MIRA INFORM REPORT

 

 

Report No. :

341556

Report Date :

23.09.2015

 

IDENTIFICATION DETAILS

 

Name :

SAUDI FAL CO LTD

 

 

Registered Office :

Al Arooba Street, PO Box No.: 4900, Riyadh 11412

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

26.06.1433

 

 

Com. Reg. No.:

1010010880, Riyadh

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject’s operations are performed through the following divisions:

 

·       Construction Division

     Engaged as general construction contractors.

 

·       Controls Division

       Engaged in the development of oil products, including valves, regulators, measurement and analytical products.

 

·       Environmental Division

Engaged in the provision of environmental protection products and solutions.

 

 

No. of Employees :

100

 

 

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                                    : SAUDI FAL CO LTD

Country of Origin                                   : Saudi Arabia

Legal Form                                           : Limited Liability Company

Registration Date                                  : 18th May 2012

Commercial Registration Number           : 1010010880, Riyadh

Chamber Membership Number               : 5844

Issued Capital                                       : SR 10,000,000

Paid up Capital                                     : SR 10,000,000

Total Workforce                                     : 100

Activities                                               : Subject operates several divisions (see below for details)

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Khaled Refaat, Finance Manager

 

 

COMPANY NAME

 

SAUDI FAL CO LTD

 

 

ADDRESS

 

Registered & Physical Address

 

Location           : Al Arooba Street

 

PO Box            : 4900

 

Town                : Riyadh 11412

Country             : Saudi Arabia

 

Telephone         : (966-11) 4192990

Facsimile          : (966-11) 4192239

Email                : riyadhoffice@saudifal.com.sa / sales@saudifal.com.sa / contact@falgroup.com

                          majed@saudifal.com.sa / admin@saudifal.com.sa

 

Premises

 

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

 

Branch Office (s)

 

     Location                                                                                           Description

 

·       Dammam - Al Khobar Highway                                                          Office premises

Industrial City

PO Box: 3070

Al Khobar 31952

Tel: (966-13) 8573157

Fax: (966-13) 8578491

CR No. 2051012091

 

·       PO Box: 30444                                                                                 Office premises

Yanbu

Tel: (966-14) 3210451

Fax: (966-14) 3210431

 

·       PO Box: 10627                                                                                 Office premises

Jubail

Tel: (966-13) 33408670

Fax: (966-13) 33408760

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Dr Fahd Mohamed Saleh Al Azzl                                                       Managing Director

 

·       Rabeh Fahd Mohamed Saleh Al Azzl                                                 Director

 

·       Falwa Fahd Mohamed Saleh Al Azzl                                                  Director

 

·       Mahashel Fahd Mohamed Saleh Al Azzl                                             Director

 

·       Majed Al Mutawa                                                                              General Manager

 

·       Mohammed Kabbani                                                                         IT Manager

 

·       Samir Abu Laila                                                                                Administration Manager

 

·       Anwar Hussain                                                                                  Sales Manager

 

·       Khaled Refaat                                                                                  Finance Manager

 

·       Mohamed Hussary                                                                            Financial Controller

 

·       M Saud Al Dossary                                                                          Human Resources Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 26/06/1433 Hijri (corresponding to 18th May 2012)

 

Legal Form                  : Limited Liability Company

 

Commercial Reg. No.   : 1010010880, Riyadh

 

Chamber Member No.  : 5844

 

Issued Capital              : SR 10,000,000

 

Paid up Capital            : SR 10,000,000

 

Name of Shareholder (s)         Percentage

 

·       Fal Holding Co Ltd                           100%

Riyadh

 

 

AFFILIATED COMPANIES

 

·       Fal Est

 

·       International Ductile Pipe Co

 

·       Al Belad Fire System Co

 

 

OPERATIONS

 

Activities: Subject’s operations are performed through the following divisions:

 

·       Construction Division

 

     Engaged as general construction contractors.

 

·       Controls Division

 

       Engaged in the development of oil products, including valves, regulators, measurement and analytical products.

 

·       Environmental Division

 

Engaged in the provision of environmental protection products and solutions.

 

Operating Trend: Steady

 

Subject has a workforce of 100 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 319,500,000                         SR 332,900,000

 

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

 

The above figures were provided by Mr Khaled Refaat, Finance Manager

 

 

BANKERS

 

·       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

 

Please note that subject’s address in Al Khobar is just a branch office. However branch offices in Saudi Arabia are sometimes issued with their own commercial registration number, particularly if they are located in a different town to the head office.

 

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.65.63

UK Pound

1

Rs.101.73

Euro

1

Rs.73.26

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

TRU

 

               

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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