MIRA INFORM REPORT

 

 

Report Date :

03.04.2007

 

IDENTIFICATION DETAILS

 

Name :

MAJAN TOWER LLC

 

 

Registered Office :

Al Harthy Complex, P O Box 438, Muscat 118

 

 

Country :

Sultanate of Oman

 

 

Financials (as on) :

31.12.2006

 

 

Date of Incorporation :

October 2005

 

 

Com. Reg. No.:

1/80733

 

 

Legal Form :

Limited Liability Company – LLC

 

 

Line of Business :

Engaged in the wholesale and retail of textiles and fabrics.

 

 

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

 

Maximum Credit Limit :

US$ 100,000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

SUMMARY

 

Company Name                         : MAJAN TOWER LLC

Country of Origin                                    : Sultanate of Oman

Legal Form                                            : Limited Liability Company - LLC

Registration Date                                   : October 2005

Commercial Registration Number            : 1/80733

Issued Capital                                        : RO 150,000

Paid up Capital                                      : RO 150,000

Total Workforce                                     : 8

Line of Business                                    : Wholesalers and retailers of textiles and fabrics.

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

 

 

 

COMPANY NAME

 

MAJAN TOWER LLC

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : Al Harthy Complex

PO Box            : 438

Town                : Muscat 118

Country             : Sultanate of Oman

Telephone         : (968-24) 485651

Facsimile          : (968-24) 485651

Mobile              : (968-99) 425924

Email                : chintoo@omantel.net.om

 

 

Premises

 

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

 

 

KEY PRINCIPALS

 

Name                                                                                                                                                            Nationality                                                                  Position

 

·       Mahdi Hussain Choudary                       Indian                       Managing Director

 

·       Anwar Ali Choudary                                Indian                      Director

 

·       Kamal Hingorani                                     Indian                      Director

 

·       Lata Hassani                                           Indian                     Director

 

·       Mohamed Hassan Yousef Al Baloushi    Omani                       Director

 

 

LEGAL FORM & OWNERS

 

Date of Establishment : October 2005

 

Legal Form                 : Sharikat Thet Massouliya Mahdoudeh (Limited Liability Company - LLC)

 

Commercial Reg. No.  : 1/80733

 

Issued Capital             : RO 150,000

 

Paid up Capital           : RO 150,000

 

Name of Shareholder (s)

 

·       Mahdi Hussain Choudary

 

·       Anwar Ali Choudary

 

·       Kamal Hingorani

 

·       Lata Hassani

 

·       Mohamed Hassan Yousef Al Baloushi

 

Non Omani Participation

 

The participation of non-Omani nationals in a trade or business in Oman is governed by the Foreign Business Investment Law, which sets capital requirements and requires 35 % Omani participation in capital and profits.

 

Note to the Legal Form

 

The Limited Liability Company (LLC), or private company, is the form of business entity usually chosen by foreign investors. It may be formed by a minimum of 2 and a maximum of 30 natural or legal persons, whose liability is limited to their shares in the company’s capital.

 

The minimum capital of a Limited Liability Company with foreign ownership should be RO 150,000, although this may be reduced to a minimum of RO 30,000 with the approval of the Minister of Commerce and Industry. For a company wholly owned by Omani nationals, the  minimum capital is RO 10,000.

 

Contributions to capital may be made in cash of kind. Capital may not be increased by public subscription. The full amount of the share value must be paid in on subscription. Shares may not be assigned to a non-member, unless the other existing members are granted a pre-emptive right to purchase the shares.

 

 

LINE OF BUSINESS

 

Operations : Engaged in the wholesale and retail of textiles and fabrics.

 

Import Countries : Europe and the Far East.

 

Subject has a workforce of 8 employees.

 

 

FINANCIAL HIGHLIGHTS

 

Financial highlights provided by outside sources are given below :

 

Currency : Riyal Omani (RO)

 

                                               Year Ending 31/12/06:

 

Total Revenue                           RO 400,000

 

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

 

 

Legal Reserve Requirement        

 

A Limited Liability Company (LLC) is required each year to set aside 10% of its net profits as a legal reserve until the reserve reaches one-third of the company’s capital. This legal reserve is not available for distribution.

 

 

BANKERS

 

·       Oman Arab Bank

     Muttrah Business District

     PO Box : 2010, Ruwi 112

     Muscat

     Tel : (968-24) 700161 / 706265 / 706267

     Fax : (968-24) 797736

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Opinion on the credit figure of US$ 150,000:

 

Established in 2005, subject is owned and managed by a number of Indian nationals who operate in Muscat under the local sponsorship of Mr Mohamed Hassan Yousef Al Baloushi.

 

Local sources report that payment obligations are met in a generally timely manner and the operating history is clear. As such the company is deemed a fair trade risk.

 

Maximum suggested credit figure: US$ 100,000

 

 

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

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

 

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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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%)

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions