MIRA INFORM REPORT

 

 

Report No. :

306446

Report Date :

10.02.2015

 

IDENTIFICATION DETAILS

 

Name :

AL ARABIA ELECTRICAL CO WLL

 

 

Registered Office :

Electricity Street Shuwaikh Industrial Area 24323 & 1338 Safat 13104

 

 

Country :

Kuwait

 

 

Date of Incorporation :

09.03.1994

 

 

Com. Reg. No.:

115874

 

 

Legal Form :

With Limited Liability - WLL

 

 

Line of Business :

Engaged in the import, distribution and installation of electrical products and lighting

 

 

No. of Employee :

250

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Kuwait

A2

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. 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 ARABIA ELECTRICAL CO WLL

Country of Origin                                   : Kuwait

Legal Form                                           : With Limited Liability - WLL

Registration Date                                  : 9th March 1994

Commercial Registration Number           : 115874

Trade Licence Number                           : 4545/2006

Chamber Membership Number               : 40800

Issued Capital                                       : KD 3,700,000

Paid up Capital                                     : KD 3,700,000

Total Workforce                         : 250

Activities                                               : Distribution and installation of electrical products and lighting.

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Abdullah Mostafa, Purchase Manager

COMPANY NAME

 

AL ARABIA ELECTRICAL CO WLL

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Electricity Street

Area                 : Shuwaikh Industrial Area

 

PO Box            : 24323 & 1338

 

Town                : Safat 13104

Country : Kuwait

 

Telephone         : (965) 24923215 / 24923216 / 24923217

Facsimile          : (965) 24824561

Mobile              : (965) 99700087 / 90027901 / 90028999

Email                : talal888@hotmail.com / arabia.pu11@hotmail.com

 

Premises

 

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

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Talal Mohamed Abdullah Al Mutairi                                                    Managing Director

 

·       Shareefa Mohamed Abdullah Al Mutairi                                              Director

 

·       Mussad Mohamed Al Mutairi                                                             General Manager

 

·       Abdullah Mostafa                                                                             Purchasing Manager

 

·       Ismail Sarhan                                                                                    Administration Manager

 

·       Amer Halawa                                                                                    Accounts Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 9th March 1994

 

Legal Form                  : With Limited Liability - WLL

 

Commercial Reg. No.   : 115874

 

Trade Licence No.        : 4545/2006

 

Chamber Member No.  : 40800

 

Issued Capital              : KD 3,700,000

 

Paid up Capital            : KD 3,700,000

 

Name of Shareholder (s)

 

·       Talal Mohamed Abdullah Al Mutairi                                                   

 

·       Shareefa Mohamed Abdullah Al Mutairi

 

 

AFFILIATED COMPANIES

 

·       Al Arabia Electrical Est

Shuwaikh Industrial Area

PO Box: 24323

Safat 13104

Tel: (965) 24827677 / 24830839

Fax: (965) 24824561

 

 

OPERATIONS

 

Activities: Engaged in the import, distribution and installation of electrical products and lighting.

 

Import Countries: Saudi Arabia, United Kingdom, Sweden, Germany and China

 

International Suppliers:

 

·       ABB                         Sweden

·       Eaton                       United Kingdom

·       Bromberg                 Germany

·       3F                            Germany

·       Opel Lighting            China

·       Al Fanar Electric       Saudi Arabia

·       Al Inara Electric Co   Saudi Arabia

 

Operating Trend: Steady

 

Subject has a workforce of 250 employees.

 

 

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 8,180,000                            KD 9,000,000

 

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

 

The above figures were provided by Mr Abdullah Mostafa, Purchasing Manager

 

 

BANKERS

 

·       Kuwait Finance House (KFH)

Safat Square

Abdullah Al Mubarak Street

PO Box: 24989

Safat 13110

Tel: (965) 22445050

Fax: (965) 22455135

 

 

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.62.14

UK Pound

1

Rs.94.79

Euro

1

Rs.70.38

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ANK

 

 

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.