MIRA INFORM REPORT

Report Date :

14.11.2014

IDENTIFICATION DETAILS

Name :	KUWAIT SAUDI PHARMACEUTICAL INDUSTRIES CO KSCC (KSP)

Registered Office :	Southern Sabhan, Block 4, Street No. 103, Building No. 1, Sabhan Industrial Area, 5512, Safat 13056

Country :	Kuwait

Financials (as on) :	31.12.2013

Date of Incorporation :	15.05.1994

Com. Reg. No.:	56925, Safat

Legal Form :	Kuwaiti Shareholding Company Closed - KSCC

Line of Business :	Engaged in the manufacturing, marketing and distribution of pharmaceutical and health care products.

No of Employees :	250

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	US$ 1,100,000
Status :	Satisfactory
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

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 : KUWAIT SAUDI PHARMACEUTICAL INDUSTRIES CO KSCC (KSP)

Country of Origin : Kuwait

Legal Form : Kuwaiti Shareholding Company Closed - KSCC

Registration Date : 15^th May 1994

Commercial Registration Number : 56925, Safat

Chamber Membership Number : 42504

Issued Capital : KD 10,787,000

Paid up Capital : KD 10,787,000

Total Workforce : 250

Activities : Manufacturing, marketing and distribution of pharmaceutical and health care products

Financial Condition : Fair

Payments : Nothing detrimental uncovered

Operating Trend : Steady

Recommended Credit Limit : US$ 1,100,000

Person Interviewed : C Mathew, Finance Manager

COMPANY NAME

KUWAIT SAUDI PHARMACEUTICAL INDUSTRIES CO KSCC (KSP)

ADDRESS

Registered & Physical Address

Location : Southern Sabhan, Block 4, Street No. 103, Building No. 1

Area : Sabhan Industrial Area

PO Box : 5512

Town : Safat 13056

Country : Kuwait

Telephone : (965) 24745012 / 24745014 / 24745013 / 24748457 / 24748398

Facsimile : (965) 24745361

Email : info@kspico.com / accounts@kspico.com

Premises

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

KEY PRINCIPALS

Name Position

· Dr Abdul Rahman Abdullah Al Awadhi Chairman

· Abdullah Asaad Mohamed Managing Director

· Dr Issa Jassim Mohamed Al Khalifa Chief Executive Officer

· Dr Asaad Ibrahim Sales Manager

· Dr Alaa Eddine Yousri Production Manager

· Dr Ibrahim Khattab Factory Manager

· Dr Tariq Al Habib Marketing Manager

· C Mathew Finance Manager

· Nassim Zubaidi Purchasing Manager

LEGAL FORM & OWNERS

Date of Establishment : 15^th May 1994

Legal Form : Kuwaiti Shareholding Company Closed - KSCC

Commercial Reg. No. : 56925, Safat

Chamber Member No. : 42504

Issued Capital : KD 10,787,000

Paid up Capital : KD 10,787,000

Name of Shareholder (s) Percentage

· Securities Group 50%

Safat

· National Pharmaceutical Industries Co 32%

Safat

· Dr Abdul Rahman Abdullah Al Awadhi 18%

OPERATIONS

Activities: Engaged in the manufacturing, marketing and distribution of pharmaceutical and health care products.

Dosage forms include oral solids, liquids, haemodialysis, peritoneal dialysis and parenterals.

Clients include the Kuwaiti Ministry of Health, King Fahad Hospital, Saudi Arabia, Government of Dubai, Bahrain Defence Hospital, and the Ministries of Health in countries including Ethiopia, Lebanon, Jordan and Yemen.

Clients:
Fresenius Medical Care	Germany
Mepha Pharmaceuticals	Switzerland
Ministry Of Health	Kuwait
Ministry Of Health	Saudi Arabia
King Fahad Hospital	Saudi Arabia
King Faisal Hospital	Saudi Arabia
Ministry Of Health	UAE
Ministry Of Education	UAE
Government Of Dubai	UAE
Ministry Of Health	Bahrain
Bahrain Defence Hospital	Bahrain
Ministry Of Health	Qatar

Hamad Medical Stores	Qatar
Ministry Of Health	Oman
Sultan Qabous Hospital	Oman
Ministry Of Defence	Oman
Ministry Of Health	Ethiopia
Ministry Of Health	Lebanon
Ministry Of Health	Jordan
Ministry Of Health	Yemen
Kuwait Oil Company	Kuwait
Kuwait National Petroleum Company	Kuwait

Production Capacity: Tablets/Capsules: 1200m tablet/capsule

Liquids: 30m Bottles

Large Volume Parenterals: 12m Bottles

Import Countries: Germany, Switzerland, Italy and the United States of America

International Suppliers:

· PharmaPlan GmbH Germany

· Fresenius Medical Care Germany

· R. Bosch GmbH Germany

· Novartis Enterprise Switzerland

· F. Hoffmann- LA Roche Ltd Switzerland

· Mepha Pharmaceuticals Switzerland

· S.I.M.S Pharmaceuticals Italy

· Bioindustria Italy

· Mallinckrodt Tyco United States of America

Export Countries: Saudi Arabia, United Arab Emirates, Qatar, Bahrain, Oman, Yemen, Ethiopia, Sudan, Jordan,

Syria, Iraq, and Libya

Operating Trend: Steady

Subject has a workforce of approximately 250 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 9,982,000 KD 10,314,000

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

The above figures were provided by Mr C Mathew, Finance Manager

BANKERS

· Al Ahli Bank of Kuwait KSC

Mubarak Al Kabir Street

PO Box: 1387

Safat 13033

Tel: (965) 22411101 / 22411102

· Industrial Bank of Kuwait

Commercial Area No. 9

PO Box: 3146

Safat 13032

Tel: (965) 22457661

Fax: (965) 22462057

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

Date of transaction June 2006 March 2009 November 2013

Credit amount 150,000 150,000 500,000

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 US Dollars Euros

CREDIT RATING

Recommended credit limit: US$ 1,100,000

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.61.56
UK Pound	1	Rs.97.10
Euro	1	Rs.76.61

INFORMATION DETAILS

Analysis Done by :	RAS

Report Prepared by :	SMN

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%)

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