3decades

MIRA INFORM REPORT

Report No. :	487950
Report Date :	29.01.2018

IDENTIFICATION DETAILS

Name :	THE INTERNATIONAL COMPANY FOR BUILDING MATERIALS LTD (BINEX)

Registered Office :	Hail Street Ruwais District, PO 2194 Jeddah

Country :	Saudi Arabia

Date of Incorporation :	10.08.1978

Com. Reg. No.:	4030016097, Al Khobar

Legal Form :	Limited Liability Company

Line of Business :	Engaged in the import and distribution of building materials, construction chemicals, ceramic tiles, sanitaryware, hardware and basic steel products. Subject also provides engineering, installation, maintenance, after-sales, repair and delivery services.

No. of Employees :	320

RATING & COMMENTS

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

MIRA’s Rating :

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Satisfactory

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

(30.06.2017)

Current Rating

(30.09.2017)

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 : THE INTERNATIONAL COMPANY FOR BUILDING MATERIALS LTD (BINEX)

Country of Origin : Saudi Arabia

Legal Form : Limited Liability Company

Registration Date : 10^th August 1978

Commercial Registration Number : 4030016097, Al Khobar

Issued Capital : SR 1,000,000

Paid up Capital : SR 1,000,000
Total Workforce : 320

Activities : Distributors of building materials, construction chemicals, ceramic tiles, sanitary ware, hardware and basic steel products

Financial Condition : Undetermined

Payments : No Complaints

Company name and address

COMPANY NAME: THE INTERNATIONAL COMPANY FOR BUILDING MATERIALS LTD (BINEX)

ADDRESS

Registered Address

Street : Hail Street

Area : Ruwais District

PO Box : 2194

Town : Jeddah

Country : Saudi Arabia

Telephone : (966-12) 6202400

Facsimile : (966-12) 6203803

Email : info@binex.com.sa

Physical Address

Location : Al Khobar - Dammam Highway

PO Box : 2194

Town : Al Khobar 31952

Country : Saudi Arabia

Telephone : (966-13) 8823030

Facsimile : (966-13) 8828240 / 8826816

Email : president@binex.com.sa / vp@binex.com.sa

Premises

Subject operates from a large suite of offices and a warehouse that are rented and located in the Central Business Area of Al Khobar.

Branch Offices

Location Distribution

Al Qandeel Street Showroom premises

Jeddah

Tel: (966-12) 2611840

Fax: (966-12) 2611841

Takhassusi Street Showroom premises

Riyadh

Tel: (966-11) 4629084

Fax: (966-11) 4646015

Old Makkah Road, Kilo 10 Office premises

Jeddah

Tel: (966-12) 6202400

Fax: (966-12) 6203803

Amir Salman Street Office premises

Faisaliyah District

Riyadh

Tel: (966-11) 2414145

Fax: (966-11) 2422856

Subject also has branch offices located in Al Jubail, Yanbu, Medina, Dammam and Mubraz.

KEY PRINCIPALS

Name Position

Mohamed Ahmed Yousuf Zainal Alireza Managing Director

Yousuf Ahmed Yousuf Zainal Alireza Director

LEGAL FORM & OWNERS

Date of Establishment : 10^th August 1978

Legal Form : Limited Liability Company

Commercial Reg. No. : 4030016097, Jeddah

Issued Capital : SR 1,000,000

Paid up Capital : SR 1,000,000

Name of Shareholder (s)

Xenel Marketing Ltd

Arabian Bulk Trade Limited

OPERATIONS

Activities: Engaged in the import and distribution of building materials, construction chemicals, ceramic tiles, sanitary

ware, hardware and basic steel products. Subject also provides engineering, installation, maintenance,

after-sales, repair and delivery services.

Import Countries: United Kingdom and China.

International Suppliers:

Sika

Laticrete

Catnic

USG

Primaboard

Eron

RFT

I Maskayo

Clients:

Saudi Aramco

J & P

El Seif Engineering Contracting

Saad Trading & Contracting

Saudi Archirodon Ltd

Subject has a workforce of approximately 320 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

Saudi British Bank

UCA Building

PO Box: 109

Jeddah

Tel: (966-12) 6601028

Saudi American Bank

Andalous Street

PO Box: 490

Jeddah 21411

Tel: (966-12) 6533555

National Commercial Bank

King Abdul Aziz Street

PO Box: 3555

Jeddah 21481

Tel: (966-12) 6446644

Fax: (966-12) 6446644

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

GENERAL COMMENTS

Please note that subject’s registered address is located in Jeddah where it is registered under the number 4030016097. Its physical address in Al Khobar is registered under the number 2051007711.

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.

Local sources report that payment obligations are met in a generally timely manner and the operating history is clear. As such the company is deemed a fair trade risk and the above credit figure is considered to be within subject’s financial means.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.50
UK Pound	1	INR 90.92
Euro	1	INR 79.07
SAR	1	INR 16.97

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

INFORMATION DETAILS

Analysis Done by :	PRA

Report Prepared by :	DNS

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.