MIRA INFORM REPORT

 

 

 

Report Date :

29.02.2012

 

IDENTIFICATION DETAILS

 

Name :

AL-ENMA’A REAL ESTATE COMPANY K.S.C.

 

 

Registered Office :

Enma’a Tower, First, Second And Mezzanine Floors, Abdullah Mubarak Street, Murghab, P.O. Box 24544, Safat 13160

 

 

Country :

Kuwait

 

 

Financials (as on) :

31.10.2009

 

 

Date of Incorporation :

15.08.1993

 

 

Com. Reg. No.:

53559

 

 

Legal Form :

Shareholding Company

 

 

Line of Business :

Real Estate Activities Inside and Outside Kuwait

 

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 :

KD 300,000

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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

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

 

AL-ENMA’A REAL ESTATE COMPANY K.S.C. (CLOSED) (CORRECT)

AL ENMA'A REAL ESTATE CO (REQUESTED)

 

 

ADDRESS

 

Building             :  Enma’a Tower, First, Second And Mezzanine Floors

Street                           :  Abdullah Mubarak Street

Area                :  Murghab

P.O. Box           :  24544

Town                 :  Safat 13160

Country             :  Kuwait

Telephone         :  (965) 2245 8880 / 2249 4754 / 2244 2667

Fax                   :  (965) 2246 3182

E-Mail                           :  p.r@enmaa.com

 

Shortform Name :  ERESCO

 

Formerly Known As :  Al Enmaa Real Estate Services Company

 

 

SENIOR COMPANY PERSONNEL

 

    Name                                                                        Position

 

1.  Waleed Khaled Saad Al-Jeri                                       General Manager

                       

2.  Jassim Mohammed Alduwaikh                                   General Manager Assistant Of

                                                                                                Real Estate Investment Sector

 

3.  Yousef Saud Abdullah Al-Weqayan                             General Manager Assistant Of

                                                                                                Financial & Administrative

                                                                                                Sector

 

4.  Mohammad Faraj Khalid Al-Khashti                            General Manager Assistant Of

                                                                                                Projects & Maintenance Sector

 

Total Employees : 1,600

 

 

PAYMENTS

 

No complaints have been heard regarding payments from local suppliers or banks.

 

Subject is a subsidiary of Kuwait Finance House KSC.

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

 

Opinion on maximum credit : KD 300,000 (higher amounts may be considered with assurances from the principals)

 

Trade risk assessment : Normal

 

Opinion on the credit figure of US DLRS 500,000:

 

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

 

 

PRINCIPAL BANKERS

 

NAME     : KUWAIT FINANCE HOUSE

Branch   : Main branch

PO Box   : 24989

Town     : Safat 13110

Telephone: (965) 2244 5050

Fax      : (965) 2245 5136

 

 

AUDITORS

 

ALI A. Al Hasawi

License No NO. 30 A

Burgan BDO

International Accountants

 

Waleed A. Al Osaimi

License No. 68 A

of Ernst & Young

 

 


FINANCIAL INFORMATION

 

Balance Sheets as at 31 October showed :

                                 

                                              2009          2008

                                                KD            KD

ASSETS

Non-current assets

Property, plant and equipment            1,906,618     2,365,676

Available for sale investments          19,796,440    21,459,664

Investment properties                   23,031,335    26,403,814

Investment in associates                10,845,161    12,088,945

                                        55,579,554    62,318,099

Current assets

Inventories                                720,203     1,995,200

Investments at fair value through income

statement                                4,005,147     5,732,522

Gross amount due from customers for

contract work                              359,976     1,909,018

Accounts receivable and other assets    11,079,134     9,151,334

Investment deposits                      1,190,000     2,020,000

Cash and cash equivalents                  474,867     2,972,491

                                        17,829,327    23,780,565

TOTAL ASSETS                            73,408,881    86,098,664

EQUITY AND LIABILITIES

Equity

Share capital                           45,053,468    42,908,065

Share premium                              176,642       176,834

Statutory reserve                        7,411,287     7,411,287

Voluntary reserve                        4,715,513     5,037,573

Foreign currency translation reserve       381,353      (452,452)

Cumulative changes in fair values          403,302       150,132

(Accumulated losses) retained earnings  (5,781,102)    2,540,090

Proposed cash dividend                           -     2,145,403

Proposed issue of bonus shares                   -     2,145,403

Total equity                            52,360,463    62,062,335

Non-current liabilities

Employees’ end of service benefits       1,244,705     1,191,113

Murabaha payable                         4,077,552     6,273,645

                                         5,322,257     7,464,758

Current liabilities

Bank overdrafts                            521,979       254,554

Gross amount due to customers for contract

work                                       271,946       382,446

Accounts payable and other liabilities   5,153,506    10,955,840

Murabaha payable                         9,778,730     4,978,731

                                        15,726,161    16,571,571

Total liabilities                       21,048,418    24,036,329

TOTAL EQUITY AND LIABILITIES            73,408,881    86,098,664

 

INCOME STATEMENT Year ended 31 October 2009

         

                                              2009          2008

                                                KD            KD

Revenue

Revenue from services rendered           5,220,245     5,289,582

Revenue from real estate activities      1,227,859     1,335,651

Revenue from construction contracts      4,924,873    11,514,400

Trading sales                              967,430     5,164,517

Readymix cement factory sales            2,545,511     3,445,853

                                        14,885,918    26,750,003

Cost of revenue

Cost of services rendered                3,947,321     3,900,199

Cost of real estate activities              72,681        82,075

Cost of construction contracts           4,904,558    11,403,360

Cost of trading sales                      895,813     4,419,068

Cost of readymix cement factory sales    2,833,042     3,316,273

                                        12,653,415    23,120,975

GROSS PROFIT                             2,232,503     3,629,028

Selling and distribution costs            (146,273)     (155,962)

Administrative expenses                   (552,766)   (1,121,947)

Provisions                              (2,908,805)   (1,087,637)

(LOSS) PROFIT FROM OPERATIONS           (1,375,341)    1,263,482

Share of results of associates          (1,173,033)    2,505,026

Net investment (loss) income            (4,533,946)    3,036,611

Finance costs                             (373,602)     (122,451)

Other (expenses) income                    (76,948)      456,878

Foreign exchange loss                     (788,322)            -

(loss) Profit BEFORE TAXES AND

DIRECTORS’REMUNERATION                  (8,321,192)    7,139,546

Contribution to Kuwait Foundation for

the Advancement of Sciences (KFAS)               -       (64,256)

National Labour Support Tax (NLST)               -      (177,790)

Zakat (Based on Law No.46/2006)                  -       (64,205)

Directors’ remuneration                          -       (70,000)

(LOSS) PROFIT FOR THE YEAR              (8,321,192)    6,763,295

 

 


LEGAL STATUS AND HISTORY

 

Date Started : 15 August 1993

 

History : The subject was established in 1993 under the name Al Enmaa Real Estate Services Company. In October 1997 the company's name changed to the present style and legal status was also changed from general partnership to a Kuwaiti Shareholding Company (closed).

 

C.R. No. : 53559

 

KCCI Membership No. : 39525 (issue date: 15/12/1993 / expiry date: 11/07/2013)

 

License No. : 93/406/MM

 

Capital : KD 45,053,468 

 

Kuwaiti Shareholding Company (closed) with the following directors and  shareholders :

 

Directors

 

1.  Emad Abdullah Yousef Al-Thakeb 

 

2.  Mohammed Abdullah Mohammad AL Othman 

 

3.  Fuad Abdulmohsen Mohammad AL wahab 

 

4.  Anwar Bader Mohammad Al-Gheth 

 

5.  Ebrahim Abdulrahman Ibrahim Al-Sagobi 

 

6.  Ziad Tareq Abdulmohsen Al-Mokhazim  

 

7.  Meshaal Sami Kassem Al-Moshri

 

Shareholders

                                               Share Percentage

 

 

1. Kuwait Finance House KSC                                51 %

   Kuwait Finance House Building

   Abdulla Al Mubarak Street

   Safat Square

   P.O. Box : 24989

   Safat 13110

   Telephone: (965) 2244 5050

   Fax      : (965) 2246 2057

 

2. Members of general public                               49 %

 

Affiliated companies of the subject company :

 

Subsidiaries

 

1. Eresco Real Estate Development S.P.C.                   100%         

   Bahrain

 

2. Enma’a Gulf Real Estate Company W.L.L.                   100%

   Saudi Arabia Real Estate

 

 

Affiliated companies of Kuwait Finance House KSC:

 

1.  Kuwait Finance House (Malaysia)                         100%

 

2.  Muthanna Investment Company K.S.C. (Closed)             100%

 

3.  Liquidity Management House K.S.C. (Closed)              100%

 

4.  KFH Private Equity                                      100%

 

5.  Al-Nakheel United Real Estate Company K.S.C. (Closed)   100%

 

6.  Baitak Real Estate Investment K.S.C. (Closed)           100%

 

7.  Development Enterprises Co. K.S.C. (Holding)            100%

 

8.  International Turnkey Systems Co K.S.C. (Closed)         97%

 

9.  Kuwait Finance House (Bahrain) B.S.C. (Closed)           93%

 

10. Kuwait Turkish Participation Bank                        62%

 

11. ALAFCO – Aviation Lease & Finance Co K.S.C. (Closed)     52%

 

12. Aref Investment Group K.S.C. (Closed)                    52%

 

13. First Takaful Insurance Co. K.S.C. (Closed)              27%

 

14. Liquidity Management Center K.S.C. (Closed)              25%

 

15. Sharjah Islamic Bank                                     20%

 

16. Gulf Investment House K.S.C. (Closed)                    20%

 

17. First Investment Company K.S.C. (Closed)                  9%

 

 

 


ACTIVITIES

 

The Company is involved in the following activities :

 

Engaged in real estate activities inside and outside Kuwait.

 

The company's real estate activities include contracting, management and maintenance of real estates. The company undertakes contracts to construct buildings and to carry on real estate, commercial, residential, industrial and touristic projects as well as security of public and private real estate, and the transportation of funds and precious metals, in addition to maintenance of mechanical and electrical spare parts and building materials. Investing surplus funds in companies, real estate or portfolios managed by other specialized firms inside and outside Kuwait.

 

All activities are conducted in accordance with Islamic Sharee'a, as approved by Fatwa and Sharee'a Supervisory Board.

 

Imports from UK, Italy, Germany, Spain, Oman, USA and Taiwan.

 

Principal suppliers : Marley of UK and Sanex (boilers) of Oman.

 

 

FACILITIES

 

The Company has the following facilities :

 

Several administration offices located in an owned building in Mergab

area of Kuwait as well as trade offices and warehouses for sanitaryware appliances in Rai Arae comprising 1,000,000 square metres.

 

 

SPECIAL NOTE

 

You enquired on: Al Enma'a Real Estate Co. Please note that the correct name is as per heading.  

 

Interviewed: Subject Employees.

 

The PO Box number given by you: 2454 is incorrect. Please note that subject’s correct PO Box is 24544.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.49.14

UK Pound

1

Rs.77.86

Euro

1

Rs.66.06

 

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.