|
|
|
MIRA INFORM REPORT
|
Report No. : |
485526 |
|
Report Date : |
12.01.2018 |
IDENTIFICATION DETAILS
|
Name : |
AL KHORAYEF
INDUSTRIES CO LTD |
|
|
|
|
Registered Office : |
New Al Kharj Road,
Street No. 5602, Exit 15, Second Industrial City, Zone C, P O Box; 42852,
Riyadh 11551 |
|
|
|
|
Country : |
Saudi Arabia |
|
|
|
|
Financials (as on) : |
31.12.2017 |
|
|
|
|
Year of Establishment : |
1980 |
|
|
|
|
Com. Reg. No.: |
1010061089, Riyadh |
|
|
|
|
Legal Form : |
Limited Liability
Partnership |
|
|
|
|
Line of Business : |
Subject is
engaged in the production and marketing of agricultural systems, water pumps,
electrical resistance pipes as well as gear drives. Subject are licensed manufacturers
for Western Layne products of the USA. |
|
|
|
|
No. of Employees : |
800 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A+ |
|
Credit Rating |
Explanation |
Rating Comments |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
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 |
|
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 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.
|
Source
: CIA |
SUMMARY
Company Name : AL
KHORAYEF INDUSTRIES CO LTD
Country of Origin : Saudi
Arabia
Legal Form : Limited
Liability Partnership
Registration Date : 1980
Commercial
Registration Number :
1010061089, Riyadh
Chamber Membership
Number : 3460
Issued Capital : SR
120,000,000
Paid up Capital : SR
120,000,000
Total Workforce :
800
Activities :
Production and marketing of agricultural systems and water pumps
Financial Condition : Good
Payments :
Regular
Operating Trend : Steady
COMPANY
NAME
AL KHORAYEF
INDUSTRIES CO LTD
ADDRESS
Registered & Physical
Address
Street : New Al Kharj Road, Street No.
5602, Exit 15
Area : Second Industrial City, Zone
C
PO Box : 42852
Town : Riyadh 11551
Country : Saudi Arabia
Telephone : (966-11) 2652057 (ext 339 / 243 and
230) / 2651124 / 4955452
Facsimile : (966-11) 2652348
Mobile : (966-55) 4421529
Email : factory@khorayef.com
Premises
Subject operates
from a large suite of offices a warehouse and a factory that are owned and
located in the Industrial Area of Riyadh.
KEY
PRINCIPALS
Name Position
·
Mohamed
Abdullah Ibrahim Al Khorayef General
Manager
·
Abdullah
Ibrahim Al Khorayef Chief
Executive Officer
·
Mohamed
Al Bakri Accounts
Manager
·
Shady
Sabah Operations
Manager
·
Khalid
Shalaby Marketing
Manager
·
Mohamed
Amin Technical
Manager
·
Abdul
Raziq Mohamed Sulaiman Administration
Manager
LEGAL
FORM & OWNERS
Date of Establishment : 1980
History : In January 2001 the activities of “Al
Khorayef Western Laying Pumps Co Ltd” were merged with those of “Al Khorayef
Irrigation Systems Co Ld” and the new entity was registered under the name of
“Al Khorayef Industries Co Ltd”.
Legal Form :
Limited Liability
Partnership
Commercial Reg. No. : 1010061089,
Riyadh
Chamber Member No. : 3460
Issued Capital : SR 120,000,000
Paid up Capital : SR 120,000,000
Name of Partner (s) Percentage
·
Al
Khorayef Group Co Ltd (AGC) 90%
Riyadh
·
Al
Khorayef International Co (AKI) 10%
Riyadh
AFFILIATED
COMPANIES
Subject is a member of the Al Khorayef Group of Companies, which
consists of the following concerns :
·
Al
Khorayef Operations & Maintenance Co Ltd
PO Box : 305
Riyadh 11411
Tel : (966-11) 4351479 / 4351480
·
Al
Khorayef Agricultural Projects Co
PO Box : 53390
Riyadh 11583
Tel : (966-11) 4351479
·
Al
Khorayef Medical Co
PO Box : 60537
Riyadh 11551
Tel : (966-11) 4358424
Fax : (966-11) 4357369
·
Saudi
Steel Company Ltd
Abqaiq Road
Second Industrial Estate
PO Box : 546
Dammam 31932
Tel : (966-13) 8421563
Fax : (966-13) 8430582
·
Al
Khorayef Sons Co Ltd
Imam Mohamed Bin Saud Street
PO Box : 305
Riyadh 11411
Tel : (966-11) 4351479
·
Al
Khorayef Hankook Ltd
Riyadh
·
Saudi
Parts Centre Co Ltd
Al Kharj Road
2nd Industrial City
Riyadh
Tel : (966-11) 4950917 / 4953620
Fax : (966-11) 4953351
·
Saudi
Instalment House
PO Box : 18331
Riyadh
Tel : (966-11) 4628402
·
Trans
Orient Modern Machinery Company Ltd
PO Box : 4605
Riyadh
Tel : (966-11) 4768257
Fax : (966-11) 4775439
·
Al
Nakhil Paper Industries Company Ltd
PO Box : 42852
Riyadh
Tel : (966-11) 4953967
·
Al
Khorayef Management Services
World Trade Centre, 5th Floor
PO Box : 57714
Riyadh
Tel : (966-11) 4657030
·
ARAC
Health Care Company
PO Box : 60537
Riyadh
Tel : (966-11) 4358424
Fax : (966-11) 4357369
OPERATIONS
Activities: Engaged in the production and marketing of
agricultural systems, water pumps, electrical resistance pipes as well as gear
drives. Subject are licensed manufacturers for Western Layne products of the
USA.
Import
Countries: United Kingdom,
Spain, Germany and the United States of America
Brand Names: KHORAYEF PUMPS
Operating Trend: Steady
Subject has a
workforce of approximately 800 employees.
FINANCIAL
DATA
Financial
highlights provided by local sources are given below:
Currency: Saudi
Riyals (SR)
Year Ending 31/12/16: Year Ending 31/12/17:
Total Sales SR 264,000,000 SR 270,000,000
Local sources
consider subject’s financial condition to be Good.
The above financial
figures are based on estimations by our local sources.
BANKERS
·
Saudi
American Bank
PO Box: 833
Riyadh 11471
Tel: (966-11) 4774770
·
Al Bank Al Saudi Al Fransi
Mather Road
PO Box: 56006
Riyadh 11554
Tel: (966-11) 4042222
Fax: (966-11) 4042311
·
National
Commercial Bank
Airport Road
PO Box: 2800
Riyadh 11461
Tel: (966-11) 4772281
Fax: (966-11) 4730322
·
Riyad
Bank
King Abdul Aziz Road
PO Box: 22622
Riyadh 11416
Tel: (966-11) 4122243
Fax: (966-11) 4013030
PAYMENT
HISTORY
Subject’s payments have
been reported to be regular
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 63.74 |
|
|
1 |
INR 86.01 |
|
Euro |
1 |
INR 76.14 |
|
SAR |
1 |
INR 16.95 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
VIV |
|
|
|
|
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)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.