MIRA INFORM REPORT

 

 

Report No. :

344896

Report Date :

20.10.2015

 

IDENTIFICATION DETAILS

 

Name :

CITY CENTRE COMMERCIAL CO KSCC

 

 

Registered Office :

Pepsi Cola Street, Shuwaikh Industrial Area, PO Box 28109 & 63, Safat 13142

 

 

Country :

Kuwait

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

04.04.1998

 

 

Com. Reg. No.:

72455

 

 

Legal Form :

Kuwaiti Shareholding Closed Company – KSCC

 

 

Line of Business :

·         Engaged as operators of a hypermarket.

·         Subject’s range of products includes food, garments, house wares, electronics, beauty care products and toys. The hypermarket also includes a play area and entertainment for children.

 

 

No. of Employees :

150

 

 

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 – 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                                    : CITY CENTRE COMMERCIAL CO KSCC

Country of Origin                                   : Kuwait

Legal Form                                           : Kuwaiti Shareholding Closed Company - KSCC

Registration Date                                  : 4th April 1998

Commercial Registration Number           : 72455

Trade Licence Number                           : 1536/2006

Chamber Membership Number               : 55557

Issued Capital                                       : KD 10,000,000

Paid up Capital                                     : KD 10,000,000

Total Workforce                                     : 150

Activities                                               : Operators of a hypermarket

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Sandish Menon, Finance Manager

 

COMPANY NAME

 

CITY CENTRE COMMERCIAL CO KSCC

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Pepsi Cola Street

Area                 : Shuwaikh Industrial Area

PO Box            : 28109 & 63

Town                : Safat 13142

Country             : Kuwait

Telephone         : (965) 1805222 / 24824379 / 22282288 / 22282270

Facsimile          : (965) 24813530 / 24824378 / 24912927

Mobile              : (965) 94065843

Email                : acct2@citycentre.com.kw  / acct1@citycentre.com.kw / rahul@citycentre.com.kw

 

Premises

 

Subject operates from a suite of offices and a hypermarket covering 10,000 square metres that are owned and located in the Industrial Area of Safat.

 

Branch Office (s)

 

Location                                                                                               Description

 

Salimya Souq                                                                                       Hypermarket

Tel: (965) 25712250

Fax: (965) 25712260

 

Dajeej                                                                                                   Hypermarket

Tel: (965) 24335393

 

Jahara                                                                                                  Hypermarket

Tel: (965) 22288222

 

 

KEY PRINCIPALS

 

Name                                                                                                   Position

 

Adel Yacoub Al Ghanem                                                                        Chairman

 

Jassim Yacoub Al Ghanem                                                                    Vice Chairman

 

Kholoud Yacoub Al Ghanem                                                                  Director

 

Marzouk Adel Al Ghanem                                                                       Director

 

Faisal Yousef Al Qattam                                                                        Director

 

Wilfred Chepron                                                                                    Operations Manager

 

Sandish Menon                                                                                     Finance Manager

 

Rahul Maheshari                                                                                    Marketing Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 4th April 1998

 

Legal Form                  : Kuwaiti Shareholding Closed Company - KSCC

 

Commercial Reg. No.   : 72455

 

Trade Licence No.        : 1536/2006

 

Chamber Member No.  : 55557

 

Issued Capital              : KD 10,000,000

 

Paid up Capital            : KD 10,000,000

 

Name of Shareholder (s)

 

Adel Yacoub Al Ghanem

 

Jassim Yacoub Al Ghanem

 

Kholoud Yacoub Al Ghanem

 

Marzouk Adel Al Ghanem

 

Faisal Yousef Al Qattam

 

City Centre International Co WLL

Safat

 

 

AFFILIATED COMPANIES

 

City Centre United WLL

Safat

 

City Centre Commercial Co Ltd

Erbil

Iraq

 

 

OPERATIONS

 

Activities: Engaged as operators of a hypermarket.

 

Subject’s range of products includes, food, garments, house wares, electronics, beauty care products and toys. The hypermarket also includes a play area and entertainment for children.

 

City Centre is one of Kuwait’s largest hypermarkets.

 

Subject plans to open up to 10 stores in Iraqi Kurdistan. The company opened its first hypermarket in Iraqi Kurdistan in Erbil’s Majidi Mall Shopping & Entertaining Centre in November 2009. It has since opened two more hypermarkets in the region. The three have combined floor space of 23,000 square metres. an excellent visibility and approach, spread over 23,000 Sq. Mtr's .

 

Import Countries: Europe and the Far East.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 150 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 52,300,000                          KD 57,000,000

 

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

 

The above figures were provided by Mr Sandish Menon, Finance Manager

 

 

BANKERS

 

Burgan Bank

PO Box: 5875

Safat 13054

Tel: (965) 22410818

Fax: (965) 22410819

 

 

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.64.82

UK Pound

1

Rs.100.12

Euro

1

Rs.73.75

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

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%)

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