|
|
|
%20WLL%20-%20494576%2003-Mar-2018_files/image007.jpg){kind=small}
%20WLL%20-%20494576%2003-Mar-2018_files/image008.jpg)
%20WLL%20-%20494576%2003-Mar-2018_files/image010.gif)
MIRA INFORM REPORT
|
Report No. : |
494576 |
|
Report Date : |
03.03.2018 |
IDENTIFICATION DETAILS
|
Name : |
WESTPOINT HOME (BAHRAIN) WLL |
|
|
|
|
Registered Office : |
Building No. 1912 Road No. 5146, Block 951 South Alba Industrial Area, Askar PO Box 39308 & 28640 Manama |
|
|
|
|
Country : |
Bahrain |
|
|
|
|
Financials (as on) : |
31.12.2017 |
|
|
|
|
Date of Incorporation : |
21.12.2006 |
|
|
|
|
Com. Reg. No.: |
63530-1, |
|
|
|
|
Legal Form : |
With Limited Liability - WLL |
|
|
|
|
Line of Business : |
Subject is engaged in the spinning, weaving and processing
of textiles, fabrics and denim. |
|
|
|
|
No. of Employees : |
1,300 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A |
|
Credit Rating |
Explanation |
Rating Comments |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
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
|
Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
|
Bahrain |
A2 |
A2 |
|
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 |
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 fewer oil resources compared to its GCC neighbors. In 2016 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. Nevertheless, Bahrain in 2017 was able to raise about $3 billion by issuing international debt.
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. Since 2015, 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.
|
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 :
Building No. 1912
Street :
Road No. 5146, Block 951
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
Regular
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 65.23 |
|
|
1 |
INR 89.71 |
|
Euro |
1 |
INR 79.50 |
|
BHD |
1 |
INR 173.18 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
VIV |
|
|
|
|
Report Prepared
by : |
TRU |
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)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.