MIRA INFORM REPORT

 

 

Report No. :

320359

Report Date :

07.05.2015

 

IDENTIFICATION DETAILS

 

Name :

EAST FOODS CO LTD

 

 

Registered Office :

Eastern Ring Road, Exit 12, Rawdah Area, PO Box 45790, Riyadh 11522

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

20.02.2007

 

 

Com. Reg. No.:

1010228268

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Engaged in the import and distribution of snack foods and related products.

 

 

No. of Employees :

200

 

 

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 – 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, 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                                    : EAST FOODS CO LTD

Country of Origin                                   : Saudi Arabia

Legal Form                                           : Limited Liability Company

Registration Date                                  : 20th February 2007

Commercial Registration Number           : 1010228268, Riyadh

Chamber Membership Number               : 178355

Issued Capital                                       : SR 500,000

Paid up Capital                                     : SR 500,000

Total Workforce                         : 200

Activities                                               : Distributors of snack foods and related products

Financial Condition                                : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

COMPANY NAME

 

EAST FOODS CO LTD

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Eastern Ring Road, Exit 12

Area                 : Rawdah Area

PO Box            : 45790

Town                : Riyadh 11522

Country : Saudi Arabia

Telephone         : (966-11) 2548883

Facsimile          : (966-11) 2548800

Email                : info@eastfoods.com.sa

 

Premises

 

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

 

Branch Offices

 

Subject has approximately 200 outlets around Saudi Arabia.

 

 

KEY PRINCIPALS

 

Name                                                                                       Position

 

Mohamed Saad Mutlaq Abo Saneen Abo Saneen                       Chairman

 

Sultan Abdullah Suliman Al Rajhi                                                Director

 

Mohamed Ali                                                                             Office Manager

 

Monzer Ghaly                                                                            Chief Executive Officer

 

Magdy Ahmed Hussein                                                              Accounts Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 20th February 2007

 

Legal Form                  : Limited Liability Company

 

Commercial Reg. No.   : 1010228268, Riyadh

 

Chamber Member No.  : 178355

 

Issued Capital              : SR 500,000

 

Paid up Capital            : SR 500,000

 

Name of Partner (s)                                                             Percentage

 

Mohamed Saad Mutlaq Abo Saneen Abo Saneen                       60%

 

Sultan Abdullah Suliman Al Rajhi                                                40%

 

 

AFFILIATED COMPANIES

 

Atyab Co Ltd

 

Kandari Trading Est

 

 

OPERATIONS

 

Activities: Engaged in the import and distribution of snack foods and related products.

 

Import Countries: Spain, Italy, Germany, Turkey, Malaysia, Canada and United States of America.

 

International Suppliers:

 

Zummo                                     United State of America

Zumoval                                   Spain

Manuel Caffe                            Italy

Cinnzeo                                    Canada

Sanremo Machines                    Italy

 

Local Suppliers:

 

Al Ghandoura Company for Manufacturing Plastic Building

Company Miscellaneous Items Trading Co Ltd

 

Local Clients:

 

Java Cafe

Mamma Roti Cafe

Tamimi Markets

 

Operating Trend: Steady

 

Subject has a workforce of approximately 200 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 74,000,000                           SR 77,000,000

 

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

 

The above financial figures are based on estimations by our local sources.

 

 

BANKERS

 

Al Rajhi Banking & Investment Corporation

PO Box: 28

Riyadh 11411

Tel: (966-11) 4054647 / 4054244

Fax: (966-11) 4044753 / 4052950

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Local sources report that the subject’s operating history is clear with payment obligations met in a generally timely manner. The financial position is satisfactory and the company is deemed a fair trade risk.

 

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.64

UK Pound

1

Rs.96.81

Euro

1

Rs.71.51

 

 

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.