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MIRA INFORM REPORT
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Report No. : |
484291 |
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Report Date : |
10.01.2018 |
IDENTIFICATION DETAILS
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Name : |
SAUDI CABLE
COMPANY (SCC) |
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Registered Office : |
Al Hamra District,
Al Musadyah Area, P O Box: 4403 & 2824, Jeddah 21491 |
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Country : |
Saudi Arabia |
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Financials (as on) : |
31.12.2016 |
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Date of Incorporation : |
01.01.1975 |
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Com. Reg. No.: |
4030009931,
Jeddah |
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Legal Form : |
Joint Stock
Company |
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Line of Business : |
Subject’s
operations are performed through the following divisions:
Manufacturers of
electrical wires, power cables (overhead lines, insulated power cables, building
wires and speciality cables), telecom cables, fibre optics, primary and
secondary network cables, copper and aluminium conductors and rods, PVC
compounds, wooden reels and electrical devices.
XE-NYL Plastics
is an operating division of Saudi Cable Company with manufacturing facilities
in Jeddah’s industrial area. Production capacity currently stands at 12,000
tonnes of cable grade PVC compounds per annum, but the plant’s design is such
that this output could be doubled. |
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No. of Employees : |
800 |
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 : |
Slow but Correct |
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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
|
Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
|
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 2016, the Kingdom incurred a budget deficit estimated at 13.6% 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. Plans to cut deficits include introducing a value-added tax and reducing subsidies on electricity, water, and petroleum products. 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 : SAUDI
CABLE COMPANY (SCC)
Country of Origin : Saudi
Arabia
Legal Form :
Joint Stock Company
Registration Date : 1st
January 1975
Commercial
Registration Number :
4030009931, Jeddah
Chamber Membership
Number : 13677
Issued Capital : SR
760,000,000
Paid up Capital : SR
760,000,000
Total Workforce :
800
Activities :
Subject operates several divisions (see below for details)
Financial Condition : Poor
Payments :
Slow but correct
COMPANY
NAME
SAUDI CABLE COMPANY
(SCC)
ADDRESS
Registered & Physical
Address
Location : Al Hamra District, Al Musadyah Area
PO Box : 4403 & 2824
Town : Jeddah 21491
Country : Saudi Arabia
Telephone : (966-12) 6380080 / 6380002 / 6694060
/ 6087666
Facsimile : (966-12) 6379877 / 6354026 / 6352220
/ 6352202 / 6355916 / 6377991
Email : info@saudicable.com
Premises
Subject operates
from a large suite of offices that are rented and located in the Central
Business Area of Jeddah.
Branch Office
(s)
Location Description
·
Industrial
Estate, Phase II Owned
warehouse premises
PO Box: 9903
Jeddah 21491
Tel: (966-12) 6370189 / 6379877
·
Xenel
Building Rented
office premises
Thalateen Street
Olaya
PO Box: 6793
Riyadh 11452
Tel: (966-11) 4649080
Fax: (966-11) 4644148
·
King
Abdulaziz Street, 10th Cross Rented
office premises
PO Box: 2449
Al Khobar 31952
Tel: (966-13) 8947544
Fax: (966-13) 8982991
KEY
PRINCIPALS
Name Position
·
Khalid
Ahmed Yousuf Zainal Alireza Chairman
·
Dion
Metzemaekers Managing
Director
·
Shaukat
Aziz Sheikh Abdulaziz Director
·
Yousif A Alireza Director
·
Adnan A Maimani Director
·
Abdullah H Masri Director
·
Abdullah
M Rehaimi Director
·
Mohamed
Ali Vaid President
·
Talal
Al Shammari Chief
Financial Officer
·
Hesham Ismail Human
Resources Manager
·
Mohammad Talal Himdi Operations
Manager
·
Abdullah
Bukhari Corporate
Affairs Manager
LEGAL
FORM & OWNERS
Date of Establishment : 1st
January 1975
History : Subject was formed in January 1975 and
registered as a Limited Liability Partnership
between the following foreign and Saudi
partners:
-
Chevron Inc (USA)
- NFK
Group (Netherlands)
-
Xenel Industries
- HRH
Prince Badr Bin Abdul Muhsin Bin Abdul Aziz
-
Sheikh Abdul Karim Bakr Ahmed
- Sheikh
Mansour Bin Fahd Al Gheshiyan
- Eng.
Omar Hashim Khalifati
In December 1986, the five local partners bought out Chevron Inc of the
USA and NFK Group of the Netherlands.
In April 1987 the Ministry of Commerce gave its approval for the company
to offer shares to the public and to be converted into a Public Joint Stock
Company. A public flotation was handled by the Saudi Investment Bank and
Consulting Center for Finance and Investment. The issue was SR 134 million
amounting to 725,000 shares priced at SR 184.80 – SR 185.0 each with investors
having to take a minimum of 1,000 shares. The offer date was 10th
November 1987 and the issue was fully subscribed.
Legal Form :
Joint Stock Company
Commercial Reg. No. : 4030009931,
Jeddah
Chamber Member No. : 13677
Issued Capital : SR 760,000,000
Paid up Capital : SR 760,000,000
Name of
Shareholder (s) Percentage
·
Xenel
Industries 16.60%
PO Box: 2824
Jeddah
· HRH Prince Badr
Bin Abdul Muhsin Bin Abdul Aziz ]
]
·
Sheikh
Abdul Karim Bakr Ahmed ]
]
· Sheikh Mansour
Bin Fahd Al Gheshiyan ] 83.40%
]
·
Omar
Hashim Khalifati ]
]
·
Members
of the general public and private investors ]
AFFILIATED
COMPANIES
Subject is a member
of the SCC Group of Companies, which includes the following concerns:
Name Stake
Held
·
Demirer
Kablo Tesisleri Sanayi & Ticaret AS
100.00 %
Tesisleri Ve Ticaret AS
Barrbaros Bulvari 49
Besiktas
Istanbul
Turkey
Tel: (90-1) 1615163
·
Saudi
Cable Company Marketing Co (SCCM)
100.00 %
Madinah Road
Rawdah Area
PO Box: 9903
Jeddah 21423
Saudi Arabia
Tel: (966-12) 6694174
Fax: (966-12) 6695581
·
Mastel
Communication & Information Network Systems Ltd 100.00 %
PO Box: 50808
Jeddah 21533
Tel: (966-12) 6834888
Fax: (966-12) 6621858
·
Mass
Projects Limited
100.00 %
PO Box: 4403
Jeddah 21491
Tel: (966-12) 6652400
·
Mass
Centres Limited
100.00 %
PO Box: 4403
Jeddah 21491
Tel: (966-12) 6600731
Fax: (966-12) 6611607
·
Mass
Holding AS
100.00 %
Turkey
·
Mass
Kablo AS
100.00 %
Turkey
Tel: (90-212) 2615163
Fax: (90-212) 2618486
·
Kavel
Kablo Elektrik Malzamesi AS
100.00 %
Turkey
Tel: (90-212) 2776426
Fax: (90-212) 2778976
·
Mass
International Trading Co
100.00 %
Ireland
·
Mass
International Corp
100.00 %
United States of America
·
Midal
Cables Ltd 50.00 %
PO Box: 5939
Manama
Bahrain
Tel: (973-17) 662050 / 830111
Fax: (973-17) 660259 / 830168
·
Aluminium
Wheel Co 41.20 %
Manama
Bahrain
·
Aluminium
Technic Co 41.20 %
Manama
Bahrain
·
Saudi
Information Development Industries 22.50 %
PO Box: 32411
Jeddah
Tel: (966-12) 6623332
Fax: (966-12) 6827091
·
Alujan
Corp 17.60 %
Jeddah
OPERATIONS
Activities: Subject’s operations are performed through
the following divisions:
- Manufacturing
Division
Manufacturers of electrical wires, power cables (overhead lines,
insulated power cables, building wires and speciality cables), telecom cables, fibre
optics, primary and secondary network cables, copper and aluminium conductors
and rods, PVC compounds, wooden reels and electrical devices. All of subject’s
operations are
ISO 9002 certified.
Subject operates the following
factories:
Power Cable Plant
Industrial Estate, Phase II
PO Box: 4403
Jeddah
Tel: (966-12) 6380080
Copper Rod Plant
Industrial Estate, Phase II
PO Box: 4403
Jeddah
PVC Compounds & Reel Plants
Industrial Estate, Phase II
PO Box: 4403
Jeddah
Tel: (966-12) 6370189 / 6370196
Telecom Cable Plant
Industrial Estate, Phase III
PO Box: 30091
Jeddah 21477
Tel: (966-12) 6376060
Fax: (966-12) 6375462
Production Capacity per Annum
Product Capacity
Copper 26,000
units
Aluminium wires 26,000
units
PVC Compounds 19,000 units
Wooden cable pulleys 62,000
units
Telephone cables 4,500 units
Conductors LV 700 units
Electrical cables 2,900 units
Telecom cables 10,080
units
Hub-Jamshoro Project
This contract was awarded to SCC by the Pakistani government and covered
the linking of the recently built Hub River electrical power generation plant
to Pakistan’s electricity network grid. When completed the project accounted
for 13% of Pakistan’s total electric supply.
- XE-NYL Plastics
XE-NYL Plastics is an operating division of Saudi Cable Company with
manufacturing facilities in Jeddah’s industrial area. Production capacity
currently stands at 12,000 tonnes of cable grade PVC compounds per annum, but
the plant’s design is such that this output could be doubled.
Import
Countries: United States of
America, the Far East, Europe, Russia, Zambia and Iran
International
Suppliers:
·
Memaco
Services Ltd United Kingdom
·
Mare
Rich Ltd United
Kingdom
·
BP
Chemicals Greece
Export Countries: Subject exports products to over 50
countries, particularly the Indian subcontinent, as well as other GCC members
and the Middle East
Subject has a
workforce of approximately 800 employees.
FINANCIAL
DATA
Financial
highlights provided by local sources are given below:
Currency: Saudi
Riyals (SR 000’s)
Balance Sheet
31/12/16 31/12/15
ASSETS
Current assets:
Cash and bank
balances 29,359 60,094
Trade receivables
466,030 521,414
Unbilled revenue 47,218 64,322
Inventories 281,417 331,802
Retentions
receivable - current portion 74,147 88,698
Prepayments and
other current assets 110,763 156,230
Total current assets 1,008,934
1,222,560
Non-current assets:
Investments in securities
661 650
Investments in
equity accounted investees 470,971 469,985
Retentions receivable - non-current portion 51,853 71,988
Investment
properties 28,794 29,757
Property, plant
and equipment 600,641 681,578
Deferred tax
asset 5,568 5,834
Intangible assets
29,150 150,542
Total non-current assets 1,187,638
1,410,334
Total assets 2,196,572
2,632,894
LIABILITIES AND EQUITY
Current liabilities:
Short-term loans 142,522 742,122
Long-term loans -
current portion 265,671 177,209
Obligations under
finance lease – current portion 9,358 9,454
Trade payables 406,865 463,995
Accrued expenses
and other current liabilities 277,874 392,827
Due to related
parties 68,790 62,949
Zakat and
income-tax 91,056 80,191
Total current liabilities 1,262,136
1,928,747
Non-current liabilities:
Long-term loans 594,515 173,472
Obligations under
finance lease 14,871 20,126
Employees’ end of
service benefits 69,686 69,444
Total non-current liabilities 679,072
263,042
Total liabilities 1,941,208
2,191,789
EQUITY
Share capital 760,000 760,000
Statutory reserve
-- 63,432
Fair value
reserve 5,095 (13,694)
Foreign currency translation
reserve (14,348) (9,143)
Accumulated
losses (501,000) (365,644)
Total equity attributable to the shareholders’
of the Parent Company 249,747
434,951
Non-controlling
interests (NCI) 5,617 6,154
Total equity 255,364
441,105
Total liabilities and equity 2,196,572
2,632,894
Profit & Loss Account
Revenue 1,564,555 1,918,059
Costs of revenue (1,488,599) (1,849,654)
Gross profit 75,956
68,405
General and
administrative expenses (129,161) (114,620)
Selling and
distribution expenses (51,924) (55,859)
Loss from operations (105,129)
(102,074)
Financial
charges-net (65,258) (21,733)
Impairment of
intangible assets (111,931) --
Share of profit
from equity accounted investees 42,577 83,763
Other income –
net 51,460 54,778
Net (loss) / income for the year before zakat and
income-tax and non-controlling interests (188,281)
14,734
Zakat and
income-tax (10,952) (13,900)
Net (loss) / income for the year before noncontrolling
Interests (199,233)
834
Non-controlling
interests 445 853
Net (loss) / income for the year attributable to the
company’s shareholders (198,788)
1,687
Local sources
consider subject’s financial condition to be Poor.
BANKERS
·
Riyad
Bank
Prince Fahad Street
PO Box: 9324
Jeddah 21413
Tel: (966-12) 6513333
·
Saudi
British Bank
PO Box: 109
Jeddah 21411
Tel: (966-12) 6512121
·
National
Commercial Bank
Al Balad Branch
King Abdulaziz Street
PO Box: 5066
Jeddah 21422
Tel: (966-12) 6434777
Fax: (966-12) 6441686
PAYMENT
HISTORY
Slow but correct
GENERAL
COMMENTS
Saudi Cable Company
was established in 1975 as a Limited Liability Partnership. It was converted into
a Public Joint Stock Company in 1988 and floated on the Stock Exchange. It is
engaged in the manufacture and supply of electrical and telecommunications
cables, copper rod, PVC compounds, wooden reels and related products.
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 63.47 |
|
|
1 |
INR 86.15 |
|
Euro |
1 |
INR 75.92 |
|
SAR |
1 |
INR 16.97 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
VIV |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
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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 |
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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
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
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.