MIRA INFORM REPORT

 

 

Report Date :

17.12.2014

 

IDENTIFICATION DETAILS

 

Name :

METAL & RECYCLING CO KSCC (MRC)

 

 

Registered Office :

Logistics Department Building, 3rd Floor, Amghara Industrial Area, Sulaibia, Al Jahra, P O Box 4520, Town Safat 13046

 

 

Country :

Kuwait

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

10.06.1987

 

 

Legal Form :

Kuwaiti Shareholding Company Closed - KSCC

 

 

Line of Business :

·         Engaged in trading of scrap items, machinery and waste sorting, shredding, dismantling, repairing and reselling.

·         Subject is also engaged in waste recycling, auction and demolition management, industrial and handicraft areas construction as well as environment protection and development services in and outside Kuwait.

 

 

No of Employees :

250 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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                                    : METAL & RECYCLING CO KSCC (MRC)

Country of Origin                                   : Kuwait

Legal Form                                           : Kuwaiti Shareholding Company Closed - KSCC

Registration Date                                  : 10th June 1987

Chamber Membership Number               : 18393

Issued Capital                                       : KD 8,255,650

Paid up Capital                                     : KD 8,255,650

Total Workforce                         : 250

Activities                                               : Recycling services and trading in scrap metals

Financial Condition                                : Poor

Payments                                             : Nothing detrimental uncovered

 

COMPANY NAME

 

METAL & RECYCLING CO KSCC (MRC)

 

 

company ADDRESS

 

Registered & Physical Address

Building                        : Logistics Department Building, 3rd Floor

Area                 : Amghara Industrial Area, Sulaibia, Al Jahra

PO Box            : 4520

Town                : Safat 13046

Country : Kuwait

Telephone         : (965) 24577772 / 24577773 / 24577774

Facsimile          : (965) 24672168 / 24575597

Email                : info@mrckw.com / mrc@mrc.com.kw

 

Premises

Subject operates from a large suite of offices that are rented and located in the Industrial Area of Safat.

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Mossad Ibrahim Suleiman Al Houli                                                     Chairman

 

·       Tarek Ibrahim Mohammad Al Mousa                                                  Vice Chairman

 

·       Khaled Ibrahim Mohammed Al Mousa                                                Director

 

·       Rashad Rashed Sonokrt                                                                   Director

 

·       Fouzi Ali Abdullah Al Muthaf                                                             Director

 

·       Sager Abdullah Abdulmehsen Al Sharhan                                          General Manager

 

·       Eman El Ansary                                                                                Chief Financial Officer

 

·       Joachim Kaden                                                                                Business Development Manager

 

·       Yaagoub Al Aywad                                                                           Industrial Manager

 

·       Mohamed Zaidan                                                                              Legal Manager

 

·       Shaker Al Essa                                                                                 Waste Management Manager

 

·       Thomas Kuruville                                                                              Quality Assurance Manager

 

·       Omar Al Yasen                                                                                 Human Resources Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 10th June 1987

 

Legal Form                  : Kuwaiti Shareholding Company Closed - KSCC

 

Chamber Member No.  : 18393

 

Issued Capital              : KD 8,255,650

 

Paid up Capital            : KD 8,255,650

 

Name of Shareholder (s)                                               Percentage

 

·       Agility Public Warehousing Company (PWC)                56.600%

·       United Capital Group Company                                     5.291%

·       Local businessmen and private investors                     38.109%

 

 

OPERATIONS

 

Activities: MRC is active in the trading of scrap items, machinery and waste sorting, shredding, dismantling, repairing and reselling.

 

The company is also engaged in waste recycling, auction and demolition management, industrial and handicraft areas construction as well as environment protection and development services in and outside Kuwait.

 

Subject operates a shredding factory with 50 tonnes per hour productivity and also a factory to recycle waste plastic with over 9000 tones annual production of shredded and bubble plastic.

 

Subject is ISO 14001 accredited.

 

Import Countries: United States of America, United Kingdom and Japan.

 

Subject has a workforce of approximately 250 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Kuwaiti Dinars (KD 000’s)

 

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

 

ASSETS

 

 

CURRENT ASSETS

12,757

13,038

INVESTMENTS

5,650

5,266

FIXED ASSETS

3,368

3,001

OTHER ASSETS

314

314

TOTAL ASSETS

22,059

21,620

 

 

 

LIABILITIES

 

 

CURRENT LIABILITIES

2,729

3,012

LONG-TERM LIABILITIES

311

385

TOTAL LIABILITIES

3,040

3,397

 

 

 

SHAREHOLDER'S EQUITY

 

 

PAID-UP CAPITAL

8,256

8,256

PROPOSED STOCK DIVIDENDS

0

0

PROPOSED CASH DIVIDENDS

0

0

RESERVES

13,580

13,580

CUMULATIVE CHANGES IN FAIR VALUES

0

0

RETAIND EARNINGS

-3,535

-4,417

TREASURY STOCK

-997

-1,057

TOTAL SHAREHOLDER'S EQUITY

17,304

16,362

MINORITY INTEREST

1,716

1,861

TOTAL LIABILITIES & SHAREHOLDER'S EQUITY

22,059

21,620

 

Income Statement

 

TOTAL SALES

16,321

15,992

GROSS PROFIT ON SALES

2,451

2,043

INCOME FROM INVESTMENTS

76

-348

UNREALIZED GAIN (LOSS) ON INVESTMENTS

0

0

OTHER INCOME

-803

-229

TOTAL INCOME

15,594

15,415

NET PROFIT (LOSS)

-1,495

-882

 

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

 

 

BANKERS

 

·       National Bank of Kuwait

Ali Awadi Tower

Ahmed Al Jaber Street

PO Box: 95

Safat 13001

Tel: (965) 23981188 / 23981189

Fax: (965) 23985643

 

 

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.63.41

UK Pound

1

Rs.99.30

Euro

1

Rs.79.00

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

MNL

 

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.