MIRA INFORM REPORT

 

 

Report Date :

20.10.2014

 

IDENTIFICATION DETAILS

 

Name :

AL EID FOOD CO KSC (AFCO)

 

 

Registered Office :

Mubarak Al Saleem Street, Block 2, Building No. 100, Al Ardiya Industrial Area, 41081, Jalib Shyoukh 85851, Safat

 

 

Country :

Kuwait

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

07.04.1994

 

 

Com. Reg. No.:

55561

 

 

Legal Form :

Kuwaiti Shareholding Company – KSC                          

 

 

Line of Business :

Engaged in the import and distribution of dry and frozen foodstuffs, tea, textiles and fabrics.

 

 

No of Employees :

16

 

 

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 EID FOOD CO KSC (AFCO)

Country of Origin                                   : Kuwait

Legal Form                                           : Kuwaiti Shareholding Company – KSC

Registration Date                                  : 7th April 1994

Commercial Registration Number           : 55561

Chamber Membership Number               : 41259

Issued Capital                                       : KD 9,050,080

Paid up Capital                                     : KD 9,050,080

Total Workforce                                    : 16

Activities                                               : Distributors of dry and frozen foodstuffs, tea, textiles and fabrics.

Financial Condition                                : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady


COMPANY NAME

 

AL EID FOOD CO KSC (AFCO)

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Mubarak Al Saleem Street, Block 2, Building No. 100

Area                 : Al Ardiya Industrial Area

PO Box            : 41081, Jalib Shyoukh 85851

Town                : Safat

Country : Kuwait

Telephone         : (965) 24330828 / 24330848 / 24335300 / 24335400

Facsimile          : (965) 24338216 / 24845988

Email                : aleidco@qualitynet.net / info@aleidfood.com

 

Premises

 

Subject operates from a small suite of offices and a warehouse that are rented and located in the Industrial Area of Jalib Shyoukh.

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Fahd Saud Murdy Al Mutairi                                                              Managing Director

 

·       Abdullah Saud Murdy Al Mutairi                                                         Director

 

·       Mohammad Saud Murdy Al Mutairi                                                    Director

 

·       Abdullah Saud Murdy Al Mutairi                                                         Chief Executive Officer

 

·       Mohamed Saud Al Mutairi                                                                 General Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 7th April 1994

 

Legal Form                  : Kuwaiti Shareholding Company – KSC

 

Commercial Reg. No.   : 55561

 

Chamber Member No.  : 41259

 

Issued Capital              : KD 9,050,080

 

Paid up Capital            : KD 9,050,080

 

Name of Shareholder (s)                                                                  Percentage

 

·       Dleghan Holding Group Company                                                     51%

 

·       Fahd Saud Murdy Al Mutairi                                      ]

                                                                                    ]

·       Abdullah Saud Murdy Al Mutairi                                 ]

                                                                                    ]                       49%

·       Mohammad Saud Murdy Al Mutairi                            ]

]

·       Local businessmen and private investors                   ]

 

 

OPERATIONS

 

Activities:                     Engaged in the import and distribution of dry and frozen foodstuffs, tea, textiles and fabrics.

 

Import Countries:         Brazil and Egypt.

 

International Suppliers:

 

·       Seera Chicken                      Brazil

·       Franx                                   Brazil

·       Goldalex                              Egypt

·       Sunwhite Rice                       Egypt

 

Brand Names:              AL EID and MURDI

 

Operating Trend:          Steady

 

Subject has a workforce of 16 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Kuwaiti Dinars (KD)

 

Balance Sheet                                                                          31/03/14            31/03/13

 

Assets

Current assets

Cash                                                                                         81,347              103,293

Accounts receivable                                                                  8,326,073          7,383,647

Inventories                                                                                6,065,167          5,541,751

                                                                                                14,472,587        13,028,691

Non-current assets

Intangible assets                                                                       318,761 403,762

Property and equipment                                                                        438,754 483,754

                                                                                                757,515 887,516

Total assets                                                                              15,230,102        13,916,207

 

Liabilities and Equity

Current liabilities

Term loan                                                                                  194,607 252,000

Murabaha payables                                                                   3,383,969          2,711,734

Accounts payable                                                                     174,358 131,148

                                                                                                3,752,934          3,094,882

Non-current liabilities

Term loan                                                                                  -                       215,607

Murabaha payables                                                                   1,150,337          1,386,602

Provision for end of service indemnity                                       148,987 127,369

                                                                                                1,299,364          1,729,578

Equity

Share capital                                                                             8,008,921          7,150,823

Statutory reserve                                                                       838,705 730,582

Voluntary reserve                                                                      234,928 383,773

Retained earnings                                                                      1,095,250          826,569

                                                                                                10,177,804        9,091,747

Total liabilities and equity                                                           15,230,102        13,916,207

 

Income Statement                                                                    For the 3 months ending

                                                                                                           31st March

 

Sales                                                                                        3,113,996          2,879,544

Cost of sales                                                                            (2,612,643)        (2,421,697)

Gross profit                                                                              501,353 457,847

Other income                                                                            26,257              24,506

Total Sales                                                                                527,610 482,353

 

General and administrative expenses                                          112,600 99,741

Finance charges                                                                        79,255              88,275

Depreciation and amortization                                                    32,500              47,400

Provisions                                                                                11,626              10,918

Total expenses and other charges                                              235,981 246,334

Net profit before KFAS, Zakat and NLST                                                291,629 236,019

Contribution to Kuwait Foundation for the

Advancement of Science                                                           (2,625)              (2,124)

Zakat                                                                                        (2,975)              (2,416)

National Labour Support Tax                                                      (7,437)              (6,040)

Net profit for the period                                                             278,592 225,439

 

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

 

 

BANKERS

 

·       National Bank of Kuwait SAK

Jalib Shyoukh

Tel: (965) 4318761

     Fax: (965) 4317449

 

·       Kuwait Finance House (KFH)

Safat Square

Abdullah Al Mubarak Street

PO Box: 24989

Safat 13110

Tel: (965) 2445050

Fax: (965) 2455135

 

·       Burgan Bank

PO Box: 5875

Safat 13054

Tel: (965) 2410818

Fax: (965) 2410819

 

 

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.61.62

UK Pound

1

Rs.99.12

Euro

1

Rs.78.89       

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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%)

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.