MIRA INFORM REPORT

 

 

Report No. :

347463

Report Date :

03.11.2015

 

IDENTIFICATION DETAILS

 

Name :

EASTERN TEXTILE COMPANY LTD (ETEX)

 

 

Registered Office :

New Industrial Area, PO Box : 859, Riyadh 11421

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

1994

 

 

Com. Reg. No.:

1010196700, Riyadh

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is engaged in the manufacture of carpet backing.

 

 

No. of Employee :

370

 

 

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 – 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, 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. 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                                                : EASTERN TEXTILE COMPANY LTD (ETEX)

Country of Origin                                   : Saudi Arabia

Legal Form                                           : Limited Liability Company

Start Date                                             : 1994

Registration Date                                  : 13th April 2004

Commercial Registration Number                       : 1010196700, Riyadh

Chamber Membership Number               : 144688

Issued Capital                                       : SR 36,000,000

Paid up Capital                                     : SR 36,000,000

Total Workforce                                     : 370

Activities                                               : Manufacturers of carpet backing

Financial Condition                                : Fair

Payments                                             : No Complaints

Operating Trend                                    : Steady

Person Interviewed                                : Ahmed Khalaf, Finance Manager

 

 

COMPANY NAME

 

EASTERN TEXTILE COMPANY LTD (ETEX)

 

 

ADDRESS

 

Registered & Physical Address

 

Location           : New Industrial Area

PO Box                        : 859

Town                : Riyadh 11421

Country             : Saudi Arabia

 

Telephone         : (966-11) 2654538 / 2650957 / 2650958 / 2658888

Facsimile          : (966-11) 2653818

Mobile              : (966-50) 8671493 / 2899332

Email                : sales@etex.com / martin@etex.com / scf@carpets.com

 

Premises

 

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

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Kula Martin Luther                                                                             General Manager

 

·       Ahmed Khalaf                                                                                  Finance Manager

 

·       Krishna Brunik                                                                                  Logistics Manager

 

·       Hassan Al Amin                                                                                Administration Manager

 

·       Saeed Al Jabri                                                                                  Export Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : Subject’s operations date back to 1994, however it was registered on 23/02/1425 Hijri

  (corresponding to 13th April 2004)

 

Legal Form                  : Limited Liability Company

 

Commercial Reg. No.   : 1010196700, Riyadh

 

Chamber Member No.  : 144688

 

Issued Capital              : SR 36,000,000

 

Paid up Capital            : SR 36,000,000

 

Name of Partner (s)                                                             Percentage

 

·       Al Abdullatif Industrial Investment Co                                     90%

Al Kharj Road

PO Box: 859

Riyadh 11421

     Tel: (966-11) 2652200 / 2658888

     Fax: (966-11) 2659999

 

·       National Spinning Co                                                                        10%

PO Box: 859

Riyadh 11421

Tel: (966-11) 2658888

Fax: (966-11) 2659999

 

 

AFFILIATED COMPANIES

 

·       Saudi Carpet

PO Box: 859

Riyadh 11421

 

·       Adfa Blankets

PO Box: 859

Riyadh 11421

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of carpet backing.

 

Subject’s factory contains 290 projectile weaving machines, making it one of the largest manufacturers of

carpet backing outside of Europe and the United States of America.

 

Subject is ISO 9001:2000 accredited.

 

Production Capacity: 500 million square metres per year.

Import Countries: Europe and GCC countries.

Operating Trend: Steady

 

Subject has a workforce of approximately 370 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 328,650,000             SR 189,000,000

 

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

 

The above figures were provided by Mr Ahmed Khalaf, Finance Manager

 

 

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.

 

 

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.65.48

UK Pound

1

Rs.101.06

Euro

1

Rs.72.22

 

INFORMATION DETAILS

 

Analysis Done by :

HEE

 

 

Report Prepared by :

ASH

 

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.