MIRA INFORM REPORT

 

 

Report Date :

27.02.2008

 

 

IDENTIFICATION DETAILS

 

Name :

KUWAIT DANISH DAIRY COMPANY KSCC (KDD)

 

 

Registered Office :

KDD Building, Sabhan Industrial Area, Plot No. 143, PO Box  835, Safat 13009

 

 

Country :

Kuwait

 

 

Financials (as on) :

31.12.2007

 

 

Date of Incorporation :

16.12.1962

 

 

Com. Reg. No.:

9377, Safat

 

 

Legal Form :

With Limited Liability - WLL

 

 

Line of Business :

Production, Processing, Distribution and Export of Dairy Products

 

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$ 1,500,000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

SUMMARY

 

Company Name                         : KUWAIT DANISH DAIRY COMPANY KSCC (KDD)

Country of Origin                                    : Kuwait

Legal Form                                            : With Limited Liability - WLL

Registration Date                                   : 16th December 1962

Commercial Registration Number            : 9377, Safat

Membership Number                              : 1502

Issued Capital                                        : KD 10,000,000

Paid up Capital                                      : KD 10,000,000

Total Workforce                                     : 800

Line of Business                                    : Production, processing, distribution and export of dairy products.

Financial Condition                                 : Good

Payments                                             : Prompt

Operating Trend                         : Steady

 

 

 

 

 

COMPANY NAME 

 

KUWAIT DANISH DAIRY COMPANY KSCC (KDD)

 

 

ADDRESS

 

Registered & Physical Address

 

Building             : KDD Building

Area                 : Sabhan Industrial Area, Plot No. 143

PO Box             : 835

Town                 : Safat 13009

Country             : Kuwait

Telephone         : (965) 4735423 / 4767301 / 4832001 / 4717911

Facsimile          : (965) 4747029 / 4833270

Email                : sales@kddc.net

                          support@kddc.net

 

 

Premises

 

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

 

 

KEY PRINCIPALS

 

·       Mohamed Izzat Jaffer                                                 Managing Director

 

·       Sheikh Kabbar Al Jabbaa                                                       Director

 

·       Bahita Izzat Jaffer                                                                  Director

 

·       Ahmed Yousef Behbehani                                                      Director

 

·       Murad Yousef Behbehani                                                       Director

 

·       Abdullah Abdul Latif Al Thuwainy                                            Director

 

·       Abdul Wahab Suliaman Al Fawzan                                         Director

 

·       Musaed Saleh Al Abdali                                                         Director

 

·       Wael Aboud                                                                          Commercial Manager

 

·       K. Veno Gohpal                                                                    Purchasing Manager

 

·       Mrs Baheya Ezzat Gaffar                                                       Finance Manager

 

·       Bassam Wafiq Gaffar                                                 Financial Controller

 

·       Ms Iman Yousef                                                                    IT Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 16th December 1962

 

History                         : Subject was originally incorporated in 1962 as a With Limited

  Liability Company – WLL under the name of “Kuwait Danish Dairy

  Company WLL (KDD)”.

 

  However, in September 2001 subject’s legal status was converted

  into a Kuwaiti Shareholding Company Closed – KSCC and it was

  registered under the current style of “Kuwait Danish Dairy Company

  KSCC (KDD)”.

 

Legal Form                  : Kuwaiti Shareholding Company Closed - KSCC

 

Commercial Reg. No.  : 9377, Safat

 

Membership No.          : 1502

 

Issued Capital              : KD 10,000,000

 

Paid up Capital            : KD 10,000,000

 

 

Name of Shareholder (s)

 

·       United Industries Group SAK

PO Box : 3377

Safat 13034

     Kuwait

     Tel : (965) 4814875

 

·       Danish Turnkey Dairies Ltd

Europaplads 2

8000 Arhus

Denmark

 

·       Mohamed Izzat Jaffer

 

·       Sheikh Kabbar Al Jabbaa

 

·       Bahita Izzat Jaffer

 

·       Ahmed Yousef Behbehani

 

·       Murad Yousef Behbehani

 

·       Abdullah Abdul Latif Al Thuwainy

 

·       Abdul Wahab Suliaman Al Fawzan

 

·       Musaed Saleh Al Abdali

 

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 : Engaged in the production, processing, distribution and export of dairy products

         including, fresh and long life milk, yoghurts, ice creams, fruit juices, fruit drinks

         and tomato pastes.

 

         The company operates two well-equipped processing plants and has a

         dedicated fleet of refrigerated vehicles to distribute its products throughout the

         country.

 

Import Countries : The United Kingdom and Denmark

 

Brand Names : KDD, GUAVA, DAKKUS and COCKTAIL

 

Operating Trend : Steady

 

Subject has a workforce of approximately 800 employees.

 

 

FINANCIAL HIGHLIGHTS

 

Financial highlights provided by outside sources are given below :

 

Currency : Kuwaiti Dinars (KD)

 

                                                Year Ending 31/12/06:                Year Ending 31/12/07:

 

Total Revenue                            KD 33,230,000                           KD 35,725,000

 

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

 

 

 

 

 

 

 

BANKERS

 

·       Al Ahli Bank of Kuwait KSC

Mubarak Al Kabir Street

PO Box : 1387

Safat 13033

Tel : (965) 411101 / 411102

 

·       National Bank of Kuwait

Ali Awadi Tower

Ahmed Al Jaber Street

PO Box : 95

Safat 13001

Tel : (965) 3981188 / 3981189

Fax : (965) 3985643

Acc No. 000 517933 0101

 

 

PAYMENT HISTORY

 

Subject’s payment record is reported to be met in a generally prompt manner.

 

Date of transaction         March 2000                   January 2002                 June 2006

Credit amount                250,000             114,000             17,000

Amount overdue 0                                  0                                  0

Payment terms              90 days                         90 days                         90 days

Payment Method           Letters of Credit             Letters of Credit             Letters of Credit

Paying record                Prompt                          Prompt                          Prompt

Currency                       US Dollars                     Euros                            Pounds Sterling

 

 

GENERAL COMMENTS

 

Opinion on the credit figure of US$ 150,000

 

Subject is the largest producer and supplier of dairy products and fruit juices in Kuwait, dominating the market, and is one of the leading dairy processing companies in the Middle East.

 

The company is run in a professional manner and enjoys an excellent reputation for the quality of its products. The operating history is clear and the financial situation is healthy and profitable. As such the subject is deemed trustworthy for respecting its financial trade commitments and the above credit figure is deemed to be with subject’s financial means.

 

Maximum suggested credit figure: US$ 1,500,000

 

 

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