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MIRA INFORM REPORT
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Report No. : |
496961 |
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Report Date : |
14.03.2018 |
IDENTIFICATION DETAILS
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Name : |
AL ABDULLATIF INDUSTRIAL INVESTMENT CO |
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Registered Office : |
Al Kharj Road, Second Industrial City, PO Box 859, Riyadh 11421 |
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Country : |
Saudi Arabia |
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Financials (as on) : |
31.12.2016 |
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Date of Incorporation : |
22.05.1981 |
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Com. Reg. No.: |
1010073685, Riyadh |
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Legal Form : |
Joint Stock Company |
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Line of Business : |
Subject is a fully integrated industrial textiles company specializing
in spinning, weaving and colouring of synthetic and natural fibres being used
in the production of blankets, rugs, carpets, backings and a wide variety of
yarns. |
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No. of Employees : |
3,800 |
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+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 (30.09.2017) |
Current Rating (31.12.2017) |
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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 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.
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Source
: CIA |
SUMMARY
Company Name :
AL ABDULLATIF INDUSTRIAL INVESTMENT CO
Trading As :
AL ABDULLATIF
Country of Origin :
Saudi Arabia
Legal Form :
Joint Stock Company
Registration Date :
22nd May 1981
Commercial Registration Number :
1010073685, Riyadh
Membership Number :
20872
Issued Capital :
SR 812,500,000
Paid up Capital :
SR 812,500,000
Total Workforce :
3,800
Activities :
Manufacture of textiles
Financial Condition :
Good
Payments :
Regular
Operating Trend :
Steady
COMPANY
NAME
AL ABDULLATIF INDUSTRIAL INVESTMENT CO
TRADING
AS
AL ABDULLATIF
ADDRESS
Registered &
Physical Address
Street : Al Kharj
Road
Area : Second
Industrial City
PO Box : 859
Town : Riyadh 11421
Country : Saudi Arabia
Telephone : (966-11)
2652200 / 2658888 / 2652011
Facsimile : (966-11)
2659999
Email : info@carpets.com
/ saad@carpets.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 Nationality Position
Sulaiman Omar Al Abdullatif Saudi Chairman
Abdullatif Omar Al Abdullatif Saudi Managing
Director
Fahad Omar Al Abdullatif Saudi Director
Abdulaziz Abdullatif Dulijan
Saudi Director
Fawzy Ayoub Mustafa Sabri Saudi Director
Majed Abdullrahman Nasir Al Osailan Saudi Director
Hisham Abdullrahman Abdullaziz Al Asker Saudi Director
Saad Al Qarni - General
Manager
LEGAL
FORM & OWNERS
Date of Establishment : 22nd
May 1981
Legal Form : Joint Stock
Company
Commercial Reg. No. : 1010073685,
Riyadh
Membership No. : 20872
Issued Capital : SR 812,500,000
Paid up Capital : SR 812,500,000
Name of
Shareholder (s) Percentage
Al Abdullatif Group Holding Co 60%
Omar S S Al Abdullatif 6%
Members of the general public & private investors 34%
AFFILIATED
COMPANIES
Name Nationality
Eastern Textile Co 100%
Western Textile Co 100%
Nadeen Arabian Co 100%
National Spinning Co 100%
Shahad Paper Tube Factory 100%
Ritaj Al Waseel Co 100%
Al Abdullatif Training Co 100%
Adfa Blanket Co 100%
First Carpet Company 100%
OPERATIONS
Activities: Subject is a fully integrated industrial textiles company specializing
in spinning, weaving and colouring of synthetic and natural fibres being used
in the production of blankets, rugs, carpets, backings and a wide variety of
yarns.
Import Countries: Europe and Asia.
Operating Trend: Steady
Subject has a workforce of approximately 3,800 employees.
FINANCIAL
DATA
Financial
highlights provided by local sources are given below:
Currency: Saudi
Riyals (SR 000’s)
Balance Sheet
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31/12/16 |
31/12/15 |
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Assets |
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Current assets |
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Bank balances and cash |
65,434 |
71,636 |
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Current investments |
62,000 |
0 |
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Trade accounts receivable, net |
392,148 |
489,511 |
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Inventories |
385,905 |
467,837 |
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Other receivables |
0 |
49,917 |
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Prepayments |
10,387 |
13,309 |
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Due from related parties |
21,711 |
14,992 |
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Total current assets |
937,585 |
1,107,202 |
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Non-current assets |
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Financial investments and assets |
125,562 |
125,563 |
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Investments accounted for under equity
method |
12,941 |
40,175 |
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Fixed assets, net |
481,511 |
521,599 |
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Deferred charges |
1,350 |
4,793 |
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Total non-current assets |
621,364 |
692,130 |
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Total assets |
1,558,949 |
1,799,332 |
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Equity and liabilities |
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Liabilities |
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Current liabilities |
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Short term borrowings |
283,128 |
495,532 |
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Trade accounts payables |
19,240 |
22,846 |
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Accrued expenses |
12,254 |
16,545 |
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Zakat and income tax payable |
15,737 |
16,197 |
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Total current liabilities |
330,359 |
551,120 |
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Non-current liabilities |
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Employee end of service benefits |
3,950 |
6,546 |
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Total non-current liabilities |
3,950 |
6,546 |
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Total liabilities |
334,309 |
557,666 |
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Shareholder's equity |
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Share capital |
812,500 |
812,500 |
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Statutory reserve |
237,105 |
236,370 |
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Proposed dividend |
0 |
24,375 |
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Retained earnings (accumulated losses) |
175,035 |
168,421 |
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Total shareholders' equity |
1,224,640 |
1,241,666 |
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Total equity |
1,224,640 |
1,241,666 |
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Total equity and liabilities |
1,558,949 |
1,799,332 |
Statement of Income
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31/12/16 |
31/12/15 |
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Sales |
745,120 |
1,099,320 |
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Cost of sales |
575,086 |
824,977 |
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Gross profit (loss) |
170,034 |
274,343 |
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Operating expenses |
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Selling and distribution expenses |
21,036 |
28,916 |
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General and administrative expenses |
22,069 |
19,510 |
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Depreciation and amortization expenses |
63,935 |
66,502 |
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Total operating expenses |
107,040 |
114,928 |
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Net operating income loss from main
operations |
62,994 |
159,415 |
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Other income and expenses |
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Share of income (loss) of investments
accounted under equity method |
-3,913 |
-1,811 |
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Gain (loss) on sale of fixed assets |
113 |
1,700 |
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Losses from permanent decline in investment
value |
23,322 |
0 |
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Other (incomes) expenses, net |
2,400 |
4,225 |
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Total other income and expense, net |
29,522 |
4,336 |
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Total income (loss) from continuing
operations |
33,472 |
155,079 |
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Net income (loss) before extraordinary
items |
33,472 |
155,079 |
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Income (loss) from extraordinary items |
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Other extraordinary gains (losses), net |
-10,105 |
0 |
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Total income (loss) from extraordinary
items |
-10,105 |
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Net income (loss), before subsidies, zakat
and income tax expense |
23,367 |
155,079 |
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Net income (loss), before zakat and income
tax expense |
23,367 |
155,079 |
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Zakat |
16,018 |
15,800 |
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Net income (loss), before minority share in
subsidiaries |
7,349 |
139,279 |
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Net income (loss) |
7,349 |
139,279 |
Local sources consider subject’s financial condition to be Good.
BANKERS
Riyad Bank
King Abdul Aziz Road
PO Box: 22622
Riyadh 11416
Tel: (966-11) 4122243
Fax: (966-11) 4013030
National Commercial Bank
King Abdulaziz Street
PO Box: 3555
Jeddah 21481
Saudi British Bank
PO Box: 9804
Riyadh
PAYMENT
HISTORY
Regular
GENERAL
COMMENTS
Al Abdullatif Industrial Investment Co was established in 1981 and is
one of the largest companies of its kind in the Middle East and Africa. It is a
fully integrated industrial textiles company specializing in spinning, weaving
and colouring of synthetic and natural fibres.
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 64.95 |
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1 |
INR 90.23 |
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Euro |
1 |
INR 80.09 |
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SAR |
1 |
INR 17.31 |
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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DIV |
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Report Prepared
by : |
TPT |
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
·
Company
background and operations size
·
Promoters
/ Management background
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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.