3decades

MIRA INFORM REPORT

Report No. :	504883
Report Date :	23.04.2018

IDENTIFICATION DETAILS

Name :	ADVANCED CHEMISTRY INDUSTRIAL COMPANY (ACICO)

Registered Office :	6631 Ad Dawadmi Street, Al Mughrizat District, Riyadh 12483-3600

Country :	Saudi Arabia

Date of Incorporation :	20.03.2016

Com. Reg. No.:	1010995693, Riyadh

Legal Form :	Limited Liability Company

Line of Business :	Manufacture and distribution of speciality chemicals, rubber, detergents, water treatment chemicals, mining, foodstuff, cosmetic, oil and gas emulsifiers, polymers, paints, adhesives and ceramic dispersants.

No. of Employees :	30

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

Credit Rating

Explanation

Rating Comments

Medium Risk

Business dealings permissible on a regular monitoring basis

Status :	Moderate

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

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

Saudi Arabia

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
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.

Source : CIA

SUMMARY

Company Name : ADVANCED CHEMISTRY INDUSTRIAL COMPANY (ACICO)

Country of Origin : Saudi Arabia

Legal Form : Limited Liability Company

Registration Date : 20^th March 2016

Commercial Registration Number : 1010995693, Riyadh

Membership Number : 346267

Issued Capital : SR 100,000

Paid up Capital : SR 100,000

Total Workforce : 30

Activities : Manufacture and distribution of speciality chemicals, rubber,

detergents, water treatment chemicals, mining, foodstuff, cosmetic, oil

and gas emulsifiers, polymers, paints, adhesives and ceramic

dispersants

Financial Condition : Undetermined

Payments : No Complaints

COMPANY NAME

ADVANCED CHEMISTRY INDUSTRIAL COMPANY (ACICO)

ADDRESS

Registered & Physical Address

Street : 6631 Ad Dawadmi Street

Area : Al Mughrizat District

Town : Riyadh 12483-3600

Country : Saudi Arabia

Telephone : (966-11) 4513646

Mobile : (966-50) 3338866

Email : info@acico.sa

Premises

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

KEY PRINCIPALS

Name Position

· Abdulrahman Ahmed Al Ghamdi Managing Director

LEGAL FORM & OWNERS

Date of Establishment : 20^th March 2016

Legal Form : Limited Liability Company

Commercial Reg. No. : 1010995693, Riyadh

Membership No. : 346267

Issued Capital : SR 100,000

Paid up Capital : SR 100,000

Name of Shareholder (s)

· Abdulrahman Ahmed Al Ghamdi

OPERATIONS

Activities: Engaged in the manufacture and distribution of speciality chemicals, rubber, detergents, water treatment chemicals, mining, foodstuff, cosmetic, oil and gas emulsifiers, polymers, paints, adhesives and ceramic dispersants.

In 2017 the subject’s Sudair factory was fully constructed and started-up producing many specialty chemicals supporting local and regional markets.

Subject has a workforce of 30 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)

King Faisal Street

PO Box: 56921

Riyadh 11564

Tel: (966-11) 4029000

Fax: (966-11) 4027747

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

GENERAL COMMENTS

Please note that we were unable to contact the subject directly during our investigation.

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	INR 66.02
UK Pound	1	INR 92.73
Euro	1	INR 81.46
SAR	1	INR 17.70

Note: Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	PRA

Report Prepared by :	NIT

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
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

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.