MIRA
INFORM REPORT
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Report Date : |
29.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
OMAN ABRASIVES
LLC |
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Registered Office : |
Hourmuz Building, Ruwi, P O Box 3335, Muscat 112 |
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Country : |
Sultanate of Oman |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
1978 |
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Com. Reg. No.: |
1245309, Muscat |
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Legal Form : |
Limited Liability Company – LLC |
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Line of Business : |
Engaged in the manufacture
of abrasive products and protective coatings. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
US$ 250,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
SUMMARY
Company Name : OMAN ABRASIVES LLC
Country of Origin : Sultanate of Oman
Legal Form : Limited Liability Company – LLC
Start Date : 1978
Registration Date : 3rd March 1986
Commercial Registration Number : 1245309, Muscat
Membership Number : 1479
Issued Capital : RO 250,000
Paid up Capital : RO 250,000
Total Workforce : 75
Line of Business : Manufacturers of abrasive products and protective coatings.
Financial Condition : Fair
Payments : Nothing detrimental uncovered
Operating Trend : Steady
COMPANY NAME
OMAN ABRASIVES LLC
ADDRESS
Registered & Physical Address
Building : Hourmuz
Building
Area : Ruwi
PO Box : 3335
Town : Muscat 112
Country : Sultanate of
Oman
Telephone : (968-24) 785860
Facsimile : (968-24)
785861
Email :
Premises
Subject operates from
a small suite of offices that are rented and located in the Central Business
Area of Muscat.
Branch Offices
Location Description
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Sohar Buraimi
Road Owned
factory premises
PO Box : 99
Sohar
311
Tel
: (968-25) 669424
Fax
: (968-25) 669429
KEY PRINCIPALS
·
Mohamed Al
Zubair Managing
Director
·
Mostahil Ahmed
Al Mashani Director
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Mohamed Moosa
Al Yousef Director
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Mohsin Haider
Darwish Director
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Hamd Houmud Al
Busaidi Director
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Ahmed Saeed
Zaki General
Manager
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Hekmat Michael Assistant
General Manager
LEGAL FORM & OWNERS
Date of Establishment : 1978, however
subject was registered on 3rd March 1986.
Legal Form :
Sharikat Thet Massouliya
Mahdoudeh (Limited Liability Company - LLC)
Commercial Reg. No. : 1245309,
Muscat
Membership
No. : 1479
Issued Capital : RO 250,000
Paid up Capital : RO 250,000
Name of Shareholder (s)
·
Mohamed Al
Zubair
·
Mostahil Ahmed
Al Mashani
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Mohamed Moosa
Al Yousef
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Mohsin Haider
Darwish
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Hamd Houmud Al
Busaidi
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 manufacture of abrasive
products and protective coatings.
Import Countries :
Europe and the Far East.
Brand Names : OMGRIT
Operating Trend
: Steady
Subject has a
workforce of 75 employees.
FINANCIAL HIGHLIGHTS
Financial
highlights provided by outside sources are given below :
Currency : Riyal
Omani (RO)
Year
Ending 31/12/05 : Year
Ending 31/12/06 :
Total Revenue RO
3,280,000 RO
3,500,000
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
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Standard
Chartered Bank
Next Sheraton Hotel
PO Box : 2353
Muscat 112
Tel : (968-24) 703999 / 703796 / 703574
Fax : (968-24) 796864
PAYMENT HISTORY
No complaints
regarding subject’s payments have been reported.
GENERAL COMMENTS
Opinion on the
credit figure of US$ 150,000:
Established in 1978,
subject is involved in the manufacture of abrasive products and protective
coatings.
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 and
the above credit figure is considered to be within subject’s financial means.
Maximum suggested
credit figure: US$ 250,000
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)