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Report Date : |
18.06.2013 |
IDENTIFICATION DETAILS
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Name : |
GULF CABLE & ELECTRIC INDUSTRIES CO KSC (GCEIC) |
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Registered Office : |
Sulaibia Industrial Area, |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
15.03.1975 |
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Com. Reg. No.: |
23213, Safat |
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Legal Form : |
Kuwaiti Shareholding Company - KSC |
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Line of Business : |
Manufacturers of power cables, telephone wires and cables. |
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No. of Employees : |
475 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 – March 31st, 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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Kuwait |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
Company Name : GULF CABLE & ELECTRIC INDUSTRIES CO KSC (GCEIC)
Country of Origin : Kuwait
Legal Form : Kuwaiti Shareholding Company - KSC
Registration Date : 15th March 1975
Commercial Registration Number : 23213, Safat
Chamber Membership Number : 2083
Issued Capital : KD 20,993,131
Paid up Capital : KD 20,993,131
Total Workforce : 475
Activities : Manufacturers of power cables, telephone wires and cables.
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
GULF CABLE & ELECTRIC INDUSTRIES CO KSC (GCEIC)
Location : Sulaibia
Industrial Area, Fifth Street, Building 11A
PO Box : 1196
Town : Safat 13012
Country : Kuwait
Telephone : (965) 24675244
/ 24645500 / 24676472 / 24675787 / 24675616 / 24676546
Facsimile : (965) 24675305
/ 24675850
Email : gceico@qualitynet.net
/ info@gulfcable.com
Subject operates from a large suite of offices and a factory that are
owned and located in the Industrial Area of Safat.
Name Position
· Bader Naser
Mohamed Al Khorafi Chairman
& Managing Director
· Asaad Ahmad Omran
Al Banwan Vice
Chairman
· Jaheel Mohamed
Abdul Rahman Al Jaheel Director
· Jamal Naser Hamad
Al Falah Director
· Bader Mohamed
Abdul Wahab Al Juan Director
· Sabah Khalid Saleh
Al Ghunaim Director
· Mohamed Saad
Mohamed Al Saad Director
· Yousef Ibrahim
Yousuf Al Raqem Director
· Salem Omran
Abdullah Kanaan General
Manager
· Basel O. A. Kanaan Sales
Manager
· Mustafa Abu Hatab Finance
Manager
· Mohamed Al Kandari Marketing
Manager
· Mohamed A. Eman Production
Manager
· Sheikh Abdul
Mannan Operations
Manager
Date of
Establishment : 15th
March 1975
Legal Form : Kuwaiti
Shareholding Company - KSC
Commercial Reg.
No. : 23213, Safat
Chamber Member No. : 2083
Issued Capital : KD 20,993,131
Paid up Capital : KD 20,993,131
· Kuwaiti
businessmen and private investors 62.49%
· Al Khair National
for Stocks & Real Estate Co 37.51%
Subsidiary
Name Percentage
Held
· Gulf Cable and
Multi Industries Company 94.5%
Amman
Jordan
Activities: Engaged in the manufacture of power cables and telephone wires and
cables, specialising in low and
medium PVC and XLPE insulated power and
control cables, house wiring and bare conductors for
overhead lines, as well as lamps, transformer switches and electricity
distribution boards.
Subject is also engaged in the production
of low voltage cable joints
Production Capacity: 54,500 metric tonnes per annum
Import Countries: The United Kingdom and Germany.
International Suppliers:
· Polycom Associates India
Export Countries: United Arab
Emirates, Oman, Qatar, Bahrain, Saudi Arabia and Jordan
Operating Trend: Steady
Subject has a workforce of approximately 475 employees.
Financial highlights provided by local sources are given below:
Currency: Kuwaiti Dinars (KD)
Consolidated
Balance Sheet 31/12/12 31/12/11
Assets
Non-current assets
Property, plant and equipment 10,632,418 12,050,190
Available for sale investments 147,926,012 142,985,404
158,558,430 155,035,594
Current assets
Inventories 42,143,127 37,362,022
Trade accounts receivable 25,043,088 30,373,319
Other receivables and prepayments 448,120 814,257
Fixed deposit - 402,411
Cash and bank balances 4,612,043 10,429,185
72,246,378 79,381,194
Total assets 230,804,808
234,416,788
Equity and liabilities
Equity attributable to the owners of the
parent company
Share capital 20,993,131 20,993,131
Share premium 29,160,075 29,160,075
Legal reserve 20,993,131 20,993,131
Voluntary reserve 20,993,131 20,993,131
General reserve 21,731,840 20,532,256
Other components of equity 13,282,106 22,709,841
Retained earnings 32,647,137 37,753,148
159,800,551 173,134,713
Non-controlling interests 457,512 409,563
Total equity 160,258,063
173,544,276
Non-current liabilities
Provision for staff indemnity 1,938,851 1,715,052
Long term loans 32,839,120 1,229,140
34,777,971 2,944,192
Current liabilities
Trade accounts payable 2,498,607 2,521,086
Other payables and accruals 8,258,135 9,744,319
Current portion of long term loans 12,545,200 5,507,186
Short term loans 11,000,000 40,000,000
Due to banks 1,466,832 155,729
35,768,774 57,928,320
Total liabilities 70,546,745
60,872,512
Total equity and
liabilities 230,804,808
234,416,788
Consolidated
Statement of Income
Revenue
Sales 90,469,078 119,290,341
Cost of sales (79,003,975) (93,852,666)
Gross profit 11,465,103
25,437,675
Dividend income 8,459,386 26,240,643
Other investment income 51,638 82,587
Loss on redemption/sale of available
for sale of investments (375,390) (603,466)
Interest income 11,769 21,715
Other revenue 14,153 3,451
Gain/(loss) on foreign exchange 804,576 (1,070,773)
20,431,235 50,111,832
Expenses and other charges
Administrative expenses 2,693,567 3,830,450
Commercial expenses 2,555,588 2,165,068
Impairment of available for sale investments 998,762 2,453,524
Provision for doubtful debts 41,185 926,546
(Reversal of provision) for obsolete inventories (80,177) (551)
Finance costs 2,176,070 3,113,001
8,384,995 12,488,038
Profit for the year before income tax 12,046,240 37,623,794
Income tax for overseas subsidiary (6,576) (14,372)
Profit before contribution to KFAS,
NLST, Zakat and Directors’ remuneration 12,039,664 37,609,422
Contribution to Kuwait Foundation for the
Advancement of Sciences (KFAS) (119,959) (374,411)
National Labour Support Tax (NLST) (105,230) (329,628)
Zakat (42,092) (126,851)
Directors’ remuneration (310,000) (310,000)
Profit for the year
11,462,383
36,468,532
Local sources consider subject’s financial condition to be Good.
·
National Bank of Kuwait
Ali Awadi Tower
Ahmed Al Jaber Street
PO Box: 95
Safat 13001
Tel: (965) 23981188 / 23981189
Fax: (965) 23985643
·
The Gulf Bank KSC
Mubarak Al Kabir Street
PO Box: 3200
Safat 13033
Tel: (965) 22449501
Fax: (965) 22445212
·
Burgan Bank
PO Box: 5875
Safat 13054
Tel: (965)
22410818
Fax: (965)
22410819
·
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
·
Commercial Bank of Kuwait
Mubarak
Al Kabir Street
PO Box:
2861
Safat
13029
Tel:
(965) 22411001
Fax:
(965) 22450150
No complaints regarding subject’s payments have been reported.
Established in 1975, subject is involved in the manufacture of power cables
and telephone wires and cables.
According to local sources subject’s financial position is healthy and
profitable with payment obligations met in a timely manner. As such the company
is deemed trustworthy for respecting its financial trade commitments and the
above credit figure is considered to be within subject’s financial means.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.57.73 |
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|
1 |
Rs.90.61 |
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Euro |
1 |
Rs.76.96 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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.