MIRA INFORM REPORT

Report No. :	505287
Report Date :	03.05.2018

IDENTIFICATION DETAILS

Name :	GLOBAL COMPANY FOR CHEMICAL INDUSTRIES (GCI)
Registered Office :	Road 148, Al Jubail Industrial City, Secondary Industrial Area, Section K, Jubail 31961
Country :	Saudi Arabia
Financials (as on) :	31.12.2017
Year of Establishment :	2015
Com. Reg. No.:	2055025116, Jubail
Legal Form :	Limited Liability Company
Line of Business :	Manufacture of Phosphate Fertilizer Production Additives and Crude Anisole Derivatives.
No. of Employees :	70

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	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 (30.09.2017)	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 : GLOBAL COMPANY FOR CHEMICAL INDUSTRIES (GCI)

Country of Origin : Saudi Arabia

Legal Form : Limited Liability Company

Registration Date : 2015

Commercial Registration Number : 2055025116, Jubail

Issued Capital : SR 10,000,000

Paid up Capital : SR 10,000,000

Total Workforce : 70

Activities : Manufacture of phosphate fertilizer production additives and crude

anisole derivative

Financial Condition : Fair

Payments : No Complaints

Operating Trend : Steady

COMPANY NAME

GLOBAL COMPANY FOR CHEMICAL INDUSTRIES (GCI)

ADDRESS

Registered & Physical Address

Street : Road 148

Area : Al Jubail Industrial City, Secondary Industrial Area, Section K

Town : Jubail 31961

Country : Saudi Arabia

Telephone : (966-13) 3403200 / 3403060 (ext 129)

Facsimile : (966-13) 4640941

Mobile : (966-50) 2052496

Email : haleid@gciksa.com / info@gciksa.com

Premises

Subject operates from a medium sized suite of offices and a factory that are rented and located in the Industrial Area of Jubail.

KEY PRINCIPALS

Name Position

· Haid Al Kanani General Manager

· Ali Emarah Accounts Manager

LEGAL FORM & OWNERS

Date of Establishment : 2015

Legal Form : Limited Liability Company

Commercial Reg. No. : 2055025116, Jubail

Issued Capital : SR 10,000,000

Paid up Capital : SR 10,000,000

Name of Partner (s) Percentage

· Global Company for Downstream Industries (GDI) 100%

Tawaren Center Office VIP I, Building No. 6846

King Fahad Road, Corner Tahaliya Street

Olaya District

Riyadh 12331

Tel: (966-11) 2013711

Fax: (966-11) 2174373

OPERATIONS

Activities: Engaged in the manufacture of phosphate fertilizer production additives and crude anisole derivatives.

Operating Trend: Steady

Subject has a workforce of 70 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 12,500,000 SR 17,000,000

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

The above financial figures are based on estimations by our local sources.

BANKERS

· National Commercial Bank

PO Box: 58

Jubail 51951

Tel: (966-13) 3612896

Fax: (966-13) 3611750

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

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 66.66
UK Pound	1	INR 90.66
Euro	1	INR 80.01
SAR	1	INR 17.78

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

INFORMATION DETAILS

Analysis Done by :	DIV
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)

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.