MIRA
INFORM REPORT
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Report Date : |
06.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
KUWAIT CEMENT
COMPANY KSC |
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Registered Office : |
Cement House, Al Shuhada'a Street, Al Sawaber Area, Sharq, P O Box 20581, Safat 13066 |
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Country : |
Kuwait |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
5th November 1968 |
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Legal Form : |
Kuwaiti Shareholding Company – KSC |
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Line of Business : |
Engaged in the
manufacture of cement. |
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$ 2,500,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
SUMMARY
Company Name : KUWAIT CEMENT COMPANY KSC
Country of Origin : Kuwait
Legal Form : Kuwaiti Shareholding Company - KSC
Registration Date : 5th November 1968
Membership Number : 3240
Issued Capital : KD 47,898,333
Paid up Capital : KD 47,898,333
Total Workforce : 1,000
Line of Business : Manufacture of cement
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
COMPANY NAME
KUWAIT CEMENT
COMPANY KSC
ADDRESS
Registered & Physical Address
Building : Cement House
Street : Al
Shuhada'a Street
Area : Al
Sawaber Area, Sharq
PO Box : 20581
Country : Kuwait
Telephone : (965) 2401700
Facsimile : (965) 2432956
/ 2440896
Email : alcement@kuwait-cement.com
Premises
Subject operates from
a large suite of offices that are owned and located in the Industrial Area of
Safat.
KEY PRINCIPALS
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Rashed
Abdulaziz Al Rashed Chairman
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Sulaiman
Khaled Al Ghunaim Vice
Chairman
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Abdullah
Mohamed Al Saad Director
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Khaled
Abdullah Al Rabeiah Director
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Hamad
Ahmed Albosere Director
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Adel
Mohamed Al Romi Director
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Meshal
Yousef Al Derbas Director
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Yousef
Bader Ahmed Al Korafe Director
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Yagoub
Yousef Abdoulkarem Al Sager Director
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Basil
Saad Abdulaziz Al Rashed Director
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Abdulmuttalib
Ismaeel Behbahani Chief
Executive Officer
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Humoud
S. K. Al Hamdan Operations
Manager
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Khalifa
Abdullah Al Fadala Marketing
& Sales Manager
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Mishal
Abdul Mohsin Al Rashed Administration
Manager
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Mohamed
Othman Sakalla Finance
Manager
LEGAL FORM & OWNERS
Date of Establishment : 5th
November 1968
Legal Form :
Sharikat Al Mouasahama
Al Kuwaitia (Kuwaiti
Shareholding Company - KSC)
Membership No. : 3240
Issued Capital : KD 47,898,333
Paid up Capital : KD 47,898,333
Name of Shareholder (s)
·
Rashed
Abdulaziz Al Rashed
·
Sulaiman
Khaled Al Ghunaim
·
Abdullah
Mohamed Al Saad
·
Khaled
Abdullah Al Rabeiah
·
Hamad
Ahmed Albosere
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Adel
Mohamed Al Romi
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Meshal
Yousef Al Derbas
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Yousef
Bader Ahmed Al Korafe
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Yagoub
Yousef Abdoulkarem Al Sager
·
Basil
Saad Abdulaziz Al Rashed
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Kuwaiti
businessmen & private investors
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 : Engaged in the manufacture of cement,
specialising in Ordinary Portland, Sulphate Resisting Type V, Moderate Sulphate
Resisting Type II, White Portland, and Masonry Cement.
Import Countries
: Switzerland, Germany and
India
Operating Trend
: Steady
Subject has a
workforce of approximately 1,000 employees.
FINANCIAL HIGHLIGHTS
Financial
highlights provided by outside sources are given below:
Currency: Kuwaiti
Dinars (KD’000)
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BALANCE SHEET |
31/12/2005 |
31/12/2006 |
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ASSETS |
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Current Assets |
112.748 |
114.227 |
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Investments |
116.442 |
146.234 |
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Fixed Assets |
25.851 |
25.864 |
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Other Assets |
0 |
0 |
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Total Assets |
255.041 |
286.325 |
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LIABILITIES |
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Current Liabilities |
37.507 |
49.054 |
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Long Term Liabilities |
13.835 |
14.809 |
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Total Liabilities |
51.342 |
63.863 |
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Minority Interest |
0 |
0 |
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SHAREHOLDER'S EQUITY |
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Paid-Up Capital |
39.585 |
43.544 |
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Proposed Stock Dividends |
3.959 |
4.354 |
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Proposed Cash Dividends |
19.417 |
25.591 |
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Reserves |
62.046 |
70.364 |
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Cumulative Changes In Fair Values |
84.032 |
83.354 |
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Retained Earnings ( Losses ) |
0 |
2.004 |
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Treasury Stock |
-5.339 |
-6.749 |
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Total Shareholder's Equity |
203.700 |
222.463 |
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Total Liabilities & Shareholder's Equity |
255.041 |
286.325 |
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INCOME STATEMENT |
31/12/2005 |
31/12/2006 |
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Total Sales |
63.484 |
72.298 |
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Gross Profit On Sales |
17.440 |
26.298 |
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Income From Investments |
2.919 |
26.149 |
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Unrealised Gain (Loss) On Investments |
29.290 |
8.919 |
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Other Income |
279 |
8.735 |
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Total Income |
95.972 |
3.090 |
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Net Profit (Loss) |
37.759 |
93.042 |
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Profit Available For Appropriation (A.L) |
30.884 |
40.268 |
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
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 and the above credit figure is
within subject’s financial means.
Maximum suggested
credit figure: US$ 2,500,000
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. |
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%)