MIRA INFORM REPORT

 

 

Report No. :

343467

Report Date :

08.10.2015

 

IDENTIFICATION DETAILS

 

Name :

AL SHARQ PLASTIC INDUSTRIES CO LTD

 

 

Registered Office :

Al Kharj Road, 2nd Industrial Area, Aziziyah District, PO Box 1443, Riyadh 11431

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

21.08.1975

 

 

Com. Reg. No.:

1010008540

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Engaged in the manufacture of plastic products, including polyethylene refuse bags, plastic benches and chairs, water tanks and polyethylene for the catering industry.

 

 

No. of Employees :

650

 

 

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, 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 SHARQ PLASTIC INDUSTRIES CO LTD

Country of Origin                                   : Saudi Arabia

Legal Form                                           : Limited Liability Company

Registration Date                                  : 21st August 1975

Commercial Registration Number           : 1010008540, Riyadh

Chamber Membership Number               : 4749

Issued Capital                                       : SR 61,675,000

Paid up Capital                                     : SR 61,675,000

Total Workforce                         : 650

Activities                                               : Manufacturers of plastic products

Financial Condition                                : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Mohamed Sayed, Finance Manager

 

 

COMPANY NAME

 

AL SHARQ PLASTIC INDUSTRIES CO LTD

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Al Kharj Road

Area                 : 2nd Industrial Area, Aziziyah District

PO Box            : 1443

Town                : Riyadh 11431

Country : Saudi Arabia

Telephone         : (966-1) 2655555

Facsimile          : (966-1) 2654444

Mobile              : (966-56) 1010717

Email                : sales@alsharq-pl.com.sa / administrator@alsharqplastics.com / ahelmi@takween.com

 

Premises

 

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

 

Branch Office (s)

 

Location                                                                                                           Description

 

New Industrial Area                                                                                            Sales Office

Riyadh

 

PO Box: 18531                                                                                                  Sales Office

Jeddah 21425

Tel: (966-12) 6365555

Fax: (966-12) 6363333

 

PO Box: 357                                                                                                     Sales Office

Khamis Mushait

Tel: (966-17) 2215089

Fax: (966-17) 2221332

 

Dammam                                                                                                          Sales Office

Tel: (966-13) 8416493

Fax: (966-13) 8432992

 

 

KEY PRINCIPALS

 

Name                                                                                                   Position

 

Abdul Mohsin Othman                                                                           Managing Director

 

Omar Rajih                                                                                            General Manager

 

Mohamed Sayed                                                                                   Finance Manager

 

Iyad Khalili                                                                                            Sales Manager

 

Ahmed Helmi                                                                                        Treasury Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 14/08/1395 Hijri (corresponding to 21st August 1975)

 

History : Subject was previously known under the name “Al Sharq Factories for Plastic & Paper Products”. However in June 2001 it changed its name to the current style.

 

Legal Form                  : Limited Liability Company

 

Commercial Reg. No.   : 1010008540, Riyadh

 

Chamber Member No.  : 4749

 

Issued Capital              : SR 61,675,000

 

Paid up Capital            : SR 61,675,000

 

Name of Partner (s)                                                 Percentage

 

Takween Advanced Industries                                        100%

PO Box: 2500

Al Khobar 31952

Tel: (966-13) 8534307 / 8534317

Fax: (966-13) 8534343

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of plastic products, including polyethylene refuse bags, plastic benches and chairs, water tanks and polyethylene for the catering industry.

 

Subject was awarded the ISO9001 certificate for the quality of its products in 1984.

 

Production Capacity: 60,000 metric tons per annum.

 

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

 

Export Countries: Subject exports approximately 16% of sales to countries in the Middle East, Europe, Asia and Africa.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 650 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 235,000,000             SR 241,000,000

 

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

 

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

 

 

BANKERS

 

Saudi American Bank

Malaz Branch

PO Box: 3388

Riyadh 11471

Tel: (966-11) 4774770

 

Saudi British Bank

Dhabab Street

PO Box: 9084

Riyadh 11413

Tel: (966-11) 4050677

 

National Commercial Bank

Malaz Branch

PO Box: 42536

Riyadh 11551

Tel: (966-11) 4776450

Fax: (966-11) 4769502

 

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.65.25

UK Pound

1

Rs.99.53

Euro

1

Rs.73.47sss

 

 

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%)

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