MIRA INFORM REPORT

 

 

Report Date :           

07.04.2011

 

IDENTIFICATION DETAILS

 

Correct Name :

RAJA COMPANY FOR RESTAURANTS & CONSTRUCTION MATERIALS

 

 

Formerly Known As :

Raja Trading Est.

 

 

Registered Office :

Building No. 80, Street No. 12, Old Shuwaikh Industrial Area, P.O.Box No.: 4121, Safat 13042

 

 

Country :

Kuwait

 

 

Date of Incorporation :

11.08.1998

 

 

Com. Reg. No.:

105226

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Importers, Wholesalers and Retailers of hardware, building materials

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

KD 25,000

Status :

Small Company 

Payment Behaviour :

No Complaints

Litigation :

Clear

 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – December 31, 2010

 

Country Name

Previous Rating

                   (30.09.2010)                  

Current Rating

(31.12.2010)

Kuwait

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

Company NAME

 

Raja Company For Restaurants & Construction Materials (Correct)

Raja Company For Rest & Const Materials (Requested)

 

 

Company ADDRESS

 

Building             : Building No. 80

Street               : Street No. 12

Area                 : Old Shuwaikh Industrial Area

P.O.Box No.      : 4121

Town                 : Safat 13042

Country             : Kuwait

Telephone         : (965) 2484 4799 / 2484 4696 / 2484 4799 / 2484 4810 /

                        (Mobile) (965) 9933 3969

Fax                   : (965) 2484 4798

E-Mail               : info@rajatrading.com

Website            : www.rajatrading.com

 

Also Known As              : Raja Company W.L.L.

 

Formerly Known As        : Raja Trading Est.

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                Position

 

1. Shalesh Govind Mirchandani               Managing Director

 

2. Noor Mohammed                                            Commercial Manager

 

3. Jaber Ali                                            Chief Accountant

 

Total Employees : 70

 

 

PAYMENTS

 

No complaints have been heard regarding payments from local suppliers

or banks.

 

We consider it is acceptable to deal with subject for SMALL amounts.

 

Opinion on maximum credit : KD 25,000

 

Trade risk assessment : Normal

 

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

 

The above figure is higher than normally seen in one amount, however could prove admissible if split into two transactions provided the total indebtedness is strictly monitored.

 

 

PRINCIPAL BANKERS

 

NAME     : COMMERCIAL BANK OF KUWAIT SAK (CBK)

Branch   : Mubarak Al Kabir Street

PO Box   : 2861

Town     : Safat 13029

Telephone: (965) 2241 1001

Fax      : (965) 2245 0150

 

The company also has an account with the following banks :

 

1. National Bank Of Kuwait (NBK)

   Abdullah Al Salem Street

   PO Box 95

   Safat 13001

   Telephone: (965) 2242 2011

   Fax      : (965) 2246 4156

 

2. Gulf Bank KSC

   Mubarak Al Kabir Street

   PO Box 3200

   Safat 13032

   Telephone: (965) 2244 9501

   Fax      : (965) 2244 5212

 

 

FINANCIAL INFORMATION

 

Private companies in Kuwait are not required to publish or disclose balance sheets. However, the subject interviewed offered the following information :

 

Sales Turnover     : KD 1,484,042 - 2006 - exact

                          : KD 1,265,958 - 2007 - exact

                          : KD 1,162,217 - 2008 – exact *

                          : KD   802,000 – 2009 – exact **

                          : KD   862,000 – 2010 – exact

                          : KD   950,000 – 2011 – projected

 

Net Profit          : KD    90,211 - 2006 - exact

                        : KD   148,110 - 2007 - exact

                            : KD    96,125 - 2008 - exact

                          : KD    35,000 – 2009 – exact **

                          : KD    70,000 – 2010 – exact

                          : KD    80,000 – 2011 – projected

 

* Decrease in sales turnover in 2008 was due to the global economic

downturn and the unfavourable market conditions.

 

** Sales turnover and net profit decreased in 2009 mainly due to the general recession and competition in the local market.

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started :    11 August 1998

 

History : The subject company was established in Kuwait on 11 August 1998 as a Proprietorship Business under the name Raja Trading Est. In May 2005 subject was converted into a Limited Liability Company and adopted the present style.

 

C.R. No. :          105226

 

License No. :     2006/2397

 

KCCI Membership No.: 92598 (expiry date: 04/12/2012)

                                       (previously was 56640)

 

Authorised Capital : KD 50,000 (increased from KD 7,500 in 2005)

 

Paid-Up Capital : KD 50,000 (increased from KD 7,500 in 2005)

 

Limited Liability Company with the following shareholders :

 

                                      Percentage

 

1. Shalesh Govind Mirchandani                                       49%

   (Indian national)                           

 

2. Waleed Abdullah Khalid Al Ayoub *                             51%

   (Kuwaiti national)                          

 

* The local sponsor, according to Kuwaiti laws must hold a minimum of

  51% of the capital, however, in practice and unofficially the

  sponsor gets a fixed annual percentage of the profit and a

  sponsorship fee without any investment in the company.

Affiliated companies of Raja Company For Restaurants & Construction Materials :

 

Associates

 

Raja Stores & General Trade Co

Salhiya Tower Building

18-22 Fahad Al Salem Street

PO Box 4121

Safat 13042

Telephone:  (965) 2245 6164 / 2241 2970

Fax      :  (965) 2484 5179

Established in 1996 for catering to the needs of the Oil field &

Construction Industry as well as to the Ministry of Electricity,

Water & Public Works. The company operates four divisions : Hardware,

Food & Beverages, Corporate Gifts & Electronics Division and

Contracting Division.

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Trading as importers, wholesalers and retailers of hardware, building materials such as hand tools, industrial safety, ladders, locks & door handles machinery & accessories, measuring equipment, ropes power tools, pumps, welding & consumables as well as microwaves.

 

The company operates through the following divisions:

 

1. Pizza Inn: Pizza Inn has signed plans to open 20 new Pizza Inn

restaurants in Kuwait. The chain has awarded a master license

agreement to the Raja Company, based in Kuwait City, in a

continuation of the brand's expansion throughout the Middle East and

into Asia.

 

2. Safety Plus: Safety Plus (Division of Raja Company For Restaurants & Construction Materials) was established in 1996 to cater to the needs of the growing demands of the Local Petroleum, Construction & Energy industry. While Industrial Safety was the prime business concern the Company has grown and diversified in the past years and is today recognized for its well-known products and services.

 

3. Micro Solutions: Having found its base in 2003 and headquartered

in Kuwait , Micro Solutions is a division of Raja Company For Restaurants & Construction Materials. It offers a wide range of corporate branding, web designing & development, advertising & printing, event management, corporate gifts and marketing related services in the GCC Region.

 

4. Kuwait Hardware: Kuwait Hardware is an online Business to Client

Portal for an easy Customer access to the Kuwait Hardware market. At

Kuwait hardware we like to go above and beyond by offering extra

valuable services to our customers. By teaming up with Kuwait

hardware, Customers through their Computers at home/office can

instantly access all the listed Supplier's Products available in the

Kuwait hardware, ranging from small, medium and large companies

including industrial, manufacturing, government, commercial and

contracting enterprises. Suppliers also benefit from having their

brand names & products promoted under this portal. We will work with

suppliers to provide the customer a continuous flow of accurate & up

to date information of their available products.

 

5. Workz Unlimited: The department has witnessed potential growth in

the past few years due to the boom in the construction activities in

the State of Kuwait. We have received awards from Government and

Private institutions in the past few years, which have been

successfully completed.

Areas of specializations are as follows:

Fire Fighting-Sprinkler Systems

Interiors

HVAC

Fabrications Jobs

 

6. Conzumerz: Keeping the local cooperative society and groceries in

mind raja company established the conzumerz department in 2000.

 

7. Berry Yum: Retailers of Berry Yum yogurt which is served with a lot of topping options such as Fresh fruits, chocolate, nuts, raisins and crushed oreos.

 

8. Trainerz

 

9. Chemicalz

 

10.Gulf Rig Supplies

           

Imports from Asia and Europe, mainly from China, India, USA, Germany, Italy, France and UK.

 

Exports to GCC countries.

 

 

FACILITIES

 

The Company has the following facilities :

 

Owned premises comprising offices and storage facilities located at the heading address as well as two retail outlets located elsewhere in Kuwait (see 'Branch Offices' below).

 

 

BRANCH OFFICES

 

1. Khalifa Al Jassim Street

   Shuwaikh Industrial Area

 

2. Ahmadiya Area

 

 

SPECIAL NOTE

 

You enquired on: Raja Company For Rest & Const Materials. Please note that the correct name is as per heading.  

 

The address given by you: Khalifa Al - Jassim Street,Sherwaikh is misspelt and applies to subject's retail outlet address. Please note that subject’s correct administrative office address is as per heading.

 

Interviewed: Jaber Ali (Chief Accountant).

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.22

UK Pound

1

Rs.72.25

Euro

1

Rs.63.09

 

 

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

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

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.