1,297,735

1,347,956

1,454,529

1,337,460

Sales Cost

970,237

955,702

1,038,863

1,012,011

Total Income

327,498

392,254

415,666

325,449

Other Revenues

19,670

26,208

4,832

4,832

Total Revenues

347,168

418,462

420,498

330,281

Admin and Marketing Expenses

63,941

54,098

71,295

58,946

Depreciation

63,504

63,282

63,024

97,758

Other Expenses

4,812

12,454

0

297

Total Expenses

132,257

129,834

134,319

157,001

Net Income Before Zakat

214,911

288,628

286,179

173,280

Zakat

14,500

21,800

22,500

17,300

Net Income

200,411

266,828

263,679

155,980

Balance First Period

151,138

229,524

215,651

156,519

Reserves

-20,041

98

26,368

15,598

Cash Dividends

-121,875

81,250

223,438

81,250

Other Distributions

-40,625

264,062

0

0

Balance End Period

169,008

151,138

229,524

215,651

 

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

 

 

BANKERS

 

Riyad Bank

King Abdul Aziz Road

PO Box: 22622

Riyadh 11416

Tel: (966-11) 4122243

Fax: (966-11) 4013030

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                                May 2007

Credit amount                                       256,000

Amount overdue                                    0

Payment terms                                      180 days

Payment Method                                   Letters of Credit

Paying record                                       No Complaints

Currency                                               Pounds Sterling

 

 

GENERAL COMMENTS

 

Al Abdullatif Industrial Investment Co was established in 1981 and is one of the largest companies of its kind in the Middle East and Africa. It is a fully integrated industrial textiles company specializing in spinning, weaving and colouring of synthetic and natural fibres.

 

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.63.37

UK Pound

1

Rs.98.86

Euro

1

Rs.69.97

 

 

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.