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Report No. : |
345738 |
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Report Date : |
19.10.2015 |
IDENTIFICATION DETAILS
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Name : |
FAWAZ ABDUL AZIZ AL HOKAIR & PARTNERS COMPANY JSC |
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Registered Office : |
Al Hokair Centre, |
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Country : |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
18.03.1990 |
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Com. Reg. No.: |
1010076209, |
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Legal Form : |
Joint Stock Company |
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Line of Business : |
Wholesalers and retailers of fashion items. |
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No. of Employee : |
500 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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Saudi Arabia |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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.
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Source
: CIA |
Company Name :
FAWAZ ABDUL AZIZ AL HOKAIR & PARTNERS COMPANY JSC
Doing Business As :
AL HOKAIR
Country of Origin :
Saudi Arabia
Legal Form :
Joint Stock Company
Start Date :
1958
Registration Date :
18th March 1990
Commercial Registration Number :
1010076209, Riyadh
Chamber Membership Number :
4859
Issued Capital :
SR 2,100,000,000
Paid up Capital :
SR 2,100,000,000
Total Workforce :
500
Activities :
Wholesalers and retailers of fashion items.
Financial Condition :
Good
Payments :
Nothing detrimental uncovered
Operating Trend :
Steady
FAWAZ ABDUL AZIZ AL HOKAIR & PARTNERS COMPANY JSC
AL
HOKAIR
Registered &
Physical Address
Building : Al Hokair Centre
Street : Al Thomary Street
Area : Al Shemaisi Square
PO Box : 359
Town : Riyadh 11411
Country : Saudi Arabia
Telephone : (966-11)
4350000 / 4350323 / 4350037
Facsimile : (966-11)
4357268
Email : info@fawazalhokair.com
Premises
Subject operates from a medium sized suite of offices in an owned
shopping mall that is located in the Central Business Area of Riyadh
Branch Offices
Subject has 15 showrooms in Riyadh, 4 of which are located in the Akair Centre, as well as 2 in Jeddah including the
following:
Location Description
Jeddah Showroom
premises
Tel: (966-12) 6612293
Fax: (966-12) 6612293
Name Nationality Position
Salman Abdul Aziz Fahd Al Hokair Saudi Managing
Director
Fawaz Abdul Aziz Fahd Al Hokair Saudi Director
Abdul Majed Abdul Aziz
Fahd Al Hokair Saudi Director
Fahad Abdul Aziz Fahd Al Hokair Saudi Director
Abdulrahman Moulay - Finance
Manager
Ibrahim Vandra - Commercial
Manager
Mohiaddin M Al Khooli - IT
Manager
Date of Establishment : Subject’s
operations date back to 1958, however it was registered on 18th
March 1990.
Legal Form : Joint Stock
Company
Commercial Reg. No. : 1010076209,
Riyadh
Chamber Member No. : 4859
Issued Capital : SR 2,100,000,000
Paid up Capital : SR 2,100,000,000
Name of
Shareholder (s) Percentage
Saudi Fas Holding Co 49%
Fawaz Abdul Aziz Fahd Al Hokair 7%
Abdul Majed Abdul Aziz
Fahd Al Hokair 7%
Salman Abdul Aziz Fahd Al Hokair 7%
Local businessmen and private investors 30%
Name Percentage Held
Al Waheedah Equipment Co Ltd 100%
Saudi Arabia
Haifa B Al Kalam & Partners International
Co for Trading 100%
Saudi Arabia
Saudi Retail Co Ltd 100%
Saudi Arabia
Wahba Trading Company Ltd 100%
Saudi Arabia
Retail Group of America LLC 100%
United States of America
Kazakhstan Group 100%
Kazakhstan
Nesk Group for Trading Projects 100%
Saudi Arabia
Retail Group Egypt 98%
Egypt
Retail Group Jordan 95%
Jordan
Retail Group Azerbaijan 90%
Azerbaijan
Retail Group Georgia 80%
Georgia
Retail Group Armenia 80%
Armenia
Al Farida Trading Agencies Company 70%
Saudi Arabia
Activities: Subject operates 17
showrooms in Riyadh and Jeddah that specialise in the
wholesale and retail of fashion items and accessories, such as readymade
garments, shoes and footwear accessories for both ladies and gents.
Al Hokair has
franchise agreements with Sears Plc, La Senza Plc and
the In Wear Group.
Import Countries: France,
United Kingdom, Italy, the Netherlands and Denmark
Brand Names : BODYREFORM, VENI MODI, ADAMS, NINE
WEST, TORQ, WALLIS WAREHOUSE, MISS SELFRIDGE, PART TWO, OUTFIT, SALSA,
JENNYFER, NEW YORKER, ANOTAH, ZARA, OKAIDI,MAVI, PRIMADONNA, ZIDDY,
STRADIVARIUS, PAPAYA, BERSHKA, OYSHO, PROMOD, MANGO,CHARLES & KEITH, LA
SENZA, CORTEFIEL, ACCESSORIZE, NEW LOOK, F&F, WALLIS, LIPSY, PEDRO, MONSSON
and RICHARDS
Operating Trend: Steady
Subject has a workforce of approximately 500 employees.
Financial highlights provided by local sources are given below:
Currency: Saudi Riyals (SR)
Consolidated
Balance Sheet 31/03/15 31/03/14 31/03/13
Assets
Current assets
Cash 279,957,636 101,006,685 134,166,544
Prepayments and other assets 882,333,590 739,364,628 447,489,362
Amounts due from related parties 281,728,504 137,728,024 217,506,556
Inventories 2,016,265,250 1,534,192,950 1,103,489,636
Total current assets 3,460,284,980 2,512,292,287 1,902,652,098
Non-current assets
Investments in associates and others 318,467,050 260,091,647 239,499,077
Property and equipment 2,046,973,906 1,615,781,301 1,349,653,431
Intangible assets – Goodwill 798,743,156 479,234,543 479,234,543
Other intangible assets 145,155,772 148,517,759 99,244,005
Total non-current assets 3,309,339,884 2,503,625,250 2,167,631,056
Total assets 6,769,624,864 5,015,917,537 4,070,283,154
Liabilities and
Equity
Current
Liabilities
Short-term Murabaha financing and loans 833,290,230 465,692,323 202,039,786
Current portion of Murabaha financing
and loans 195,,587,581 307,357,934 236,285,103
Trade accounts payable 570,495,843 550,155,761 341,522,373
Amount due to a related party 1,168,221 81,006,107 -
Total current liabilities 2,110,525,600 1,927,053,077 1,089,733,456
Non-current
liabilities
Murabaha financing and loans 2,163,460,629 565,709,222 871,712,166
End-of-service indemnities 78,756,624 70,161,999 65,934,862
Total non-current liabilities 2,242,217,253 635,871,221 937,647,028
Total liabilities 4,352,742,853 2,562,924,298 2,027,380,484
Equity
Shareholders’
equity
Share capital 2,100,000,000 1,050,000,000 700,000,000
Statutory reserve 80,295,155 328,278,314 251,142,965
Foreign currency translation reserve (228,569,465) - -
Retained earnings 447,720,167 1,047,467,808 1,070,749,664
Total Shareholders’ equity 2,399,445,857 2,425,746,122 2,021,892,629
Minority interests 17,436,154 27,247,117 21,010,041
Total equity 2,416,882,011 2,452,993,239 2,042,902,670
Total liabilities and equity 6,769,624,864 5,015,917,537 4,070,283,154
Consolidated
Statement of Income
Sales 6,898,673,324 5,482,386,435 4,658,532,658
Direct costs (5,111,496,492) (4,084,411,294) (3,528,168,262)
Gross profit 1,787,176,832 1,397,975,141 1,130,364,396
Selling and marketing expenses (301,366,415) (205,146,809) (149,212,338)
General and administrative expenses (351,048,740) (246,873,655) (223,510,912)
Depreciation and amortization (288,908,161) (225,756,380) (173,704,703)
Income from main operations 845,853,516 720,198,297 583,936,443
Share in income of associates 31,460,690 13,156,725 1,353,088
Financing charges (100,107,335) (50,421,618) (33,540,838)
Other income 54,817,844 130,622,937 97,220,263
Income before Zakat and minority interests 832,024,715 813,556,341 648,968,956
Zakat and income tax (19,707,110) (41,958,330) (30,696,979)
Income before minority interests 812,317,605 771,598,011 618,271,977
Minority interests (9,366,055) (244,518) 1,420,439
Net income for the year 802,951,550 771,353,493 619,692,416
Local sources consider subject’s financial condition to be Good.
National Commercial Bank
Batha Branch
PO Box: 34
Riyadh 11411
Tel: (966-11) 4010076 / 4025084
Fax: (966-11) 4034625
Riyad Bank
King Abdul Aziz Road
PO Box: 22622
Riyadh 11416
Tel: (966-11) 4122243
Fax: (966-11) 4013030
Al Rajhi Banking & Investment Corporation
Branch No. 6
Batha
Riyadh
Tel: (966-11) 4120510
No complaints regarding subject’s payments have been reported.
Please note that the subject’s correct name is “Fawaz
Abdul Aziz Al Hokair & Partners
Company JSC” and not “Fawaza Al Hokair
and Co”.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.64.97 |
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|
1 |
Rs.100.55 |
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Euro |
1 |
Rs.73.99 |
INFORMATION DETAILS
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Analysis Done by
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HEE |
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Report Prepared
by : |
SDA |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.