MIRA INFORM REPORT

 

 

Report Date :

25.11.2014

 

IDENTIFICATION DETAILS

 

Name :

AL OULA STEEL MANUFACTURING COMPANY KSCC

 

 

Registered Office :

Plot 73, Block No. 4, MA-10 Road, Shuaiba Industrial Area, PO Box: 47218 Fahaheel 6023

 

 

Country :

Kuwait

 

 

Date of Incorporation :

08.05.2001

 

 

Com. Reg. No.:

83692

 

 

Legal Form :

Kuwaiti Shareholding Company Closed – KSCC

 

 

Line of Business :

Manufacture of steel billets, ferrous alloys, hot briquetted iron, pig iron,  sponge iron and graphite products.

 

 

No. of Employees :

350

 

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 :

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

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 OULA STEEL MANUFACTURING COMPANY KSCC

Country of Origin                                    : Kuwait

Legal Form                                            : Kuwaiti Shareholding Company Closed - KSCC

Registration Date                                   : 8th May 2001

Commercial Registration Number                        : 83692

Trade Licence Number                            : 11270

Chamber Membership Number                : 70322

Issued Capital                                        : KD 4,025,000

Paid up Capital                                      : KD 4,025,000

Total Workforce                                     : 350

Activities                                               : Manufacture of steel billets, ferrous alloys, hot briquetted iron, pig iron,

                                                              sponge iron and graphite products.

Financial Condition                                 : Undetermined

Payments                                             : Nothing detrimental uncovered

Person Interviewed                                 : Saleh Shady, Finance Manager

 

 

 

COMPANY NAME

 

AL OULA STEEL MANUFACTURING COMPANY KSCC

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : Plot 73, Block No. 4

Street               : MA-10 Road

Area                 : Shuaiba Industrial Area

PO Box             : 47218

Town                 : Fahaheel 6023

Country             : Kuwait

 

Telephone         : (965) 23263780 / 23263791 / 23263706 / 23263786 / 23260267 / 23260268

Facsimile          : (965) 23263781

Email                : info@al-oula.net / sales@al-oula.net

 

Premises

 

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

 

 

KEY PRINCIPALS

 

Name                                                                                       Position

 

Fahd Yacoob Yousef Al Johan                                                    Managing Director

 

Hussain Ali Hussain Al Kharafi                                                    Director

 

Ahmed Hussain Ali Al Kharafi                                                     Director

 

Latifa Hussain Ali Al Kharafi                                                        Director

 

Anas Fahd Al Bahr                                                                     Marketing Manager

 

Saleh Shady                                                                              Finance Manager

 

Bemena Mateen                                                                                    Administration Manager

 

Mohamed Shazad                                                                      Sales Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 8th May 2001

 

Legal Form                  : Kuwaiti Shareholding Company Closed - KSCC

 

Commercial Reg. No.  : 83692

 

Trade Licence No.       : 11270

 

Chamber Member No. : 70322

 

Issued Capital              : KD 4,025,000

 

Paid up Capital                        : KD 4,025,000

 

Name of Shareholder (s)

 

Fahd Yacoob Yousef Al Johan

 

Hussain Ali Hussain Al Kharafi

 

Ahmed Hussain Ali Al Kharafi

 

Latifa Hussain Ali Al Kharafi

 

 

AFFILIATED COMPANIES

 

Kuwait Ferro Chrome General Trading  & Contracting

Safat

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of steel billets, ferrous alloys, hot briquetted iron, pig iron, sponge iron and graphite products.

 

Production Capacity: 120,000 metric tonnes per annum

 

Import Countries: Europe and GCC countries.

 

Subject has a workforce of approximately 350 employees.

 

 

FINANCIAL DATA

 

Companies registered in Kuwait are not legally required to make their accounts public and no financial information was released by the company or submitted by outside sources.

 

 

BANKERS

 

Industrial Bank of Kuwait

Block No. 5

Street No. 4

Sabhan

Tel: (965) 24728742

Fax: (965) 24731839

Acc No. 100000000368

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                                 June 2007

Credit amount                                        150,000

Amount overdue                                     0

Payment terms                                      60 days

Payment Method                                   Letters of Credit

Paying record                                        No Complaints

Currency                                               US Dollars

 

 

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.61.78

UK Pound

1

Rs.96.78

Euro

1

Rs.76.59

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

SDA

 

               

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.