MIRA INFORM REPORT

 

 

Report Date :

15.06.2007

 

IDENTIFICATION DETAILS

 

Name :

LIVESTOCK TRANSPORT & TRADING CO. KSC (KLTT)

 

 

Registered Office :

Salhia Commercial Complex - Entrance No. 3, P O Box 23727, Safat 13098

 

 

Country :

Kuwait

 

 

Financials (as on) :

31.12.2006

 

 

Date of Incorporation :

24th November 1973

 

 

Legal Form :

Kuwaiti Shareholding Company – KSC

 

 

Line of Business :

Engaged in producing, trading and transporting meat and livestock within Kuwait and the Gulf region. It is also involved in the sale of fodder, leather and fertilizers.

 

 

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$ 750,000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

SUMMARY

 

Company Name                         : LIVESTOCK TRANSPORT & TRADING CO. KSC (KLTT)

Country of Origin                                    : Kuwait

Legal Form                                            : Kuwaiti Shareholding Company - KSC

Registration Date                                   : 24th November 1973

Membership Number                              : 3971

Issued Capital                                        : KD 21,659,057

Paid up Capital                                      : KD 21,659,057

Total Workforce                                     : 500

Line of Business                                    : Engaged in producing, trading and transporting meat and livestock

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                         : Steady

 

 

 

COMPANY NAME

 

LIVESTOCK TRANSPORT & TRADING CO. KSC (KLTT)

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : Salhia Commercial Complex - Entrance No. 3

PO Box             : 23727

Town                 : Safat 13098

Country             : Kuwait

Telephone         : (965) 2455700 / 2455484

Facsimile          : (965) 2438970

Email                : livestk@kltt.com.kw

 

 

Premises

 

Subject operates from a large suite of offices that are rented and located in the Suburban Business Area of Safat.

 

 

Branch Office (s)

 

     Location                                                                               Description

 

·       Sulaibia Industrial Area                                                          Owned processing facility

 

 

KEY PRINCIPALS

 

·       Bader Sulaiman Al Jarralah                                                    Chairman

 

·       Mohamed Hamad Hasan Al Ibrahim                                        Vice Chairman

 

·       Khalid Abdulaziz Al Hasson                                                   Director

 

·       Ahmad Abdullah Al Omar                                                       Director

 

·       Tarek Mohamed Sulaiman Al Basam                                      Director

 

·       Mohamed Saoud Al Osaimi                                                    Director

 

·       Marzook Fajhan Hilal Al Mutairi                                              Director

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 24th November 1973

 

Legal Form                  : Sharikat Al Mouasahama Al Kuwaitia (Kuwaiti Shareholding Company - KSC)

 

Membership No.          : 3971

 

Issued Capital              : KD 21,659,057

 

Paid up Capital            : KD 21,659,057

 

 

Name of Shareholder (s)         Percentage

 

·       Government of Kuwait                                                                        58%

 

·       Members of the general public & private investors                                 42%

 

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.

 

 

LINE OF BUSINESS

 

Operations : Subject is primarily engaged in producing, trading and transporting meat and livestock within Kuwait and the Gulf region. It is also involved in the sale of fodder, leather and fertilizers. KLTT produces and markets a range of frozen ready meals (Jahez), which offers 24 products of Arabic and international flavours; frozen meat products, such as hamburgers and sausages; processed meat products, such as frankfurters and salami, as well as fresh Australian lamb and beef meat. The Company owns four sheep carrier vessels, which transport live sheep from Australia to the Gulf area.

 

Import Countries : Australia and New Zealand

 

Operating Trend : Steady

 

Subject has a workforce of approximately 500 employees.

 

 

FINANCIAL HIGHLIGHTS

 

Financial highlights provided by outside sources are given below :

 

Currency : Kuwaiti Dinars (KD’000)

 

Balance Sheet

31-12-2005

31-12-2006

 

 

 

ASSETS

 

 

Current Assets

38.932

38.542

Investments

5.792

7.962

Fixed Assets

14.790

11.865

Other Assets

0

0

Total Assets

59.514

58.369

 

 

 

LIABILITIES

 

 

Current Liabilities

5.074

3.289

Long Term Liabilities

1.494

1.418

Total Liabilities

6.568

4.707

 

 

 

Minority Interest

0

0

 

 

 

SHAREHOLDER'S EQUITY

 

 

Paid-Up Capital

21.659

21.659

Proposed Stock Dividends

0

0

Proposed Cash Dividends

5.411

5.411

Reserves

24.525

25.866

Fair Value Reserve

364

43

Retained Earnings

1.003

699

Treasury Stock

-16

-16

Total Shareholder's Equity

52.946

53.662

Total Liabilities & Shareholder's Equity

59.514

58.369

 

 

 

INCOME STATEMENT DATA

 

 

Total Sales

51.817

56.222

Gross Profit on Sales

5.232

8.087

Income from Investments

4.605

1.143

Unrealised gain (loss) on Investments

1.237

168

Other Income

571

661

Total Income

58.230

58.194

Net Profit ( Loss )

8.012

6.448

Profits Available for Appr. (A.L.)

8.074

7.451

 

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

 

 

BANKERS

 

·       National Bank of Kuwait

Ali Awadi Tower

Ahmed Al Jaber Street

PO Box : 95

Safat 13001

Tel : (965) 3981188 / 3981189

Fax : (965) 3985643

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Opinion on the credit figure of US$ 150,000

 

Established in 1973, subject is primarily engaged in producing, trading and transporting meat and livestock within Kuwait and the Gulf region.

 

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$ 750,000

 

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

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