MIRA INFORM REPORT

 

 

Report Date :

10.04.2013

 

IDENTIFICATION DETAILS

 

Name :

GULF ENGINEERING CO KSC (C)

 

 

Registered Office :

Al Ghazali Street Shuwaikh, Farwaniya PO Box 22668 Safat 13087

 

 

Country :

Kuwait

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

26.02.1984

 

 

Com. Reg. No.:

36890

 

 

Legal Form :

Kuwaiti Shareholding Closed Company – KSC (C)

 

 

Line of Business :

Electro-mechanical contractors

 

 

No. of Employees :

1,500

 

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 :

Good

Payment Behaviour :

Regular

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

(31.03.2011)

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

 

SUMMARY

 

Company Name                                     : GULF ENGINEERING CO KSC (C)

Country of Origin                                                : Kuwait

Legal Form                                            : Kuwaiti Shareholding Closed Company – KSC (C)

Registration Date                                   : 26th February 1984

Commercial Registration Number                        : 36890

Chamber Membership Number                : 15073

Issued Capital                                        : KD 3,000,000

Paid up Capital                                      : KD 3,000,000

Total Workforce                                     : 1,500

Activities                                               : Electro-mechanical contractors.

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : S K Beaspal, Finance Manager

 

 

 

COMPANY NAME

 

GULF ENGINEERING CO KSC (C)

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Al Ghazali Street

Area                 : Shuwaikh, Farwaniya

 

PO Box             : 22668

 

Town                 : Safat 13087

Country             : Kuwait

 

Telephone         : (965) 1802255 / 24841322 / 24842564 / 24745429

Facsimile          : (965) 24745488 / 24745480 / 24844175

Mobile               : (965) 99057605

Email                : gec@gulfengg.com / asfour@gulfengg.com / vinay@gulfengg.com

 

Premises

 

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

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Yousef Ahmed Al Jalahna                                                                  Chairman

 

·       Suhail Kamel Al Homsi                                                                      Vice Chairman

 

·       Hani Mohamed Shawqi                                                                      Director

 

·       Khaled Naeem Al Sayed                                                                    General Manager

 

·       S K Beaspal                                                                                     Finance Manager

 

·       Prem Merchandani                                                                            Administration Manager

 

·       Nabil Asfour                                                                                      Project Manager

 

·       Vinay Narouka                                                                                  Operations Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 26th February 1984

 

Legal Form                  : Kuwaiti Shareholding Closed Company – KSC (C)

 

Commercial Reg. No.  : 36890

 

Chamber Member No. : 15073

 

Issued Capital              : KD 3,000,000

 

Paid up Capital            : KD 3,000,000

 

Name of Shareholder (s)                                               Percentage

 

·       Boodai Enterprises Co WLL                                                   46.67%

Safat

 

·       Boodai Reliance Real Estate Co WLL                         46.67%

Safat

 

·       Jassim Marzouq Jassim Boodai                                               2.67%

 

·       Marwan Marzouq Jassim Boodai                                             2.67%

 

·       Abdulaziz Jassim Marzouq Boodai                                           0.33%

 

·       Adel Al Sumait                                                                        0.33%

 

·       Barydi International Real Estate                                                0.33%

Safat

 

·       Wing Trading Co                                                                     0.33%

 

 

AFFILIATED COMPANIES

 

·       Boodai Corporation

Safat

 

 

OPERATIONS

 

Activities: Engaged as electro-mechanical contractors for civil and electrical projects.

 

Current Projects: Subject is currently engaged in a HVAC contract project lasting until 2015. The new headquarters of the Kuwait Investment Authority, which include 62 floors, has a total value of KD 15,000,000.

Subject also engaged in another HVAC contract project, including a 4 floor building for the University of Kuwait, College of Business, which lasts until 2015 and is estimated at KD 10,000,000. Subject also engaged in another MEP contract with the College of Education & Arts with total value of KD 16,000,000.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 1,500 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Kuwaiti Dinars (KD)

 

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

 

Total Sales                                KD 23,000,000                           KD 26,500,000

 

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

 

The above figures were provided by Mr S K Beaspal, Finance Manager

 

 

BANKERS

 

·       Commercial Bank of Kuwait SAK

     Mubarak Al Kabir Street

     PO Box: 2861

     Safat 13029

     Tel: (965) 22411001

     Fax: (965) 22450150

 

·       National Bank of Kuwait SAK

Ali Awadi Tower

Ahmed Al Jaber Street

PO Box: 95

Safat 13001

Tel: (965) 23981188 / 23981189

Fax: (965) 23985643

 

 

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.54.46

UK Pound

1

Rs.83.13

Euro

1

Rs.70.98

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.