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MIRA INFORM REPORT
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Report No. : |
491171 |
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Report Date : |
13.02.2018 |
IDENTIFICATION DETAILS
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Name : |
METAL & RECYCLING CO KSC (MRC) |
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Registered Office : |
Logistics Department Building, 3rd Floor, Amghara Industrial
Area, Sulaibia, Al Jahra, PO Box 4520, Safat 13046, |
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Country : |
Kuwait |
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Financials (as on) : |
31.12.2016 |
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Date of Incorporation : |
10.06.1988 |
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Legal Form : |
Kuwaiti Shareholding Company - KSC |
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Line of Business : |
·
Subject is engaged in trading of scrap items, machinery and
waste sorting, shredding, dismantling, repairing and reselling. · Subject is engaged in waste recycling, auction and demolition management, industrial and handicraft areas construction as well as environment protection and development services in and outside |
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No. of Employees : |
250 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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Kuwait |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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 production to 4 million barrels of oil equivalent per day by 2020. Petroleum accounts for over half of GDP, 92% of export revenues, and 90% of government income.
In 2015, Kuwait, for the first time in 15 years, realized a budget deficit after decades of high oil prices; in 2016, the deficit grew to 16.5% of GDP. Kuwaiti authorities announced cuts to fuel subsidies in August 2016, provoking outrage among the public and National Assembly, and the Amir dissolved the government for the seventh time in ten years. In 2017 the deficit was reduced to 7.2% of GDP. Despite Kuwait’s dependence on oil, the government has cushioned itself against the impact of lower oil prices, by saving annually at least 10% of government revenue in the Fund for Future Generations.
Kuwait has failed to diversify its economy or bolster the private sector, because of a poor business climate, a large public sector that employs about 76% of citizens, and an acrimonious relationship between the National Assembly and the executive branch that has stymied most economic reforms. The Kuwaiti Government has made little progress on its long-term economic development plan first passed in 2010. While the government planned to spend up to $104 billion over four years to diversify the economy, attract more investment, and boost private sector participation in the economy, many of the projects did not materialize because of an uncertain political situation or delays in awarding contracts.
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Source
: CIA |
SUMMARY
Company Name : METAL & RECYCLING CO KSC (MRC)
Country of Origin : Kuwait
Legal Form :
Kuwaiti Shareholding Company - KSC
Registration Date : 10th June 1987
Chamber Membership
Number : 18393
Issued Capital : KD 8,255,650
Paid up Capital : KD 8,255,650
Total Workforce :
250
Activities :
Recycling services and trading in scrap metals
Financial Condition : Fair
Payments : No Complaints
COMPANY
NAME
METAL & RECYCLING CO KSC (MRC)
ADDRESS
Registered & Physical
Address
Building : Logistics Department Building, 3rd
Floor
Area : Amghara
Industrial Area, Sulaibia, Al Jahra
PO Box : 4520
Town : Safat
13046
Country : Kuwait
Telephone : (965) 24577772
/ 24577773 / 24577774
Facsimile : (965) 24672168 / 24575597
Email : info@mrckw.com
/ mrc@mrc.com.kw
Premises
Subject operates
from a large suite of offices that are rented and located in the Industrial
Area of Safat.
KEY
PRINCIPALS
Name Position
·
Mossad Ibrahim Suleiman Al Houli Chairman
·
Tarek Ibrahim Mohammad Al Mousa Vice
Chairman
·
Khaled Ibrahim Mohammed Al Mousa Director
·
Rashad
Rashed Sonokrt Director
· Fouzi
Ali Abdullah Al Muthaf Director
· Sager Abdullah Abdulmehsen Al
Sharhan General
Manager
·
Riyadh
Bseiso Chief
Financial Officer
·
Joachim
Kaden Business
Development Manager
·
Yaagoub
Al Aywad Industrial
Manager
·
Mohamed
Zaidan Legal
Manager
·
Shaker
Al Essa Waste
Management Manager
·
Thomas
Kuruville Quality
Assurance Manager
·
Omar Al
Yasen Human
Resources Manager
LEGAL
FORM & OWNERS
Date of Establishment : 10th June 1987
Legal Form :
Kuwaiti Shareholding
Company - KSC
Chamber Member No. : 18393
Issued Capital : KD 8,255,650
Paid up Capital : KD 8,255,650
Name of
Shareholder (s) Percentage
·
Agility Public Warehousing Company (PWC)
66.483%
· United Capital Group Company 5.291%
· Local businessmen
and private investors 28.226%
AFFILIATED
COMPANIES
Name Percentage Held
·
Metal
and Recycling Company JWLL 99%
Jordan
·
Al
Maaden Al Wataniya General Trading & Contracting Co WLL 99%
Kuwait
· Al Maaden Al
Omomiyah General Trading & Contracting Co WLL 99%
Kuwait
· Metal Holding
Company KSC 99%
Kuwait
·
National
Oil Company Asim Khatieb and Partner WLL 70%
Kuwait
·
Silver
Ocean Company Ali Hussain and Partners WLL 60%
Kuwait
OPERATIONS
Activities: MRC is active in
the trading of scrap items, machinery and waste sorting, shredding,
dismantling, repairing and reselling.
The company is also engaged in waste recycling, auction and demolition management, industrial and
handicraft areas construction as well as environment protection and development services in and outside
Kuwait.
Subject operates a shredding factory with 50 tonnes per hour productivity and also a factory to recycle
waste plastic with over 9000 tones annual production of shredded and bubble plastic.
Subject is ISO 14001 accredited.
Import Countries: United States of America, United Kingdom
and Japan
Subject has a
workforce of approximately 250 employees.
FINANCIAL
DATA
Financial
highlights provided by local sources are given below:
Currency: Kuwaiti
Dinars
Balance Sheet 31/12/16 31/12/15 31/12/14
Assets
Current assets
Cash 2,957,189 4,034,546 3,273,889
Time deposits 484,848 185,000 437,409
Murabaha
investments 510,000 910,000 910,000
Accounts receivable 6,495,167 5,921,080 7,117,003
Inventories 1,588,474 1,005,546 1,614,504
Total current
assets 12,035,678 12,056,172 13,352,805
Non-current assets
Investments
available for sale 183,495 263,563 263,563
Investment in an
associate 4,921,172 4,909,890 5,002,694
Investment
properties 2,605,000 2,755,500 1,626,786
Property, plant and
equipment 2,074,482 2,428,231 3,051,883
Goodwill 361,113 313,615 313,615
Total non-current
assets 10,145,262 10,670,799 10,258,541
Total assets 22,180,940 22,726,971 23,611,346
Liabilities and
equity
Current liabilities
Due to banks 1,844 1,208,600 1,342,470
Term loans 800,000 800,000 730,000
Short term finance
lease contracts instalments 1,730,000 1,730,000 960,000
Accounts payable 2,556,934 2,238,994 1,361,092
Total current liabilities 5,628,101 5,977,594 4,393,562
Non-current liabilities
Provision for end
of service indemnity 456,157 419,293 377,255
Total non-current liabilities 456,157 419,293 377,255
Total liabilities 5,544,935 6,396,887 4,770,817
Equity
Capital 8,255,650 8,255,650 8,255,650
Share premium 5,089,036 11,690,245 11,690,245
Statutory reserve 1,511,731 1,475,763 1,475,763
Voluntary reserve 487,860 487,860 487,860
Treasury shares (1,056,623) (1,056,623) (1,056,623)
Foreign currency
translation adjustments 11,958 11,958 11,958
Effect to changes
in subsidiaries equity (86,191) (86,191) (86,191)
Retained earnings /
accumulated losses 292,722 (6,601,209) (3,971,913)
Equity attributable
to shareholders of the parent company 14,506,143 14,177,453 16,806,749
Non-controlling
interests 2,129,862 2,152,631 2,033,780
Total equity 16,636,005 16,330,084 18,840,529
Total liabilities
and equity 22,180,940 22,726,971 23,611,346
Income
Statement
Sales 5,670,139 6,212,652 12,329,626
Services revenue 6,462,505 5,092,294 2,988,718
12,132,644 11,304,946 15,318,344
Cost of sales 3,719,328 4,958,049 10,439,511
Service cost 5,151,389 4,195,177 2,370,304
8,870,717 9,153,226 12,809,815
Gross profit 3,261,927 2,151,720 2,508,529
Staff costs 975,292 1,053,107 935,019
General and
administrative expenses 1,098,312 1,115,460 607,272
Selling and
marketing 28,833 33,807 41,995
Depreciation and
amortization 437,145 453,026 342,880
Provision for
doubtful debts 520,552 343,985 24,527
Provisions against
other debit balances - 948,539 -
Provision for
damaged and slow moving inventory - 650,000 202,000
Impairment loss on
property, plant and equipment - 130,457 -
Provision for
damaged on inventory no longer required (268,522) - -
Total expenses and
charges 2,791,612 4,728,381 2,153,693
(Loss)/profit from
operations 611,180 (2,576,661) 354,836
Share of results
from an associate - (92,804) -
Murabaha income - 23,794 17,697
Interest income - 15,826 2,385
Foreign exchange
gain/(loss) - 7,680 3,476
Finance cost - (198,731) (107,137)
Gain on sale of
property, plant and equipment - 32,400 67,855
Gain on sale of
investment properties - - 204,500
Changes in fair
value of investment properties - 23,214 -
Contribution to
KFAS (3,327) - -
Contribution to
NLST (19,825) - (16,005)
Contribution to
Zakat (7,930) -
(6,402)
Other income - 313,736 96,597
Net (loss)/profit
of the year 580,188 (2,451,546) 617,802
Local sources
consider subject’s financial condition to be Fair.
BANKERS
·
National
Bank of Kuwait
Ali Awadi Tower
Ahmed Al Jaber Street
PO Box: 95
Safat 13001
Tel: (965) 23981188 / 23981189
Fax: (965) 23985643
PAYMENT
HISTORY
No complaints
regarding subject’s payments have been reported.
GENERAL
COMMENTS
The subject and its
shareholders/owners have been searched in the following databases; Office of Foreign
Assets Control (OFAC), United Nations Security Council Sanctions, Australian
Sanctions List, US Consolidated Sanctions List, EU Financial Sanctions List and
UK Financial Sanctions List and nothing adverse could be found on the exact
names listed within the report.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 64.28 |
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|
1 |
INR 89.02 |
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Euro |
1 |
INR 78.93 |
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KWD |
1 |
INR 213.95 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
KET |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.