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Report Date : |
18.06.2013 |
IDENTIFICATION DETAILS
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Name : |
HEAVY ENGINEERING INDUSTRIES &
SHIPBUILDING CO KSC |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
02.04.1974 |
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Com. Reg. No.: |
20735 |
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Legal Form : |
Kuwaiti Shareholding Company |
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Line of Business : |
Engineering, procurement and construction contracting
services |
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No. of Employees : |
750 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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
|
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.
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Source : CIA |
Company Name : HEAVY ENGINEERING INDUSTRIES & SHIPBUILDING CO KSC
(HEISCO)
Country of Origin : Kuwait
Legal Form : Kuwaiti Shareholding Company - KSC
Registration Date : 2nd April 1974
Commercial Registration Number : 20735
Chamber Membership Number : 87899
Issued Capital : KD 16,348,437
Paid up Capital : KD 16,348,437
Total Workforce : 750
Activities : Engineering, procurement and construction contracting services.
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
HEAVY
ENGINEERING INDUSTRIES & SHIPBUILDING CO KSC (HEISCO)
Registered &
Physical Address
Location : Shuwaikh Port, Western Extension,
Gate No.7
PO Box : 21998
Town : Safat 13080
Country : Kuwait
Telephone : (965) 24835488 / 24821496 / 24849923
/ 24835838 / 24624000
Facsimile : (965) 24830291 / 24830327
Email : icd@heisco.com.kw / chairman@heisco.com / heisco@heisco.com.kw
Premises
Subject operates
from a large suite of offices, workshop and shipyard facilities that are owned
and located in Shuwaikh Port.
Branch Office (s)
Location Description
·
PO Box:
10155 Workshop
& warehousing premises
Shuaiba 65452
Tel: (965) 3262012/14/18/29
Fax: (965) 3262142
Name Position
·
Juhail Mohamed Abdul Rahman Juhail Chairman
·
Adnan Mosaeed Khalefa Al Kharafi Vice
Chairman
· Hussain Murad
Behbehani Director
·
Azzam Abdoulaziz Al Fulaij Director
·
Ghazi Ahmad Al Mijren Al Roumi Director
·
Sandip
Kumar Gupta General
Manager
·
Mohamed
T Jinadah Commercial
Manager
·
Basel
Lotfy Afify Contracts
Manager
·
Paschal
Jerry Pereira Sales
Manager
·
S N
Ramachandran Finance
Manager
·
Abdullah
M Al Saqer Administration
Manager
·
Stephen
Raj Anand Business
Development Manager
Date of Establishment : 2nd
April 1974
Legal Form :
Kuwaiti Shareholding
Company - KSC
Commercial Reg. No. : 20735
Chamber Member No. : 87899
Issued Capital : KD 16,348,437
Paid up Capital : KD 16,348,437
Name of Shareholder
(s) Percentage
·
Al
Khair National for Stocks & Real Estate Co 44.80%
·
Al
Wataniya Investment Fund 14.83%
·
National
Investments Co 6.78%
·
Local
businessmen and private investors 33.59%
Name Percentage Held
·
Gulf
Dredging and General Contracting Company SAK (GDC) 100%
PO Box: 24054
Safat 13101
Tel: (965) 24815080
Fax: (965) 24817272
Activities: Subject’s activities are performed through
the following divisions:
· Industrial Contracts Division
HEISCO is one of the major engineering,
procurement and construction contracting companies in Kuwait with a diversified
range of business in oil and gas, petrochemicals, power, pressure equipment
manufacture, shipbuilding and repair, maintenance and other industrial
services.
HEISCO is involved in EPC construction of storage
tanks (API 650,620 & AWWA) and associated interconnecting piping works, EPC
construction of pipelines, engineering, manufacturing & supply of major
pressure vessels, columns, boilers and process equipment in strict conformance
with stringent international codes & standards. The company also undertakes
engineering, manufacturing and supply of shell & tube type heat exchangers.
HEISCO is the only company in Kuwait
approved by Kuwait Oil Company for EPC construction of Storage Tanks upto a
capacity of 500,000 Bbls.
· Marine Division
The division operates a floating drydock of
190 meters long, 32 meters wide, and catering for vessels up to 35,000 dwt. A
Synchrolift accommodates vessels up to 5.000 dwt. with 7 repair bays, ranging
in length from 90 to 135 meters. 5 Berths, ranging from 90 meters to 230 meters
in length are serviced along their entire length by luffing cranes. 6 Cranes,
with lifting capacities from 10 to 30 tons, cover the yard open areas and there
are 10 to 20 tons overhead travelling cranes in the workshops and stores.
The division has a modern engineering
workshop ensuring efficient and reliable mechanical servicing. New building
modules and large steel repairs are prefabricated in the 7,800 square meters construction
area, of which 3,500 square meters is under cover.
· Trading Division
Engaged in the procurement and distribution
of equipment, spares and general engineering items, including welding equipment
and consumables, blasting and painting equipment, blasting abrasives, oilfield
products, pipeline accessories, protective coatings and marine paint,
industrial and marine equipment and spares.
Subject is ISO 9001-2000 accredited.
Import
Countries: Belgium, India
and South Korea.
International
Suppliers:
·
Sigma
Coatings Belgium
·
Graco Belgium
·
Ador
Welding India
·
City
Cat International Ltd India
·
Chosun
Steel Wire Co Ltd South Korea
Operating Trend: Steady
Subject has a
workforce of approximately 750 employees.
Financial highlights
provided by local sources are given below:
Currency: Kuwaiti
Dinars (KD 000’s)
Consolidated
Balance Sheet 31/12/11 31/12/10
ASSETS
Non-current assets
Property, plant and equipment 33,856,626
27,234,543
Investments available for sale 3,286,166
5,431,562
37,142,792 32,666,105
Current assets
Inventories 5,994,318
4,873,278
Contracts in progress 18,659,589
15,224,413
Trade and other receivables 31,427,398
26,792,810
Cash and cash equivalents 959,174
1,837,597
57,040,479 48,728,098
Total assets 94,183,271 81,394,203
Equity and liabilities
Equity
Share capital 16,348,437
16,348,437
Statutory reserve 4,606,594
4,220,627
General reserve 3,077,488
2,691,521
Fair valuation reserve -
(342,325)
Retained earnings 7,935,670
6,716,651
31,968,189 29,634,911
Non-current liabilities
Post-employment benefits 6,051,891
4,932,018
Term loans -
1,483,159
6,051,891 6,415,177
Current liabilities
Trade and other payables 37,796,707
28,683,343
Bank overdrafts 10,558,310
6,761,594
Term loans 7,808,174
9,899,178
56,163,191 45,344,115
Total liabilities 62,215,082
51,759,292
Total equity and liabilities 94,183,271 81,394,203
Consolidated Statement of Income
Revenue 86,653,337
64,346,597
Cost of sales (77,654,796)
(55,413,035)
Gross profit 8,998,541 8,933,562
Other operating income 1,698,974
80,477
General and administrative expenses (4,422,982)
(3,417,822)
Provision for impairment of inventories -
(53,669)
Investment income 680,531
577,913
Finance costs (720,415)
(1,202,341)
Foreign exchange gain 86,463
189,953
Profit before provisions and contribution to taxes &
management remuneration 6,321,112
5,108,073
Impairment loss on investment securities (2,482,873) (23,791)
Profit before taxes & management remuneration 3,838,239 5,084,282
Board of Directors’ remuneration (66,000)
(56,000)
Contribution to
National Labour Support tax (107,370)
(112,817)
Zakat expense (21,515)
(40,381)
Net profit for the year 3,625,797 4,837,309
Please note that
the figures for the year ending 31st December 2012 were not
available.
Local sources
consider subject’s financial condition to be Good.
·
National
Bank of Kuwait
Shuwaikh
Tel: (965) 24813266 / 24818350
Fax: (965) 24844126
·
Commercial
Bank of Kuwait
Shuwaikh
Tel: (965) 24814643
Fax: (965) 24837952
·
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
·
The Gulf
Bank KSC
Mubarak Al Kabir Street
PO Box: 3200
Safat 13033
Tel: (965) 22449501
Fax: (965) 22445212
No complaints
regarding subject’s payments have been reported.
Amount overdue 0 0
Payment terms 60
days 60
days
Payment Method Letters of Credit Letters of Credit
Paying record No
Complaints No
Complaints
Currency Pounds
Sterling Pounds
Sterling
Heavy Engineering
Industries & Shipbuilding Co KSC (HEISCO) is a leading Kuwaiti company
engaged in engineering, procurement and construction contracting services.
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.57.73 |
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UK Pound |
1 |
Rs.90.61 |
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Euro |
1 |
Rs.76.96 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.