MIRA INFORM REPORT

 

 

Report Date :

19.02.2013

 

IDENTIFICATION DETAILS

 

Name :

AL ZAYANI TRADING COMPANY WLL

 

 

Registered Office :

Al Zayani Building 4th Ring Road Al Rai Area PO Box 41 Safat 13001

 

 

Country :

Kuwait

 

 

Financials (as on) :

31.12.2012

 

 

Year of Incorporation :

1952

 

 

Com. Reg. No.:

4092, Safat

 

 

Legal Form :

With Limited Liability – WLL

 

 

Line of Business :

Subject operates several divisions like Automobile Division, Furniture Division, Equipment Division

 

 

No. of Employees :

470

 

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 :

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                                     : AL ZAYANI TRADING COMPANY WLL

Country of Origin                                    : Kuwait

Legal Form                                            : With Limited Liability – WLL

Start Date                                             : 1952

Registration Date                                   : 5th June 1977

Commercial Registration Number            : 4092, Safat

Trade Licence Number                            : 878/77

Chamber Membership Number                : 84845

Issued Capital                                        : KD 1,000,000

Paid up Capital                                      : KD 1,000,000

Total Workforce                                     : 470

Activities                                               : Subject operates several divisions (see below for details)

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Saleem Ahmed, Chief Financial Officer

 

 

 


COMPANY NAME

 

AL ZAYANI TRADING COMPANY WLL

 

 

ADDRESS

 

Registered & Physical Address

 

Building             : Al Zayani Building

Street               : 4th Ring Road

Area                 : Al Rai Area

 

PO Box             : 41

 

Town                 : Safat 13001

Country             : Kuwait

 

Telephone         : (965) 24721414 / 24720242 / 24712975 / 24720286 / 24735199 / 1808010

Facsimile          : (965) 24765638 / 24724980 / 24744631

Email                : admin@al-zayani.com

 

Premises

 

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

 

Branch Office (s)

 

     Location                                                                                           Description

 

·       Al Rai Area                                                                                       Warehouse, workshop and garage

Safat

     Tel: (965) 24746444 / 24712975 / 24712968

     Fax: (965) 24737766

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Mohamed Jasim Abdul Rahman Al Zayani                                           Chairman

 

·       Nail Jasim Abdul Rahman Al Zayani                                                    Managing Director

 

·       Mathew Joseph                                                                                 Finance Manager

 

·       Saleem Ahmed                                                                                 Chief Financial Officer

 

·       Ahmed Issa                                                                                      Chief Accountant

 

·       Mohamed Dawala                                                                              Commercial Manager

 

·       Satish Lobo                                                                                      Human Resources Manager

 

·       Ahmed Naghi                                                                                    Marketing Manager (Jaguar and Bentley)

 

·       Amer Al Shareef                                                                                Marketing Manager (Ferrari and Maserati)

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : Subject’s operations date back to 1952, however it was registered on 5th June 1977

 

Legal Form                  : With Limited Liability - WLL

 

Commercial Reg. No.  : 4092, Safat

 

Trade Licence No.       : 878/77

 

Chamber Member No. : 84845

 

Issued Capital              : KD 1,000,000

 

Paid up Capital            : KD 1,000,000

 

Name of Shareholder (s)                                            Percentage

 

·       Mohamed Jasim Abdul Rahman Al Zayani                               50%

 

·       Nail Jasim Abdul Rahman Al Zayani                                        50%

 

 

AFFILIATED COMPANIES

 

·       Kuwait Automobile and Trading Co

Safat

 

 

OPERATIONS

 

Activities: Subject’s operations are performed through the following divisions:

 

·       Automobile Division

 

       Dealers for automobiles and commercial vehicles, as well as auto spare parts, such as lubricants and greases. Subject also offers care hire services. The company are authorised dealers for:

 

-  Jaguar                               United Kingdom

-  Rolls-Royce & Bentley        United Kingdom

-  Maserati                            Italy

-  Ferrari                               Italy

-  M.A.N.                              Germany

-  Daihatsu                            Japan

-  Tata                                  India

 

     This division also deals in used cars.

 

·       Furniture Division

 

The furniture division is engaged in the import and distribution of a wide range and variety of products for special fields such as the medical profession, laboratories, theatres, cinemas, public waiting areas indoors and outdoors.

 

It also supplies the basic requirements for offices such as filing cabinets and desks for different managerial levels, reception counters and storage systems.

 

The division stocks the following brand names: GODREJ, METALCOOP, OFFITAL, CAZZARO, LUPARENSE, RIGHINI and FIRE KING.

 

·       Equipment Division

 

This division specialises in supplying car maintenance workshops with operating equipment and garage supplies,

as well as related heavy-duty equipment. Clients include: Kuwait Airways Corporation, Arabian Motor Group (Ford),

Kuwait Armed Forces, National Guard and Kuwait Public Transport Co.

 

Import Countries: Europe, United States of America, Japan and India.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 470 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 11,750,000                           KD 12,500,000

 

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

 

The above figures were provided by Mr Saleem Ahmed, Chief Financial Officer

 

 

BANKERS

 

·       National Bank of Kuwait

Ali Awadi Tower

Ahmed Al Jaber Street

PO Box: 95

Safat 13001

Tel: (965) 23981188 / 23981189

Fax: (965) 23985643

 

·       Commercial Bank of Kuwait

     Mubarak Al Kabir Street

     PO Box: 2861

     Safat 13029

     Tel: (965) 22411001

     Fax: (965) 22450150

 

·       Bank of Kuwait & the Middle East KSC

Abdullah Al Salem Street

Darwaza Abdul Razzak

PO Box: 71

Safat 13001

Tel: (965) 22459771

Fax: (965) 22461430

 

 

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.54.29

UK Pound

1

Rs.84.09

Euro

1

Rs.72.44

 

 

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.