MIRA INFORM REPORT

 

 

Report Date :

18.01.2008

 

IDENTIFICATION DETAILS

 

Name :

AJAL CONTRACTING & GENERAL TRADING COMPANY WLL

 

 

Registered Office :

Anwar Al Sabah Complex, Block 1, 7th Floor, Al Salhia Area, PO Box ,26258, Safat 13123

 

 

Country :

Kuwait

 

 

Date of Incorporation :

16.02.1980

 

 

Com. Reg. No.:

29231

 

 

Legal Form :

With Limited Liability

 

 

Line of Business :

Provision of Anti Corrosion Coating and Cathodic Protection Services for Marine, Petrochemical, Oil and Gas sectors

 

 

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$ 750,000

 

 

Status :

Good

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

 

 

SUMMARY

 

Company Name                         : AJAL CONTRACTING & GENERAL TRADING

                                                              COMPANY WLL

Country of Origin                                    : Kuwait

Legal Form                                            : With Limited Liability - WLL

Registration Date                                   : 16th February 1980

Commercial Registration Number            : 29231, Kuwait City

Membership Number                              : 9031

Issued Capital                                        : KD 250,000

Paid up Capital                                      : KD 250,000

Total Workforce                                     : 100

Line of Business                                    : Subject operates several divisions (see below for details).

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                         : Steady

 

 

 

 

COMPANY NAME

 

AJAL CONTRACTING & GENERAL TRADING COMPANY WLL

 

 

ADDRESS

 

Registered & Physical Address

 

Building             : Anwar Al Sabah Complex, Block 1, 7th Floor

Area                 : Al Salhia Area

PO Box             : 26258

Town                 : Safat 13123

Country             : Kuwait

 

Telephone         : (965) 2427773/4 / 2425822 / 2425843

Facsimile          : (965) 2405124

Email                : ajal@qualitynet.net

                          info@ajalgroup.com

 

Premises

 

Subject operates from a medium sized suite of offices that are rented and located in the Central Business Area of Safat.

 

 

KEY PRINCIPALS

 

·       Othman Abdelaziz Al Abdallah Al Bisher                     Managing Director

 

·       Faisal Ali Abdelrahman Al Bahar                                Director

 

·       Haseeb J. Qaddoura                                                  Technical Division Manager

 

·       Fadi Nasr                                                                 Commercial Division Manager

 

·       Hussam Barazi                                                         Administration Manager

 

·       Prashant Kulkarni                                                      Customer Support Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 16th February 1980

 

Legal Form                  : Sharikat Thet Massouliya Mahdoudeh (With Limited Liability - WLL)

 

Commercial Reg. No.  : 29231, Kuwait City

 

Membership No.          : 9031

 

Issued Capital              : KD 250,000

 

Paid up Capital            : KD 250,000

 

 

Name of Shareholder (s)

 

·       Othman Abdelaziz Al Abdallah Al Bisher

 

·       Faisal Ali Abdelrahman Al Bahar

 

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.

 

 

AFFILIATED COMPANIES

 

·       Weather Ford Kuwait For Petroleum

     PO Box: 26258

     Safat 13123

     Tel: (965) 2457692

     Fax: (965) 2405124

 

·       Al Othman & Al Bisher Trading Co WLL

     PO Box: 26258

     Safat 13123

     Tel: (965) 2425843

 

 

LINE OF BUSINESS

 

Operations : Subject’s activities are performed through the following divisions:

 

·       Technical Division

 

This division is engaged in the provision of anti corrosion coating and cathodic protection services for marine, petrochemical, oil and gas sectors.

 

·       Commercial Division

 

The Commercial Division specialises in the supply of chemicals, oil spill cleaning equipment, oil spill detection sensors, valves, pipefittings, drilling pumps, and heat exchangers.

 

Subject’s clients includes Kuwait Oil Company (KOC), Kuwait National Petroleum Company (KNPC), Kuwait Gulf Oil Company (KGOC), Petrochemical Industries Company (PIC), Equate, Ministry of Energy (MEW), Ministry of Public Works (MPW), Kuwait Institute for Scientific Research (KISR), and the Public Authority of Environment (EPA).

 

Import Countries : Europe, Russia, Canada and the United States of America.

 

International Suppliers :

 

·       Albany Pumps Ltd                             United Kingdom

·       Metalnastri Srl                                  Italy

·       Jansen                                             Belgium

·       EGE                                                            Denmark

·       Tarkett                                             France

·       GT Corporation                                  Russia

·       Applied Microsystems                       Canada

·       Aqua Guard Spill Response Inc          Canada

·       Cortec Corporation                            United States of America

 

Operating Trend : Steady

 

Subject has a workforce of approximately 100 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 4,025,000                            KD 4,175,000

 

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

 

·       Commercial Bank of Kuwait

     Mubarak Al Kabir Street

     PO Box : 2861

     Safat 13029

     Tel : (965) 2411001

     Fax : (965) 2450150

 

·       The Gulf Bank KSC

Mubarak Al Kabir Street

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                                 June 2005

Credit amount                                        337,000

Amount overdue                         0

Payment terms                                      180 days

Payment Method                                   Letters of Credit

Paying record                                        No Complaints

Currency                                               Pounds Sterling

 

 

GENERAL COMMENTS

 

Opinion on the credit figure of US$ 150,000:

 

Subject is one of the leading concerns in its field, specialising in the provision of anti corrosion coating and cathodic protection services for marine, petrochemical, oil and gas sectors, as well as the supply of oil and gas field requisites.

 

The company is owned by Mr Othman Abdelaziz Al Abdallah Al Bisher and Mr Faisal Ali Abdelrahman Al Bahar, who are experienced Kuwaiti businessmen.

 

Ajal Contracting & General Trading Company WLL deals with a host of international suppliers from around the globe and maintains a good relationship with them meeting payment obligations in a timely manner.

 

Local sources report that it is considered to be a sound trade risk and the above credit figure is deemed to be 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.

 

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