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MIRA INFORM REPORT
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Report No. : |
488680 |
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Report Date : |
27.01.2018 |
IDENTIFICATION DETAILS
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Name : |
SALEH ABDULAZIZ BABAKER AND SONS COMPANY |
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Registered Office : |
Najran Street, Al Shifa Al District, PO Box 20561, Riyadh 11465 |
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Country : |
Saudi Arabia |
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Financials (as on) : |
31.12.2016 |
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Date of Incorporation : |
23.11.1959 |
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Com. Reg. No.: |
1010001622, Riyadh |
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Legal Form : |
Limited Liability Partnership |
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Line of Business : |
Subject is engaged in the import and distribution of rice. |
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No. of Employees : |
100 |
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 (30.06.2017) |
Current Rating (30.09.2017) |
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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 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 :
SALEH ABDULAZIZ BABAKER AND SONS COMPANY
Also Known As :
SALEH ABDULAZIZ BABAKER SONS TRADING & AGENCIES
COMPANY
Country of Origin :
Saudi Arabia
Legal Form :
Limited Liability Partnership
Registration Date :
23rd November 1959
Commercial Registration Number :
1010001622, Riyadh
Chamber Membership Number :
2214
Issued Capital :
SR 1,000,000
Paid up Capital :
SR 1,000,000
Total Workforce : 100
Activities :
Distributors of rice
Financial Condition :
Fair
Payments :
No Complaints
Operating Trend :
Steady
COMPANY
NAME
SALEH ABDULAZIZ BABAKER AND SONS COMPANY
ALSO
KNOWN AS
SALEH ABDULAZIZ BABAKER SONS TRADING & AGENCIES COMPANY
ADDRESS
Registered &
Physical Address
Street : Najran
Street
Area :
Al Shifa Al District
PO Box :
20561
Town : Riyadh 11465
Country : Saudi Arabia
Telephone : (966-11)
4228472 / 4229770
Facsimile : (966-11)
4228498
Mobile : (966-50) 4131388
/ (966-55) 8393939
Email : babakersons@babaker.com
Premises
Subject operates from a medium sized suite of offices that are rented
and located in the Central Business Area of Riyadh.
Branch Offices
Subject has branch offices located in Jeddah, Dammam, Khamis Mushait and
Al Qassim.
KEY
PRINCIPALS
Name Position
Omar Saleh Abdulaziz Babaker Managing
Partner
Saeed Saleh Abdulaziz Babaker Partner
Saleh Omar Saleh Abdulaziz Babaker Finance Manager
Khalid Ahmed Financial
Controller
Abdul Qader Mohamed Commercial
Manager
Ibrahim Ali Administration
Manager
LEGAL
FORM & OWNERS
Date of Establishment : 22/05/1379 Hijri
(corresponding to 23rd November 1959)
Legal Form : Limited Liability
Partnership
Commercial Reg. No. : 1010001622,
Riyadh
Chamber Member No. : 2214
Issued Capital : SR 1,000,000
Paid up Capital : SR 1,000,000
Name of Partner
(s)
Omar Saleh Abdulaziz Babaker
Saeed Saleh Abdulaziz Babaker
OPERATIONS
Activities: Engaged in the import and distribution of rice.
Import Countries: Europe and India
International
Suppliers:
Koohinoor Rice India
Best Food India
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 31/12/15: Year Ending
31/12/16:
Total Sales SR
80,000,000 SR
82,300,000
Local sources consider subject’s financial condition to be Fair.
The above financial figures are based on estimations by our local
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 the correct name of the subject is “Saleh Abdulaziz
Babaker and Sons Company” and not “Saleh A Babaker Sons Co”.
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 63.64 |
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1 |
INR 89.32 |
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Euro |
1 |
INR 78.45 |
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SAR |
1 |
INR 16.95 |
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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NIS |
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Report Prepared
by : |
SYL |
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.