MIRA
INFORM REPORT
|
Report Date : |
19.10.2007 |
IDENTIFICATION DETAILS
|
Name : |
GALFAR
ENGINEERING AND CONTRACTING LLC |
|
|
|
|
Registered Office : |
|
|
|
|
|
Country : |
Sultanate of |
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Date of Incorporation : |
1972 |
|
|
|
|
Legal Form : |
Limited Liability Company – LLC |
|
|
|
|
Line of Business : |
Engaged
in the design, supply, construction, erection and maintenance of pipelines and
flow lines, and tank farms. Engaged in the design, supply, construction, and
erection of Harbours, jetties and marine works hydro structures, Buildings
& commercial complexes, stadiums, hospitals, monuments, forts, palaces. Specializes in
waste water, sewage and sanitation contracting works. |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
US$ 3,000,000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
SUMMARY
Company Name : GALFAR ENGINEERING AND CONTRACTING LLC
Country of Origin :
Sultanate of
Legal Form : Limited Liability Company - LLC
Registration Date : 1972
Issued Capital : RO 1,000,000
Paid up Capital : RO 1,000,000
Total Workforce : 7,600
Line of Business : Engineering and construction company.
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
COMPANY NAME
GALFAR ENGINEERING
AND CONTRACTING LLC
ADDRESS
Registered & Physical Address
Street :
Area : Ghala
PO Box : 533
Town :
Country : Sultanate of
Telephone : (968-24) 703715 / 703286
Facsimile : (968-24) 706778
Email : galfar@omantel.net.om
Premises
Subject operates
from a large suite of offices that are owned and located in the Central
Business Area of Muscat.
Branch Office (s)
Location Description
·
Muttrah Sales
office premises
PO Box: 7577
Tel: (968-24) 591055 / 591921
Fax: (968-24) 591676
·
PO Box:
72218 Sales
office premises
Tel: (971-2) 6336111
Fax: (971-2) 6334111
Email: galfar@emirates.net.ae
·
PO Box
: 22170 Sales
office premises
Tel : (974) 4677518
Fax : (974) 4677519
·
Kompleks
Haji Tahir 2, No. 16, 2nd Floor Sales
office premises
Jalan Gadong BE3519
PO Box : 568
Darussalam
Tel
: (673) 2422620
Fax : (673) 2424197
KEY PRINCIPALS
·
Sheikh
Salim Bin Saeed Bin Hamed Al Fannah Al Araimi Chairman
·
Mohamed
Rashid Abdullah Al Araimi Vice
Chairman
·
P
Mohamed Ali Managing
Director
·
Majid
Bin Saeed Al Fannah Al Araimi Operations
Director
·
Jassem
Salim Bin Saeed Al Araimi Director
·
Mohamed
Salim Bin Saeed Al Araimi Director
·
A
Naushad Business
Dev. Manager
·
S.K.Khuntia Commercial
Manager
·
Mohamed
Al Ruzaigi Human
Resources Manager
·
Suresh
Menon IT
Manager
·
E.A.
Sheriff Purchasing
Manager
·
T.S.
Janardhanan Manager
– Oil & Gas Division
·
J.K.Salvi Manager
- Structures &
Buildings Division
· J.K. Mitra Manager
- Utilities
& Services Division
· T Varadarajan Manager
- Roads &
Bridges Division
· Joginder Singh Manager
– Environmental Division
LEGAL FORM &
OWNERS
Date of Establishment : 1972
Legal Form :
Sharikat Thet Massouliya
Mahdoudeh (Limited Liability Company –
LLC)
Issued Capital : RO 1,000,000
Paid up Capital : RO 1,000,000
Name of Shareholder
(s)
·
Sheikh
Salim Bin Saeed Bin Hamed Al Fannah Al Araimi
·
Mohamed
Rashid Abdullah Al Araimi
·
Majid
Bin Saeed Al Fannah Al Araimi
·
Jassem
Salim Bin Saeed Al Araimi
·
Mohamed
Salim Bin Saeed Al Araimi
Non Omani Participation
The participation of non-Omani nationals in a trade or business
in
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.
AFFILIATED
COMPANIES
·
Al
Datoor Contracting & Trading LLC
Muttrah
PO Box: 7577
Tel: (968-24) 703715
Fax: (968-24) 591921
·
Arabian
Industries LLC
Jalan House
Al Khuwair
PO Box: 51
Al Rusayl 124
Tel: (968-24) 626294 / 626295
Fax: (968-24) 626297
·
Mushrif
Trading & Enterprises LLC
Al Khuwair
PO Box: 1289
Tel: (968-24) 693619 / 786835
Fax: (968-24) 604600
·
National
Drilling & Services
·
Al
Khalij Heavy Equipment
·
·
LINE OF BUSINESS
Operations: Subject’s activities are performed through
the following divisions:
· Oil & Gas Division
· Structures & Buildings Division
Engaged in
the design, supply, construction, and erection of the following:
- Harbours, jetties and marine works hydro
structures
- Buildings & commercial complexes, stadiums,
hospitals, monuments, forts, palaces.
- Industrial civil works for oil and gas,
petrochemical plants, infrastructure projects,
environmental engineering, and desalination
plants.
- Water supply & distribution works
· Utilities & Services Division
The Utilities & Services Division specialises in electrical works (such as switch gears, sub stations, overhead lines, cathodic protection, and startups), as well as instrumentation works, HVAC works, building management systems, environmental engineering works and maintenance contracts.
· Environmental Division
· Roads & Bridges Division
The Roads and Bridges Division offers
contracting services in relation to roads, highways, bridges, earthmoving and reclamation
works, asphalting works, preparation of rig locations and access roads.
All of subject’s
operations are ISO 9002 certified.
Import Countries
:
International
Suppliers :
·
Delta
Accessories & Domestic Switchgear Ltd
·
Gent
Fire Alarm Systems Ltd
·
BICC
·
Ottermill
Switchgear
·
Egon
Hillbrand Light Fitting Ltd
·
Esto
Leuchtenfabric
·
Legrand
Operating Trend
: Steady
Subject has a
workforce of approximately 7,600 employees.
FINANCIAL
HIGHLIGHTS
Financial
highlights provided by outside sources are given below :
Currency : US
Dollars (US$)
Year
Ending 31/12/05: Year
Ending 31/12/06:
Total Revenue US$ 140,000,000 US$ 152,500,000
Local sources
consider subject’s financial condition to be Good.
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
International Bank
PO Box : 467
Azaiba 130
Tel : (968-24) 596671 / 596672
Fax : (968-24) 596653
·
Bank
Ruwi Main Branch
PO Box : 6326
Tel : (968-24) 561399 / 708543
Fax : (968-24) 561036
·
National
Bank of Oman Limited (SAOG)
Al Azaiba Roundabout
PO Box : 52, Mina Al Fahal 116
Tel : (968-24) 591340 / 591341
Fax : (968-24) 591340
PAYMENT HISTORY
No complaints
regarding subject’s payments have been reported.
Date of transaction September 2001
Credit amount 75,000
Amount overdue 0
Payment terms 30
days
Payment Method Letters
of Credit
Paying record No
Complaints
Currency Pounds
Sterling
GENERAL COMMENTS
Galfar Engineering
and Contracting LLC is one of the largest and most reputed construction
companies in
The company is run
in a professional manner and is owned by members of the Al Araimi, who are
prominent members of the local business community.
During the course
of this investigation nothing detrimental was uncovered regarding the manner in
which payment obligations are fulfilled. The operating history is clear and the
financial situation is satisfactory. As such we are of the opinion that the
subject is a sound trade risk.
Maximum suggested
credit figure: US$ 3,000,000
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. |
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%)