MIRA INFORM REPORT

Report No. :	344096
Report Date :	13.10.2015

IDENTIFICATION DETAILS

Name :	MIDDLE EAST PAPER COMPANY (MEPCO)
Registered Office :	Al Khumrah Near Water Treatment Plant, PO Box 32913, Jeddah 21438
Country :	Saudi Arabia
Date of Incorporation :	30.11.2000
Com. Reg. No.:	4030131516, Jeddah
Legal Form :	Joint Stock Company
Line of Business :	Manufacture and distribution of containerboard.
No. of Employee :	320

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

IDENTIFICATION & CONTACT DETAILS
1) Name (s):
Organization Official Name		:	MIDDLE EAST PAPER COMPANY (MEPCO)
2) Registered Address:
Address		:	Al Khumrah Near Water Treatment Plant
PO Box		:	32913
Town		:	Jeddah 21438
Phone (s)		:	(966-12) 6370516
		:	(966-12) 2894353
Facsimile		:	(966-12) 6380111
		:	(966-12) 2880787
Email		:	info@mepco.biz
Country		:	Saudi Arabia
3) Operational Address & Contact Details:
Address		:	Al Khumrah Near Water Treatment Plant
PO Box		:	32913
Town		:	Jeddah 21438
Phone (s)		:	(966-12) 6370516
		:	(966-12) 2894353
Facsimile		:	(966-12) 6380111
		:	(966-12) 2880787
Email		:	info@mepco.biz
Country		:	Saudi Arabia
LEGAL FORM & INCORPORATION (REGISTRATION) DETAILS
Legal Form - Category		:	Joint Stock Company
Date of Registration		:	30th September 2000
Commercial Registration Number		:	4030131516, Jeddah
KEY FACTS
Operational Status		:	Steady
Financial Condition		:	Good
Primary Business Activity		:	Manufacture and distribution of containerboard.
Number of Employees		:	320
Capital		:	SR 500,000,000
CAPITAL DETAILS
Issued Capital:
NO OF SHARES			VALUE OF SHARE	AMOUNT
N/A			N/A	SR 500,000,000
Paid Up Capital:
NO OF SHARES				AMOUNT
N/A			N/A	SR 500,000,000
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 817,867,000	SR 826,428,000
Local sources consider subject’s financial condition to be Good.
The above financial figures are based on estimations by our local sources.
BANKER
1	Name		Al Bank Al Saudi Al Hollandi
	Address		Al Dhabab Street, Riyadh 11431
	PO Box		1467
	Tel		(966-11) 4067888
SHAREHOLDERS
S. No.	Name of Shareholders			Country	No. of Shares
1	Sulaiman Abdulkadir Al Muhaidib			n/a	n/a
2	Emad Abdulkadir Al Muhaidib			n/a	n/a
3	Mohammad Abdullah Abunayyan			n/a	n/a
4	Abdul-Ilah Abdullah Abunayyan			n/a	n/a
5	Walid Ibrahim Shukri			n/a	n/a
6	Karl-Henrik Odman			n/a	n/a
7	Abdullah Abdul Rahman Al Moammar			n/a	n/a
8	Carlo Alberto Carletti			n/a	n/a
Total Share
SENIOR MANAGEMENT
S. No.	Name		Nationality	Dsignation
1	Sulaiman Abdulkadir Al Muhaidib			Chairman
2	Emad Abdulkadir Al Muhaidib			Director
3	Mohammad Abdullah Abunayyan			Director
4	Abdul-Ilah Abdullah Abunayyan			Director
5	Walid Ibrahim Shukri			Director
6	Karl-Henrik Odman			Director
7	Abdullah Abdul Rahman Al Moammar			Director
8	Carlo Alberto Carletti			Director
9	Sami Ali Al Safran			General Manager
10	Adel Ahmed Ibraheem			Finance Manager
11	Ahmed El Fazary			Sales & Marketing Manager
12	Abdullah K Alghamdi			Human Resources Manager
13	Wadia Mohammed Malibari			Chief Operations Manager
14	Samir Ali			Logistics Manager
15	John K Varghese			Chief Financial Officer
INTERNATIONAL TRADE ACTIVITY MARKETS
Sr.No	Country		Activity
1	Europe		Import
2	Far East		Import
PRODUCTION
Capacity		:	350,000 tonnes per year
PREMISES
Subject operates from a large suite of offices a factory that are owned and located in the Central Business Area of Jeddah.
PAYMENT
No complaints regarding subject’s payments have been reported.
ADVERSE DATA
Performance Defaults		:	No record found
Payment Defaults		:	No record found
Adverse Press Coverage		:	No record found
Litigations		:	No record found
Former Business Relationships		:	No record found
INVESTIGATOR'S 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.64.73
UK Pound	1	Rs.99.30
Euro	1	Rs.73.60

INFORMATION DETAILS

Analysis Done by :	TRI
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%)

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