MIRA INFORM REPORT

 

 

Report Date :

23.12.2008

 

IDENTIFICATION DETAILS

 

Name :

AL HASSAN ENGINEERING CO SAOG

 

 

Registered Office :

Al Hassan Building, Al Wadi Al Kabir, Ruwi 112, PO Box  1948, Muscat

 

 

Country :

Oman

 

 

Financials (as on) :

31.12.2007

 

 

Date of Incorporation :

01.01.1998

 

 

Com. Reg. No.:

1600877

 

 

Legal Form :

Omani Public Joint Stock Company

 

 

Line of Business :

Civil, Mechanical, Electrical, Engineering Design and Construction Works Contractors

 

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$ 800,000

 

 

Status :

Good

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

 

 

SUMMARY

 

Company Name                                     : AL HASSAN ENGINEERING CO SAOG

Country of Origin                                    : Oman

Legal Form                                            : Omani Public Joint Stock Company

Registration Date                                   : 1st January 1998

Commercial Registration Number            : 1600877

Issued Capital                                        : RO 7,520,800

Paid up Capital                                      : RO 7,520,800

Total Workforce                                     : 2,600

Activities                                               : Civil, mechanical, electrical, engineering design and construction works

                                                              contractors.

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Recommended Credit Limit                     : US$ 800,000

 

 

 

COMPANY NAME

 

AL HASSAN ENGINEERING CO SAOG

 

 

ADDRESS

 

Registered & Physical Address

 

Building             : Al Hassan Building

Area                 : Al Wadi Al Kabir, Ruwi 112

PO Box             : 1948

Town                 : Muscat

Country             : Oman

Telephone         : (968) 24810575 / 24812635

Facsimile          : (968) 24814233 / 24815953

Email                : seccorp@al-hassan.com

 

Premises

 

Subject operates from a large suite of offices that are owned and located in the Central Business Area of Muscat.

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

 

·       Hassan Ali Salman Al Lawati                                                             Chairman

 

·       Maqbool Ali Salman Al Lawati                                                            Managing Director

 

·       Ali A. A. Ibrahim                                                                                 Director

 

·       Saud A. Al Nahari                                                                               Director

 

·       Jamil A. Sultan                                                                                               Director

 

·       Sayed Mohammed Razvi                                                                   General Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1st January 1998

 

Legal Form                  : Sharikat Al Mousahama Al Omania (Societe Anonyme Omani

  General - SAOG) (Omani Public Joint Stock Company)

 

Commercial Reg. No.  : 1600877

 

Issued Capital              : RO 7,520,800

 

Paid up Capital            : RO 7,520,800

 

Name of Shareholder (s)                                                         Percentage

 

·       Maqbool Ali Salman Al Lawati                                                     20%

 

·       Hassan Ali Salman Al Lawati                                                      20%

 

·       Al Hassan Electricals Company                                                  20%

 

·       Members of the general public & private investors                          40%

 

 

OPERATIONS

 

Activities: Civil, Mechanical, Electrical, engineering design, and construction works contractors.

 

     In July 2005, Al Hassan Engineering Co was awarded a project worth US$ 80.5 million for Mukaizanah

     Electric Generating by Bharat Heavy Equipment Electric for its principles Oman Oil Company SAOG.

 

Import Countries: Europe, United States of America and Asia.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 2,600 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Riyal Omani (RO)

 

Balance Sheet                                                   31/12/07                        31/12/06

 

Total non-current assets                                     11,673,364                      8,578,990

Total current assets                                           26,345,629                    28,339,962

Total assets                                                      38,018,993                    36,918,952

 

Share capital                                                       7,520,000                      6,715,000

Legal reserve                                                          819,098                         596,045

Retained earnings                                                2,274,285                      1,225,785

Hedging reserve                                          147,094                          59,669

Total shareholders’ equity                                   10,761,277                      8,596,499

 

Total non-current liabilities                                    6,398,349                      1,951,736

Total current liabilities                                         20,859,367                    26,370,717

Total liabilities                                                    27,257,716                    28,322,453

Total shareholders’ equity & liabilities                  38,018,993                    36,918,952

 

Profit & Loss Account

 

Turnover                                                            35,210,730                    44,973,293

Direct costs                                                      (27,602,415)                  (38,641,059)

Gross profit                                                         7,608,315                      6,332,234

Other income                                                          340,847                         453,440

                                                                          7,949,162                      6,785,674

 

General expenses                                              (2,114,888)                   (1,642,468)

Finance charges                                                ( 1,360,465)                       (521,605)

Profit before depreciation                                      4,473,809                      4,621,601

Depreciation                                                      (2,217,887)                   (1,420,491)

Profit for the year before taxation               2,255,922                      3,201,110

Taxation                                                                (139,133)                       (334,235)

Profit for the year                                                 2,116,789                      2,866,875

 

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

 

 

BANKERS

 

·       Bank Dhofar Al Omani Al Fransi

Muttrah Business District

PO Box : 1507, Ruwi 112

Muscat

Tel: (968) 24790466

Fax: (968) 24797246

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Al Hassan Engineering Co SAOG is a leading Omani contractor in the fields of civil, mechanical, electrical, engineering design, and construction works.

 

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 fair trade risk and the above credit figure is within subject’s financial means.

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.48.99

UK Pound

1

Rs.72.49

Euro

1

Rs.68.44

 

 

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%)

 

 

 

 

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