MIRA INFORM REPORT

 

 

Report No. :

343403

Report Date :

06.10.2015

 

IDENTIFICATION DETAILS

 

Name :

UNITED TRANSFORMERS ELECTRIC COMPANY LTD (UTEC)

 

 

Registered Office :

Al Kharj Road Industrial Area, Phase No. 2 385 Riyadh 11383

 

 

Country :

Saudi Arabia

 

 

Date of Incorporation :

2001

 

 

Com. Reg. No.:

1010171861, Riyadh

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Engaged in the manufacture and marketing of electrical transformers, switchgears, circuit breakers, as well as control panels and boards.

 

 

No. of Employee :

150

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

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 anOIL-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                                    : UNITED TRANSFORMERS ELECTRIC COMPANY LTD (UTEC)

Country of Origin                                   : Saudi Arabia

Legal Form                                           : Limited Liability Company

Registration Date                                  : 2001

Commercial Registration Number           : 1010171861, Riyadh

Issued Capital                                       : SR 35,000,000

Paid up Capital                                     : SR 35,000,000

Total Workforce                         : 150

Activities                                               : Manufacture and marketing of electrical equipment

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Mohamed Ghanim, Finance Manager

 

COMPANY NAME

 

UNITED TRANSFORMERS ELECTRIC COMPANY LTD (UTEC)

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Al Kharj Road

Area                 : Industrial Area, Phase No. 2

 

PO Box            : 385

 

Town                : Riyadh 11383

Country : Saudi Arabia

 

Telephone         : (966-11) 4984590 / 2941330

Facsimile          : (966-11) 4983831

Email                : info@utec.com.sa / utech@utechonline.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

 

·       Abdullatif Ahmed Al Fozan                                                                Managing Director

 

·       Robert Wilson                                                                                  Chief Executive Officer

 

·       Fathi Omar                                                                                       General Manager

 

·       Mohamed Ghanim                                                                            Finance Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 2001

 

Legal Form                  : Limited Liability Company

 

Commercial Reg. No.   : 1010171861, Riyadh

 

Issued Capital              : SR 35,000,000

 

Paid up Capital            : SR 35,000,000

 

 

Name of Partner (s)                                                     Percentage

 

·         Bawan Engineering Industries                                   85.50%

Saudi Arabia

 

·       Wilson Transformers Co (Pty) Ltd                              10.00%

Wilson Road

PO Box: 5

Victoria 3150

Australia

Tel: (61-13) 95600411

Fax: (61-13) 95600499

 

·       Maali Holding Co                                                        4.50%

Saudi Arabia

 

 

AFFILIATED COMPANIES

 

·       Arnon Plastic Industries Company

Saudi Arabia

 

·       Building and Construction Company

Saudi Arabia

 

·       Al Oula Development Company

Saudi Arabia

 

·       Injaz Projects

Saudi Arabia

 

·       Gulf Farabi Petrochemical Company

Saudi Arabia

 

·       ARC Engineering Consultants

Saudi Arabia

 

·       Dhahran International Exhibitions Company

Saudi Arabia

 

·       MADAR Building Material – Jordan

Jordan

 

·       MADAR Building Material – Sudan

Sudan

 

·       Projects and Supplies Company

Saudi Arabia

 

·       Amwal Al Khaleej Commercial Investment Company

Saudi Arabia

 

·       United Electronics Company

Saudi Arabia

 

·       Madar Emirates for Building Materials Co LLC

United Arab Emirates

 

·       Madar Holding FZCO

United Arab Emirates

 

 

OPERATIONS

 

Activities: Engaged in the manufacture and marketing of electrical transformers, switchgears, circuit

                 breakers, as well as control panels and boards.

 

Subject has a license agreement from F&G – MOELLER, the German switchgear manufacturer.

 

     Bawan said its 85.5% owned subsidiary United Transformers Electric Co Ltd (UTEC) signed in August

     2015 a SAR 225 million agreement with Saudi Electricity Co (SEC). Under the one-year accord, UTEC will

     supply SEC with transformers. The supply will start from the first quarter of 2016 until the end of 2016

     unless the agreement is renewed.

 

Import Countries: Germany, Australia, United Kingdom and United States of America

 

Operating Trend: Steady

 

Subject has a workforce of 150 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 493,720,000             SR 500,000,000

 

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

 

The above financial figures were provided by Mohamed Ghanim, Finance Manager

 

 

BANKERS

 

·       Saudi British Bank

PO Box: 2907

Riyadh 11462

Tel: (966-11) 4794400

 

·       Arab National Bank (ANB)

Batha Street

PO Box: 26

Riyadh 11411

Tel: (966-11) 4024111

 

 

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.65.29

UK Pound

1

Rs.99.31

Euro

1

Rs.73.39

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ANK

 

 

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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