MIRA INFORM REPORT

 

 

Report Date :           

14.03.2012

 

IDENTIFICATION DETAILS

 

Name :

AL ENMA’A REAL ESTATE CO KSCC

 

 

Registered Office :

Enma’a Tower, Abdullah Moubarak Street, Mourqab, P O Box 24544, Safat 13160

 

 

Country :

Kuwait

 

 

Financials (as on) :

31.10.2011

 

 

Date of Incorporation :

15.08.1993

 

 

Com. Reg. No.:

53559

 

 

Legal Form :

Kuwaiti Shareholding Company Closed - KSCC

 

 

Line of Business :

Real estate contracting, management and maintenance

 

 

No. of Employees :

1,600

 

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 :

US$ 1,500,000

 

 

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 30th, 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

 

SUMMARY

 

Company Name                                     : AL ENMA’A REAL ESTATE CO KSCC

Country of Origin                                    : Kuwait

Legal Form                                            : Kuwaiti Shareholding Company Closed - KSCC

Registration Date                                   : 15th August 1993

Commercial Registration Number            : 53559

Chamber Membership Number                : 39525

Issued Capital                                        : KD 45,053,468

Paid up Capital                                      : KD 45,053,468

Total Workforce                                     : 1,600

Activities                                               : Real estate contracting, management and maintenance

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Recommended Credit Limit                     : US$ 1,500,000

 

COMPANY NAME

 

AL ENMA’A REAL ESTATE CO KSCC

 

 

company ADDRESS

 

Registered & Physical Address

Building             : Enma’a Tower

Street               : Abdullah Moubarak Street

Area                 : Mourqab

PO Box             : 24544

Town                 : Safat 13160

Country             : Kuwait

Telephone         : (965) 22442667 / 1866667 / 22458880 / 22442668

Facsimile          : (965) 22463182 / 22469598

Email                : enmaa@enmaa.com

 

Premises

Subject operates from a large suite of offices that are owned and located in the Central Business Area of Safat.

 

 

KEY PRINCIPALS

 

     Name                                                                                              Position

 

·       Emad Abdullah Al Thaqeb                                                                  Chairman

 

·       Mohammad Abdullah Al Othman                                                        Vice Chairman

 

·       Fouad Abdulmohsen  Al Wahib                                                          Director

 

·       Anwar Bader Mohamed Al Gaith                                                         Director

 

·       Ibrahim A Al Saqabi                                                                           Director

 

·       Zeyad Tareq Al Mukhaizeem                                                              Director

 

·       Ali Yousef Al Ansari                                                                          Director

 

·       Waleed Khaled Al Jeri                                                                       Chief Executive Officer

 

·       Yousef Soud Al Weqayan                                                                  Assistant Chief Executive Officer

 

·       Mohammad Faraj Al Khashti                                                              Project Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 15th August 1993

 

Legal Form                  : Kuwaiti Shareholding Company Closed - KSCC

 

Commercial Reg. No.  : 53559

 

Chamber Member No. : 39525

 

Issued Capital              : KD 45,053,468

 

Paid up Capital            : KD 45,053,468

 

Name of Shareholder (s)                                                        Percentage

 

·       Kuwait Finance House                                                           57.58%

·       Public Authority for Minor Affairs                                               5.11%

·       Local businessmen and private investors                                 37.31%

 

 

AFFILIATED COMPANIES

 

     Name                                                                                                 Percentage Held

 

·       Eresco Real Estate Development SPC                                                            100%

Bahrain

 

·       Enma’a Gulf Real Estate Company                                                                 100%

Saudi Arabia

 

·       Al Enma’a House for Real Estate BSCC                                                          40.7%

Bahrain

 

·       Telal Al Salem Company WLL                                                                        35.0%

Jordan

 

·       The Kingdom Towers Real Estate Company WLL                                             25.0%

Bahrain

 

·       Central Energy Company BSCC                                                                     16.5%

Bahrain

 

 


OPERATIONS

 

Activities: Engaged in the real estate contracting, management and maintenance.

 

Subject undertakes contracts to construct buildings and to carry out 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.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 1,600 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Kuwaiti Dinars (KD)

 

Consolidated Balance Sheet                                                   31/10/11                        31/10/10

 

ASSETS

Non-current assets

Property, plant and equipment                                                     5,448,538                      3,450,570

Investment properties                                                                 32,468,085                    28,410,737

Investment in associates                                                            8,738,730                      9,677,084

Financial assets available for sale                                                16,427,317                    20,585,996

63,082,670                    62,124,387

Current assets

Inventories                                                                                 2,914,739                      3,669,818

Financial assets carried at fair value                                            1,780,153                      2,218,506

Gross amount due from customers for contract work                     2,593,637                      1,167,339

Accounts receivable and other assets                                          8,912,430                      8,958,319

Investment deposits                                                                   1,550,000                      1,190,000

Bank balances and cash                                                            879,568                         1,555,520

18,630,527                    18,759,502

TOTAL ASSETS                                                                        81,713,197                    80,883,889

EQUITY AND LIABILITIES

Equity

Share capital                                                                             45,053,468                    45,053,468

Share premium                                                                          176,642                         176,642

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

Voluntary reserve                                                                       4,368,566                      4,546,836

Foreign currency translation reserve                                             61,419                          235,973

Cumulative changes in fair values                                                175,429                         1,364,859

Accumulated losses                                                                   (4,004,841)                    (5,107,152)

Total equity                                                                               53,241,970                    53,681,913

Non-current liabilities

Employees’ end of service benefits                                              1,539,713                      1,248,126

Murabaha payables                                                                    8,643,628                      2,263,568

10,183,341                    3,511,694

Current liabilities

Gross amount due to customers for contract work                        138,050                         174,670

Murabaha payables                                                                    11,856,122                    18,169,314

Accounts payable and other liabilities                                          6,000,139                      5,278,619

Bank overdrafts                                                              293,575                         67,679

18,287,886                    23,690,282

Total liabilities                                                                            28,471,227                    27,201,976

TOTAL EQUITY AND LIABILITIES                                               81,713,197                    80,883,889

 

Consolidated Statement of Income                                         31/10/11                        31/10/10

 

Revenue

Revenue from services rendered                                      5,282,732                      5,210,996

Revenue from real estate activities                                               1,461,402                      1,162,240

Revenue from construction contracts                                           4,681,212                      2,306,556

Trading sales                                                                             -                                   465,736

Readymix cement factory sales                                                  6,671,900                      3,038,963

18,097,246                    12,184,491

Cost of revenue

Cost of services rendered                                                            4,303,203                      3,558,579

Cost of real estate activities                                                        143,316                         80,663

Cost of construction contracts                                                     4,570,610                      2,140,690

Cost of trading sales                                                                  -                                   440,932

Cost of ready mix cement factory sales                                       5,929,213                      2,884,672

14,946,342                    9,105,536

GROSS PROFIT                                                                        3,150,904                      3,078,955

Selling and distribution expenses                                                -                                   (121,806)

Administrative expenses                                                             (981,758)                       (618,940)

Provisions                                                                                 (67,567)                        (241,580)

PROFIT FROM OPERATIONS                                                    2,101,579                      2,096,629

Share of results of associates                                                     (763,800)                       (1,022,697)

Net investment income                                                               693,126                         324,304

Finance costs                                                                            (1,033,150)                    (901,830)

Other income                                                                             40,179                          98,542

Foreign exchange gain                                                               117,384                         116,273

Profit BEFORE TAXES                                                               1,155,318                      711,221

National Labour Support Tax (NLST)                                            (37,862)                        (26,622)

Zakat                                                                                        (15,145)                        (10,649)

PROFIT FOR THE YEAR                                                            1,102,311                      673,950

 

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

 

 

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.49.85

UK Pound

1

Rs.77.97

Euro

1

Rs.65.62

 

 

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.