MIRA INFORM REPORT

 

 

Report Date :           

01.06.2011

 

IDENTIFICATION DETAILS

 

Name :

NATIONAL INDUSTRIES COMPANY (K.S.C.)

 

 

Formerly Known As :

National Industries Company for Building Materials

 

 

Registered Office :

Shuwaikh, next to Kuwait Red Crescent, opposite City Center, P.O. Box  3314 Safat 13034, Kuwait City

 

 

Country :

Kuwait

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

01.02.1997

 

 

Com. Reg. No.:

58873

 

 

Legal Form :

Kuwaiti Shareholding Company

 

 

Line of Business :

Importers, Wholesalers and Retailers of marketing building materials and infrastructure products

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

KD 1,000,000

 

 

Status :

Good

 

 

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 – March 31st, 2011

 

Country Name

Previous Rating

                   (31.12.2010)                  

Current Rating

(31.03.2011)

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 

 

National Industries Company (K.S.C.) (Correct)

National Industries Company For Building Materials (Requested)

 

 

Company ADDRESS

 

Street               : Jahra Road And International Airport Road Intersection

Area                 : Shuwaikh, next to Kuwait Red Crescent, opposite City

                        Center

P.O. Box           : 3314 Safat 13034

Town                 : Kuwait City

Country             : Kuwait

Telephone         : (965) 2483 6532 / 2483 6900 / 2467 4055 / 2484 9466 / 184 555 / 2483 7099

Fax                   : (965) 2483 3498 / 2484 2521

E-Mail               : bo@nicbm.com

Website            : www.nicbm.com

 

Shortform Name : NIC

 

Also known as : National Industries Kuwait

 

Formerly Known As : National Industries Company for Building  Materials

 

 

SENIOR COMPANY PERSONNEL

 

    Name                                               Position

 

1. Adel Khalid Al Sbaeh                          Chairman / Managing Director

 

2. Abdulaziz Ibrahim Al-Rabi'a                 Vice Chairman

 

3. Dr. Saoud Abdulla Al-Farhan               General Manager

 

4. Hamad Mohammad Abdulla Al-Saad   Director

 

5. Abdulrahman Sheikan Ahmad Al-

Farsy                                                    Director

 

6. Ahmad Mohammad Hasan                 Director

 

7. Lafi Abdullah Al-Muhaini                      Marketing Manager

 

8. Hilal Abu Rumh                                  Research & Industrial

                                                            Development Manager 

9. Mohammed Hilal                                Finance Manager

 

10.Sadeq Zaki                                                   Accounts Manager

 

11.Abdelhaq Mohamed Tawfiq              Administrative Manager

 

Total Employees : 1,300

 

 

PAYMENTS

 

No complaints have been heard regarding payments from local suppliers

or banks.

 

Subject is a subsidiary of the National Industries Group, which is a holding group that owns several industrial and financial companies in the Middle East, Europe and North America.

 

Subject was founded in 1960. It is one of the most firmly established Kuwaiti companies, and it has the largest industrial complex for construction materials in the Middle East.

 

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

 

Opinion on maximum credit : KD 1,000,000

 

Trade risk assessment : Normal

 

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

 

We consider the above figure to be within the company's financial

capabilities.

 

 

PRINCIPAL BANKERS

 

NAME               : NATIONAL BANK OF KUWAIT SAK

Branch              : Abdullah Al Salem Street

PO Box             : 95

Town                 : Safat 13001

Telephone         : (965) 2242 2011

Fax                   : (965) 2246 4156

 

The company also has an account with the following banks:

 

1.  Gulf Bank Ksc

    Mubarak Al Kabir Street

    Po Box 3200

    Safat 13032

    Telephone: (965) 2244 9501

    Fax      : (965) 2244 5212

 

2.  Kuwait Finance House

    Main Branch

    Po Box 24989

    Safat 13110

    Telephone: (965) 2244 5050

    Fax      : (965) 2245 5136

 

 

AUDITORS

 

Grant Thornton, Anwar Al-Qatami & Co

 

Alleid Accountants, Abdullatif Al-Majid & Co

 

 

FINANCIAL INFORMATION

 

The following Consolidated Balance Sheets as at 31 December 2010 applies to National Industries Company (K.S.C.) :

 

                                  31 Dec 2010           31 Dec 2009  

                                        (in Kuwaiti Dinars)         

 

ASSETS

 

Non-current assets

Property, plant and equipment      25,467,857            22,563,928  

Investment in associates            6,680,354             7,175,260  

Available for sale investments     49,965,207            56,782,394

                                   82,113,418            86,521,582   

Current assets

Inventories and spare parts        10,405,117            10,862,809  

Investments at fair value

through statement of income         5,495,583             4,469,890  

Accounts receivable and

other assets                       13,492,940            12,906,724  

Fixed deposit                         150,000               150,000  

Cash and bank balances              2,999,674             5,088,806  

                                   32,543,314            33,478,229  

Total assets                      114,656,732           119,999,811  

 

Equity and liabilities

Equity

Share capital                      34,620,187            34,613,430   

Share premium                      31,923,740            31,904,988  

Treasury shares                      (567,324)             (669,310) 

Legal reserve                       2,009,982             6,640,932  

Voluntary reserve                     427,161             5,599,124  

Treasury shares reserve                36,368                41,743   

Foreign currency translation reserve  (37,037)              (47,539)

Fair value reserve                  7,573,592             4,751,963  

Retained earnings/

(accumulated losses)                3,227,519           (10,657,235)  

Total equity attributable to

the owners of the parent           79,214,188            72,273,174  

Non-controlling interests           2,000,000                     -  

                                   81,214,188            72,273,174   

Non-current liabilities

Musharaka bonds                             -            14,305,927  

Long term loan                      5,502,446             6,000,000

Murabaha payables                      32,202                     -  

Provision for land-fill expenses      655,163               630,562  

Provision for staff indemnity       3,668,134             3,366,731     

                                    9,857,945            24,303,220  

Current liabilities

Short term loan                     2,700,000             2,700,000 

Current portion of musharka bonds  14,010,105            14,305,926

Current portion of long term loan     900,000                     -  

Current portion of murabaha payables  279,878                     - 

Accounts payable and other

liabilities                         5,694,616             6,417,491  

                                   23,584,599            23,423,417

Total liabilities                  33,442,544            47,726,637

Total equity and liabilities      114,656,732           119,999,811  

 

CONSOLIDATED PROFIT AND LOSS ACCOUNT

 

Sales                              40,923,013            38,358,162  

Cost of sales                     (28,911,763)          (26,238,212)

Gross profit                       12,011,250            12,119,950

Other operating income                853,381               555,536 

Distribution expenses                (703,160)             (686,135) 

General, administrative and

other expenses                     (2,083,782)           (2,007,118) 

                                   10,077,689             9,982,233  

Finance costs                        (652,079)           (1,314,308) 

Investment income                     168,418             1,058,054 

Impairment loss on available

for sale investments               (5,647,834)           (9,474,572) 

Share of results of associates        (97,116)           (1,848,617) 

Foreign exchange gain/(loss)          422,532            (1,063,799) 

Profit/(loss) before contribution

to KFAS, NLST, Zakat and

directors’ remuneration             4,271,610            (2,661,009) 

Provision for contribution to Kuwait

Foundation for the Advancement

of Sciences (KFAS)                    (38,444)                    -  

Provision for National Labour

Support Tax (NLST)                    (83,149)                    -  

Provision for Zakat                   (33,176)                    -  

Provision for Directors’ remuneration (35,000)                    -    

Profit/(loss) for the year

attributable  to the owners of the

parent                              4,081,841            (2,661,009)

Basic and diluted earnings/(loss) per

share attributableto the owners of

the parent                         11.84 Fils           (7.73) Fils

 

Financial year ends 31 December.

 

 

LEGAL STATUS AND HISTORY

 

Date Started : 1 February 1997

 

History : The subject company was established in Kuwait on 1 February

          1997 as a Kuwaiti closed shareholding company styled

          National Industries Company for Building Materials SAK

          (Closed). On 6 March 2008, subject changed its name to the

          present style, however origins of its business activities  

          can be traced back to 1960.

 

C.R. No. : 58873

 

KCCI Membership No.: 71654 (expiry date: 30 July 2011)

 

Authorised Capital : KD 34,620,186 (increased from KD 21,404,570)

 

Paid up Capital : KD 34,590,693 (increased from KD 21,404,570)

 

Kuwaiti Shareholding Company (Closed) with the following sole

shareholder :

 

National Industries Group (Holding) (SAK)           

National Industries Building

Shuwaikh Area, cross of Airport Road and Jahra Road

opposite Kaifan Bridge

P.O. Box  417

Safat 13005

Kuwait

Telephone: (965) 2484 9466 / 2484 2863 / 2484 4739

Fax      : (965) 2483 9582 / 2484 5205

E-Mail   : nigroup@nig.com.kw    investmgr@nig.com.kw

 

Affiliated companies of National Industries Company (K.S.C.) :

 

Associates

 

National Industries Group (Holding) SAK also has the following

subsidiaries :

 

1.  BI Group Plc                                                                                     100%

    Unit 1 First Avenue

    Maybrook Industrial Estate

    Minworth, Sutton Coldfield

    West Midlands, B76 1BA

    United Kingdom

    Tel: (44 121) 351 2129

    Fax: (44 121) 351 2016

    (On 23 February 1996 NIC purchased 95.2% of BI Group

    for UK PNDS 96.3 million. BI Group Plc is wholly owned

    by NIC Holdings (UK) Plc, which is in turn 100% owned

    by NIC (Guernsey) Ltd)

 

2.  Lulua Nasrullah Trading Company WLL                                                100%

    Kuwait

 

3.  National Company for Quarries SAK                                                   100%

    Kuwait

 

4.  National Company for Cement Industries SAK                                     100%

    Kuwait

 

5.  National Company for Ready Mixed Concrete SAK                               100%

    Kuwait

 

6.  National Land Tranport Company SAK                                                            100%

    Kuwait

 

7.  NI Group (Bahrain) EC                                                                       100%

    Bahrain

 

8.  NIC (Guernsey) Ltd                                                                                        100%

    Guernsey, Channel Islands

 

9.  NIC Holdings (Guernsey) Ltd                                                               100%

    Guernsey, Channel Islands

 

10. NIC Holdings (UK) Plc                                                                                    100%

    United Kingdom

 

11. Silicon Industrial Consultant Company WLL                                          100%

    Kuwait

 

 

12. National Industries Company for Building Materials SAK                      75%

    (NICBM)

    P.O. Box 3314

    Safat 13034

    Tel: (965) 2483 6532 / 2483 6900 

    Fax: (965) 2483 3498

 

Associates

 

1.  Forth Tool and Valve Ltd                                                                     20%

    United Kingdom

 

2.  FTV Proclad (UAE) LLC                                                                        49%

    United Arab Emirates

    Joint venture between Abu Dhabi Investment Co. (ADIC) and

    BI Group Plc., UK.

    Proclad protective weld surfacing systems.

 

3.  Kuwait Building Materials Manufacturing Co. (KBMMC)                         49%

    P.O. Box 24152

    Safat 13102

    Kuwait

    Tel: (965) 2467 4608

    Fax: (965) 2467 4631

 

4.  Kuwait Cement Company (KCC)                                                             22%

    P.O. Box 20581

    Safat 13066

    Kuwait

    Tel: (965) 2240 1700

    Fax: (965) 2243 2956

 

5.  Kuwait Financial Centre SAK                                                                  13%

    Kuwait

 

6.  Kuwait Prefabricated Building Company SAK                                           49%

    Kuwait

 

7.  Kuwait Rocks Company SAK (KRC)                                                      38%

    P.O. Box 21722

    Safat 13078

    Kuwait

    Tel: (965) 2242 7334/5

    Fax: (965) 2242 9350

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Trading as importers, wholesalers and retailers of marketing building materials and infrastructure products including lime bricks, insulated bricks, nic clad, hydrated lime, lintels, dry mortar, plastic pipes, cement pipes & tiles, kerbstones, interlock blocks and ready-mix.

 

Manufacturers of lime bricks, insulated bricks, nic clad, hydrated

lime, lintels, dry mortar, plastic pipes, cement pipes & tiles,

kerbstones, interlock blocks and ready-mix.

 

Imports from all western European countries, USA, India, Saudi Arabia

and China.

 

Exports mainly to GCC countries and Iraq.

 

Suppliers include :

 

- Fahrzengbau Langendorf GmbH & Co. KG, Germany

- Sabic Marketing Ltd, Saudi Arabia

- Itochu Corporation, USA

- Carl Aug. Picard & Co. GmbH, Germany

- GSPS Maschinenfabrik GmbH, Germany

- Kranservice Rheinberg GmbH, Germany

 

Subject’s manufactured products comply with the international standards ISO 9001.

 

 

FACILITIES

 

The Company has the following facilities :

 

Office premises located at the heading address, as well as 12

factories located elsewhere in Kuwait.

 

 

BRANCH OFFICES

 

1. Mina Abdullah

   Tel : (965) 2326 2622 / 2326 2866

   Fax : (965) 2326 2970

 

2. Sulaibiah   

   Tel : (965) 2467 4055 / 2467 4093

   Fax : (965) 2467 4636

 

 

SPECIAL NOTE

 

You enquired on: National Industries Company For Building Materials. Please note that this name applies to subject's formerly known name. Subject's current registered name is as per heading.

 

Telephone numbers in Kuwait have changed. Please note that the

subject's correct telephone numbers are as per heading.

 

Interviewed:  Abdelhaq Mohamed Tawfiq (Administrative Manager).

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.03

UK Pound

1

Rs.74.43

Euro

1

Rs.64.75

 

 

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

----

NB

New Business

----

 

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.