MIRA INFORM REPORT

 

 

Report Date :

20.12.2014

 

IDENTIFICATION DETAILS

 

Name :

COMBINED GROUP CONTRACTING CO KSC (C)

 

 

Registered Office :

Block No. 2, Plot No. 284, Al Ardiya Industrial Area, P O Box 4819, Safat 13049

 

 

Country :

Kuwait

 

 

Financials (as on) :

31.12.2013 (Consolidated)

 

 

Date of Incorporation :

16.11.1965

 

 

Com. Reg. No.:

13595

 

 

Legal Form :

Kuwaiti Shareholding Closed Company – KSC (C)

 

 

Line of Business :

·         Engaged in the civil and mechanical contracting of buildings, roads and bridges.

·         Subject also distributes cement and building materials.

 

 

No of Employees :

6,400 (Approximately)

 

 

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 :

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 – 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                                    : COMBINED GROUP CONTRACTING CO KSC (C)

Country of Origin                                   : Kuwait

Legal Form                                           : Kuwaiti Shareholding Closed Company – KSC (C)

Start Date                                             : 16th November 1965

Registration Date                                  : 19th September 2005

Commercial Registration Number           : 13595

Issued Capital                                       : KD 10,629,366

Paid up Capital                                     : KD 10,629,366

Total Workforce                         : 6,400

Activities                                               : Civil and mechanical contracting of buildings, roads and bridges.

Financial Condition                                : Good

Payments                                             :Regular

Operating Trend                                    : Steady

COMPANY NAME

 

COMBINED GROUP CONTRACTING CO KSC (C)

 

 

company ADDRESS

 

Registered & Physical Address

Location           : Block No. 2, Plot No. 284

Area                 : Al Ardiya Industrial Area

PO Box            : 4819

Town                : Safat 13049

Country : Kuwait

Telephone         : (965) 22254545

Facsimile          : (965) 24344610 / 24344686

Email                : info@cgc-kw.com

 

Premises

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

 

Branch Office (s)

 

     Location                                                                                          Description

 

·       Block No. 44                                                                                    Office premises

East Ahmadi

Tel: (965) 23985172

Fax: (965) 23985175

 

·       Industrial Area                                                                                  Service centre

Sulaibiya

Tel: (965) 24674896

Fax: (965) 24677673

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Abdul Rahman Mousa Al Marouf                                                       Chairman

 

·       Raad Khalaf Al Abdullah Qutbeldeen                                                 Vice Chairman

 

·       Mousa Ahmed Al Marouf                                                                  Director

 

·       Ahmed Khaled Ahmed Al Homaizi                                                     Director

 

·       Emaad Ahmed Abdullatif Al Houti                                                     Director

 

·       Sulaiman Abdul Rahman Al Marouf                                                    Director

 

·       Marouf Abdul Rahman Al Marouf                                                       Director

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 16th November 1965, however subject was registered on 19th September 2005

 

Legal Form                  : Kuwaiti Shareholding Closed Company – KSC (C)

 

Commercial Reg. No.   : 13595

 

Chamber Member No.  : 633

 

Issued Capital              : KD 10,629,366

 

Paid up Capital            : KD 10,629,366

 

Name of Shareholder (s)                                                       Percentage

 

·       Abdul Rahman Mousa Al Marouf                                           24.50%

 

·       Mousa Ahmed Al Marouf                                                      24.50%

 

·       Sulaiman Khalid A Al Hamad                                                   9.90%

 

·       KAMCO                                                                                 5.30%

 

·       Local businessmen and private investors                               35.80%

 

 

AFFILIATED COMPANIES

 

     Name                                                                                                              Percentage Held

 

·       Combined International Real Estate Company KSCC                                                  96%

Safat

Tel: (965) 22254545

 

·       Combined Group Rocks Company KSCC                                                                  67%

Safat

Tel: (965) 23824191

 

·       Combined Group Contracting Company WLL                                                             70%

Muscat

Oman

Tel: (968) 24783387

 

·       Combined Group for Trading & Contracting Co WLL                                                   49%

Doha

Qatar

Tel: (974) 44664999

 

·       Combined Group Contracting Co WLL                                                                       49%

Doha

Qatar

Tel: (974) 44520520

 

·       Combined Group Factories Co WLL                                                                          49%

Doha

Qatar

Tel: (974) 44520450

 

·       Al Barjas Group for Trading & Contracting Company WLL                                           -

Safat

 

·       Syrian Combined Group Contracting Company                                                          -

Damascus

Syria

Tel: (963-11) 4445001

 

·       United Kingdom General Trading and Contracting Company WLL                                -

Safat

     Tel: (965) 22254545

 

·       Comoros Combined Group Company                                                                                    -

Comoros Islands

 

·       Combined Group Contracting Company                                                                     -

Baghdad

Iraq

Tel: (964-1) 7190782

 

·       Combined Group Contracting Company                                                                     -

Abu Dhabi

United Arab Emirates

Tel: (971-2) 6121999

 

·       Combined Group Contracting Company                                                                     -

Al Khobar

Saudi Arabia

Tel: (966-3) 8675414

 

·       Al Marouf and Al Barjas Combined for General Trading & Contracting Co WLL                        -

Safat

Tel: (965) 22254545

 

·       Combined Group Contracting Company                                                                     -

Dubai

United Arab Emirates

Tel: (971-4) 2551602

 

 

OPERATIONS

 

Activities: Engaged in the civil and mechanical contracting of buildings, roads and bridges.

 

     Subject also distributes cement and building materials.

 

Subject is classified by major companies and committees in Kuwait, including:

 

Central Tenders Committee

1. Category 1 for infrastructure works (Roads and Sewers),

2. Category 1 for civil construction works,

3. Category 2 for electrical works,

4. Category 3 for air conditioning works.

 

Kuwait Oil Company

1. Category 02A, 02B and 02C for pipelines and associated works for pipelines of

all diameters, manifolds and maintenance,

2. Category 03 for domestic water, air and gas mains up to 4" diameter,

3. Category 04A, 04B and 04C for mechanical engineering & plant installation

And maintenance for process plant piping,

4. Category 08 for plant maintenance and production facilities and

5. Category 15S for small engineering purchasing and construction contracts (EPS).

 

Kuwait National Petroleum Company

1. Category CEC 01 for civil works,

2. Category CEC 03 for piping, valves and associated works,

3. Category CEC 04 for roads and dye works,

4. Category CEC 05 for plant installation

5. Category CEC 24 for petrol stations.

 

Al Khafji Joint Operations

1. CC-2 for major civil construction works,

2. CC- 4 for major asphalting and roads works, and as

3. MTS for skilled manpower supply services.

 

Projects:

04/04/2012 Signing contract (RE/212) with the Ministry of Public Works for construction, completion and maintenance of roads and intersections on central part of Jahra Road, the contract was valued at KD 45,797,412 and its duration is

1186 days.

 

03/07/2012 The company received a letter of intent for tender number RM/R/267 for Emergency and Maintenance and Miscellaneous Works for Highways in the State of Kuwait amounting at KD 2,000,000 with duration of 24 months.

 

21/07/2012 The Abu Dhabi branch signed a contract with the General Command of the Armed Force in Abu Dhabi for the construction works of the asphalt road length of 12 KM. The contract was valued at KD 686,477 and for duration of

6 months.

 

25/07/2012 The Abu Dhabi branch signed a contract with the Department of Municipal Affairs Al Ain City Municipality in Abu Dhabi for the roads and infrastructure works for Al Daher (5) area. The contract was valued at KD 7,000,000

and duration of 18 months.

 

10/09/2012 CGC announced that it was the lowest bidder for tender (18/2011/2012) for Designing, Construction and

Maintenance of the Pipeline to transport treated water from Ministry of Public Works in Sulaibyia to Kuwait

Institute for Scientific Research in Kabd. The contract amounted to KD 1,180,000.

 

22/09/2012 The company signed a KD 35,889,902 contract with the Ministry of Electricity and Water for procurement,

construction, completion and maintenance of 4 distilled water pipelines. The contract was valued at KD 35,889,902

and with duration of 24 months.

 

14/11/2012 The company signed a KD 738,750,000 contract with the Ministry of Public Works for Sheikh Jaber Al Ahmad Bridge in consortium with Hyundai Co., the duration of the contract is 5 years and CGC share is 21.5%.

 

15/12/2012 The company’s subsidiary, Barges General Trading and Contracting Co., has acquired the lowest bid price in tender (RB/49/2010/2011) for the Ministry of Education amounting at KD 3,200,000 with duration of 18 months.

 

29/12/2012 The company signed a KD 3,390,000 contract with the Ministry of Health for construction, completion, handing over and defect liabilities for the O.P.D laboratories, X Ray and pharmacy building at Al Razi Hospital. The duration of the contract is 16 months.

 

03/04/2013 The company signed a KD 2,000,000 contract with the Ministry of Public Works for the maintenance of the railways for a period of two years.

 

31/10/2013 The company signed a KD 36,400,000 contract with the Public Authority for Housing Welfare for construction and maintenance services.

 

02/11/2013 The company signed a KD 2,800,000 contract with Al Khafji JO for the piping construction services.

 

04/12/2013 The company signed a KD 5,800,000 contract with KOC for the construction services.

 

11/12/2013 The company signed a KD 1,200,000 contract with KISR for the design and renovation services.

 

Import Countries: Europe and GCC countries.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 6,400 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Kuwaiti Dinars (KD)

 

Consolidated Balance Sheet                                                       31/12/13            31/12/12          31/12/11

 

Fixed assets                                                                             18,031,306        17,452,069        16,907,212

Investment properties                                                                2,208,735          -                       -

Investment in an unconsolidated subsidiaries                              93,001              93,001              318,001            

Investment available for sale                                                      700,000 700,000 -                      

Right of utilization of leasehold land                                           101,479 107,729 117,979            

Current assets:

Spare parts and materials                                                          31,625,855        21,476,601        25,783,366       

Gross amount due from customers for contract work                  39,620,957        36,770,126        16,224,073       

Accounts receivable and other debit balances                            82,127,973        80,375,134        76,265,407       

Investments at fair value through income statement                     2,788,692          2,306,264          2,141,996         

Term deposits                                                                           280,000 280,000 -                      

Cash and cash equivalents                                                        15,461,305        13,594,342        7,934,578         

Total current assets                                                                   171,904,782      154,802,467      128,349,420     

Total assets                                                                              193,039,303      173,157,266      145,692,612       

 

 

Shareholders’ equity:

Capital                                                                                      10,629,366        10,629,366        9,663,060         

Treasury shares                                                                         (64,374)            (64,374)            (64,374)           

Treasury shares reserve                                                 1,266,488          1,266,488          1,266,488         

Statuary reserve                                                                        5,314,683          5,314,683          5,103,940         

Voluntary reserve                                                                      1,817,340          1,817,340          1,817,340         

Foreign currency translation adjustments                                    (26,831)            (90,850)            (44,747)           

Retained earnings                                                                      21,168,634        23,929,756        22,449,325       

Equity attributable to shareholders of the Parent Company          40,105,306        42,802,409        40,191,032       

Non-controlling interests                                                            2,318,739          1,685,785          406,460            

Total shareholders’ equity                                                          42,424,045        44,488,194        40,597,492         

 

Accounts payable and other credit balances – long term                         16,758,486        13,864,910        17,658,311       

Long term loans – Non-current portion                                        2,352,646          3,137,392          1,577,798         

Provision for end of service benefits                                          6,640,289          6,264,662          5,413,063         

Current liabilities:

Gross amount due to customers for contract work                      306,756 304,687 5,073,029         

Accounts payable and other credit balances                               84,258,339        80,956,929        64,810,672       

Long term loans – Current portion                                              2,380,627          5,702,361          2,022,175         

Obligations for finance lease                                                     1,289,950          -                       -

Short term loans and credit facilities                                           27,596,211        9,632,760          7,305,746         

Due to banks                                                                            9,031,954          8,805,371          1,234,326         

Total current liabilities                                                                124,863,837      105,402,108      80,445,948       

Total shareholders’ equity and liabilities                                      193,039,303      173,157,266      145,692,612       

 

Income Statement

 

Operating revenue                                                                     154,971,442      176,762,831      150,608,398     

Operating costs                                                                        (140,393,717)    (155,945,779)    (132,440,571)   

Gross profit                                                                              14,577,725        20,817,052        18,167,827       

Other income                                                                            47,104              201,864 417,255            

Gain on sale of fixed assets                                                      527,384 851,285 -                      

Group’s share of results from unconsolidated subsidiary                        -                       (23,918)            -

General and administrative expenses                                          (7,473,305)        (7,024,088)        (5,572,666)       

Provision for doubtful debts                                                      -                       (1,219,910)        (990)                

Impairment loss for investment in unconsolidated subsidiary       -                       -                       -                      

Net investments (loss) gain                                                        490,213 164,268 (319,749)          

Depreciation and amortization                                                    (663,948)           (857,644)           (708,201)          

Finance charges                                                                        (1,769,971)        (1,587,020)        (1,131,984)       

Zakat and donations                                                                  (279,961)           (53,342)            (80,698)           

Profit for the year before contribution to Kuwait Foundation

for the Advancement of Sciences, National Labour Support

Tax, contribution to Zakat and Board of Directors remuneration   5,455,241          11,268,547        10,770,794       

Contribution to Kuwait Foundation for the Advancement

of Sciences (KFAS)                                                                   (36,035)            (100,686)           (100,313)          

National Labour Support Tax (NLST)                                           (40,274)            (291,892)           (253,318)          

Contribution to Zakat                                                                 (3,569)              (108,751)           (94,507)           

Board of directors’ remuneration                                                (70,000)            (70,000)            (50,000)           

Net profit for the year                                                                5,305,363          10,697,218        10,272,656         

 

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

 

 

BANKERS

 

·       National Bank of Kuwait SAK

Ali Awadi Tower

Ahmed Al Jaber Street

PO Box: 95

Safat 13001

Tel: (965) 23981188 / 23981189

Fax: (965) 23985643

 

 

PAYMENT HISTORY

 

Regular


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.63.07

UK Pound

1

Rs.98.73

Euro

1

Rs.77.46

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.