MIRA INFORM REPORT

 

 

Report Date :

12.04.2013

 

IDENTIFICATION DETAILS

 

Name :

COMBINED GROUP CONTRACTING CO KSC (C)

 

 

Registered Office :

Block No. 2, Plot No. 284 Al Ardiya Industrial Area PO Box 4819 Safat 13049

 

 

Country :

Kuwait

 

 

Financials (as on) :

31.12.2011

 

 

Year of Incorporation :

1965

 

 

Com. Reg. No.:

13595

 

 

Legal Form :

Kuwaiti Shareholding Closed Company – KSC (C)

 

 

Line of Business :

Civil and mechanical contracting of buildings, roads and bridges.

 

 

No. of Employees :

6,400

 

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                                    : COMBINED GROUP CONTRACTING CO KSC (C)

Country of Origin                                   : Kuwait

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

Start Date                                             : 1965

Registration Date                                  : 19th September 2005

Commercial Registration Number           : 13595

Issued Capital                                       : KD 9,663,060

Paid up Capital                                     : KD 9,663,060

Total Workforce                         : 6,400

Activities                                               : Civil and mechanical contracting of buildings, roads and bridges.

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

 

COMPANY NAME

 

COMBINED GROUP CONTRACTING CO KSC (C)

 

 

ADDRESS

 

Registered & Physical Address

 

Location           : Block No. 2, Plot No. 284

Area                 : Al Ardiya Industrial Area

 

PO Box            : 4819

 

Town                : Safat 13049

Country : Kuwait

 

Telephone         : (965) 22254545

Facsimile          : (965) 24344610 / 24344686

Email                : info@cgc-kw.com

 

Premises

 

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

 

Branch Office (s)

 

     Location                                                                                           Description

 

·       Block No. 44                                                                                    Office premises

East Ahmadi

Tel: (965) 23985172

Fax: (965) 23985175

 

·       Industrial Area                                                                                  Service centre

Sulaibiya

Tel: (965) 24674896

Fax: (965) 24677673

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Abdul Rahman Mousa Al Marouf                                                       Chairman

 

·       Raad Khalaf Al Abdullah Qutbeldeen                                                 Vice Chairman

 

·       Ahmed Mousa Al Marouf                                                                  Director

 

·       Ahmed Khaled Ahmed Al Homaizi                                                     Director

 

·       Emaad Ahmed Abdullatif Al Houti                                                     Director

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1965, however subject was registered on 19th September 2005

 

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

 

Commercial Reg. No.   : 13595

 

Issued Capital              : KD 9,663,060

 

Paid up Capital            : KD 9,663,060

 

Name of Shareholder (s)                                             Percentage

 

·       Abdul Rahman Mousa Al Marouf                                           24.50%

 

·       Ahmed Mousa Al Marouf                                                      24.50%

 

·       Sulaiman Khalid A Al Hamad                                                 11.19%

 

·       KAMCO                                                                                 5.78%

 

·       Local businessmen and private investors                               34.03%

 

 

AFFILIATED COMPANIES

 

     Name                                                                                                              Percentage Held

 

·       Combined International Real Estate Company KSCC                                                  96%

Safat

 

·       Combined Group Rocks Company KSCC                                                                  80%

Safat

 

·       Combined Group Contracting Company WLL                                                             70%

Muscat

Oman

 

·       Combined Group for Trading & Contracting Co WLL                                                   49%

Doha

Qatar

 

·       Combined Group Plants Co WLL                                                                               49%

Doha

Qatar

 

·       Combined Group Contracting Co                                                                               -

Doha

Qatar

 

·       Al Barjas Group for Trading & Contracting Company WLL                                           -

Safat

 

·       Syrian Combined Group Contracting Company                                                          -

Damascus

Syria

 

·       United Kingdom General Trading and Contracting Company WLL                                -

Safat

 

·       Comoros Combined Group Company                                                                        -

Comoros Islands

 

·       Combined Group Contracting Company                                                                     -

Baghdad

Iraq

 

·       Combined Group Contracting Company                                                                     -

Abu Dhabi

United Arab Emirates

 

·       Combined Group Contracting Company                                                                     -

Al Khobar

Saudi Arabia

 

 

OPERATIONS

 

Activities: Engaged in the civil and mechanical contracting of buildings, roads and bridges.

 

     Subject also distributes cement and building materials.

 

Import Countries: Europe and GCC countries.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 6,400 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Kuwaiti Dinars (KD)

 

Consolidated Balance Sheet                                                      31/12/11            31/12/10

 

Fixed assets                                                                             16,907,212        14,632,274

Investment in an unconsolidated subsidiaries                              318,001             1

Right of utilization of leasehold land                                           117,979             126,229

Current assets:

Spare parts and materials                                                          25,783,366        16,938,513

Gross amount due from customers for contract work                  16,224,073        9,606,639

Accounts receivable and other debit balances                            76,265,407        86,266,726

Investments at fair value through income statement                     2,141,996          2,461,745

Cash and cash equivalents                                                        7,934,578          5,330,566

Total current assets                                                                   128,349,420      120,604,189

Total assets                                                                              145,692,612 1    35,362,693

 

 

Shareholders’ equity:

Capital                                                                                      9,663,060          8,784,600

Treasury shares                                                                         (64,374)            (91,347)

Treasury shares reserve                                                 1,266,488          1,181,231

Statuary reserve                                                                        5,103,940          5,103,940

Voluntary reserve                                                                      1,817,340          1,817,340

Foreign currency translation adjustments                                    (44,747)            (25,874)

Retained earnings                                                                      22,449,325        19,315,990

Equity attributable to shareholders of the Parent Company          40,191,032        36,085,880

Non-controlling interests                                                            406,460             289,650

Total shareholders’ equity                                                          40,597,492        36,375,530

 

Accounts payable and other credit balances – long term                         17,658,311        21,965,773

Long term loans – Non-current portion                                        1,577,798          2,333,866

Provision for end of service benefits                                          5,413,063          4,647,215

Current liabilities:

Gross amount due to customers for contract work                      5,073,029          2,834,494

Accounts payable and other credit balances                               64,810,672        52,975,599

Long term loans – Current portion                                              2,022,175          2,221,776

Short term loans and credit facilities                                           7,305,746          7,642,949

Due to banks                                                                            1,234,326          4,365,491

Total current liabilities                                                                80,445,948        70,040,309

Total shareholders’ equity and liabilities                                      145,692,612      135,362,693

 

Income Statement

 

Operating revenue                                                                     150,608,398      117,580,650

Operating costs                                                                        (132,440,571)    (102,209,371)

Gross profit                                                                              18,167,827        15,371,279

Other income                                                                            417,255             410,061

General and administrative expenses                                          (5,572,666)        (4,781,819)

Provision for doubtful debts                                                      (990)                 (130,603)

Impairment loss for investment in unconsolidated subsidiary       -                       (49,999)

Net investments (loss) gain                                                        (319,749)           468,103

Depreciation and amortization                                                    (708,201)           (572,624)

Finance charges                                                                        (1,131,984)        (1,418,204)

Zakat and donations                                                                  (80,698)            (46,186)

Profit for the year before contribution to Kuwait Foundation

for the Advancement of Sciences, National Labour Support

Tax, contribution to Zakat and Board of Directors remuneration   10,770,794        9,250,008

Contribution to Kuwait Foundation for the Advancement

of Sciences (KFAS)                                                                   (100,313)           (92,012)

National Labour Support Tax (NLST)                                           (253,318)           (206,041)

Contribution to Zakat                                                                 (94,507)            (66,415)

Board of directors’ remuneration                                                (50,000)            (50,000)

Net profit for the year                                                                10,272,656        8,835,540

 

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

 

 

BANKERS

 

·       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

 

Local sources report that payment obligations are met in a generally timely manner and the operating history is clear. As such the company is deemed a fair trade risk and the above credit figure is considered to be within subject’s financial means.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.53

UK Pound

1

Rs.83.59

Euro

1

Rs.71.33

 

 

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.