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Report Date : |
28.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
ACICO INDUSTRIES
CO KSCC |
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|
|
|
Registered Office : |
Raed Center, 5th
Floor, |
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|
|
|
Country : |
|
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|
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
23.06.1990 |
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Com. Reg. No.: |
41903 |
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Legal Form : |
Kuwaiti Shareholding Closed Company - KSCC |
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|
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Line of Business : |
Manufacturers of
aerated concrete and general concrete materials. |
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|
|
No. of Employees : |
225 |
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 |
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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 30th, 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 |
Company Name : ACICO INDUSTRIES CO
KSCC
Country of Origin : Kuwait
Legal Form :
Kuwaiti Shareholding Closed Company - KSCC
Registration Date : 23rd
June 1990
Commercial
Registration Number : 41903
Chamber Membership
Number : 23206
Issued Capital : KD
22,565,830
Paid up Capital : KD
22,565,830
Total Workforce : 225
Activities :
Manufacturers of aerated concrete and general concrete materials.
Financial Condition : Fair
Payments :
Nothing detrimental uncovered
Operating Trend : Steady
ACICO INDUSTRIES CO
KSCC
Building : Raed Center, 5th Floor
Street : Ahmad Al Jaber Street
PO Box : 24079
Town : Safat 13101
Country : Kuwait
Telephone : (965) 1888811 / 22422102 / 22422101 /
22422100
Facsimile : (965) 23263050 / 22422103
Email : info@acico.com.kw
Subject operates
from a small suite of offices that are rented and located in the Central
Business Area of Safat.
Name Position
·
Abdullaziz
Ahmed Abdullah Al Ayoub Chairman
·
Ghassan
Ahmed Saoud Al Khaled Vice
Chairman
·
Waleed
Ahmed Saoud Al Khaled Director
·
Faisal
Yousef Jassem Al Majed Director
·
Ahmed
Faisal Sayed Abdullwahab Al Refaee Director
·
Faten
Farouq Al Naqeeb Director
·
Ahmed
Ghassan Ahmed Saoud Al Khaled Director
Date of Establishment : 23rd
June 1990
History : Subject began in 1990 under the name
“Aerated Concrete Industries Co KSCC”. However
on 18th May 2008 it changed its name to “ACICO Industries Co
KSCC”.
Legal Form :
Kuwaiti Shareholding Closed
Company - KSCC
Commercial Reg. No. : 41903
Chamber Member No. : 23206
Issued Capital : KD 22,565,830
Paid up Capital : KD 22,565,830
·
Ghassan
Ahmed Saoud Al Khaled 12.89%
·
Ahmed
Ghassan Ahmed Saoud Al Khaled 9.35%
·
Al Raed
Investment Fund 6.33%
·
Hamad A
A Al Saqr 5.76%
·
Public
Institution for Social Security 5.22%
·
Local
businessmen and private investors 60.45%
Name Percentage
Held
·
ACICO
Kuwait Company WL L 99%
·
Acico
Construction Co KSCC 75%
·
Ghassan
Ahmed Saoud Al Khaled & Co WLL 75%
·
ACICO
Arabia for General Trading & Contracting WLL 60%
·
ACICO
Kuwait Syria Company WLL 50%
·
Aerated
Concrete Industries Company Qatar WLL 49%
·
ACICO
International for Contracting LLC 45%
·
Aerated
Concrete Industries Company Saudi Arabia WLL 45%
·
Al
Masaken International for Real Estate Development KSCC 35%
·
Al
Masaken Arabian Holdings KSCC 12%
Activities: Engaged in the manufacture of aerated
concrete and general concrete materials. Subject also distributes building
materials.
Import
Countries: Europe and the
Far East.
Operating Trend: Steady
Subject has a workforce
of approximately 225 employees.
Financial
highlights provided by local sources are given below:
Currency: Kuwaiti
Dinars (KD)
Consolidated Balance Sheet
31/12/11 31/12/10
ASSETS
Cash and cash equivalents 2,337,111 2,437,639
Accounts
receivable and other debit balances 9,462,124 8,591,743
Gross amount due
from customers for contract work 55,127 33,978
Due from related
parties 4,978,406 4,564,661
Inventories 4,611,238 5,993,340
Investments available
for sale 2,007,996 2,551,862
Investment in
associates 12,172,768 13,039,429
Investment
properties 172,523,309 169,914,248
Right of
utilization of leasehold 531,363 588,819
Fixed assets 31,887,875 31,781,630
Goodwill 1,000,000 1,500,000
Total assets 241,567,317 240,997,349
LIABILITIES AND EQUITY
Due to banks 7,494,726 7,803,624
Accounts payable
and other credit balances 13,483,521 11,720,482
Gross amount due
to customers for contract work 709,652 1,625,447
Due to related
parties 3,161,166 5,822,112
Loans 128,522,930 127,186,886
Murabaha payable 3,073,508 2,313,675
Dividend payable
to shareholders 2,088,128 1,338,860
Provision for end
of service indemnity 1,097,331 990,276
Total liabilities 159,630,962 158,801,362
Equity:
Share capital 23,694,122 22,565,831
Share premium 24,426,446 24,426,446
Statutory reserve 8,666,415 8,468,516
Treasury shares (432,774) (432,774)
Treasury shares reserve 2,589,875 2,589,875
Cumulative
changes in fair value - (71,143)
Effect of change
of other comprehensive income of associates (286,932) (289,530)
Foreign currency
translation adjustments (628,678) (504,215)
Retained earnings 19,603,236 21,267,405
Equity
attributable to equity holders of the parent company 77,631,710 78,020,411
Non-controlling
interests 4,304,645 4,175,576
Total equity 81,936,355 82,195,987
Total liabilities
and equity 241,567,317 240,997,349
Consolidated Statement of Income
Operating income 34,415,990 38,817,924
Operating cost (23,379,734) (29,915,296)
Real estate income 4,608,279 3,396,620
Gross profit from operations 15,644,535 12,299,248
General and administrative expenses (3,358,346) (4,376,983)
Selling expenses (623,410) (1,050,752)
Depreciation and amortization (549,384) (643,965)
Income from operations 11,113,395 6,227,548
Group’s share of results from
associates (850,893) (395,998)
Impairment of goodwill (500,000) (500,000)
Net investments income (loss) 98,578 (754)
Other income 354,337 783,281
Finance charges (7,891,581) (2,083,661)
Provision no longer required 1,147 150,000
Provision for doubtful debts (121,190) (55,000)
Provision for slow moving inventory (32,000) -
Foreign exchange gain (loss) 395,126 (121,342)
Profit for the year before contribution
to Kuwait Foundation
for Advancement of Sciences, National
Labour Support Tax,
Contribution to Zakat and Board of
Directors’ remuneration 2,566,919 4,004,074
Contribution to Kuwait Foundation for
the Advancement
of Sciences - (13,950)
National Labour Support Tax (55,181) (95,303)
Contribution to Zakat - (15,771)
Board of Directors’ remuneration (15,000) (15,000)
Net profit for the year 2,496,738 3,864,050
the year ended December 31, 2011
Local sources
consider subject’s financial condition to be Fair.
·
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.25 |
|
|
1 |
Rs.86.23 |
|
Euro |
1 |
Rs.68.63 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.