MIRA INFORM REPORT

Report No. :	320488
Report Date :	06.05.2015

IDENTIFICATION DETAILS

Name :	NAPCO MODERN PLASTICS PRODUCTS COMPANY LTD

Registered Office :	Dammam – Al Khobar Highway, First Industrial City, P O Box: 206, Dammam 31411

Country :	Saudi Arabia

Financials (as on) :	31.12.2014

Date of Incorporation :	04.02.1993

Com. Reg. No.:	2050024798, Dammam

Legal Form :	Limited Liability Partnership

Line of Business :	Manufacturers of plastic products, including plastic bags and sacks, packaging, polyethylene co-polymers, polyethylene and co-extruded, plain or printed plastic PE films.

No. of Employees :	266

RATING & COMMENTS

MIRA’s Rating :

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 – December 31, 2014

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Saudi Arabia

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 : NAPCO MODERN PLASTICS PRODUCTS COMPANY LTD

Country of Origin : Saudi Arabia

Legal Form : Limited Liability Partnership

Registration Date : 4^th February 1993

Commercial Registration Number : 2050024798, Dammam

Chamber Membership Number : 266

Issued Capital : SR 25,000,000

Paid up Capital : SR 25,000,000

Total Workforce : 560

Activities : Manufacturers of plastic products.

Financial Condition : Good

Payments : Nothing detrimental uncovered

Operating Trend : Steady

Person Interviewed : Roy Refai, Financial Controller

COMPANY NAME

NAPCO MODERN PLASTICS PRODUCTS COMPANY LTD

ADDRESS

Registered & Physical Address

Street : Dammam – Al Khobar Highway

Area : First Industrial City

PO Box : 206

Town : Dammam 31411

Country : Saudi Arabia

Telephone : (966-3) 8472288 / 8473040 / 8578685 / 8576688 / 8579276 / 8571222 / 8121244

Facsimile : (966-3) 8471484 / 8574620 / 8571918 / 8123003

Email : info@napcomodern.com / asoufeh@napcogroup.com

Premises

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

KEY PRINCIPALS

Name Nationality Position

· Georges Nematallah Frem Lebanese Managing Partner

· Abdul Muhsen Abdullah Al Mutlaq Saudi Partner

· Mutlaq Abdullah Al Mutlaq Saudi Partner

· Arsen Georgia - General Manager

· Elia Sarkis - Assistant General Manager

· Gamal Al Haji - Commercial Manager

· Ayman Abu Soufaha - Finance Manager

· Essam Yousef Shaya - Area Manager

· Hanna Saad - Administration Manager

· James Kassab - Sales Manager

· Roy Refai - Financial Controller

LEGAL FORM & OWNERS

Date of Establishment : 12/08/1413 Hijri (corresponding to 4^th February 1993)

Legal Form : Limited Liability Partnership

Commercial Reg. No. : 2050024798, Dammam

Chamber Member No. : 266

Issued Capital : SR 25,000,000

Paid up Capital : SR 25,000,000

Name of Partner (s) Percentage

· Al Moaibed Group Ltd 30%

PO Box: 1040

Dammam 31431

Saudi Arabia

· Georges Nematallah Frem 30%

· United Commercial Investments Company 20%

PO Box: 7170

Riyadh 11462

Saudi Arabia

· Abdul Muhsen Abdullah Al Mutlaq 10%

· Mutlaq Abdullah Al Mutlaq 10%

AFFILIATED COMPANIES

· Sanita Paper & Plastic Products Sarl (Sanita)

Halat Main Street

Halat

PO Box: 112354

Beirut

Lebanon

Tel: (961-9) 947148 / 957002 / 940337 / 947149

Fax: (961-1) 880602

· Unipak Sal

Halat Main Street

Halat

PO Box: 226308

Beirut

Lebanon

Tel: (961-9) 957001 / 880701 / 947114

Fax: (961-1) 914922

· Napco Consumer Products Co

First Industrial City

PO Box: 214

Dammam 31411

Saudi Arabia

Tel: (966-13) 8571222

Fax: (966-13) 8571918

· United Packaging Company Ltd

First Industrial City

PO Box: 4711

Dammam 31412

Saudi Arabia

Tel: (966-13) 8575275

CR No. 2050007318

· National Paper Products Co

Dammam Old Industrial Estate

PO Box: 538

Dammam 31421

Saudi Arabia

Tel: (966-13) 8578685

CR No. 2050000435

· Carlton Al Moaibed Hotel

Dammam – Al Khobar Highway

PO Box: 1235

Dammam 31452

Saudi Arabia

Tel: (966-13) 8575455

CR No. 2050004543

· National Paper Company Limited (NAPCO)

Industrial Estate, 4^th Phase

Street No. 404

PO Box: 30263

Jeddah 21477

Saudi Arabia

Tel: (966-12) 6370757

Fax: (966-12) 6374886

OPERATIONS

Activities: Manufacturers of plastic products, including plastic bags and sacks, packaging, polyethylene co-polymers, polyethylene and co-extruded, plain or printed plastic PE films.

Napco Modern Plastic Products Co Ltd has fulfilled all requirements according to ISO 9001:2000 audit report No.3500 4681 and certificate registration No. 44 100 060835.

Production Capacity: 6,200 tonnes per month

Import Countries: Germany, the United Kingdom, Japan and the United States of America

International Suppliers:

· McMaster Inc United States of America

· Dover United States of America

· OMT United Kingdom

· V-Line Germany

Operating Trend: Steady

Subject has a workforce of approximately 560 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: Saudi Riyals (SR)

Year Ending 31/12/13: Year Ending 31/12/14:

Total Sales SR 623,107,000 SR 624,944,000

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

The above figures were provided by Mr Roy Refai, Financial Controller

BANKERS

· National Commercial Bank

PO Box: 13

Dammam 31411

Tel: (966-13) 8331188

Fax: (966-13) 8336058

· Saudi American Bank

PO Box: 3113

Dammam 31471

Tel: (966-13) 8337171

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.63.52
UK Pound	1	Rs.95.96
Euro	1	Rs.70.54

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%)

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