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Report Date : |
27.09.2012 |
IDENTIFICATION DETAILS
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Name : |
SHUAIBA INDUSTRIAL COMPANY KSCC |
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Registered Office : |
Block No. 3, Plot No. 150 Street No. 30 |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
19.06.1978 |
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Com. Reg. No.: |
26799 |
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Legal Form : |
Kuwaiti Shareholding Closed Company - KSCC |
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Line of Business : |
Manufacturers of paper and paper bags. |
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No. of Employees : |
200 |
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RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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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 30th, 2012
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Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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Kuwait |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
Company Name : SHUAIBA INDUSTRIAL COMPANY KSCC
Country of Origin : Kuwait
Legal Form : Kuwaiti Shareholding Closed Company - KSCC
Registration Date : 19th June 1978
Commercial Registration Number : 26799
Chamber Membership Number : 7202
Issued Capital : KD 6,134,404
Paid up Capital : KD 6,134,404
Total Workforce : 200
Activities : Manufacturers of paper and paper bags.
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
SHUAIBA INDUSTRIAL COMPANY KSCC
Building : Block No. 3,
Plot No. 150
Street : Street No.
30
Area : South Sabhan
PO Box : 10088
Town : Shuaiba
65451
Country : Kuwait
Telephone : (965) 24711350
/ 24711258 / 24711020
Facsimile : (965) 24738667
/ 24737996
Email : info@sic-kwt.com
Subject operates from a large suite of offices and a factory that are
rented and located in the Industrial Area of Shuaiba.
Name Position
· Adel Jasem Mohamed
Al Sanee Chairman
· Sulaiman Mohammad
Hussain Al Nawawra Vice
Chairman
· S Farid Ahmed President
· Khaled Abdoulgani
Mohamed Al Abdoulgani Director
· Yousef Mubarak Al
Mubarak Director
· Mishaan Mohamed Al
Mushaweh Director
· Fared Ahmed Sadiqi General
Manager
Date of
Establishment : 19th
June 1978
Legal Form : Kuwaiti
Shareholding Closed Company - KSCC
Commercial Reg.
No. : 26799
Chamber Member No. : 7202
Issued Capital : KD 6,134,404
Paid up Capital : KD 6,134,404
· Al Safwa Holding Group
Co KSCC 55.23%
· Local businessmen
and private investors 44.77%
Name Percentage Held
· Advance
Technologies (International Agencies) Co WLL 100%
· Yanbu Saudi
Kuwaiti Paper Product Co Ltd 40%
Activities: Engaged in the manufacture of paper and paper bags.
Import Countries: Europe and the Far East.
Operating Trend: Steady
Subject has a workforce of approximately 200 employees.
Financial highlights provided by local sources are given below:
Currency: Kuwaiti Dinars (KD)
Consolidated
Balance Sheet
31/12/11 31/12/10
Assets
Non-current assets
Property, plant and equipment 8,837,528
5,979,199
Investment in associate 2,121,623
1,735,139
Investment in unconsolidated subsidiary - 160,158
Available for sale investments 217,366
625,910
11,176,517 8,500,406
Current assets
Inventories 2,514,423
3,255,920
Trade receivables 1,770,341
1,238,801
Other receivables 121,366
535,862
Due from related parties 978 10,247
Investments at fair value through statement of income 456,056 343,561
Cash and cash equivalents 1,667,733
2,290,758
6,530,897 7,675,149
Total assets 17,707,414 16,175,555
Equity and liabilities
Equity
Share capital 5,845,147
5,566,807
Share premium 2,294,444
2,294,444
Statutory reserve 1,398,098
1,292,574
Voluntary reserve 1,307,090
1,201,566
Treasury shares (253,265)
(253,265)
Treasury shares reserve 404,979 404,979
Fair value reserve (125,871)
(100,280)
Foreign currency translation reserve (43,699)
(29,587)
Retained earnings 3,586,535
3,617,380
Total equity 14,413,458 13,994,618
Non-current liabilities
Non-current portion of term loan 323,370
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Provision for staff indemnity 296,868
246,074
620,238 246,074
Current liabilities
Trade and other payables 1,183,018
576,112
Current portion of term loan 191,032
220,000
Notes payable 1,299,668
1,138,7512
2,673,718 1,934,863
Total liabilities 3,293,956
2,180,937
Total equity and
liabilities 17,707,414 16,175,555
Consolidated
Statement of Income
Sales 10,091,257
8,047,378
Cost of sales (8,393,961)
(6,294,636)
Gross profit 1,697,296 1,752,742
Unrealised loss on investments at fair value through
statement of income (2,948)
(197,339)
Profit / (loss) on sale of investments at fair value through
statement of income 10,573
(50,314)
Loss on sale of available for sale investments (153,206) -
Share of results of associate 400,596
364,529
Investment income 4,650
8,280
Foreign exchange gain / (loss) 32,302
(25,027)
Profit on disposal of an associate -
386,998
Other income 63,500
36,946
General and administrative expenses (518,685)
(444,230)
Selling and distribution expenses (489,414)
(463,116)
Finance costs (48,585)
(22,548)
Impairment loss on available for sale investments (9,065)
(66,609)
Impairment loss on property, plant and equipment (10,935)
(34,765)
Reversal of provision for slow moving and obsolete
inventories 51,563
24,449
Profit on disposal of property, plant and equipment 27,600 949
Profit before contribution to Kuwait
Foundation for
the Advancement of Sciences (KFAS), National
Labour Support Tax (NLST), Zakat and Board of
Directors’ remuneration 1,055,242 1,270,945
Contribution to KFAS (9,497)
(11,439)
NLST (26,265)
(31,567)
Zakat (11,610)
(12,625)
Board of Directors’ remuneration (5,000)
(15,000)
Profit for the year
1,002,870 1,200,314
Local sources consider subject’s financial condition to be Good.
·
Commercial Bank of Kuwait SAK
Mubarak
Al Kabir Street
PO Box:
2861
Safat
13029
Tel:
(965) 22411001
Fax:
(965) 22450150
No complaints regarding subject’s payments have been reported.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.53.58 |
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1 |
Rs.86.60 |
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Euro |
1 |
Rs.68.94 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.