MIRA INFORM REPORT

 

 

Report Date :

22.08.2007

 

IDENTIFICATION DETAILS

 

Name :

REZAYAT TRADING COMPANY LIMITED

 

 

Registered Office :

Off Canada Dry Street, Shuwaikh Industrial Area, P O Box 106, Safat 13002

 

 

Country :

Kuwait

 

 

Financials (as on) :

31.12.2006

 

 

Date of Incorporation :

1946

 

 

Com. Reg. No.:

5924, Safat

 

 

Legal Form :

With Limited Liability – WLL

 

 

Line of Business :

Stevedoring, shipchandling, packaging & removals, as well as cargo handling.

Shipping agents, freight forwarding, survey and inspection services and customs clearance services.

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

US$ 3,000,000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear


SUMMARY

 

Company Name                         : REZAYAT TRADING COMPANY LIMITED

Country of Origin                                    : Kuwait

Legal Form                                            : With Limited Liability - WLL

Start Date                                             : 1946

Registration Date                                   : 4th February 1960

Commercial Registration Number            : 5924, Safat

Membership Number                              : 431

Issued Capital                                        : KD 1,000,000

Paid up Capital                                      : KD 1,000,000

Total Workforce                                     : 650

Line of Business                                    : Provision of shipping, cargo and maintenance services.

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                         : Steady

 

 

 

COMPANY NAME

 

REZAYAT TRADING COMPANY LIMITED

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Off Canada Dry Street

Area                 : Shuwaikh Industrial Area

PO Box             : 106

Town                 : Safat 13002

Country             : Kuwait

Telephone         : (965) 4816836 / 4842022 / 4842400

Facsimile          : (965) 4831030 / 4810270

Email                : etckwt@ncc.moc.kw

 

 

Premises

 

Subject operates from a large suite of offices, storage facilities and a workshop that are owned and located in the Industrial Area of Safat.

 

 

Branch Office (s)

 

Rezayat has a number of representative offices located in the Middle East, such as Dubai, Abu Dhabi, Ajman, Oman and Saudi Arabia, as well as the United States of America, the United Kingdom, France and Hong Kong.

 

 

KEY PRINCIPALS

 

     Name                                                           Nationality                     Position

 

·       Abdullah Abdul Ghaffar Alireza                          Saudi                         Managing Director

 

·       Teymour Abdullah Alireza                                 Saudi                         Director

 

·       Fahad Abdullah Alireza                                     Saudi                         Director

 

·       Abdullah A. Redha                                          Kuwaiti                        Director

 

·       Gamal H. Al Faris                                                                             General Manager

 

·       Abdulrazaq A. Ghayath                                                                      Purchasing Manager

 

·       Miraj Uddin                                                                                       Finance Manager

 

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : Subject’s operations date back to 1946, however it was registered on 4th February 1960.

 

Legal Form                  : Sharikat Thet Massouliya Mahdoudeh (With Limited Liability - WLL)

 

Commercial Reg. No.  : 5924, Safat

 

Membership No.          : 431

 

Issued Capital              : KD 1,000,000

 

Paid up Capital            : KD 1,000,000

 

 

Name of Shareholder (s)         Percentage

 

·       Abdullah A. Redha                                                                            51 %

 

·       Abdullah Abdul Ghaffar Alireza                                               ]

                                                                                                ]

·       Teymour Abdullah Alireza                                                      ]    49 %

                                                                                                ]

·       Fahad Abdullah Alireza                                                          ]

 

Notes to the legal Form 

 

Limited Liability Companies, which are known in Kuwait as WLLs (“With Limited Liability”), are the most commonly used corporate entities in Kuwait. They are the equivalent of French SARLs, German GmbHs or private companies in the United Kingdom.

 

Under the Kuwaiti Commercial Companies Law a WLL may be formed by a minimum of 2 and a maximum of 30 natural or legal persons, whose liability is limited to their shares in the company’s capital. At least 51 percent of the capital must be owned by Kuwaitis. The minimum amount of capital required is KD 7,500. Contributions to capital may be made in cash of kind. Capital may not be increased by public subscription. The full amount of the share value must be paid in on subscription. Shares may not be assigned to a non-member, unless the other existing members are granted a pre-emptive right to purchase the shares. WLLs may not engage in banking, insurance or investment activities on behalf of others.

 

 

AFFILIATED COMPANIES

 

Subject is a member of the Alireza Group, which is a privately owned organisation based in the Arabian Peninsular. Its main activities are concentrated in the Middle East and cover a wide spectrum of industrial and commercial interests. The Alireza Group has extended its operations into the United States of America where it has made substantial investments in industrial activities and has become actively involved in property development and management. The group has also formed a joint venture company in Hong Kong in conjunction with a prominent Chinese group with the objective of participating in commercial and industrial activities in China and elsewhere in South East Asia.

 

The Alireza Group of Companies comprises the following concerns :

 

 

 

Kuwait

 

·       International Tank and Pipes Co

PO Box : 106

Safat 13002

Tel : (965) 4816836

Fax : (965) 4831030

 

·       Supply Services Co

       PO Box : 106

Safat 13002

     Tel : (965) 4836816

     Fax : (965) 4831030

 

·       Land & Marine National Co

       PO Box : 106

Safat 13002

     Tel : (965) 4816836

     Fax : (965) 4831030

 

·       Al Reza Closed Co

PO Box : 106

Safat 13002

     Tel : (965) 4816836

     Fax : (965) 4831030 

 

·       Rezayat Real Estate Co

       PO Box : 106

Safat 13002

     Tel : (965) 4816836

     Fax : (965) 4831030 

    

·       Al Taqadoom Garage

       PO Box : 106

Safat 13002

     Tel : (965) 4843535

     Fax : (965) 4831030

 

·       National Contracting Co

Shuwaikh Industrial Area

PO Box : 106

Safat 13002

Tel : (965) 4842400

Fax : (965) 4810270

 

·       National Drilling Co

 

·       Intec Co Ltd

 

·       National Aggregate & Asphalt Co

 

·       The Lamnalco Co

 

Saudi Arabia

 

·       Arabian Mechanical Engineering Company Ltd

·       National Pipes Co

·       Saudi Arabian Fabricated Metal Industry Ltd

·       Saudi Arabian Engineering Co Ltd (SAECO)

·       Catering Services Co Ltd

·       National Contracting Co Ltd

·       Rezayat Trading Establishment

·       Saudi Arabia Ports Service Co Ltd

·       Intec Ltd

·       Transmarine Transportation Services Co Ltd

·       International Tank & Pipe Establishment

·       National Construction Co Ltd

·       International Electronic Co Ltd

·       Rezcan Coatings & Linings Ltd

·       Lamnalco Saudi Arabia Ltd

·       Corrosion Prevention Arabia Ltd

·       National Aggregate and Asphalt Co Ltd

 

United Arab Emirates

 

·       National Contracting Co Ltd

·       Abu Dhabi Petroleum Ports Operating Co (ADPPOC)

·       Lamnalco (Sharjah) Ltd

 

Oman

 

·       National Contracting Co Ltd

·       Kassara Transport Co

 

United Kingdom

 

·       Rezayat Europe Ltd

 

France

 

·       Rezayat Europe Ltd

 

United States of America

 

·       Rezayat America Inc

 

Hong Kong

 

·       Foreza Holdings Ltd

 

 

LINE OF BUSINESS

 

Operations : Subject’s activities are performed through the following divisions:

 

  • Cargo Division

 

Stevedoring, shipchandling, packaging & removals, as well as cargo handling.

 

  • Shipping Division

 

Shipping agents, freight forwarding, survey and inspection services and customs clearance services.

 

  • Maintenance Division

 

This division provides complete maintenance services for the Alireza Group of Companies and for other clients, including governmental departments.

 

Services range from normal repairs to civil structures, including plumbing, carpentry and masonry work to maintenance of electrical distribution systems, air conditioning and refrigeration units, from operation of water treatment and sewage plants to mending roads, family residential accommodation and diesel power generation plants.

 

Import Countries : The United States of America, the United Kingdom, Norway, Austria, Germany, France, the Netherlands and the United Arab Emirates.

 

International Suppliers :

 

·       Sealand Services Inc                                     United States of America

·       Cooper Oil Tools                                                       United States of America

·       Afton Pumps                                                             United States of America

·       WSA                                                                        United States of America

·       Du Pont                                                                    United States of America

·       Hex Valves                                                               United States of America

·       ICI Plc                                                                      United Kingdom

·       Allem Power Engineering                                           United Kingdom

·       Sampson International                                               United Kingdom

·       Cochran Boilers                                                        United Kingdom

·       Victor Products Ltd                                                   United Kingdom

·       Custom Control Sensors International (CCS)                United Kingdom

·       Bicotest Ltd                                                              United Kingdom

·       Norsk Jernverk A/S                                                    Norway

·       Voest Alpine                                                             Austria

·       Balcke Durr                                                              Germany

·       Eurocat SA                                                               France

·       Mokveld Valves                                                         The Netherlands

·       Arabian Liquid Chemicals                                           United Arab Emirates

 

Operating Trend : Steady

 

Subject has a workforce of approximately 650 employees.

 

 

FINANCIAL HIGHLIGHTS

 

Financial highlights provided by outside sources are given below :

 

Currency : Kuwaiti Dinars (KD)

 

                                                Year Ending 31/12/05:                            Year Ending 31/12/06:

 

Total Revenue                            KD 207,200,000                         KD 209,600,000

 

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

 

 

BANKERS

 

·       Bank of Kuwait & the Middle East KSC

Abdullah Al Salem Street

Darwaza Abdul Razzak

PO Box : 71

Safat 13001

Tel : (965) 2459771

Fax : (965) 2461430

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                                 December 1998

Credit amount                                        200,000

Amount overdue                         0

Payment terms                                      60 days

Payment Method                                   Letters of Credit

Paying record                                        No Complaints

Currency                                               Pounds Sterling

 

 

GENERAL COMMENTS

 

Opinion on the credit figure of US$ 150,000

 

Rezayat Trading Company Limited has a long operating history with activities dating back to 1946. It is engaged in the provision of shipping and cargo services, as well as providing a wide range of maintenance services. It deals with a host of well known international suppliers and enjoys a good reputation for the quality of its products and services.

 

The company is a member of the Alireza Group of Companies which has interests throughout the Middle East, as well as the United States of America, Europe and Asia.

 

According to local sources subject meets its payment obligations in a timely manner and the financial position is strong. As such the company is deemed trustworthy for respecting its financial trade commitments and the above credit figure is considered to be within subject’s financial means.

 

Maximum suggested credit figure: US$ 3,000,000

 

 

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.

 

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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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 and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

 

 

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