MIRA INFORM REPORT

Report Date :

10.12.2012

IDENTIFICATION DETAILS

Name :	AL KOUT INDUSTRIAL PROJECTS CO KSCC
Formerly Known As :	AL AHLIA INDUSTRIAL PROJECTS CO KSCC
Registered Office :	Al Abrar Tower, 2^nd Floor, Fahad Al Salem Street, P O Box 10277, Shuaiba 65453
Country :	Kuwait
Financials (as on) :	31.12.2011
Date of Incorporation :	28.12.1993
Com. Reg. No.:	57560, Safat
Legal Form :	Kuwaiti Shareholding Closed Company – KSCC
Line of Business :	Manufacturers of salt and chlorine products
No. of Employees :	200 employees

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

Status :	Satisfactory
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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
Kuwait	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Kuwait - ECONOMIC OVERVIEW

Kuwait has a geographically small, but wealthy, relatively open economy with crude oil reserves of about 104 billion barrels - about 7% of world reserves. Petroleum accounts for nearly half of GDP, 95% of export revenues, and 95% of government income. Kuwaiti officials have committed to increasing oil production to 4 million barrels per day by 2020. The rise in global oil prices throughout 2011 is reviving government consumption and economic growth. Kuwait has experienced a 20% increase in government budget revenue, which has led to higher budget expenditures, particularly wage hikes for many public sector employees. Kuwait has done little to diversify its economy, in part, because of this positive fiscal situation, and, in part, due to the poor business climate and the acrimonious relationship between the National Assembly and the executive branch, which has stymied most movement on economic reforms. In 2010, Kuwait passed an economic development plan that pledges to spend up to $130 billion over five years to diversify the economy away from oil, attract more investment, and boost private sector participation in the economy.

Source : CIA

SUMMARY

Company Name : AL KOUT INDUSTRIAL PROJECTS CO KSCC

Previously Known As : AL AHLIA INDUSTRIAL PROJECTS CO KSCC

Country of Origin : Kuwait

Legal Form : Kuwaiti Shareholding Closed Company - KSCC

Registration Date : 28^th December 1993

Commercial Registration Number : 57560, Safat

Trade Licence Number : 94/414

Chamber Membership Number : 64370

Issued Capital : KD 88,200,000

Paid up Capital : KD 88,200,000

Total Workforce : 200

Activities : Manufacturers of salt and chlorine products.

Financial Condition : Good

Payments : Nothing detrimental uncovered

Operating Trend : Steady

COMPANY NAME

AL KOUT INDUSTRIAL PROJECTS CO KSCC

company ADDRESS

Registered & Physical Address

Building : Al Abrar Tower, 2^nd Floor

Street : Fahad Al Salem Street

PO Box : 10277

Town : Shuaiba 65453

Country : Kuwait

Telephone : (965) 23263795 / 23263796 / 23263797 / 23263798

Facsimile : (965) 23260707

Email : mktg@alkoutprojects.com.kw / aipc@ahliaprojects.com

Premises

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

Branch Office (s)

Location Description

· Shuaiba Industrial Area Production plant

PO Box: 10277

Shuaiba 65453

Tel: (965) 3263795/8 / 3261500 / 3263675

Fax: (965) 3260857 / 3261404 / 3263920

KEY PRINCIPALS

Name Position

· Fahad Yagoub Al Joaan Chairman

· Bader Musaed Abdulla Al Sayer Vice Chairman

· Hamad Abdulaziz Al Saqer Director

· Bader Musaed Bader Al Sayer Director

· Othman Al Zahem Director

· Fahad Abdullrahman Al Sanea Director

· Salah Nasser Al Saqabi Director

· Basil Toutoungi General Manager

LEGAL FORM & OWNERS

Date of Establishment: 28^th December 1993

Legal Form : Kuwaiti Shareholding Closed Company - KSCC

Commercial Reg. No. : 57560, Safat

Trade Licence No. : 94/414

Chamber Member No.: 64370

Issued Capital : KD 88,200,000

Paid up Capital : KD 88,200,000

Name of Shareholder (s) Percentage

· Boubyan Petrochemicals Co 24.00%

· Yaqoub Y Al Jouan 23.02%

· Abdullah H Al Saqr & Brothers Co 11.75%

· Jiblah Holding Co 11.70%

· Afkar Holding Co 10.00%

· Mustafa S Al Eisa 6.25%

· Local businessmen and private investors 13.28%

AFFILIATED COMPANIES

· Al Kout Logistics Transport Co (ALTC)

· Al Kout Petrochemical Products Company

· Safewater Chemicals Co

OPERATIONS

Activities: Engaged in the manufacture of salt and chlorine products, such as caustic soda, hydrochloric acid, and sodium hypo chlorite.

Import Countries: Japan, China and Europe.

Operating Trend: Steady

Subject has a workforce of approximately 200 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: Kuwaiti Dinars (KD)

Balance Sheet 31/12/11 31/12/10

Assets
Non-current assets
Property, plant and equipment	12,992,477	9,558,775
Investment in an associate	7,506,230	8,800,000
Goodwill	833,350	-
	21,332,057	18,358,775
Current assets
Inventories	2,040,655	1,970,930
Trade receivables	3,078,473	2,801,357
Other receivables	694,873	365,796
Investments at fair value through statement of income	260,158	360,158
Cash and cash equivalents	4,427,777	2,368,735
	10,501,936	7,866,976
Total assets	31,833,993	26,225,751
Equity and liabilities
Equity
Share capital	8,820,000	8,820,000
Statutory reserve	3,069,946	2,680,069
Voluntary reserve	3,031,939	2,642,062
Group’s share of associate’s reserves	(10,984)	5,457
Foreign currency translation reserve	43,351	-
Retained earnings	7,692,464	6,568,871
Total equity	22,646,716	20,716,459
Non-current liabilities
Non-current portion of term loans	5,546,225	2,250,000
Provision for staff indemnity	768,926	657,588
	6,315,151	2,907,588
Current liabilities
Trade and other payables	2,122,126	1,551,704
Current portion of term loans	750,000	1,050,000
	2,872,126	2,601,704
Total liabilities	9,187,277	5,509,292
Total equity and liabilities	31,833,993	26,225,751

Statement of Income

Revenue	12,860,308	11,038,126
Cost of sales	(6,105,891)	(5,755,278)
Gross profit	6,754,417	5,282,848
Unrealised loss on investments at fair value  through statement of income	(100,000)	(100,000)
Share of results of an associate	(1,277,329)	(1,090,928)
Dividend income	22,305	21,705
Other income	209,873	371,110
General and administrative expenses	(1,083,990)	(944,093)
Selling and distribution expenses	(377,455)	(391,000)
Finance costs	(249,056)	(229,750)
Profit before contribution to Kuwait Foundation for the Advancement of Sciences (KFAS), National Labour Support Tax (NLST), Zakat and Board of Directors’ remuneration	3,898,765	2,919,892
Contribution to KFAS	(35,089)	(26,279)
NLST	(100,235)	(75,452)
Zakat	(40,094)	(30,077)
Board of Directors’ remuneration	(56,000)	(42,000)
Profit for the year	3,667,347	2,746,084

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

BANKERS

· Kuwait Finance House (KFH)

Safat Square

Abdullah Al Mubarak Street

PO Box: 24989

Safat 13110

Tel: (965) 22445050

Fax: (965) 22455135

· National Bank of Kuwait

Ali Awadi Tower

Ahmed Al Jaber Street

PO Box: 95

Safat 13001

Tel: (965) 23981188 / 23981189

Fax: (965) 23985643

· Commercial Bank of Kuwait

Mubarak Al Kabir Street

PO Box: 2861

Safat 13029

Tel: (965) 22411001

Fax: (965) 22450150

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

GENERAL COMMENTS

During the course of this investigation nothing detrimental was uncovered regarding subject’s operating history or the manner in which payments are fulfilled. As such the company is considered to be a fair trade risk.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.20
UK Pound	1	Rs.86.99
Euro	1	Rs.70.22

INFORMATION DETAILS

Report Prepared by :

MNL

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.