MIRA INFORM REPORT

 

 

Report Date :

25.09.2012

 

 

IDENTIFICATION DETAILS

 

Name :

FALCON CEMENT COMPANY BSC (C)

 

 

Registered Office :

Building No. 1215, Block No. 955, Road No. 5524, Al Hafirah Area, Riffa, P O Box 37024, Manama

 

 

Country :

Bahrain

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

19.12.2005

 

 

Com. Reg. No.:

59031-1

 

 

Legal Form :

Bahraini Shareholding Company Closed BSC (C)

 

 

Line of Business :

Producers of clinker and cement.

 

 

No. of Employees :

120 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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Bahrain

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

bahrain - ECONOMIC OVERVIEW

 

Bahrain is one of the most diversified economies in the Persian Gulf. Highly developed communication and transport facilities make Bahrain home to numerous multinational firms with business in the Gulf. As part of its diversification plans, Bahrain implemented a Free Trade Agreement (FTA) with the US in August 2006, the first FTA between the US and a Gulf state. Bahrain's economy, however, continues to depend heavily on oil. Petroleum production and refining account for more than 60% of Bahrain's export receipts, 70% of government revenues, and 11% of GDP (exclusive of allied industries). Other major economic activities are production of aluminum - Bahrain's second biggest export after oil - finance, and construction. Bahrain competes with Malaysia as a worldwide center for Islamic banking and continues to seek new natural gas supplies as feedstock to support its expanding petrochemical and aluminum industries. In 2011, Bahrain experienced economic setbacks as a result of domestic unrest. Bahrain's reputation as a financial hub of the Gulf has been damaged, and the country now risks losing financial institutions to other regional centers such as Dubai or Doha. Economic policies aimed at restoring confidence in Bahrain's economy, such as the suspension of an expatriate labor tax, will make Bahrain's foremost long-term economic challenges - youth unemployment and the growth of government debt - more difficult to address.

 

Source : CIA


SUMMARY

 

Company Name                                    : FALCON CEMENT COMPANY BSC (C)

Country of Origin                                   : Bahrain

Legal Form                                           : Bahraini Shareholding Company Closed BSC (C)

Registration Date                                  : 19th December 2005

Commercial Registration Number           : 59031-1

Issued Capital                                       : BD 8,500,000

Paid up Capital                                     : BD 8,500,000

Total Workforce                         : 120

Activities                                               : Producers of clinker and cement.

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Mohamed Altaf, Finance Manager

 

 

 


COMPANY NAME

 

FALCON CEMENT COMPANY BSC (C)

 

 

company ADDRESS

 

Registered & Physical Address

Building                        : Building No. 1215, Block No. 955

Street               : Road No. 5524

Area                 : Al Hafirah Area, Riffa

PO Box            : 37024

Town                : Manama

Country : Bahrain

Telephone         : (973-17) 77144446 / 77144443

Facsimile          : (973-17) 77144445

Email                : info@falcon-cement.com

 

Premises

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

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

·       Hesham Ahmed Nasser Abdul Qader                                                 Chairman

·       Alaa H A Al Roumi                                                                            Managing Director

·       Ahmed Ali Abdulla Al Karimi                                                              Director

·       Mohamed Ali Abdulla Al Karimi                                                         Director

·       Fouad Rashed                                                                                  Factory Manager

·       Abdulrahman Aqeel Al Awadim                                                          Administration Manager

·       Mohamed Altaf                                                                                 Finance Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 19th December 2005 (Production began in March 2009)

 

Legal Form                  : Bahraini Shareholding Company Closed BSC (C)

 

Commercial Reg. No.   : 59031-1

 

Issued Capital              : BD 8,500,000

 

Paid up Capital            : BD 8,500,000

Name of Shareholder (s)                                                      Percentage

·       BCC Building Materials BSC (C)                                            75%

·       Ahmed Ali Abdulla Al Karimi                                                  15%

·       Mohamed Ali Abdulla Al Karimi                                                5%

·       Cemena Holding Company BSC (C)                                          5%

 

 

OPERATIONS

 

Activities: Engaged in the production of clinker and cement.

 

The company signed a turnkey agreement with Bahrain Motor Company WLL on 17th January 2006 to set up a 600 tons per day cement plant in Hafirah. Keeping in view the greater demand of cement in the country, the company decided to increase the capacity of the plant from 600 TPD to 1,000 TPD and signed a variation agreement with BMC on December 13, 2006 to this effect.

 

Production Capacity: 1.2 million tons per year.

 

Import Countries: Europe and GCC countries.

 

Operating Trend: Steady

 

Subject has a workforce of 120 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Bahraini Dinar (BD)

 

                                                Year Ending 31/12/10:               Year Ending 31/12/11:

 

Total Sales                                BD 3,920,000                            BD 4,200,000

 

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

 

The above figures were provided by Mr Mohamed Altaf, Finance Manager

 

 

BANKERS

 

·       British Bank of the Middle East

93 Al Khalifa Avenue

PO Box: 57

Manama

Tel: (973-17) 224555

Fax: (973-17) 226822

 

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.53.29

UK Pound

1

Rs.86.44

Euro

1

Rs.68.95

 

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.