MIRA INFORM REPORT

 

 

Report No. :

337144

Report Date :

18.08.2015

 

IDENTIFICATION DETAILS

 

Name :

BADER AL MULLA & BROS COMPANY WLL

 

 

Registered Office :

Building A, Plot D, Block 15/18/22/25, Movenpick Street, Shuwaikh Free Trade Zone, PO Box 177, Safat 13002

 

 

Country :

Kuwait

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

1947

 

 

Com. Reg. No.:

6631

 

 

Legal Form :

With Limited Liability

 

 

Line of Business :

Subject’s operations are performed through the following divisions:

  • Automotive Division
  • Office & Audio Visual Division
  • General Trading Division

 

 

No. of Employees :

550

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Kuwait

A1

A1

 

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. Kuwaiti officials plan to increase oil production to 4 million barrels per day by 2020. Petroleum accounts for over half of GDP, 94% of export revenues, and 89% of government income. For the last decade, high oil prices have generated budget surpluses despite increasing budget expenditures, particularly on wage hikes for public sector employees. Despite Kuwait’s dependence on oil, the government has cushioned itself against the impact of lower oil prices by continuous saving of at least 10% of government revenue in the Fund for Future Generations. Kuwait has done little to diversify its economy, in part, due to a poor business climate and an acrimonious relationship between the National Assembly and the executive branch that has stymied most economic reforms. In 2010, Kuwait passed its first long-term economic development plan in almost twenty-five years. While the government planned to spend up $104 billion over four years to diversify the economy away from oil, attract more investment, and boost private sector participation in the economy, many of the projects did not materialize because of the uncertain political situation.

 

Source : CIA

SUMMARY

 

Company Name                                    : BADER AL MULLA & BROS COMPANY WLL

Country of Origin                                   : Kuwait

Legal Form                                           : With Limited Liability – WLL

Start Date                                             : 1947

Registration Date                                  : 9th February 1960

Commercial Registration Number           : 6631, Safat

Chamber Membership Number               : 497

Issued Capital                                       : KD 2,850,000

Paid up Capital                                     : KD 2,850,000

Total Workforce                                     : 550

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

Financial Condition                                : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Aniruddha Paiphankar, Group Financial Manager

 

COMPANY NAME

 

BADER AL MULLA & BROS COMPANY WLL

 

 

ADDRESS

 

Registered & Physical Address

 

Location           : Building A, Plot D, Block 15/18/22/25

Street               : Movenpick Street

Area                 : Shuwaikh Free Trade Zone

PO Box                        : 177

Town                : Safat 13002

Country : Kuwait

Telephone         : (965) 22250888 / 22250999 / 22250949 / 22445040 / 24818782 / 24815077

Facsimile          : (965) 22250880 / 22250990

Email                : bas@almullagroup.com / anirduddha@almullagroup.com

 

Premises

 

Subject operates from a large suite of offices and a warehouse that are rented and located in the Shuwaikh Free Zone of Safat.

 

Branch Office (s)

 

Location                                                                                               Description

 

Al Rai                                                                                                   Showroom premises

Safat

Tel: (965) 24730167

 

Shuwaikh                                                                                              Showroom premises

Safat

Tel: (965) 24815077

Fax: (965) 24839725

 

Fahaheel                                                                                               Showroom premises

Safat

Tel: (965) 23912441

 

Al Mulla Building                                                                                   Office premises

Omar Bin Al Khattab Street

Al Sharq

Safat

Tel: (965) 22437285 / 22423250 / 22405626

Fax: (965) 22437285 / 22436079

 

KEY PRINCIPALS

 

Name                                                                                                   Position

 

Najeeb Abdullah Al Mulla                                                                       Chairman

 

Anwar Abdullah Al Mulla                                                                        Managing Director

 

Nabeel Abdullah Al Mulla                                                                       Director

 

Abdullah Bader Abdullah Al Mulla                                                           Director

 

Akpar Clifford Hovaguimian                                                                   General Manager

 

Essam Al Othman                                                                                 Assistant General Manager

 

Khaled Al Muraikhi                                                                                 Deputy Chief Executive Officer

 

Minoo Patel                                                                                          Chief Financial Officer

 

Abdulla Almulla                                                                         Chief Administration Officer

 

Danah Al Mulla                                                                                      Chief Strategy Officer

 

Aniruddha Paiphankar                                                                            Group Financial Manager

 

Mohamed Yahya Al Ayoub                                                                    Sales Manager

 

Ali Al Shlawish Al Harshani                                                                     Administration Manager

 

Abdullah Najeeb Al Mulla                                                                       Human Resources Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1947

 

History : Subject’s operations date back to 1947, however it was registered on 9th February 1960 as a General Partnership under the name of “Bader Al Mulla & Bros” between the following partners:

 

              1. Bader Abdullah Al Mulla

              2. Anwar Abdullah Al Mulla

              3. Najeeb Abdullah Al Mulla

              4. Nabeel Abdullah Al Mulla

              5. Lutfi Abdullah Al Mulla

 

In 1981, and following the demise of Mr Bader Abdullah Al Mulla his shares in the business were distributed amongst the remaining partners.

On 9th August 1981 the business was re-registered as a With Limited Liability – WLL under the current name of “Bader Al Mulla & Bros Company WLL”

 

Legal Form                  : With Limited Liability - WLL

 

Commercial Reg. No.   : 6631, Safat

 

Chamber Member No.  : 497

 

Issued Capital              : KD 2,850,000

 

Paid up Capital            : KD 2,850,000

 

Name of Shareholder (s)

 

Anwar Abdullah Al Mulla

 

Najeeb Abdullah Al Mulla

 

Nabeel Abdullah Al Mulla

 

Abdullah Bader Abdullah Al Mulla

 

 

AFFILIATED COMPANIES

 

Subject belongs to the Al Mulla group of companies that consists of the following concerns:

 

Saleh Jamal & Co WLL

Khalid Bin Walid Street

PO Box: 179

Safat 13002

Tel: (965) 24815077

 

Maseelah Trading Co WLL

177 Sharq Sour Street

PO Box: 2702

Safat 13028

Tel: (965) 22445040

Fax: (965) 22437285 / 22436079

 

Al Mulla Rental & Leasing of Vehicles & Equipment Co WLL

PO Box: 177

Safat 13002

Tel: (965) 22457019

 

Al Mulla Cleaning & Maintenance Services Co WLL

PO Box: 23211

Safat 13093

Tel: (965) 24730733

 

Al Mulla International Trading & Contracting Co WLL

PO Box: 177

Safat 13002

Tel: (965) 22445467

 

Al Mulla Environmental Systems WLL

PO Box: 177

Safat 13002

Tel: (965) 9035061

 

Al Mulla Real Estate Co WLL

PO Box: 177

Safat 13002

Tel: (965) 9035061

 

Al Mulla Consultancy Co WLL

PO Box: 177

Safat 13002

Tel: (965) 22405626

 

Gulf Trading Group WLL

PO Box: 177

Safat 13002

Tel: (965) 9035061

 

Al Mulla Insurance & Re-Insurance Co WLL

PO Box: 177

Safat 13002

Tel: (965) 22405626

 

 

OPERATIONS

 

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

 

Automotive Division

 

Engaged in the retail of passenger cars, delivery vans, and commercial distributors.

 

Agents for Chrysler Motors Corp of the USA, and Mitsubishi Motors Corp of Japan.

 

Office & Audio Visual Division

 

This division specializes in the distribution and retail of office equipment and audio visual goods.

 

General Trading Division

 

This division operates with a general trade licence and distributes general merchandise, including boats, computers, fax machines, photocopiers, air conditioning equipment, safety products and general foodstuff.

 

Import Countries: Europe, India, South Africa, Japan and the United States of America

 

International Suppliers:

 

Aggregatebau-Nord KG             Germany

A. Loacker SpA                         Italy

Aetech                                      Italy

Intro AG                                    Switzerland

Commercial Ufesa SA               Spain

Frigiking France SA                   France

Andrex Radiation Products AS   Denmark

Danir International Ltd.               Denmark

Buveco Instruments B.V                        Netherlands

Artson Engineering Ltd              India

Air India                                    India

Allen Tank Limited                     United States of America

Daimler Chrysler                        United States of America

Aberdare Telecom Networks       South Africa

Kansai Paint Co                                    Japan

Minolta Co Ltd                          Japan

 

Operating Trend: Steady

 

Subject has a workforce of approximately 550 employees. The Al Mulla group of companies employs approximately 2,500 people.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Kuwaiti Dinars (KD)

 

                                                Year Ending 31/12/13:              Year Ending 31/12/14:

 

Total Sales                                KD 11,850,000                          KD 12,230,000

 

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

 

The above financial figures are based on estimations by our local sources.

 

 

BANKERS

 

National Bank of Kuwait

Ali Awadi Tower

Ahmed Al Jaber Street

PO Box: 95

Safat 13001

Tel: (965) 23981188 / 23981189

Fax: (965) 23985643

 

Bank of Kuwait & the Middle East KSC

Abdullah Al Salem Street

Darwaza Abdul Razzak

PO Box: 71

Safat 13001

Tel: (965) 22459771

Fax: (965) 22461430

 

Burgan Bank

PO Box: 5875

Safat 13054

Tel: (965) 22410818

Fax: (965) 22410819

 

Commercial Bank of Kuwait

Mubarak Al Kabir Street

PO Box: 2861

Safat 13029

Tel: (965) 22411001

Fax: (965) 22450150

 

The Gulf Bank KSC

Mubarak Al Kabir Street

PO Box: 3200

Safat 13033

Tel: (965) 22449501

Fax: (965) 22445212

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                    February 2008               February 2012               May 2014

Credit amount                           131,576             38,000                          145,000

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                                   Canadian Dollars           Euros                           Euros

 

 

GENERAL COMMENTS

 

Bader Al Mulla & Bros Company WLL is very well established in the Kuwaiti market with operations dating back to 1947. The company operates several divisions with activities covering automotive distribution, retail of domestic appliances and the distribution of general merchandise.

 

The company is run in a professional manner and is owned by members of the Al Mulla family who have many years experience in the business.

 

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.65.22

UK Pound

1

Rs.102.23

Euro

1

Rs.72.39

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 

               

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.