MIRA INFORM REPORT

 

 

Report Date :

28.04.2014

 

IDENTIFICATION DETAILS

 

Name :

AL KOUT INDUSTRIAL PROJECTS CO KSCC

 

 

Registered Office :

Al Abrar Tower, 2nd Floor, Fahad Al Salem Street 10277, Shuaiba 65453

 

 

Country :

Kuwait

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

28.12.1993

 

 

Com. Reg. No.:

57560

 

 

Legal Form :

Kuwaiti Shareholding Closed Company - KSCC

 

 

Line of Business :

Engaged in the manufacture of salt and chlorine products, such as caustic soda, hydrochloric acid, and sodium hypo chlorite.

 

 

No of Employees :

200

 

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Kuwait

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

KUWAIT - ECONOMIC OVERVIEW

 

Kuwait has a geographically small, but wealthy, relatively open economy with crude oil reserves of about 102 billion barrels - about 6% 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. Stagnant global oil prices throughout 2013 has slowed economic growth. Budget surpluses have stayed around 30% of GDP, 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                                    : AL KOUT INDUSTRIAL PROJECTS CO KSCC

Country of Origin                                   : Kuwait

Legal Form                                           : Kuwaiti Shareholding Closed Company - KSCC

Registration Date                                  : 28th December 1993

Commercial Registration Number           : 57560, Safat

Trade Licence Number                           : 94/414

Chamber Membership Number               : 64370

Issued Capital                                       : KD 88,200,000

Paid up Capital                                     : KD 88,200,000

Total Workforce                                     : 200

Activities                                               : Manufacturers of salt and chlorine products.

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

 

 

COMPANY NAME

 

AL KOUT INDUSTRIAL PROJECTS CO KSCC

 

 

COMPANY ADDRESS

 

Registered & Physical Address

 

Building            : Al Abrar Tower, 2nd Floor

Street               : Fahad Al Salem Street

PO Box            : 10277

Town                : Shuaiba 65453

Country             : Kuwait

 

Telephone         : (965) 23263795 / 23263796 / 23263797 / 23263798

Facsimile          : (965) 23260707

Email                : mktg@alkoutprojects.com.kw / aipc@ahliaprojects.com

 

Premises

 

Subject operates from a medium sized suite of offices that are rented and located in the Central Business Area of Shuaiba.

 

Branch Office (s)

 

     Location                                                                                          Description

 

·       Shuaiba Industrial Area                                                                     Production plant

PO Box: 10277

Shuaiba 65453

Tel: (965) 3263795/8 / 3261500 / 3263675

Fax: (965) 3260857 / 3261404 / 3263920

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Fahad Yagoub Al Joaan                                                                   Chairman

 

·       Bader Musaed Abdulla Al Sayer                                                        Vice Chairman

 

·       Hamad Abdulaziz Al Saqer                                                                Director

 

·       Bader Musaed Bader Al Sayer                                                           Director

 

·       Othman Al Zahem                                                                             Director

 

·       Fahad Abdullrahman Al Sanea                                                           Director

 

·       Salah Nasser Al Saqabi                                                                    Director

 

·       Basil Toutoungi                                                                                General Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 28th December 1993

 

Legal Form                  : Kuwaiti Shareholding Closed Company - KSCC

 

Commercial Reg. No.   : 57560, Safat

 

Trade Licence No.        : 94/414

 

Chamber Member No.  : 64370

 

Issued Capital              : KD 88,200,000

 

Paid up Capital            : KD 88,200,000

 

Name of Shareholder (s)                                                       Percentage

 

·       Boubyan Petrochemicals Co                                                 24.00%

 

·       Yaqoub Y Al Jouan                                                              23.02%

 

·       Abdullah H Al Saqr & Brothers Co                                         11.75%

 

·       Jiblah Holding Co                                                                 11.70%

 

·       Afkar Holding Co                                                                  10.00%

 

·       Mustafa S Al Eisa                                                                   6.25%

 

·       Local businessmen and private investors                               13.28%

 

 

AFFILIATED COMPANIES

 

·       Al Kout Logistics Transport Co (ALTC)

 

·       Al Kout Petrochemical Products Company

 

·       Safewater Chemicals Co

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of salt and chlorine products, such as caustic soda, hydrochloric acid, and sodium hypo chlorite.

 

Import Countries: Japan, China and Europe.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 200 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Kuwaiti Dinars (KD)

 

Balance Sheet                                                                                            31/12/12                  31/12/13

 

ASSETS

 

 

 

Non-current assets

 

 

 

 

Property, plant and equipment

 

15,663,271

 

13,354,694

Investment in associate

 

11,031,840

 

10,580,497

 

 

26,695,111

 

23,935,191

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

Inventories

 

2,325,100

 

1,657,201

Trade receivables

 

2,778,461

 

2,961,789

Other receivables

 

824,851

 

1,516,069

Investments at fair value through profit or loss

 

-

 

260,158

Cash and cash equivalents

 

1,226,954

 

3,832,314

 

 

7,155,366

 

10,227,531

Total assets

 

33,850,477

 

34,162,722

 

 

 

 

 

Equity and liabilities

 

 

 

 

Equity

 

 

 

 

Share capital

 

8,820,000

 

8,820,000

Statutory reserve

 

4,097,514

 

3,543,900

Voluntary reserve

 

4,059,507

 

3,505,893

Group’s share of associate’s reserves

 

-

 

(10,984)

Foreign currency translation reserve

 

135,399

 

87,622

Retained earnings

 

8,676,367

 

8,043,527

Total equity

 

25,788,787

 

23,989,958

 

 

 

 

 

NNON-CURRENT LIABILITIES

 

 

 

 

Non-current portion of term loans

 

3,047,600

 

4,540,329

Provision for staff indemnity

 

1,380,262

 

1,071,137

 

 

4,427,862

 

5,611,466

 

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

 

2,303,628

 

2,284,098

Current portion of term loans

 

1,330,200

 

2,277,200

 

 

3,633,828

 

4,561,298

Total liabilities

 

8,061,690

 

10,172,764

Total equity and liabilities

 

33,850,477

 

34,162,722

 

 

 

Statement of Income                                                                                  31/12/13                31/12/12

 

Sales

 

15,997,916

 

15,341,825

Cost of sales

 

(8,152,480)

 

(7,936,316)

Gross profit

 

7,845,436

 

7,405,509

 

 

 

 

 

Unrealised loss on investments at fair value  through profit or loss

 


(260,158)

 


-

Share of results of associate

801,454

 

71,251

Dividend income

 

-

 

13,171

Other income

 

221,554

 

63,498

Foreign exchange gain

 

245,017

 

248,648

Impairment of goodwill

-

 

(833,350)

General and administrative expenses

(1,696,779)

 

(1,390,407)

Selling and distribution expenses

 

(509,339)

 

(599,243)

Impairment loss on property, plant and equipment

(884,448)

 

-

Finance costs

 

(226,596)

 

(239,537)

Profit before contribution to Kuwait Foundation for the Advancement of Sciences (KFAS), National Labour Support Tax (NLST), Zakat and Board of Directors’ remuneration

 

5,536,141

 

4,739,540

Contribution to KFAS

 

(41,811)

 

(42,656)

NLST

 

(117,340)

 

(140,754)

Zakat

 

(38,922)

 

(54,159)

Board of Directors’ remuneration

 

(70,000)

 

(116,000)

Profit for the year

 

5,268,068

 

4,385,971

 

 

 

 

 

 

 

 

 

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

 

BANKERS

 

·       Kuwait Finance House (KFH)

Safat Square

Abdullah Al Mubarak Street

PO Box: 24989

Safat 13110

Tel: (965) 22445050

Fax: (965) 22455135

 

·       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

 

·       HSBC Bank Middle East Ltd

PO Box: 1683

Safat 13017

Tel: (965) 22230794

Acc No. US$001-002740-160

 

 

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.61.12

UK Pound

1

Rs.102.71

Euro

1

Rs.84.52

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.