MIRA INFORM REPORT

 

 

Report Date :

04.10.2013

 

IDENTIFICATION DETAILS

 

Name :

KUWAIT AGRICULTURE CO WLL (KACO)

 

 

Registered Office :

Block No. 218,  Mohamed Bin Qassim Street, Ardiya Industrial Area, PO Box: 20468, Safat 13065

 

 

Country :

Kuwait

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

29.09.1968

 

 

Com. Reg. No.:

14862, Safat

 

 

Legal Form :

With Limited Liability

 

 

Line of Business :

Import and distribution of general foodstuff, as well as the operation of a poultry farm and 3 restaurants

 

 

No. of Employees :

600

 

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 :

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 – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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                                     : KUWAIT AGRICULTURE CO WLL (KACO)

Country of Origin                                    : Kuwait

Legal Form                                            : With Limited Liability - WLL

Registration Date                                   : 29th September 1968

Commercial Registration Number            : 14862, Safat

Trade Licence Number                            : 404/73

Chamber Membership Number                : 3116

Issued Capital                                        : KD 5,000,000

Paid up Capital                                      : KD 5,000,000

Total Workforce                                     : 600

Activities                                               : Import and distribution of general foodstuff, as well as the operation of a

                                                              poultry farm and 3 restaurants

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Tariq Mohamed Mahmoud, Finance Manager

 

COMPANY NAME

 

KUWAIT AGRICULTURE CO WLL (KACO)

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : Block No. 218

Street               : Mohamed Bin Qassim Street

Area                 : Ardiya Industrial Area

PO Box : 20468

Town                 : Safat 13065

Country             : Kuwait

 

Telephone         : (965) 24346180 / 24314532 / 24312870 / 24312598 / 24312694 / 24335814 / 1825258

Facsimile          : (965) 24312512 / 24312419 / 24341820 / 24335814 / 24315419

Mobile               : (965) 99608877 / 99825258

Email                : comm@ktagr.com / ktagri@ncc.moc.kw

 

Premises

 

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

 

Branch Offices

 

Location                                                                                              Description

 

Shuwaikh Industrial Area                                                                        Warehouse premises

Tel: (965) 24822293 / 24844544

 

Subject has fully equipped warehousing facilities with over 15,000 cubic metres for frozen products in five locations.

 

 

KEY PRINCIPALS

 

Name                                                                                       Position

 

Jawad Nasser Hussain Al Arbash                                                Chairman

 

Mohamed Nasouh Mamdouh Ali Al Kailani                                   Managing Director

 

Fahad Jawad Al Arbash                                                              Director

 

Ayman Hesham Adeeb Al Hejawi                                                Director

 

Jaafar Hesham Adeeb Al Hejawi                                                  Director

 

Mohamed Kamal Ismail                                                              General Manager

 

Norbert D’Cruz                                                                           Commercial Manager

 

Tariq Mohamed Mahmoud                                                           Finance Manager

 

Hazgail Ady Ibrahim                                                                   Sales Manager

 

Reda Al Adawi                                                                           Marketing Manager

 

Mohamed Yousef                                                                       Human Resources Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 29th September 1968

 

Legal Form                  : With Limited Liability - WLL

 

Commercial Reg. No.  : 14862, Safat

 

Trade Licence No.       : 404/73

 

Chamber Member No. : 3116

 

Issued Capital              : KD 5,000,000

 

Paid up Capital            : KD 5,000,000

 

Name of Shareholder (s)

 

Ayman Hesham Adeeb Al Hejawi

 

Jaafar Hesham Adeeb Al Hejawi

 

Jawad Nasser Hussain Al Arbash

 

Fahad Jawad Al Arbash

 

Mohamed Nasouh Mamdouh Ali Al Kailani

 

Heirs of the late Mohamed Nasser Hussain Al Arbash

 

 

 

OPERATIONS

 

Activities:                     Engaged in the import and distribution of a wide range of foodstuff products, including cheeses, dairy products, poultry, eggs and quail eggs, processed meat products, canned fruit and vegetables, olives, vegetable oils and ghee, and cakes.

 

Subject also operates a poultry farm on the outskirts of Safat and 3 restaurants within the city and operates a fleet of 110 delivery vehicles. Subject supplies 360 hypermarkets, 2,000 groceries and 280 restaurants.

 

Import Countries:         Lebanon, New Zealand, Egypt, India, Argentina, Australia, Cyprus, Denmark and the United States of America

 

International Suppliers:

 

S.P.C Ltd                      Australia

Pittas Dairy Industries    Cyprus

Gimo Cheese                Denmark

Crown Products Inc        United States of America

 

Brand Names:              SOHAT, PUCK, PITTAS, DANPO, DOUX and NORBEST

 

Operating Trend:         Steady

 

Subject has a workforce of approximately 600 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 46,220,000                           KD 47,993,000

 

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

 

The above figures were provided by Mr Tariq Mohamed Mahmoud, Finance Manager

 

 

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

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Kuwait Agriculture Co WLL (KACO) is well established in the local foodstuff market with operations dating back to 1968. It’s activities cover the import and distribution of general foodstuff, as well as the operation of a poultry farm and 3 restaurants.

 

The company is run in a professional manner and deals with a number of well known international organisations.

 

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.61.93

UK Pound

1

Rs.100.44

Euro

1

Rs.84.23

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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.