MIRA INFORM REPORT

 

 

Report Date :

22.05.2014

 

IDENTIFICATION DETAILS

 

Name :

HASSAN MOHAMED JAWAD & SONS BSCC

 

 

Registered Office :

Jawad House, 1st Floor, 171 Sheikh Issa Road, Block 305, Bab Al Bahrain Area, P O Box 430 & 5896, Manama

 

 

Country :

Bahrain

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

04.04.1961

 

 

Com. Reg. No.:

297, Manama

 

 

Legal Form :

Bahraini Shareholding Company (Closed) - BSCC

 

 

Line of Business :

subject operates through several divisions which are as follow:-

·         Wholesale Division

Jawad Restaurants

Jawad Supermarkets

Jawad Fashion

British Home Stores (BHS)

Dairy Queen

Jawad Data Systems

Jawad Superfare

 

 

No of Employees :

1500 (Approximately)

 

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)

Bahrain

B1

B1

 

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

 


 

Bahrain ECONOMIC OVERVIEW

 

Bahrain has taken great strides in diversifying its economy and its highly developed communication and transport facilities make Bahrain home to numerous multinational firms with business in the Gulf. As part of its diversification plans, Bahrain implemented a Free Trade Agreement (FTA) with the US in August 2006, the first FTA between the US and a Gulf state. Bahrain's economy, however, continues to depend heavily on oil. Petroleum production and refining account for more than 60% of Bahrain's export receipts, 70% of government revenues, and 11% of GDP. Other major economic activities are production of aluminum - Bahrain's second biggest export after oil - finance, and construction. Bahrain competes with Malaysia as a worldwide center for Islamic banking and continues to seek new natural gas supplies as feedstock to support its expanding petrochemical and aluminum industries. In 2011 Bahrain experienced economic setbacks as a result of domestic unrest, however, the economy is recovered in 2012-13, partly as a result of improved tourism. Economic policies aimed at restoring confidence in Bahrain's economy, such as the suspension of an expatriate labor tax and frequent bailouts of Gulf Air, will make Bahrain's long-term economic challenges - youth unemployment and the growth of government debt - more difficult to address.

 

Source : CIA

 

 

 


SUMMARY

 

Company Name                                     : HASSAN MOHAMED JAWAD & SONS BSCC

Also Known As                                      : JAWAD BUSINESS GROUP

Country of Origin                                    : Bahrain

Legal Form                                            : Bahraini Shareholding Company (Closed) - BSCC

Registration Date                                   : 4th April 1961

Commercial Registration Number            : 297, Manama

Chamber Membership Number                : 254

Issued Capital                                        : BD 4,432,027

Paid up Capital                                      : BD 4,432,027

Total Workforce                                     : 1,500

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

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Sojoy Malek, Finance Manager

 

 

 


COMPANY NAME

 

HASSAN MOHAMED JAWAD & SONS BSCC

 

 

ALSO KNOWN AS

 

JAWAD BUSINESS GROUP

 

 

company ADDRESS

 

Registered & Physical Address

Building             : Jawad House, 1st Floor

Street               : 171 Sheikh Issa Road, Block 305

Area                 : Bab Al Bahrain Area

PO Box             : 430 & 5896

Town                 : Manama

Country             : Bahrain

Telephone         : (973-17) 254080 / 254303 / 253032 / 247171

Facsimile          : (973-17) 273866 / 273605

Mobile               : (973-39) 177636 / 39302218 / 36488999

Email                : santosh@jawad.com

 

Premises

Subject operates from a large suite of offices that are owned and located in the Central Business Area of Manama.

 

Branch Office (s)

 

     Location                                                                                          Description

 

·       Jawad Commercial Complex                                                              Owned shopping complex

Budaiya Highway

Barbar

     Tel: (973-17) 691010

     Fax: (973-17) 697956

 

·       Jawad Center                                                                                    Owned shopping complex

Nwaidrat

     Tel: (973-17) 700123

     Fax: (973-17) 700254

 

·       Mina Salman Port                                                                             Warehouse premises

Tel: (973-17) 700123

Fax: (973-17) 729225

 

·       Seef Mall                                                                                          Rented showroom premises

Manama

     Tel: (973-17) 582258

     Fax: (973-17) 582152

 

 

KEY PRINCIPALS

 

     Name                                                                                              Position

 

·       Faisal Hassan Mohamed Jawad                                                         Managing Director

 

·       Fatima Hassan Mohamed Jawad                                                        Director

 

·       Sabaah Hassan Mohamed Jawad                                                       Director

 

·       Jawad Abdulaziz Alawi                                                                      Director

 

·       Salem Abdulaziz Hassan Alawi                                                          Director

 

·       Hussain Abdulaziz Alawi                                                                    Director

 

·       Bernard Edmunds                                                                             Director

 

·       Anil Menezes                                                                                    Director

 

·       Rama Krishnan                                                                                 General Manager

 

·       Sayed Noor                                                                                      Marketing Manager

 

·       Reda Shamseddine                                                                           Sales Manager

 

·       Sojoy Malek                                                                                     Finance Manager

 

·       J Barakash                                                                                       Branch Manager – Budaiya

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 4th April 1961

 

Legal Form                  : Bahraini Shareholding Company (Closed) - BSCC

 

Commercial Reg. No.  : 297, Manama

 

Chamber Member No. : 254

 

Issued Capital              : BD 4,432,027

 

Paid up Capital            : BD 4,432,027

 

Name of Shareholder (s)                                           Percentage

·       Faisal Hassan Mohamed Jawad                                 36.73%

·       Hassan Jaffar Hassan Jawad                          10.52%

·       Sabaah Hassan Mohamed Jawad                               10.09%

·       Naeema Hassan Mohamed Jawad                                7.48%

·       Zainab Jaffar Hassan Jawad                                         4.89%

·       Treasure Stock                                                           4.87%

·       Rabab Hassan Mohamed Jawad                                   3.34%

·       Fatima Hassan Mohamed Jawad                                  2.14%

·       S Salim Abdulaziz Hussain Alawi                                 1.58%

·       S Hussain Abdulaziz Hussain Alawi                              1.58%

·       S Ali Abdulaziz Hussain Alawi                                      1.58%

·       Sayed Redha Jawad Abdulaziz Alawi                            1.38%

·       Judith Patricia Mccarthy Jawad                                    1.32%

·       Muzahem Ali Hassan Mohamed Jawad                         1.28%

·       Karim Faisal Hassan Jawad                                         1.28%

·       Jameel Faisal Hassan Jawad                           1.28%

·       Sophia Faisal Hassan Mohamed Jawad                        1.28%

·       Jawad Faisal Hassan Jawad                                         1.28%

·       Mohamed Taqi Ali Hassan Jawad                                 0.93%

·       Abdulamir Ali Hassan Jawad                                       0.82%

·       Hayat Ali Hassan Mohamed Jawad                               0.72%

·       Zahra Ali Hassan Mohamed Jawad                               0.64%

·       Iqbal Ali Hassan Jawad                                                0.64%

·       Eatidal Ali Hassan Jawad                                             0.64%

·       Abdulhameed Ali Hassan Mohamed Jawad                    0.58%

·       Kefaya Ali Hassan Jawad                                             0.57%

·       Ameera Ali Hassan Jawad                                           0.56%

 

 

AFFILIATED COMPANIES

 

·       Demon Restaurant Management Services WLL

157 Sheikh Issa Avenue

PO Box: 5896 & 430

Manama

Tel: (973-17) 295060

Fax: (973-17) 292702

 

 

OPERATIONS

 

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

 

  • Wholesale Division

 

Jawad is one of Bahrain's major wholesalers and distributors of fast moving consumer goods. A fleet of dry and freezer goods delivery vehicles distribute key agency products to more than 750 retail stores, hotels and restaurants throughout the island. The distribution network is supported by a professionally managed infrastructure which includes warehouse facilities at Mina Salman Port.

 

  • Jawad Restaurants

 

Under this division, subject operates several fast food restaurants in Bahrain under franchising agreements from leading international companies. Some of these fast food restaurants include :

 

            -  Magic Wok Chinese Restaurant

            -  Round Table Pizza

            -  Taco Mexicano

            -  Chester Fried

 

This division also operates the Al Safina Seafood restaurant, which is one of the finest seafood restaurants in Bahrain serving not only excellent seafood, but also one of the outstanding restaurants for Continental Gourmet food.

 

  • Jawad Supermarkets

 

Under this division, subject owns and operates two shopping complexes located in Nwaidrat and Barbar. The Jawad Commercial Complex in Barbar , Budaiya Road is complemented by an exclusively designed food garden, retail outlets and the largest supermarket on the island. The Jawad Center in Nwaidrat opened in December 1983 and houses a 2,250 square meter supermarket, as well as a Bhs Department Store and the La Baguette bakery.

 

  • Jawad Fashion

 

This division is engaged in the retail of a wide range of clothing items and fashion accessories, representing a host of leading international fashion outlets including, Monsoon, Mango, Miss Selfridge, Hush Puppies, Early Learning Centre, Premaman, Applewoods, Oshkosh B’Gosh, KMS, Triumph, Shoe City, Warehouse, Adams and Wallis.

 

  • British Home Stores (BHS)

 

Under this division subject operates a British Home Store (BhS) department store under franchise from British Home Stores from the United Kingdom. The department store is engaged in the retail of readymade garments and household wares.

 

  • Dairy Queen

 

Distributors and retailers of a wide range of dairy products. Sole distributors for Dairy Queen of the United

States of America.

 

  • Jawad Data Systems

 

Engaged in the retail of computer hardware and software, electronic typewriters,

cartridges, copiers, floppy disks, data cartridges, counting machines, printers and

portable computers.

 

  • Jawad Superfare

 

Operators of the only two fun fares in Bahrain.

 

Import Countries: Subject imports products from around the world, particularly from the United States of America and Europe

 

International Suppliers:

 

·       Kraft General Foods                          United States of America

·       Borden Inc                                        United States of America

·       American Poultry International Ltd      United States of America

·       Libbys                                              United Kingdom

·       Arnotts Biscuits Pty Ltd                     Australia

·       Saudi Snack Foods                           Saudi Arabia

 

Operating Trend: Steady

 

Subject has a workforce of approximately 1,500 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Bahraini Dinar (BD)

 

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

 

Total Revenue                            BD 145,160,305             BD 162,692,877

 

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

 

The above figures were provided by Mr Sojoy Malek, Finance Manager

 

 

BANKERS

 

·       National Bank of Bahrain BSC

NBB Tower

Government Road

PO Box: 106

Manama

Tel: (973-17) 258800

Fax: (973-17) 263876

 

·       Bank of Bahrain & Kuwait

43 Government Avenue

PO Box: 597

Manama

Tel: (973-17) 253388

Fax: (973-17) 275785

 

·       Al Ahli Commercial Bank

Government Avenue

PO Box: 5941

Manama

Tel: (973-17) 244333

Fax: (973-17) 241301

 

·       Standard Chartered Bank

Standard Chartered Bank Building

Government Road

PO Box: 29

Manama

Bahrain

Tel: (973-17) 223636 / 255946

Fax: (973-17) 230503

 

·       ABN Amro Bank

Al Furdha Avenue

PO Box: 350

Manama

     Tel: (973-17) 224896 / 225420

     Fax: (973-17) 262241

 

·       Arab Bank Plc

     Government Avenue

     PO Box: 395

     Manama

     Tel: (973-17) 229988

     Fax: (973-17) 2104437

 

·       Banque Paribas

Commercial Area

PO Box: 5993

Manama

Tel: (973-17) 259272 / 253119

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                  September 2008           July 2012                      April 2014

Amount overdue             0                                  0                                  0

Payment terms                          60 days                         60 days                         60 days

Payment Method                       Letters of Credit             Letters of Credit             Letters of Credit

Paying record                            No Complaints               No Complaints               No Complaints

Currency                                   US Dollars                     Euros                            Euros

 

 

GENERAL COMMENTS

 

Hassan Mohamed Jawad & Sons BSCC has been in business since 1961 and is a very well established in the local business market with diversified interests. The company represents over a hundred leading international organisations and operates the largest supermarket in Bahrain.

 

The company is owned by members of the Jawad family who are very wealthy and respected Bahraini businessmen.

 

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.58.72

UK Pound

1

Rs.99.02

Euro

1

Rs.80.57

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.