MIRA INFORM REPORT

Report No. :	495571
Report Date :	07.03.2018

IDENTIFICATION DETAILS

Name :	SAUDI MODERN COMPANY FOR METALS CABLES AND PLASTIC INDUSTRY (RIYADH CABLES & METALS)
Registered Office :	Al Kharj Road 2^nd Industrial Area, Zone D PO Box 26862 Riyadh 11496
Country :	Saudi Arabia
Financials (as on) :	31.12.2017
Date of Incorporation :	16.01.1991
Com. Reg. No.:	1010081709
Legal Form :	Limited Liability Partnership
Line of Business :	Al Kharj Road 2^nd Industrial Area, Zone D PO Box 26862 Riyadh 11496
No. of Employees :	1,875

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd 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 (30.09.2017)	Current Rating (31.12.2017)
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 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 : SAUDI MODERN COMPANY FOR METALS CABLES AND PLASTIC

INDUSTRY (RIYADH CABLES & METALS)

Country of Origin : Saudi Arabia

Legal Form : Limited Liability Partnership

Registration Date : 16^th January 1991

Commercial Registration Number : 1010081709, Riyadh

Chamber Membership Number : 17534

Issued Capital : SR 100,100,000

Paid up Capital : SR 100,100,000

Total Workforce : 1,875

Activities : Manufacturers of metal and plastic cables

Financial Condition : Good

Payments : Regular

Person Interviewed : Javid Rashid, Finance Manager

COMPANY NAME

SAUDI MODERN COMPANY FOR METALS CABLES AND PLASTIC INDUSTRY (RIYADH CABLES & METALS)

ADDRESS

Registered & Physical Address

Street : Al Kharj Road

Area : 2^nd Industrial Area, Zone D

PO Box : 26862

Town : Riyadh 11496

Country : Saudi Arabia

Telephone : (966-11) 2650850 / 2651415

Facsimile : (966-11) 2651423 / 2650942

Email : info@riyadh-cable.com / rcgc@riyadh-cables.com

Premises

Subject operates from a large suite of offices and a factory that are owned and located in the Industrial Area of Riyadh.

KEY PRINCIPALS

Name Position

· Ahmed Thamer Zain Managing Director

· Abdullah Al Qahtani Commercial Manager

· Adeeb Al Mohiny Marketing Manager

· Javid Rashid Finance Manager

· Muneer Al Abbasi Public Relations Manager

LEGAL FORM & OWNERS

Date of Establishment : 29/06/1411 Hijri (corresponding to 16^th January 1991)

Legal Form : Limited Liability Company

Commercial Reg. No. : 1010081709, Riyadh

Chamber Member No. : 17534

Issued Capital : SR 100,100,000

Paid up Capital : SR 100,100,000

Name of Partner (s) Percentage

· Riyadh Cable Group 99.9%

Riyadh

· Saudi Modern Company for Special Electric Wire & Cables Industry Ltd ]

Al Kharj Second Industrial Area ]

PO Box: 26862 ]

Riyadh 11496 ]

Tel: (966-11) 4984267 ]

Fax: (966-11) 4981423 ]

CR No. 1010106953 ]

] 0.1%

· Saudi Modern Company for Telephone Cables Industry Ltd ]

Al Kharj Second Industrial Area ]

PO Box: 26862 ]

Riyadh 11496 ]

Tel: (966-11) 4984267 ]

Fax: (966-11) 4981423 ]

CR No. 1010107248 ]

AFFILIATED COMPANIES

· Saudi Modern Co for Cable Industry

1^st Industrial Area

PO Box: 26862

Riyadh 11496

Tel: (966-11) 2650850 / 2651415

Fax: (966-11) 2651423 / 2650942

CR No. 1010052927

OPERATIONS

Activities: Engaged in the manufacture of metal and plastic cables.

Import Countries: United Kingdom, Austria, France, Belgium and Turkey

Subject has a workforce of approximately 1,875 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: Saudi Riyals (SR)

Year Ending 31/12/17:

Total Sales SR 1,600,000,000

Local sources consider subject’s financial condition to be Good.

The above figures were provided by Mr Javid Rashid, Finance Manager

BANKERS

· United Saudi Commercial Bank

Malaz Branch

PO Box: 2804

Riyadh 11461

Tel: (966-11) 4772033

Fax: (966-11) 4773709

· Saudi American Bank

PO Box: 833

Riyadh 11471

Tel: (966-11) 4774770

· Saudi British Bank

King Faisal Street

PO Box: 43069

Riyadh 11561

Tel: (966-11) 4043196

PAYMENT HISTORY

Regular

GENERAL COMMENTS

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 64.99
UK Pound	1	INR 89.91
Euro	1	INR 80.21
SAR	1	INR 17.30

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

INFORMATION DETAILS

Analysis Done by :	PRA
Report Prepared by :	TRU

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)

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