MIRA INFORM REPORT

 

 

Report Date :

08.08.2014

 

IDENTIFICATION DETAILS

 

Name :

AL ZAHEM INTERNATIONAL GROUP TRADING & CONTRACTING CO WLL

 

 

Registered Office :

Free Trade Zone, Plot F11,, Shuwaikh Port Area, P O Box 26212 & 22063, Safat 13123

 

 

Country :

Kuwait

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

01.10.1991

 

 

Com. Reg. No.:

44648

 

 

Legal Form :

With Limited Liability

 

 

Line of Business :

Subject’s operations are performed through the following divisions:

·         Contracting Division

·         Trading Division

 

 

No. of Employees :

180

 

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 :

No 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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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 - more than 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. Budget surpluses have stayed around 30% of GDP, which has led to higher budget expenditures, particularly wage hikes for many public sector employees, as well as increased allotments to Kuwait’s Future Generations Fund. 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, though much of these funds have yet to be allocated.

 

Source : CIA

 


SUMMARY

 

Company Name                                     : AL ZAHEM INTERNATIONAL GROUP TRADING & CONTRACTING CO WLL

Country of Origin                                    : Kuwait

Legal Form                                            : With Limited Liability - WLL

Registration Date                                   : 1st October 1991

Commercial Registration Number            : 44648, Safat

Trade Licence Number                            : 130/91

Chamber Membership Number                : 24576

Issued Capital                                        : KD 4,000,000

Paid up Capital                                      : KD 4,000,000

Total Workforce                                     : 180

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

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Khalid Al Barno, Finance Manager

 

 

 


COMPANY NAME

 

AL ZAHEM INTERNATIONAL GROUP TRADING & CONTRACTING CO WLL

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : Free Trade Zone, Plot F-11

Area                 : Shuwaikh Port Area

PO Box             : 26212 & 22063

Town                 : Safat 13123

Country             : Kuwait

 

Telephone         : (965) 24829160 / 24829161 / 24829162

Facsimile          : (965) 24829166 / 24829167

Mobile               : (965) 94066074

Email                : info@alzahemgroup.com / khaledalborno@alzahemgroup.com

 

Premises

 

Subject operates from a large suite of offices and a workshop that are rented and located in the Free Trade Zone Area of Safat.

 

Branch Office (s)

 

Location                                                                                              Description

 

Mina Abdullah                                                                            Warehouse premises

Safat

 

 

KEY PRINCIPALS

 

Name                                                                                       Position

 

Faisal Abdulaziz Al Zahem                                                         Managing Director

 

Abdulaziz Faisal Abdulaziz Al Zahem                                          Director

 

Telal Faisal Abdulaziz Al Zahem                                                  Director

 

Nasser Faisal Abdulaziz Al Zahem                                              Director

 

Fahd Faisal Abdulaziz Al Zahem                                                 Director

 

Reem Faisal Abdulaziz Al Zahem                                                Director

 

Khalid Al Barno                                                                          Finance Manager

 

Khurshid Marakayer                                                                   Sales Manager

 

M B Alex                                                                                   Commercial Manager

 

Lifson George                                                                            Procurement Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment              : 1st October 1991

 

Legal Form                              : With Limited Liability - WLL

 

Commercial Reg. No.              : 44648, Safat

 

Trade Licence No.                   : 130/91

 

Chamber Member No.             : 24576

 

Issued Capital                          : KD 4,000,000

 

Paid up Capital                        : KD 4,000,000

 

 

Name of Shareholder (s)

 

Faisal Abdulaziz Al Zahem

 

Abdulaziz Faisal Abdulaziz Al Zahem

 

Telal Faisal Abdulaziz Al Zahem 

 

Nasser Faisal Abdulaziz Al Zahem

 

Fahd Faisal Abdulaziz Al Zahem

 

Reem Faisal Abdulaziz Al Zahem

 

 

AFFILIATED COMPANIES

 

Al Zahem & Malhotra

Safat

 

Toifor & Al Zahem

Safat

 

International House Institute

Safat

 

 

OPERATIONS

 

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

 

Contracting Division

 

Engaged as general construction and building work contractors. Activities include:

 

·         Electro-Mechanical and Civil works for Oil & Gas field projects

·         EPC project handlers (Oil & Gas sector)

·         Fabrication of Piping Spools and Manifolds

·         Engineering Services for Fired Heaters and Boilers

·         Reciprocating Compressor overhaul and refurbishment

·         Pipelines and Piping Installation

·         Plant & Equipment installation

·         Storage Tanks

·         Shut Down activities

·         Structural Steel installations

·         Road & Infrastructure work

·         Civil construction & maintenance jobs

·         RO Water Treatment plants

·         Drinking water plants

·         Waste Water Treatment plants

·         Power Generation units

·         Pumps, Water Supply & Drainage system

·         HVAC units.

 

 

Trading Division

 

Engaged in the import and distribution of gas and oilfield equipment, pipes, valves and flanges.

 

·         Tubular Goods - Line Pipes & OCTG

·         API Valves, MOV's & ESD Valves

·         API Ball & Plug Valves

·         Valve Actuation

·         Pipe Fittings & Flanges

·         Induction Bends

·         Gaskets & Stud Bolts

·         Heater & Finned Tubes

·         Heat Exchangers & Air Coolers

·         Well Head Equipment

·         Oil Drilling Equipment & Tools

·         Compression Technology

·         Packaged Process System for Oil & Gas

·         API Centrifugal Pumps

·         Axial Piston Pumps

·         Filtration Packages

·         Separation (Oil/Gas/Water)

·         Gas Conditioning Systems

·         Gas Dehydration Units

·         Safety Relief Valves

·         Strainers & Steam Traps

·         Expansion Joints

·         Wet Cooling Systems

·         Air Pollution Control Systems

·         Quick Opening Closures

·         Casing Insulators & End Seals

·         Valve Interlock Systems

·         Wire Mesh & Demister Pads

 

Import Countries: Europe and GCC countries.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 180 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Kuwaiti Dinars (KD)

 

                                                Year Ending 31/12/12:              Year Ending 31/12/13:

 

Total Sales                                KD 15,300,000                           KD 40,100,000

 

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

The above figures were provided by Mr Khalid Al Barno, Finance Manager

 

 

BANKERS

 

Gulf Bank KSC

Mubarak Al Kabir Street

PO Box: 3200

Safat 13033

Tel: (965) 22449501

Fax: (965) 22445212

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                                 May 2013                                  July 2014

Credit amount                                        150,000                         2,939,879

Amount overdue                         0                                              0

Payment terms                                      90 days                                     90 days

Payment Method                                   Letters of Credit                         Letters of Credit

Paying record                                        No Complaints                           No Complaints

Currency                                               Euros                                        Euros

 

 

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.61.41

UK Pound

1

Rs.103.42

Euro

1

Rs.82.17

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

TPT

 

 

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.