3decades

MIRA INFORM REPORT

Report No. :	510092
Report Date :	23.05.2018

IDENTIFICATION DETAILS

Name :	ASTRA INDUSTRIAL COMPLEX FOR FERTILIZER & AGROCHEMICALS LTD (ASTRACHEM)

Registered Office :	2^nd Industrial City, P O Box: 30477, Al Khobar 31952

Country :	Saudi Arabia

Financials (as on) :	31.12.2017

Date of Incorporation :	18.07.1416 Hijri (Corresponding to 10.12.1995)

Com. Reg. No.:	2050030737, Al Khobar

Legal Form :	Limited Liability Partnership

Line of Business :	Subject is engaged in the production, formulating and marketing of agrochemicals products, specialising in pesticides (insecticides, fungicides, herbicides, acaricides, rodenticides and public health pesticides) as well as fertilizers in liquid, suspension and powder forms

No. of Employees :	180

RATING & COMMENTS

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

MIRA’s Rating :

Credit Rating

Explanation

Rating Comments

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

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. Approximately 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.

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 recently introduced a value-added tax of 5%. 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 : ASTRA INDUSTRIAL COMPLEX FOR FERTILIZER &

AGROCHEMICALS LTD (ASTRACHEM)

Country of Origin : Saudi Arabia

Legal Form : Limited Liability Partnership

Registration Date : 10^th December 1995

Commercial Registration Number : 2050030737, Al Khobar

Chamber Membership Number : 1807

Issued Capital : SR 68,000,000

Paid up Capital : SR 68,000,000

Total Workforce : 180

Activities : Production, formulating and marketing of agrochemicals products

Financial Condition : Fair

Payments : No Complaints

Operating Trend : Steady

COMPANY NAME

ASTRA INDUSTRIAL COMPLEX FOR FERTILIZER & AGROCHEMICALS LTD (ASTRACHEM)

ADDRESS

Registered & Physical Address

Location : 2^nd Industrial City

PO Box : 30477

Town : Al Khobar 31952

Country : Saudi Arabia

Telephone : (966-13) 8121406 / 8121464 / 8121494

Facsimile : (966-13) 8121347

Mobile : (966-50) 1329311

Email : info@astra-agri.com.sa / astrachem@nournet.com / astrachem@astrachem.com.sa

Premises

Subject operates from a suite of offices and a factory, covering 20,000 square metres that are owned and located in the Industrial Area of Al Khobar.

Branch Office (s)

Location Description

· Sitteen Street Office premises

Al Malaz

PO Box: 54061

Riyadh 11514

Tel: (966-11) 4772346 / 4771488 / 4731130

Fax: (966-11) 4782102

Subject operates a network of distribution outlets located throughout Saudi Arabia, including Jeddah, Buraidah, Hayel, Najran and Khamis Mushait.

KEY PRINCIPALS

Name Position

· Subaih Taher Darwish El Masry Managing Partner

· Khalid Subaih Taher Darwish El Masry Partner

· Emad Al Sahili Chief Executive Officer

· Ahmed Halawa Finance Manager

· Bilal Al Zobi Production Manager

· Jamal Abu Baker Administration Executive

· Ahmed Awad Public Relations Officer

LEGAL FORM & OWNERS

Date of Establishment : 18/07/1416 Hijri (corresponding to 10^th December 1995)

Legal Form : Limited Liability Partnership

Commercial Reg. No. : 2050030737, Al Khobar

Chamber Member No. : 1807

Issued Capital : SR 68,000,000

Paid up Capital : SR 68,000,000

Name of Partner (s)

· Subaih Taher Darwish El Masry

· Khalid Subaih Taher Darwish El Masry

AFFILIATED COMPANIES

Subject is a member of the Astra Group of Companies, which consists of the following concerns:

· Astra Agricultural Co Ltd

Sitteen Street

Malaz

PO Box: 54061

Riyadh 11514

Tel: (966-11) 4772346 / 4731130

Fax: (966-11) 4782102

· National Metal Industries Co Ltd

New Industrial Area

PO Box: 1737

Riyadh 11441

Tel: (966-11) 4982572

Fax: (966-11) 4982580

· Arab Supply & Trading Corporation (ASTRA)

Sitteen Street

Malaz

PO Box: 3863

Riyadh 11481

Tel: (966-11) 4776017 / 4771488

Fax: (966-11) 4780679

· Saudi Mais Co for Medical Products

PO Box: 42801

Riyadh 11551

Tel: (966-11) 4983739

Fax: (966-11) 4983739

· Al Mona Company

PO Box: 41197

Riyadh 11521

Tel: (966-11) 4981687

· Saudi Mais Co for Irrigation Systems Ltd

PO Box: 42801

Riyadh 11551

Tel: (966-11) 4982779

Fax: (966-11) 4983739

· Astra Caravan Co Ltd

PO Box: 54061

Riyadh 11514

· Astra Transport

PO Box: 54061

Riyadh 11514

· Astra Pharma

PO Box: 54061

Riyadh 11514

· Al Masri Al Khalaf Co

· Saudi Mats Co

· Nour Trading Co

· Tabuk Pharmaceuticals Manufacturing Co (TPMC)

· Astra Polymer Compounding Ltd (Astrapolymer)

· International Building System Factory (IBSF)

OPERATIONS

Activities: Engaged in the production, formulating and marketing of agrochemicals products, specialising in pesticides (insecticides, fungicides, herbicides, acaricides, rodenticides and public health pesticides) as well as fertilizers in liquid, suspension and powder forms.

Production Capacity: 12,000 metric tonnes per annum

Import Countries: Europe, South Korea, Jordan and the United States of America.

Suppliers:

Aggis International United Kingdom
BASF Germany
SQM Belgium
Roullier Group France
FMC Corp United States of America
Chemtura United States of America
Agrostulln GmbH Germany
Dongbu HiTech South Korea
Monsanto Netherlands
Bejo Zaden Netherlands
Abbot & Cobb and Frezno Seeds United States of America
Agrico Netherlands
Kekkila Finland
Cenavisa Spain
Hilal Co for Veterinary Drugs Jordan

Brand Names: ASTRACHEM, AGROCHEM, B-MORT, ACETAPLAN, TERRAZOL & THRIPNIL

Operating Trend: Steady

Subject has a workforce of approximately 180 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 84,700,000 SR 90,000,000

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

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

BANKERS

· Saudi American Bank

Fluor Branch

PO Box: 842

Al Khobar 31952

Tel: (966-13) 8575503

· Arab National Bank (ANB)

PO Box: 37

Al Khobar 31952

Tel: (966-13) 8948660

Fax: (966-13) 8942752

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

GENERAL COMMENTS

Please note that the correct name of the subject is “Astra Industrial Complex For Fertilizer & Agrochemicals Ltd (ASTRACHEM)” and not “Astra Industrial Complex Co Ltd (ASTRACHEM)”.

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 68.02
UK Pound	1	INR 91.25
Euro	1	INR 80.07
SAR	1	INR 18.21

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

INFORMATION DETAILS

Analysis Done by :	PRA

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)

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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.