MIRA INFORM REPORT

 

 

Report No. :

510997

Report Date :

25.05.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

MADAR HARDWARE CO

 

 

Formerly Known As :

MADAR TOOLS AND EQUIPMENT CO LTD

 

 

Registered Office :

Al Fozan Building Prince Turki Bin Abdul Aziz Street PO Box 38 Al Khobar 31952

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2017

 

 

Date of Incorporation :

22.07.2007

 

 

Com. Reg. No.:

2051034372

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is engaged in the import and distribution of tools, equipment and machinery.

 

 

No. of Employees :

75

 

 

 

 

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd 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. 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                                    : MADAR HARDWARE CO

Previously Known As                             : MADAR TOOLS AND EQUIPMENT CO LTD

Country of Origin                                   : Saudi Arabia

Legal Form                                           : Limited Liability Company

Registration Date                                  : 22nd July 2007

Commercial Registration Number           : 2051034372, Al Khobar

Membership Number                             : 84414

Issued Capital                                       : SR 250,000

Paid up Capital                                     : SR 250,000

Total Workforce                                                : 75

Activities                                               : Distributors of tools, equipment and machinery

Financial Condition                                : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

 

 

 

COMPANY NAME

 

MADAR HARDWARE CO

 

 

ADDRESS

 

Registered & Physical Address

 

Building                        : Al Fozan Building

Street               : Prince Turki Bin Abdul Aziz Street

 

PO Box                        : 38

 

Town                : Al Khobar 31952

Country             : Saudi Arabia

 

Telephone         : (966-13) 8977777 / 8940909 / 8182020

Facsimile          : (966-13) 8946831

Email                : ccd@alfozan.com

 

Premises

 

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

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Ali Abdullatif Al Fozan                                                                      Managing Director

 

·       Khalid Abdullatif Al Fozan                                                                 Director

 

·       Yasmeen Al Mahmoud                                                                      Public Relations Officer

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 22nd July 2007

 

History                         : Subject began in 2007 under the name “Madar Tools and Equipment Co Ltd”. On 9th

  November 2017 it changed its name to “Madar Hardware Co”.

 

Legal Form                  : Limited Liability Company

 

Commercial Reg. No.   : 2051034372, Al Khobar

 

Membership No.           : 84414

 

Issued Capital              : SR 250,000

 

Paid up Capital            : SR 250,000

 

Name of Shareholder (s)

 

·       Ali Abdullatif Al Fozan

 

·       Khalid Abdullatif Al Fozan

 

 

AFFILIATED COMPANIES

 

·       Al Fozan Building Materials Company

Al Fozan Building

Prince Abdul Elah Street

PO Box: 38

Al Khobar 31952

Tel: (966-13) 8977777

Fax: (966-13) 8946831

 

·       Al Fozan Building Materials Co

Saudi Arabia

 

·       United Electronics Company

     Saudi Arabia

 

·       Arnon Plastic Industries Company

Saudi Arabia

 

·       Building and Construction Company

Saudi Arabia

 

·       Al Oula Development Company

Saudi Arabia

 

·       Injaz Projects

Saudi Arabia

 

·       Gulf Farabi Petrochemical Company

Saudi Arabia

 

·       ARC Engineering Consultants

Saudi Arabia

 

·       Dhahran International Exhibitions Company

Saudi Arabia

 

·       MADAR Building Material – Jordan

Jordan

 

·       MADAR Building Material – Sudan

Sudan

 

·       MADAR Emirates for Building Materials Company

UAE

 

·       Madar Holding

UAE

 

·       Paris Gallery

Saudi Arabia

 

·       Projects and Supplies Company

Saudi Arabia

 

·       Sara Corporation

Saudi Arabia

 

·       United Transformers Electric Company

Saudi Arabia

 

·       Amwal Al Khaleej Commercial Investment Company

Saudi Arabia

 

 

OPERATIONS

 

Activities: Engaged in the import and distribution of tools, equipment and machinery.

 

Import Countries: Europe and the Far East

 

Operating Trend: Steady

 

Subject has a workforce of 75 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 24,100,000                           SR 24,550,000

 

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: 1

Al Khobar 31952

Tel: (966-13) 8949669

Fax: (966-13) 8646474

 

 

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 68.39

UK Pound

1

INR 91.44

Euro

1

INR 80.14

SAR

1

INR 18.19

 

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.