MIRA INFORM REPORT

 

 

Report Date :

12th June, 2006.

 

IDENTIFICATION DETAILS

 

Name :

KUWAIT UNITED POULTRY COMPANY – KSC

 

 

Registered Office :

Jamal Abdulnaser Street, Shuwaikh Industrial Area, PO Box: 1236, Safat 13013, Kuwait

 

 

Country :

Kuwait

 

 

Financials (as on) :

31.03.2005

 

 

Date of Incorporation :

30.11.1974

 

 

Legal Form :

Kuwaiti Shareholding Company - KSC

 

 

Line of Business :

Production of poultry and table eggs as well as operating a chain of restaurants

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

US$ 200,000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

 

 

 

 

SUMMARY

 

 

Company Name                         : KUWAIT UNITED POULTRY COMPANY KSC

Country of Origin                                    : Kuwait

Legal Form                                            : Kuwaiti Shareholding Company - KSC

Registration Date                                   : 30th November 1974

Membership Number                              : 4480

Issued Capital                                        : KD 11,540,000

Paid up Capital                                      : KD 11,540,000

Total Workforce                                     : 700

Line of Business                                    : Production of poultry and table eggs as well as

                                                              operating a chain of restaurants.

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

 

 

 

 

 

COMPANY NAME

 

 

KUWAIT UNITED POULTRY COMPANY KSC

 

 

ADDRESS

 

 

Registered & Physical Address

 

Street               : Jamal Abdulnaser Street

Area                 : Shuwaikh Industrial Area

PO Box             : 1236

Town                 : Safat 13013

Country             : Kuwait

Telephone         : (965) 4818860 / 4818861 / 4818862 / 4818863 / 4810033 / 4818890

Facsimile          : (965) 4818864 / 4849012

Email                : kupco@qualitynet.net

 

 

 

Premises

 

 

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

 

 

Branch Office (s)

 

 

Subject operates 2 farms located in the Al Shagaya District, near the border between Kuwait and Saudi Arabia.

 

 

KEY PRINCIPALS

 

 

 

·       Sheika Ohood Salem Al Ali Al Sabah                          Chairman

 

·       Hesham Khaled Mohammad Al Ghanim                      Vice Chairman

 

·       Mazen Saad Ali Al Naheth                                         Director

 

·       Ahmad Ibraheem Ahmad Al Asfour                             Director

 

·       Talal Abdullah Ahmad Al Omaim                                Director

 

·       Mohamed Abdulreda Abdullah Khorshid                      Director

 

·       Hamed Taleb Al Nakeeb                                            Director

 

·       Mahmoud Nasser Al Nasser                                       Chief Executive Officer

 

·       Fahad S. Al-Kinamish                                                Finance & Administration Manager

 

·       Bassam Nayfeh                                                        Production Manager

 

·       Khaled K. Al Haddad                                                 Manager - Marketing & Restaurants

 

·       Deiaa Eldin Salama                                                   Projects & Services Manager

 

 

 

LEGAL FORM & OWNERS

 

 

 

Date of Establishment  : 30th November 1974

Legal Form                  : Sharikat Al Mouasahama Al Kuwaitia (Kuwaiti Shareholding

  Company - KSC)

Membership No.          : 4480

Issued Capital              : KD 11,540,000

Paid up Capital            : KD 11,540,000

 

 

Name of Shareholder (s)                                                   Percentage

 

·       Kuwait Investment Authority                                                      44.68%

 

·       Kuwait Supplies Co                                                                    7.77%

 

·       The Financial Securities Co                                                         5.27%

 

·       Al Sharq Holding Co                                                                   5.27%

 

·       Members of the general public and private investors                     37.01%

 

Note to the Legal Form  

 

Under the Commercial Companies Law a Kuwaiti Shareholding Company is required to have a minimum

of 51 percent of its shares owned by Kuwaiti Nationals. Non-Kuwaiti ownership is allowed up to a maximum of 49 percent of the capital.

 

A KSC must have a minimum of 5 shareholders each responsible only for the liabilities of the company to

the extent of their share participation in the capital of the company. Shares of KSC’s are freely

transferable, subject to the requirement of Kuwait ownership of at least 51 percent.

 

The Commercial Companies Law provides that the capital of a Kuwaiti Shareholding Company should not

be less than KD 7,500.

 

 

 

 

 

AFFILIATED COMPANIES

 

 

·       Aloon International Trading Est

PO Box : 1236

Safat 13013

Tel : (965) 4818891

Fax : (965) 4818864

 

 

LINE OF BUSINESS

 

 

 

Operations :

 

Engaged in the production of poultry and table eggs with an annual production of 115 million table eggs and 12,000 tons of broiler meat.

 

Subject is authorized agents for Columbus eggs.

 

The company has a contract worth KD 470,000 with Ministry of Defence for supply of frozen chicken and fresh eggs for 1 year. It also has other prestigious clients such as the National Guard, Public Authority for Applied Education & Training, Kuwait Aviation Co., Al Wazzan Co, Hilton Al Mangaf, Palms Beach Hotel, Kuwait Food Co and Lali Al Kuwait Catering Co.

 

The Company also operates a chain of restaurants under the name "Fresh 'N' Tasty".

 

Import Countries : The United States of America, Italy and the United Kingdom.

 

Brand Names : “KUPCO”, “FRESH & TASTY”, and “AL GHADEER”.

 

Subject has a workforce of approximately 700 employees.

 

 

 

FINANCIAL HIGHLIGHTS

 

 

Financial highlights provided by outside sources are given below :

 

Currency : Kuwaiti Dinars (KD)

 

Balance Sheet                                                     2004                             2005

 

ASSETS

Current Assets                                                    6,308,000                      4,730,000

Investments                                                            525,000                      1,639,000

Fixed Assets                                                       7,371,000                    10,073,000

Other Assets                                                       1,104,000                         544,000

Total Assets                                                     15,308,000                    16,986,000

 

LIABILITIES

Current Liabilities                                                 1,686,000                      3,343,000

Long Term Liabilities                                                 98,000                        625,000

Total Liabilities                                                   1,784,000                     3,967,000

 

Minority Interest                                                             0                                  0

 

SHAREHOLDER'S EQUITY

Paid-Up Capital                                                  11,540,000                    11,540,000

Proposed Stock Dividends                                                0                                  0

Proposed Cash Dividends                                                 0                                  0

Reserves                                                             3,555,000                      2,661,000

Fair Value Reserves                                                         0                                  0

Retained Earnings (Losses)                                    -988,000                       -599,000

Treasury Stock                                                      -584,000                       -584,000

Total Shareholder's Equity                                  13,524,000                    13,019,000

Total Liabilities & Shareholder's Equity           15,308,000                    16,986,000

 

 

Income Statement                                               2004                             2005

 

Total Sales                                                          6,633,000                    6,834,000

Gross Profit on Sales                                           1,618,000                    1,725,000

Income From Investments                                        204,000                         73,000

Unrealised Gain (Loss) on Investments                              0                         62,000

Other Income                                                          118,000                       180,000

Total Income                                                        6,955,000                    7,150,000

Net Profit (Loss)                                          308,000                      -505,000

Profits Available for Appr. (Accu)                 -988,000                      -599,000

 

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

 

 

 

BANKERS

 

 

·       National Bank of Kuwait

Ali Awadi Tower

Ahmed Al Jaber Street

PO Box : 95

Safat 13001

Tel : (965) 3981188 / 3981189

Fax : (965) 3985643

 

·       Al Ahli Bank of Kuwait KSC

Mubarak Al Kabir Street

PO Box : 1387

Safat 13033

Tel : (965) 411101 / 411102

 

·       Commercial Bank of Kuwait

     Mubarak Al Kabir Street

     PO Box : 2861

     Safat 13029

     Tel : (965) 2411001

     Fax : (965) 2450150

 

 

PAYMENT HISTORY

 

 

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                              June 2002

Credit amount                                        26,000

Amount overdue                         0

Payment terms                                      60 days

Payment Method                                   Letters of Credit

Paying record                                        No Complaints

Currency                                               US$ dollars

 

 

 

GENERAL COMMENTS

 

 

 

Opinion on the credit figure of US$ 150,000

 

Kuwait United Poultry Company KSC was incorporated in 1974 and is one of the regions leading food companies. It is engaged in the production of poultry and table eggs as well as operating a chain of restaurants.

 

During the course of this investigation nothing detrimental has been uncovered regarding the subject’s operating history or the way in which payment obligations are fulfilled. The company is run in a professional manner and is deemed trustworthy for respecting its financial trade commitments. As such the above credit figure is considered admissible.

 

Maximum suggested credit figure: US$ 200,000

 

RATING EXPLANATIONS

 

 

RATING

STATUS

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

Credit not recommended

 

 

 

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