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MIRA INFORM REPORT
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Report No. : |
503146 |
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Report Date : |
18.04.2018 |
IDENTIFICATION DETAILS
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Name : |
NESMA RECYCLING CO LTD |
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Registered Office : |
Al Nuzha District, PO Box 7195 & 54744, Jeddah 21524, Jeddah 21462 |
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Country : |
Saudi Arabia |
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Date of Incorporation : |
20.01.2003 |
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Com. Reg. No.: |
4030141465, Jeddah |
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Legal Form : |
Limited Liability Partnership |
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Line of Business : |
Subject is engaged in the collection and processing of discarded
paper, metals and plastics. |
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No. of Employees : |
300 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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
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Country Name |
Previous
Rating (30.09.2017) |
Current Rating (31.12.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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 87% of budget revenues, 42%
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. Over 6 million
foreign workers play an important role in the Saudi economy, particularly in
the oil and service sectors; at the same time, however, 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 2017, the Kingdom incurred a budget deficit estimated at 8.3% of GDP,
which was financed by bond sales and drawing down reserves. Although the
Kingdom can finance high deficits for several years by drawing down its
considerable foreign assets or by borrowing, it has cut capital spending and
reduced subsidies on electricity, water, and petroleum products and plans to
introduce a value-added tax. In January 2016, Crown Prince and Deputy Prime
Minister MUHAMMAD BIN SALMAN announced that Saudi Arabia intends to list shares
of its state-owned petroleum company, ARAMCO - another move to increase revenue
and outside investment. The government has also looked at privatization and
diversification of the economy more closely in the wake of a diminished oil
market. Historically, Saudi Arabia has focused diversification efforts on power
generation, telecommunications, natural gas exploration, and petrochemical
sectors. More recently, the government has approached investors about expanding
the role of the private sector in the health care, education and tourism industries.
While Saudi Arabia has emphasized their goals of diversification for some time,
current low oil prices may force the government to make more drastic changes
ahead of their long-run timeline.
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Source
: CIA |
SUMMARY
Company Name :
NESMA RECYCLING CO LTD
Country of Origin :
Saudi Arabia
Legal Form :
Limited Liability Partnership
Registration Date :
20th January 2003
Commercial Registration Number :
4030141465, Jeddah
Chamber Membership Number :
97742
Issued Capital :
SR 5,000,000
Paid up Capital :
SR 5,000,000
Total Workforce :
300
Activities :
Recycling of scrap metal and other waste materials
Financial Condition :
Undetermined
Payments :
No Complaints
Person Interviewed :
Majid Aseeri, Administration
Manager
COMPANY
NAME
NESMA RECYCLING CO LTD
ADDRESS
Registered &
Physical Address
Location : Al Nuzha
District
PO Box :
7195 & 54744, Jeddah 21524
Town : Jeddah 21462
Country : Saudi Arabia
Telephone : (966-12) 6581188
/ 6693322 / 6059588 / 6589053 / 6589058 / 6722460
Facsimile : (966-12)
6594848 / 6587306
Mobile :
(966-50) 4601904 / 4401061 / (966-55) 0070033 / (966-58) 3150000
Email :
namawp@nesma.com / f.ansari@nesma.com
Premises
Subject operates from a large suite of offices and a warehouse that are
rented and located in the Suburban Business Area of Jeddah.
Branch Offices
Location Description
Al Hamra District Office premises
Jeddah
Tel: (966-12) 6693322
Fax: (966-12) 6693322
Jeddah Factory
premises
Tel: (966-12) 6378462 / 6081430 / 6369059
KEY
PRINCIPALS
Name Position
Sheikh Saleh Ali Abdulrahman Al Turki Managing
Partner
Layaqat Ali Chief
Executive Officer
Majid Aseeri Administration
Manager
Khalid Takieullah Finance
Manager
Gaffar Ahmed Accountant
Bishrat Ahmed Layaqat Ali Assistant
Administration Manager
LEGAL
FORM & OWNERS
Date of Establishment : 17/11/1423 Hijri
(corresponding to 20th January 2003)
Legal Form : Limited Liability
Partnership
Commercial Reg. No. : 4030141465,
Jeddah
Chamber Member No. : 97742
Issued Capital : SR 5,000,000
Paid up Capital : SR 5,000,000
Name of Partner
(s) Percentage
Nesma Holding Co 90%
PO Box: 7195
Jeddah 21462
Tel: (966-12) 6693322
Fax: (966-12) 6696499
Sheikh Saleh Ali Abdulrahman Al Turki 10%
AFFILIATED
COMPANIES
Subject belongs to
the Nesma group of companies that consists of the following concerns:
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Nesma Shipping
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Nesma Aviation
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Nesma Orbit
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Unitrade
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Al Faris Al Arabi Trading Company
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Nesma Electronics
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Shaheen Arabia Development Co Ltd
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IBS
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Kaefer
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Nesma & Partners
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Nesma Eser Onur
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Nesma Havatek
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Al Faris Food Industries Ltd
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Nesma Batterjee
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Nesma Embroidery
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Nesma Ommat
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Koncar
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Nesma Electric
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Al Bishara
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Nesma Real Estate
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Jollibee
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Nesma Chocolate
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Nesma Markets
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Financial Investments Group
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NDigitec
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Nesma Security
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Nesma Trading
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Pannesma Co Ltd
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Jadarah
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Mihnati
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Nesma Advanced Technology
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Nesma Mahkaa
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Nesma Telecom
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Norconsult
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TCIL
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Bargail
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Istanbul Lines
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Namma Container Lines
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Namma Cargo
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Namma Shipping Lines
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NPS
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Negmar
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Nesma Airlines
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Mawaddah
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Namma Tours
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Nesma Travel
OPERATIONS
Activities: Engaged in the collection and processing of discarded paper, metals and
plastics.
Nesma Recycling provides a comprehensive range of scrap management and technically
advanced scrap handling services for all types of industry accounts throughout
metropolitan Jeddah and the Kingdom of Saudi Arabia. Extensive scrap processing
and preparation is completed at our facility situated near the industrial area
of Jeddah. Nesma Metals Scrap Division buys non-ferrous and ferrous material,
precious metal bearing, used beverage cans (UBC), high temp alloys, and
electronic and composite metal scrap from industrial and manufacturing
companies, recycling centers, and independent scrap dealers. Nesma Recycling
provides a comprehensive range of scrap management and technically advanced
scrap handling services for all types of industry accounts throughout
metropolitan Jeddah and the Kingdom of Saudi Arabia. Extensive scrap processing
and preparation is completed at our facility situated near the industrial area
of Jeddah.
Nesma Waste Paper Division provides a broad range of paper scrap that is
cleanly bailed. This division buys and sells OCC material, double sorted
corrugation, box board products, millboard, over issued news print, tissue
paper, and mixed waste pulp, in addition to other paper products. Paper is
processed at a unit situated near the Petromin area of the city. At this unit
Nesma employs one of the best bailing machines in the Kingdom of Saudi Arabia.
Nesma Plastic Division is a recycling factory situated in the Industrial
Area, Phase 5, in Jeddah. It is here that plastic scrap, as well as rejected
new material, is crushed after sorting and cleaning. After melting at high
temperatures and the formation of the material into small granules, it is then
sold in the local market according to the requirements of our customers. This
division primarily concentrates on light density polyethylene, high-density
polyethylene, and polypropylene plastics.
Nesma Recycling is a member of the Bureau of International Recycling.
Local Suppliers:
Al Quryan Steel
Saudi Cable
Saudi Electricity
Co
Subject has a workforce of approximately 300 employees.
FINANCIAL
DATA
Companies registered in Saudi Arabia are not legally required to make
their accounts public and no financial information was released by the company
or submitted by outside sources.
BANKERS
Arab National Bank (ANB)
Madinah Road
PO Box: 9463
Jeddah 21413
Tel: (966-12) 6600272
Fax: (966-12) 6650202
PAYMENT
HISTORY
No complaints regarding subject’s payments have been reported.
GENERAL
COMMENTS
The subject and its shareholders/owners have been searched in the following
databases; Office of Foreign Assets Control (OFAC), United Nations Security
Council Sanctions, Australian Sanctions List, US Consolidated Sanctions List,
EU Financial Sanctions List and UK Financial Sanctions List and nothing adverse
could be found on the exact names listed within the report.
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 |
INR 65.61 |
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1 |
INR 94.21 |
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Euro |
1 |
INR 81.32 |
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SAR |
1 |
INR 17.52 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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PRA |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
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Company
background and operations size
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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Industry
scenario / competitor analysis
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Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.