MIRA INFORM REPORT

 

 

Report No. :

349166

Report Date :

16.11.2015

 

IDENTIFICATION DETAILS

 

Name :

GULF CABLE & ELECTRIC INDUSTRIES CO KSC (GCEIC)

 

 

Registered Office :

Sulaibia Industrial Area, Fifth Street, Building 11A 1196 Safat 13012

 

 

Country :

Kuwait

 

Financial (as on) :

31.12.2014 (Consolidated)

 

 

Date of Incorporation :

15.03.1975

 

 

Com. Reg. No.:

23213, Safat

 

 

Legal Form :

Kuwaiti Shareholding Company - KSC

 

 

Line of Business :

Subject is engaged in the manufacture of power cables and telephone wires and cables, specialising in low and medium PVC and XLPE insulated power and control cables, house wiring and bare conductors for overhead lines, as well as lamps, transformer switches and electricity distribution boards.

 

 

No. of Employee :

640

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

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

 

 

SUMMARY

 

Company Name                                    : GULF CABLE & ELECTRIC INDUSTRIES CO KSC (GCEIC)

Country of Origin                                   : Kuwait

Legal Form                                           : Kuwaiti Shareholding Company - KSC

Registration Date                                  : 15th March 1975

Commercial Registration Number           : 23213, Safat

Chamber Membership Number               : 2083

Issued Capital                                       : KD 20,993,131

Paid up Capital                                     : KD 20,993,131

Total Workforce                         : 640

Activities                                               : Manufacturers of power cables, telephone wires and cables.

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

COMPANY NAME

 

GULF CABLE & ELECTRIC INDUSTRIES CO KSC (GCEIC)

 

 

ADDRESS

 

Registered & Physical Address

 

Location           : Sulaibia Industrial Area, Fifth Street, Building 11A

 

PO Box            : 1196

 

Town                : Safat 13012

Country : Kuwait

 

Telephone         : (965) 24675244 / 24645500 / 24676472 / 24675787 / 24675616 / 24676546

Facsimile          : (965) 24675305 / 24675850

Email                : gceico@qualitynet.net / info@gulfcable.com

 

Premises

 

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

 

Branch Offices

 

Location                                                                                         Description

 

·       Al Abraj Building                                                                               Office premises

     Khalaf Al Ahmer Street

     Al Sharea Al Khams

     Safat

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Bader Naser Mohamed Al Khorafi                                                      Chairman & Managing Director

 

·       Asaad Ahmad Omran Al Banwan                                                       Vice Chairman

 

·       Jaheel Mohamed Abdul Rahman Al Jaheel                                         Director

 

·       Jamal Naser Hamad Al Falah                                                 Director

 

·       Bader Mohamed Abdul Wahab Al Juan                                              Director

 

·       Sabah Khalid Saleh Al Ghunaim                                                        Director

 

·       Mohamed Saad Mohamed Al Saad                                                   Director

 

·       Yousef Ibrahim Yousuf Al Raqem                                                      Director

 

·       Salem Omran Abdullah Kanaan                                                         General Manager

 

·       Basel O. A. Kanaan                                                                          Sales Manager

 

·       Mustafa Abu Hatab                                                                           Finance Manager

 

·       Mohamed Al Kandari                                                                        Marketing Manager

 

·       Mohamed A. Eman                                                                           Production Manager

 

·       Sheikh Abdul Mannan                                                                       Operations Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 15th March 1975

 

Legal Form                  : Kuwaiti Shareholding Company - KSC

 

Commercial Reg. No.   : 23213, Safat

 

Chamber Member No.  : 2083

 

Issued Capital              : KD 20,993,131

 

Paid up Capital            : KD 20,993,131

 

Name of Shareholder (s)                                     Percentage

 

·       Kuwaiti businessmen and private investors                62.49%

 

·       Al Khair National for Stocks & Real Estate Co                        37.51%

 

 

AFFILIATED COMPANIES

 

     Subsidiary Name                                                     Percentage Held

 

·       Gulf Cable and Multi Industries Company                           94.5%

Amman

Jordan

 

 

OPERATIONS

 

 

Activities: Engaged in the manufacture of power cables and telephone wires and cables, specialising in low and

     medium PVC and XLPE insulated power and control cables, house wiring and bare conductors for

     overhead lines, as well as lamps, transformer switches and electricity distribution boards.

 

                 Subject is also engaged in the production of low voltage cable joints

 

Production Capacity: 71,230 metric tonnes per annum

 

Import Countries: The United Kingdom and Germany.

 

International Suppliers:

 

·       Polycom Associates             India

 

Export Countries: United Arab Emirates, Oman, Qatar, Bahrain, Saudi Arabia and Jordan

 

Operating Trend: Steady

 

Subject has a workforce of approximately 640 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Kuwaiti Dinars (KD)

 

Consolidated Balance Sheet                                           31/12/14            31/12/13             31/12/12

 

Assets

Non-current assets

Property, plant and equipment                                       8,472,869          9,152,430          10,632,418       

Available for sale investments                                        115,234,507      135,440,233      147,926,012     

123,707,376      144,592,663      158,558,430     

Current assets

Inventories                                                                    51,813,123        44,984,064        42,143,127       

Trade accounts receivable                                             28,810,896        25,602,852        25,043,088       

Other receivables and prepayments                                1,404,045          627,767 448,120            

Cash and bank balances                                                3,629,835          10,154,696        4,612,043         

85,657,899        81,369,379        72,246,378       

Total assets                                                                  209,365,275      225,962,042      230,804,808     

Equity and liabilities

Equity attributable to the owners of the parent company

Share capital                                                                 20,993,131        20,993,131        20,993,131       

Share premium                                                 29,160,075        29,160,075        29,160,075       

Legal reserve                                                                20,993,131        20,993,131        20,993,131       

Voluntary reserve                                                          20,993,131        20,993,131        20,993,131       

General reserve                                                             23,270,944        22,783,650        21,731,840       

Other components of equity                                          (17,903,690)      (2,775,791)        13,282,106       

Retained earnings                                                          34,076,493        36,312,527        32,647,137       

131,583,215      148,459,854      159,800,551     

Non-controlling interests                                                539,210 495,225 457,512            

Total equity                                                                   132,122,425      148,955,079      160,258,063     

Non-current liabilities

Provision for staff indemnity                                          2,487,023          2,145,342          1,938,851         

Long term loans                                                            7,076,400          19,943,500        32,839,120       

9,563,423          22,088,842        34,777,971       

Current liabilities

Trade accounts payable                                                 3,535,362          3,772,828          2,498,607         

Other payables and accruals                                          7,271,218          7,775,845          8,258,135         

Current portion of long term loans                                  13,243,350        12,954,640        12,545,200       

Short term loans                                                            33,020,366        30,276,648        11,000,000       

Due to banks                                                                20,377              138,160 1,466,832         

Murabaha payables                                                       10,588,754        -                       -

67,679,427        54,918,121        35,768,774       

Total liabilities                                                               77,242,850        77,006,963        70,546,745       

Total equity and liabilities                                               209,365,275      225,962,042      230,804,808     

 

Consolidated Statement of Income

 

Revenue

Sales                                                                            112,408,337      97,872,275        90,469,078

Cost of sales                                                                (98,023,705)      (88,755,426)      (79,003,975)     

Gross profit                                                                  14,384,632        9,116,849          11,465,103       

Dividend income                                                           6,383,049          7,951,495          8,459,386         

Other investment income                                               21,944              147,749 51,638             

Loss on redemption/sale of available

for sale of investments                                                  (60,026)            1,192,429          (375,390)          

Interest income                                                              4,810                5,584                11,769             

Other revenue                                                                71,888              29,136              14,153             

Gain/(loss) on foreign exchange                                     489,357 834,582 804,576            

21,295,654        19,277,824        20,431,235       

Expenses and other charges

Administrative expenses                                                (2,723,722)        (3,198,746)        (2,693,567)       

Commercial expenses                                                   (2,554,771)        (2,655,004)        (2,555,588)

Impairment of available for sale investments                   (8,668,158)        (687,289)           (998,762)          

Provision for doubtful debts                                          (158,485)           276,255 41,185             

(Reversal of provision) for obsolete inventories              (270,593)           (20,601)            80,177

Finance costs                                                               (2,015,561)        (2,425,656)        (2,176,070)

(16,391,290)      (8,711,041)        (8,384,995)

Profit for the year before income tax                              4,904,364          10.566.78          12,046,240       

Income tax for overseas subsidiary                                (6,779)              (10,954)            (6,576)             

Profit before contribution to KFAS,

NLST, Zakat and Directors’ remuneration                        4,897,585          10,555,829        12,039,664       

Contribution to Kuwait Foundation for the

Advancement of Sciences (KFAS)                                 (48,729)            (105,181)           (119,959)          

National Labour Support Tax (NLST)                               -                       (108,174)           (105,230)          

Zakat                                                                            -                       (29,270)            (42,092)           

Directors’ remuneration                                                  (275,000)           (310,000)           (310,000)          

Profit for the year                                                          4,573,856          10,003,204        11,462,383       

 

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

 

 

BANKERS

 

·       National Bank of Kuwait

Ali Awadi Tower

Ahmed Al Jaber Street

PO Box: 95

Safat 13001

Tel: (965) 23981188 / 23981189

Fax: (965) 23985643

 

·       The Gulf Bank KSC

Mubarak Al Kabir Street

PO Box: 3200

Safat 13033

Tel: (965) 22449501

Fax: (965) 22445212

 

·       Burgan Bank

PO Box: 5875

Safat 13054

Tel: (965) 22410818

Fax: (965) 22410819

 

·       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

 

·       Commercial Bank of Kuwait

     Mubarak Al Kabir Street

     PO Box: 2861

     Safat 13029

     Tel: (965) 22411001

     Fax: (965) 22450150

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Established in 1975, subject is involved in the manufacture of power cables and telephone wires and cables.

 

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.66.14

UK Pound

1

Rs.100.55

Euro

1

Rs.71.26

 

 

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.