MIRA INFORM REPORT

Report Date :

24.12.2012

IDENTIFICATION DETAILS

Name :	AL ZAHEM INDUSTRIES CONTRACTING AND GENERAL TRANSPORT CO WLL
Registered Office :	Block No. 1, Street No. 9, Al Rai Area No. 1683, P O Box 20636, Safat 13067
Country :	Kuwait
Date of Incorporation :	13.01.1993
Com. Reg. No.:	16344
Legal Form :	With Limited Liability
Line of Business :	Subject operates through several divisions l Trading Division l Contracting Division l Manufacturing Division
No. of Employees :	130 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 ZAHEM INDUSTRIES CONTRACTING AND GENERAL

TRANSPORT CO WLL

Country of Origin : Kuwait

Legal Form : With Limited Liability - WLL

Registration Date : 13^th January 1993

Commercial Registration Number : 16344

Chamber Membership Number : 1555

Issued Capital : KD 750,000

Paid up Capital : KD 750,000

Total Workforce : 130

Activities : Subject operates several divisions (see below for details)

Financial Condition : Undetermined

Payments : Nothing detrimental uncovered

Person Interviewed : Mohamed Khedir, Finance Manager

COMPANY NAME

AL ZAHEM INDUSTRIES CONTRACTING AND GENERAL TRANSPORT CO WLL

company ADDRESS

Registered & Physical Address

Location : Block No. 1

Street : Street No. 9

Area : Al Rai Area No. 1683

PO Box : 20636

Town : Safat 13067

Country : Kuwait

Telephone : (965) 24721480 / 24721481 / 24721482 / 24717109

Facsimile : (965) 24763531

Mobile : (965) 97881256

Email : alzahemindustries@yahoo.com

Premises

Subject operates from a large suite of offices and a warehouse that are rented and located in the Industrial Area of Safat.

KEY PRINCIPALS

Name Position

· Abdullah Abdulaziz Al Zahem Managing Director

· Abdullah Mohamed Al Zahem Director

· Mohamed Abdullah Al Zahem Director

· Mohamed Khedir Finance Manager

· Mohamed Al Qawas Human Resources Manager

· Ali Abdul Salam Administration Manager

LEGAL FORM & OWNERS

Date of Establishment : 13^th January 1993

Legal Form : With Limited Liability - WLL

Commercial Reg. No. : 16344

Chamber Member No. : 1555

Issued Capital : KD 750,000

Paid up Capital : KD 750,000

Name of Shareholder (s)

· Abdullah Abdulaziz Al Zahem

· Abdullah Mohamed Al Zahem

· Mohamed Abdullah Al Zahem

AFFILIATED COMPANIES

· Golden Sword For Electrical & Refrigeration

Safat

· Al Zahem Elevators

Safat

OPERATIONS

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

· Trading Division

Engaged in the import and distribution of air conditioning units and equipment, car oils and tyres, electrical appliances and instruments, and refrigeration and cooling units.

· Contracting Division

Engaged as general contractors specialising in electrical works as well as the installation and maintenance of refrigeration and air conditioning equipment.

· Manufacturing Division

This division is engaged in the manufacture of tyres and retreated tyres and related rubber products.

Import Countries : Europe and the United States of America.

Agencies Held:

· Rema Tip Top Germany

Subject has a workforce of 130 employees.

FINANCIAL DATA

Companies registered in Kuwait are not legally required to make their accounts public and no financial information was released by the company or submitted by outside sources.

BANKERS

· Gulf Bank KSC

Mubarak Al Kabir Street

PO Box: 3200

Safat 13033

Tel: (965) 22449501

Fax: (965) 22445212

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.55.07
UK Pound	1	Rs.89.54
Euro	1	Rs.72.77

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%)

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