MIRA INFORM REPORT

Report No. :	485991
Report Date :	17.01.2018

IDENTIFICATION DETAILS

Name :	UNITED PAPER INDUSTRIES CO KSCC (UPI)
Registered Office :	Sahban Area, P O Box: 5149, Safat 13052
Country :	Kuwait
Financials (as on) :	31.12.2017
Date of Incorporation :	07.02.1998
Com. Reg. No.:	72174, Safat
Legal Form :	Kuwaiti Shareholding Closed Company - KSCC
Line of Business :	· Manufacture of paper for the cartons, cement sacks and other similar products. · Subject’s product range includes Extensible Sack Kraft, Plain Kraft, Fluting and Kraft Liner Board in the substance range of 70 to 200 gsm/Mt2.
No. of Employees :	190

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

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

Country Name	Previous Rating (30.06.2017)	Current Rating (30.09.2017)
Kuwait	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
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. 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.

Source : CIA

SUMMARY

Company Name : UNITED PAPER INDUSTRIES CO KSCC (UPI)

Country of Origin : Kuwait

Legal Form : Kuwaiti Shareholding Closed Company - KSCC

Registration Date : 7^th February 1998

Commercial Registration Number : 72174, Safat

Chamber Membership Number : 55112

Issued Capital : KD 4,600,000

Paid up Capital : KD 4,600,000

Total Workforce : 190

Activities : Manufacture of paper for the cartons, cement sacks and similar

products

Financial Condition : Fair

Payments : No Complaints

Operating Trend : Steady

COMPANY NAME

UNITED PAPER INDUSTRIES CO KSCC (UPI)

ADDRESS

Registered & Physical Address

Location : Sahban Area

PO Box : 5149

Town : Safat 13052

Country : Kuwait

Telephone : (965) 22218361 / 22218362

Mobile : (965) 99880330 / 99010876 / 66440114

Email : info@upi.com / unipaper@qualitynet.net

Premises

Subject operates from a small suite of offices that are rented and located in the Central Business Area of Safat.

Branch Offices

Location Description

· Plot No. 75, Road No. 5, Sector 2 Factory premises covering 28,000m²

Shuaiba Industrial Area

Mina Abdullah

Tel: (965) 23260502 / 23260501 / 24747441

Fax: (965) 23260508 / 24745818

KEY PRINCIPALS

Name Position

· Dakheel Abdullah Al Dakheel Managing Director

· Abdulrahman Abdullah Al Dakheel Director

· Sahab Khalil Al Ghonaim Director

· Waleed Ahmed Al Manne Director

· K Gopal General Manager

· Madgi Al Salem Finance Manager

LEGAL FORM & OWNERS

Date of Establishment : 7^th February 1998

Legal Form : Kuwaiti Shareholding Closed Company - KSCC

Commercial Reg. No. : 72174, Safat

Chamber Member No. : 55112

Issued Capital : KD 4,600,000

Paid up Capital : KD 4,600,000

Name of Shareholder (s) Percentage

· Heirs of the late Abdullah Al Dakheel 43.75%

· Carton Industries Co 15.00%

· International Paper Manufacturing Co 15.00%

· Wedyan Co 9.60%

· Kuwait Cement Co 5.00%

· Sabah Khalid Saleh Ghonaim 3.89%

· Abdul Ghani Khalid Saleh Ghonaim 2.60%

· Sulaiman Khalid Saleh Ghonaim 1.40%

· Abdulrahman Khalid Saleh Ghonaim 1.40%

· Khalid Abdullatif Saleh Abdul Wahab 1.30%

· Wesmayah Khalid Saleh Ghonaim 0.70%

· Maliha Jassim Al Wazan 0.36%

AFFILIATED COMPANIES

· Al Ahlia Chemicals Co WLL

PO Box: 24297

Safat 13103

Tel: (965) 24736302

Fax: (965) 24723128

· Al Ahlia Contracting Co

PO Box: 25419

Safat 13115

Tel: (965) 22447456

Fax: (965) 22438682

· Al Ahlia Industrial Projects Co

· Al Noor Consultants Co

· Arab Building Industrial Resource Co WLL

· Credit Rating & Collections Co

· Kuwait Building Materials Manufacturing Co

· Shuaiba Paper Products Co

· Al Assriya Holding Co

OPERATIONS

Activities: Engaged in the manufacture of paper for the cartons, cement sacks and other similar products.

Subject’s product range includes Extensible Sack Kraft, Plain Kraft, Fluting and Kraft Liner Board in the substance range of 70 to 200 gsm/Mt2.

Production Capacity: 26,500 tons per annum

Import Countries: United States of America and Europe.

Operating Trend: Steady

Subject has a workforce of approximately 190 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: Kuwaiti Dinars (KD)

Year Ending 31/12/16: Year Ending 31/12/17:

Total Sales KD 6,890,000 KD 7,250,000

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

The above financial figures are based on estimations by our local sources.

BANKERS

· Gulf Bank KSC

Mubarak Al Kabir Street

PO Box: 3200

Safat 13033

Tel: (965) 22449501

Fax: (965) 22445212

· 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

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

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.76
UK Pound	1	INR 87.91
Euro	1	INR 78.20
KWD	1	INR 212.81

Note: Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	NIY
Report Prepared by :	NIT

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
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)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.