MIRA INFORM REPORT

 

 

Report Date :

24.04.2013

 

IDENTIFICATION DETAILS

 

Name :

THE SULTAN CENTER FOOD PRODUCTS CO KSCC

 

 

Registered Office :

Sultan Bin Essa Complex, Building 44, Street 7, Block 1, Area 19, Shuwaikh Industrial Area, P O Box 26567, Safat 13126

 

 

Country :

Kuwait

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

29.09.1980

 

 

Com. Reg. No.:

30225, Safat

 

 

Legal Form :

Kuwaiti Shareholding Closed Company – KSCC

 

 

Line of Business :

Operators of retail outlets

 

 

No. of Employees :

7500 employees

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

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 102 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 and 2012 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 historically 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                         : THE SULTAN CENTER FOOD PRODUCTS CO KSCC

Doing Business As                                : THE SULTAN CENTER

Country of Origin                                    : Kuwait

Legal Form                                            : Kuwaiti Shareholding Closed Company – KSCC

Start Date                                             : 29th September 1980

Registration Date                                   : 1st April 1993

Commercial Registration Number            : 30225, Safat

Trade Licence Number                            : 80/195

Chamber Membership Number                : 6288

Issued Capital                                        : KD 57,882,878

Paid up Capital                                      : KD 57,882,878

Total Workforce                         : 7,500

Activities                                               : Operators of retail outlets

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Person Interviewed                                 : Haytham Shalaby, Treasury Officer

 

 

 


COMPANY NAME

 

THE SULTAN CENTER FOOD PRODUCTS CO KSC

 

 

DOING BUSINESS AS

 

THE SULTAN CENTER

 

 

Company ADDRESS

 

Registered & Physical Address

Location            : Sultan Bin Essa Complex, Building 44, Street 7, Block 1, Area 19

Area                 : Shuwaikh Industrial Area

PO Box             : 26567

Town                 : Safat 13126

Country : Kuwait

Telephone         : (965) 24343155 / 22417202 / 24341990 / 24341991 / 24340696 / 24310494 / 22264871

Facsimile          : (965) 24319071 / 24348179 / 24322842 / 24341317

Mobile               : (965) 97214780

Email                : fadi@sultan-center.com

 

Premises

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

 

Branch Office (s)

Subject has branches located in Salmiya, Sharq, Salwa, Ahmadi, Fahaheel, Jahra, Dajeej and Mangaf.

 

 

KEY PRINCIPALS

 

     Name                                                                                              Position

·       Ayman Bader Sultan Al Essa                                                             Chairman

·       Jameel Abdullah Sultan Al Essa                                                         Vice Chairman

·       Fawzi Hamad Sultan Al Essa                                                             Director

·       Waisly Rait                                                                                       Director

·       Victor David Gonzalez                                                                       Director

·       Amar El Henawy                                                                               Finance Manager

·       Paul Jordan                                                                                      Human Resources Manager

·       Haytham Shalaby                                                                              Treasury Officer

 


LEGAL FORM & OWNERS

 

Date of Establishment  : 29th September 1980, however subject was registered on 1st April 1993

 

Legal Form                  : Kuwaiti Shareholding Closed Company - KSCC

 

Commercial Reg. No.  : 30225, Safat

 

Trade Licence No.       : 80/195

 

Chamber Member No. : 6288

 

Issued Capital              : KD 57,882,878

 

Paid up Capital            : KD 57,882,878

 

Name of Shareholder (s)                                                       Percentage

·       Khalid Sultan Al Essa                                                              9.8%

·       Abdullah Sultan Al Essa                                                          9.4%

·       Faisal Jameel Sultan Al Essa                                                   9.1%

·       Jameel Abdullah Sultan Al Essa                                               8.8%

·       Anwar Sultan Al Essa                                                              6.9%

·       Local businessmen and private investors                                 56.0%

 

 

AFFILIATED COMPANIES

 

·       Brothers Holding Company KSC

·       Sultan Center Trading and General Contracting Company

·       The Sultan Center

·       White Tower Company for General Trading and Contracting

·       Sultan Telecommunication Company

·       United Security and Technical Service group Company

·       Specialty Fashion Group

·       Arab Market General Trading and Contracting

·       United Capital Group

·       Jordanian Company for Investment and Supply

·       Khaleej Fashion Franchises BSCC

·       Gulf United Real Estate and Tourism Investment Company KSCC

·       National Energy Company - K.S.C

·       Sultan Al Jazeera Catering Company WLL

·       Gezlan Al Deerah General Trading & Contracting Company WLL

·       Dalya Al Wataniyah General Trading & Contracting Company WLL

·       Market Vision General Trading & Contracting Company WLL

·       Style Kuwait International Readymade Garments B & S Company

·       National Energy Company Sal

·       Sultan Holding Bahrain Company BSC

·       Good Food Catering Company

·       Kuwait Fashion Company Bahrain

·       United Capital Group for Investment and Financing Company KSC

·       Al Bawani for Development and Real Estate Investment Company WLL

·       Epicure Group Restaurants Company WLL

·       Fresh Connection Company WLL

·       Al Shahed Al Mahaly Company WLL

·       Al Mataba Al Khalijia Company WLL

·       ITG Construction Company

·       Al Noukhaza National Company

·       TS Kuwait Company WLL

·       American Economics Company WLL

·       The Sultan Center (Lebanon) Holding Sal

·       The Sultan Center Retail (Lebanon) Sal

·       Specialty Fashion Group (Lebanon) Sal

·       The Sultan Center Discount Sal

·       Horizon Telecom Services Company

·       Market Vision General Trading & Contracting Company

·       Al-Thanaa Industrial Company

·       The Sultan Center Saida For Real Estate

·       The Sultan Center Tyre For Real Estate

·       The Sultan Center Chtoura for Real Estate Sal

·       K.L.N for Trading Company Sal

·       Market Vision General Trading Lebanon Sal

 

 

OPERATIONS

 

Activities: Subject operates ten major retail outlets in Kuwait. Additionally, it owns an ever-increasing portfolio of

convenience stores in the country, as well as restaurants. The company also manufactures snacks and foodstuff products.

 

Import Countries: Worldwide

 

International Suppliers:

 

·       Ocean Spray                        United States of America

·       Oreida                                  United States of America

·       Clearly Canadian                   Canada

·       Dorina                                  Cyprus

·       Romeo                                 Austria

·       Dolly’s                                  The Netherlands

·       Airborne                               New Zealand

·       Mudhish                               Oman

·       Tanuf                                    Oman

·       Delicade                               United Arab Emirates

 

Subject has a workforce of approximately 7,500 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Kuwaiti Dinars (KD 000’s)

 

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

ASSETS

 

 

CURRENT ASSETS

48.522

45.621

INVESTMENTS

135.621

123.038

FIXED ASSETS

105.396

101.580

OTHER ASSETS

25.215

19.103

TOTAL ASSETS

314.755

289.341

 

 

 

LIABILITIES

 

 

CURRENT LIABILITIES

204.465

225.486

LONG TERM LIABILITIES

30.981

25.319

TOTAL LIABILITIES

235.446

250.805

 

 

 

SHAREHOLDER'S EQUITY

 

 

PAID-UP CAPITAL

57.883

57.883

PROPOSED STOCK DIVIDENDS

0

0

PROPOSED CASH DIVIDENDS

0

0

RESERVES

31.487

28.714

CUMULATIVE CHANGES IN FAIR VALUES

0

0

RETIANED EARNING (LOSSES)

-7.733

-45.722

TREASURY STOCKS

-2.594

-2.594

TOTAL SHAREHOLDER'S EQUITY

79.043

38.281

MINORITY INTEREST

266

255

TOTAL LIABILITIES & SHAREHOLDER'S EQUITY

314.755

289.341

 

Consolidated Statement of Income

 

OPERATIONAL INCOME

288.534

253.148

GROSS OPERATIONAL PROFIT

51.657

46.671

INCOME FROM INVESTMENTS

-10.157

-11.695

UNREALIZED GAIN (LOSS) ON INVESTMENTS

-7.068

-2.304

OTHER INCOME

4.851

6.304

TOTAL INCOME

276.160

245.452

NET PROFIT (LOSS)

-34.435

-37.989

PROFIT AVAILABLE FOR APPROPRIATION(A.L)

-7.733

-45.722

 

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

 

 

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.

 

Date of transaction                              May 2005

Amount overdue                         0

Payment terms                                      60 days

Payment Method                                   Letters of Credit

Paying record                                        No Complaints

Currency                                               Euros

 

 

GENERAL COMMENTS

 

Established in 1980, subject is involved in the manufacture of snacks and foodstuff products as well as the operation of a chain of supermarkets and restaurants.

 

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.54.30

UK Pound

1

Rs.82.88

Euro

1

Rs.70.80

 

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.