MIRA
INFORM REPORT
|
Report Date : |
29.11.2007 |
IDENTIFICATION
DETAILS
|
Name : |
REFRESHMENT TRADING COMPANY |
|
|
|
|
Registered Office : |
Sabhan Industrial Area, Shuwaikh, PO Box 1044, Safat 13011 |
|
|
|
|
Country : |
Kuwait |
|
|
|
|
Date of Incorporation : |
28.02.1960 |
|
|
|
|
Com. Reg. No.: |
4087 |
|
|
|
|
Legal Form : |
With Limited Liability |
|
|
|
|
Line of Business : |
Production and bottling of carbonated soft drinks and
fruit juices |
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 $ 1,200,000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
SUMMARY
Company Name : REFRESHMENT TRADING COMPANY WLL
Country of Origin : Kuwait
Legal Form : With Limited Liability - WLL
Registration Date : 28th February 1960
Commercial Registration Number : 4087
Membership Number : 915
Issued Capital : KD 300,000
Paid up Capital : KD 300,000
Total Workforce : 500
Line of Business : Production and bottling of carbonated soft drinks and fruit juices
Financial Condition : Fair
Payments : Nothing detrimental uncovered
Operating Trend : Steady
COMPANY NAME
REFRESHMENT TRADING COMPANY WLL
ADDRESS
Registered & Physical Address
Location : Sabhan Industrial Area
Area : Shuwaikh
PO Box : 1044
Town : Safat 13011
Country : Kuwait
Telephone : (965) 4810722 / 4746888 / 4827271 / 4830984
Facsimile : (965) 4830983 / 4741688
Email : najdi@kems.net
Premises
Subject operates from a large suite of offices, a factory and warehousing that are owned and located in the Industrial Area of Safat.
KEY PRINCIPALS
Yousef Al Nissif Managing Director
Hamad Rahman Baher Director
Humod Yousef Al Nissif Director
Hamed M. Al Baher Director
Ahmed Al Ashrie Finance Manager
Nasr Sulaiman Sales Manager
Kanwar K. Arora Plant Manager
Jai Kumar Production Manager
Abdul Raouf Abdul Latif Personnel Manager
LEGAL FORM &
OWNERS
Date of Establishment : 28th February 1960
Legal Form : Sharikat Thet Massouliya Mahdoudeh (With Limited Liability - WLL)
Commercial Reg. No. : 4087
Membership No. : 915
Issued Capital : KD 300,000
Paid up Capital : KD 300,000
Name of Shareholder (s)
Yousef Al Nissif
Hamad Rahman Baher
Humod Yousef Al Nissif
Hamed M. Al Baher
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.
LINE OF BUSINESS
Operations : Subject is engaged in the manufacture and bottling of carbonated soft drinks and fruit juices under licence from Coca Cola and Sunkist. The company also produces ice cream, general food products and beverages, and distributes frozen food.
Import Countries : United States of America and Europe.
Brand Names : GALADAIR, DAN CAKES, PASTRIES, COCA COLA and SUNKIST.
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)
Year Ending 31/12/05: Year Ending 31/12/06:
Total Revenue KD 7,100,000 KD 7,385,000
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
Commercial Bank of Kuwait
Mubarak Al Kabir Street
PO Box : 2861
Safat 13029
Tel : (965) 2411001
Fax : (965) 2450150
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 March 2006
Credit amount 17,000
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:
Refreshment Trading Company WLL is a leading concern in the Kuwaiti soft drinks market. It specialises in the production and bottling of carbonated soft drinks and fruit juices under licence from Coca Cola and Sunkist.
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$ 1,200,000
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. |
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%)