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MIRA
INFORM REPORT
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Report Date : |
27.07.2007 |
IDENTIFICATION DETAILS
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Name : |
HEAVY ENGINEERING
INDUSTRIES & SHIPBUILDING CO KSC (HEISCO) |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
2nd April 1974 |
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Com. Reg. No.: |
20735 |
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Legal Form : |
Kuwaiti Shareholding Company – KSC |
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Line of Business : |
Engineering, procurement and construction contracting services. |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
US$ 1,500,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
SUMMARY
Company Name : HEAVY ENGINEERING INDUSTRIES & SHIPBUILDING CO KSC
(HEISCO)
Country of Origin :
Legal Form : Kuwaiti Shareholding Company - KSC
Registration Date : 2nd April 1974
Commercial Registration Number : 20735
Membership Number : 87899
Issued Capital : KD 13,511,000
Paid up Capital : KD 13,511,000
Total Workforce : 750
Line of Business : Engineering, procurement and construction contracting services.
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
COMPANY NAME
HEAVY ENGINEERING
INDUSTRIES & SHIPBUILDING CO KSC (HEISCO)
ADDRESS
Registered & Physical Address
Location :
PO Box : 21998
Town : Safat 13080
Country :
Telephone : (965) 4835488 / 4821496 / 4849923 /
4835838
Facsimile : (965) 4830291 / 4830327
Email : icd@heisco.com.kw
Premises
Subject operates
from a large suite of offices, workshop and shipyard facilities that are owned
and located in
Branch Office (s)
Location Description
·
PO Box:
10155 Workshop
& warehousing
Shuaiba 65452
Tel: (965) 3262012/14/18/29
Fax: (965) 3262142
KEY PRINCIPALS
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Johel Mohamed Johel Chairman
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Adnan Mosaeed Khalefa Al Korafe Vice Chairman
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Imad Jasim Al Sagar Managing
Director
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Khalid Yousef Al Fulaij Deputy
Managing Director
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Issam Abdul Mohsen Al Marzouq Director
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Meshal
Jasem Al Marzook Director
· Hussain
Murad Behbehani Director
· Emad
Habib Jouhar Hayat Director
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Bader
Fahad Al Humaidi Director
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Abdulwahab
Marzook Al Marzook Director
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Bader
Moosa Marafie Director
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Azzam Abdoulaziz Al Foleq Director
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Gaze Ahmad Almogren Alrome Director
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Sandip
Kumar Gupta General
Manager
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Mohamed
T. Jinadah Commercial
Manager
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Paschal
Jerry Pereira Sales
Manager
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S.N. Ramachandran Finance
Manager
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Abdullah
M Al Saqer Administration
Manager
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Stephen
Raj Anand Business
Development Manager
LEGAL FORM &
OWNERS
Date of Establishment : 2nd
April 1974
Legal Form :
Sharikat Al Mouasahama
Al Kuwaitia (Kuwaiti Shareholding
Company - KSC)
Commercial Reg. No. : 20735
Membership No. : 87899
Issued Capital : KD 13,511,000
Paid up Capital : KD 13,511,000
Name of Shareholder
(s) Percentage
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Abdullah
Hamad Al Saqar & Brothers Co 20.00%
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Morad
Yousef Behbehani 10.54%
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Members
of the public & private investors 69.46%
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
The Commercial Companies Law provides that the capital of a Kuwaiti Shareholding Company should not be less than KD 7,500.
AFFILIATED COMPANIES
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Gulf
Dredging and General Contracting Company SAK (GDC)
PO Box: 24054
Safat 13101
Tel: (965) 4815080
Fax: (965) 4817272
LINE OF BUSINESS
Operations : Subject’s activities are performed through
the following divisions:
· Industrial Contracts Division
HEISCO is one of the major engineering,
procurement and construction contracting companies in
HEISCO is involved in EPC construction of
storage tanks (API 650,620 & AWWA) and associated interconnecting piping
works, EPC construction of pipelines, engineering, manufacturing & supply of
major pressure vessels, columns, boilers and process equipment in strict
conformance with stringent international codes & standards. The company
also undertakes engineering, manufacturing and supply of shell & tube type
heat exchangers.
HEISCO is the only company in
· Marine Division
The division operates a floating drydock of
190 meters long, 32 meters wide, and catering for vessels up to 35,000 dwt. A
Synchrolift accommodates vessels up to 5.000 dwt. with 7 repair bays, ranging
in length from 90 to 135 meters. 5 Berths, ranging from 90 meters to 230 meters
in length are serviced along their entire length by luffing cranes. 6 Cranes,
with lifting capacities from 10 to 30 tons, cover the yard open areas and there
are 10 to 20 tons overhead travelling cranes in the workshops and stores.
The division has a modern engineering
workshop ensuring efficient and reliable mechanical servicing. New building
modules and large steel repairs are prefabricated in the 7,800 square meters
construction area, of which 3,500 square meters is under cover.
· Trading Division
Engaged in the procurement and distribution
of equipment, spares and general engineering items, including welding equipment
and consumables, blasting and painting equipment, blasting abrasives, oilfield
products, pipeline accessories, protective coatings and marine paint,
industrial and marine equipment and spares.
Import Countries
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International
Suppliers :
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Sigma
Coatings
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Graco
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Ador
Welding
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City
Cat International Ltd
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Chosun
Steel Wire Co Ltd
Operating Trend
: Steady
Subject has a workforce
of approximately 750 employees.
FINANCIAL HIGHLIGHTS
Currency : Kuwaiti
Dinars (KD’000)
BALANCE SHEET
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31/12/2005 |
31/12/2006 |
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Assets |
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Current Assets |
32.866 |
37.159 |
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Investments |
5.799 |
6.319 |
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Fixed Assets |
15.130 |
13.322 |
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Other Assets |
2.705 |
2.752 |
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Total Assets |
56.500 |
59.551 |
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Liabilities |
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Current Liabilities |
27.594 |
41.354 |
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Long Term Liabilities |
2.214 |
2.209 |
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Total Liabilities |
29.808 |
43.564 |
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Minority Interest |
0 |
0 |
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Shareholder's Equity |
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Paid-Up Capital |
13.511 |
13.511 |
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Proposed Stock Dividends |
0 |
0 |
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Proposed Cash Dividends |
3.378 |
0 |
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Reserves |
5.906 |
5.906 |
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Cumulative Changes in Fair Values |
-54 |
-111 |
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TREASURY STOCKS |
3.951 |
-3.318 |
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Retained Earnings ( Losses ) |
0 |
0 |
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Total Shareholder's Equity |
26.692 |
15.988 |
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Total Liabilities & Shareholder's Equity |
56.500 |
59.551 |
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INCOME STATEMENT
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Operating Revenues |
55.588 |
63.775 |
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Gross Operating Profit |
3.960 |
761 |
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Income from Investments |
155 |
186 |
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Unrealised gain (loss) on Investments |
321 |
362 |
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Other Income |
90 |
140 |
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Total Income |
56.154 |
64.464 |
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Net Profit ( Loss ) |
5.012 |
-7.270 |
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Profits Available for Appropriation |
8.364 |
-3.318 |
Local sources
consider subject’s financial condition to be Good.
BANKERS
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National
Bank of
Shuwaikh
Tel : (965) 4813266 / 4818350
Fax : (965) 4844126
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Commercial
Bank of
Shuwaikh
Tel : (965) 4814643
Fax : (965) 4837952
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Bank of
Darwaza Abdul Razzak
PO Box : 71
Safat 13001
Tel : (965) 2459771
Fax : (965) 2461430
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The
Gulf Bank KSC
PO Box : 3200
Safat 13033
Tel : (965) 2449501
Fax : (965) 2445212
PAYMENT HISTORY
No complaints
regarding subject’s payments have been reported.
Date of transaction March 2005 March 2007
Credit amount 34,000 20,000
Amount overdue 0 0
Payment terms 60
days 60
days
Payment Method Letters
of Credit Letters
of Credit
Paying record No
Complaints No
Complaints
Currency Pounds
Sterling Pounds
Sterling
GENERAL COMMENTS
Opinion on the
credit figure of US$ 150,000
Heavy Engineering
Industries & Shipbuilding Co KSC (HEISCO) is a leading Kuwaiti company
engaged in engineering, procurement and construction contracting services.
During the course
of this investigation nothing detrimental was uncovered regarding the manner in
which payment obligations are fulfilled. The operating history is clear and the
financial situation is satisfactory. As such we are of the opinion that the
subject is a fair trade risk and the above credit figure is within subject’s
financial means.
Maximum suggested
credit figure: US$ 1,500,000
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)