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MIRA INFORM REPORT
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Report No. : |
485810 |
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Report Date : |
15.01.2018 |
IDENTIFICATION DETAILS
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Name : |
WESTPOINT HOME (BAHRAIN) WLL |
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Registered Office : |
Bahrain Weaving Building No. 1439, Road No. 5138, South Alba Industrial
Area, Askar, PO Box 39308 & 28640, Manama |
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Country : |
Bahrain |
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Financials (as on) : |
31.12.2016 |
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Date of Incorporation : |
21.12.2006 |
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Com. Reg. No.: |
63530-1, Manama |
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Legal Form : |
With Limited Liability – WLL |
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Line of Business : |
Subject is engaged in the spinning, weaving and processing of
textiles, fabrics and denim. |
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No. of Employees : |
1,300 |
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+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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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Bahrain |
A2 |
A2 |
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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 |
BAHRAIN - ECONOMIC OVERVIEW
Low oil prices have generated a budget deficit of at least a $4 billion deficit
in 2016, nearly 14% of GDP. Bahrain has few options for covering this deficit,
with meager foreign assets and a constrained borrowing ability. In the last
year the three major US credit agencies downgraded Bahrain’s sovereign debt
rating to “junk” status, citing persistently low oil prices and the
government’s inability to more effectively cut spending.
Oil comprises 86% of Bahraini budget revenues, despite past efforts to diversify
its economy and to build communication and transport facilities for
multinational firms with business in the Gulf. As part of its diversification
plans, Bahrain implemented a Free Trade Agreement (FTA) with the US in August
2006, the first FTA between the US and a Gulf state.
Other major economic activities are production of aluminum - Bahrain's
second biggest export after oil - finance, and construction. Bahrain continues
to seek new natural gas supplies as feedstock to support its expanding petrochemical
and aluminum industries.
In 2011, Bahrain experienced economic setbacks as a result of domestic
unrest driven by the majority Shia population; however, the economy recovered
in 2012-15, partly as a result of improved tourism. In addition to addressing
its current fiscal woes, Bahraini authorities face the long-term challenge of
boosting Bahrain’s regional competitiveness — especially regarding industry,
finance, and tourism — and reconciling revenue constraints with popular
pressure to maintain generous state subsidies and a large public sector. Over
the past year, the government lifted subsidies on meat, diesel, kerosene, and
gasoline and announced new higher prices for electricity and water, although it
plans to roll these increases out more gradually than previous subsidy cuts.
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Source
: CIA |
SUMMARY
Company Name :
WESTPOINT HOME (BAHRAIN) WLL
Country of Origin :
Bahrain
Legal Form :
With Limited Liability - WLL
Registration Date :
21st December 2006
Commercial Registration Number :
63530-1, Manama
Chamber Membership Number :
17025
Issued Capital :
BD 100,000
Paid up Capital :
BD 100,000
Total Workforce :
1,300
Activities :
Spinning, weaving and processing of textiles, fabrics and denim
Financial Condition :
Good
Payments :
Regular
Operating Trend :
Steady
COMPANY
NAME
WESTPOINT HOME (BAHRAIN) WLL
ADDRESS
Registered &
Physical Address
Building : Bahrain
Weaving Building No. 1439
Street : Road No.
5138
Area : South Alba
Industrial Area, Askar
PO Box :
39308 & 28640
Town : Manama
Country : Bahrain
Telephone : (973-17) 838018
/ 830559 / 832062 / 919085 / 838125 / 838115 / 832367
Facsimile : (973-17)
832022 / 919070 / 838123 / 830217 / 838127
Mobile : (973-39)
871069 / 681600 / (973-36) 434381
Email : aziz.ahmed@wphome.com
/ amir.imtiaz@wphome.com
/ moneeb.shehzad@wphome.com
Premises
Subject operates from a large suite of offices and a factory that are
rented and located in the Industrial Area of Manama.
KEY
PRINCIPALS
Name Position
Imran Ahmed Chama Managing
Director
Ahmed Aziz General
Manager
Amer Imtiyaz Commercial
Manager
Moneeb Ahmed Shahazd Finance
Manager
Imran Ahmed Factory
Manager
Adel Jaber Human
Resources Manager
LEGAL
FORM & OWNERS
Date of Establishment : 21st
December 2006
Legal Form : With Limited
Liability - WLL
Commercial Reg. No. : 63530-1, Manama
Chamber Member No. : 17025
Issued Capital : BD 100,000
Paid up Capital : BD 100,000
Name of
Shareholder (s) Percentage
Westpoint Home Netherlands BV 99%
Netherlands
Westpoint Home Netherlands Cooperative 1%
Netherlands
Notes to the legal
Form Under the Bahraini
Commercial Companies Law a WLL may be formed by a minimum of 2 and a maximum of
50 natural or legal persons, whose
liability is limited to their shares in the company’s capital. The WLL is the
most common form of company where 100 percent foreign ownership is permitted.
The minimum amount of paid-up capital required is BD 20,000. With Limited
Liability (WLL) companies cannot issue public
shares, negotiable warrants, or debentures. Banking and insurance activities
are also not allowed.
OPERATIONS
Activities: Engaged in the spinning, weaving and processing of textiles, fabrics
and denim.
Import Countries: India and China
Export Countries: United States of America and Europe
Operating Trend: Steady
Subject has a workforce of approximately 1,300 employees.
FINANCIAL
DATA
Financial
highlights provided by local sources are given below:
Currency: Bahraini
Dinar (BD)
Year Sales
Year Ending 31/12/14: BD
45,000,000
Year Ending 31/12/15: BD
47,000,000
Year Ending 31/12/16: BD
49,000,000
Year Ending 31/12/17: BD
51,300,000
Local sources consider subject’s financial condition to be Good.
Note: According to Bahraini Commercial Law, only
Bahraini Shareholding Companies BSC (Listed on the Bahraini Stock Market) are
required to publish their financial
information. Financial information on other legal forms can only be obtained
from the companies / businesses directly
BANKERS
HSBC Bank Middle East
93 Al Khalifa Avenue
PO Box: 57
Manama 304
Tel: (973-17) 224555 / 222158
Fax: (973-17) 226822
Email: bbmemnm@batelco.com.bh
Bahrain Financial Harbour
West Tower, 3rd Floor
King Faisal Highway
PO Box: 5241
Manama 346
Tel: (973-17) 866600
Fax: (973-17) 866601
Bank of Bahrain & Kuwait
43 Government Avenue
PO Box: 597
Manama
Tel: (973-17) 253388
Fax: (973-17) 275785
Banque Paribas
Government Avenue
PO Box : 5241
Manama
Tel: (973-17) 253119
Fax: (973-17) 242077
PAYMENT
HISTORY
No complaints regarding subject’s payments have been reported.
GENERAL
COMMENTS
During the course of this investigation the following sources were
consulted:
- Internal database
- Journals, directories, media
& web searches
- Local Registry office
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.
COUNTRY
OUTLOOK
The growth momentum has slowed, following the drop in oil prices. GDP
growth has slowed to 3.2 % in 2015 from its 5.4 % level in 2013 and 4.6 % in
2014, reflecting a slowdown in both the hydrocarbon and non-hydrocarbon
sectors. Non-oil GDP slowed during 2015 to 3.9 from 4.9 % in 2014, despite
resilience in hotels and restaurants sectors. Hydrocarbon GDP remained constant
in 2015. Inflation was subdued at an average rate of 1.8 % in 2015 reflecting
lower international food prices and appreciation of the US Dollar. The current
account surplus turned into a deficit of 3.2 % of GDP in 2015. Reserves
declined to 2.6 months of imports. Unemployment fell to 3.1 % in September
2015, from 3.8 % at end-2014.
The government maintained an expansionary fiscal stance since 2009
resulting in budget deficits and rising debt. However, the situation has
worsened in 2015 with a decline in oil revenues by about 10 % of GDP and a
general fiscal deficit estimated at 12.5 % of GDP (from 3.3 % in 2014). Public
debt to GDP ratio has increased to 63 % (compared to 8 % in 2008). This was
financed through GCC grants (which increased by 85 % to $3.7 billion during
2015) and the issuance of a $1.5 million bond. The government had to raise the
public debt ceiling to BD10 billion, representing 80 % of GDP to enable
additional borrowing. The new debt ceiling is well over the GCC-agreed
debt-threshold criterion of 60 %. S&P downgraded Bahrain’s rating to
BBB-/A-3 in 2015 with a negative outlook, and further downgraded it in 2016 to
BB/B, but with a stable outlook.
The government took significant fiscal consolidation measures in 2015.
Revenue enhancing measures, such as higher tobacco and alcohol taxes and
government services fees were introduced. A cost-cutting program entailed the
raising of petrol prices by up to 60 % in January 2016 (likely to create
savings worth $148.4 million), the gradual phasing-in of price increases for
electricity, water, diesel, and kerosene subsidies by 2019, an increase and
unification of natural gas prices for industrial users, and the removal of meat
subsidies. Lower oil prices are forcing the government to cut back on capital
spending, since restraining current spending may exacerbate the already tense
political scene. Parliamentarians have proposed a law to privatize several
state owned businesses to help curb the deficit.
The outlook is for growth to decline in the next few years. Real GDP
growth is projected at 2.2 and 2.0 % in 2016 and 2017 respectively, as
continuing low oil prices depress private and government consumption. Beyond
2018, growth is expected to pick up as new aluminium and refinery capacity
comes on stream, and as other projects are completed, including the Airport
expansion, retail and GCC Development Fund social housing projects. Bahrain
National Gas Company signed a $355 million deal with a Japanese company for a
new gas plant, which is expected to increase capacity by 350 million cubic
feet, starting 2018. Average inflation is expected to increase to 3.2 % in
2016, reflecting subsidy reform and moderate to 2.3 % thereafter. The current
account is likely to record a deficit of 8.2 % of GDP in 2016 projected to
trend downwards thereafter, as oil prices recover and global demand for
aluminium rises. International reserves are expected to reach 2.3 months of
imports in 2016, down from 2.6 in 2015 and 3.2 in 2014.
Key Economic Indicators
2014 2015 2016* 2017*
Real GDP Growth (%) 4.5 3.2 2.2 2.0
Inflation Rate (%) 2.7 1.8 3.2 2.3
Fiscal Balance (% of GDP) -3.3 -12.5 -16.9 -15.3
Current Account Balance (% of GDP) 4.5 -3.2 -8.2 -7.2
* Forecast
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 63.52 |
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1 |
INR 86.05 |
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Euro |
1 |
INR 76.53 |
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CNY |
1 |
INR 9.87 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
PRA |
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Report Prepared
by : |
TPT |
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.