MIRA
INFORM REPORT
|
Report Date : |
10.01.2008 |
IDENTIFICATION
DETAILS
|
Name : |
DRILLING MUD
PRODUCTS COMPANY LLC |
|
|
|
|
Registered Office : |
STS Building, First Floor, Office No 18, Dohat Al Khuwair, P O Box
1160, Ruwi 112 |
|
|
|
|
Country : |
Sultanate of Oman |
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Date of Incorporation : |
1st April 1997 |
|
|
|
|
Com. Reg. No.: |
Limited Liability Company – LLC |
|
|
|
|
Legal Form : |
1549430 |
|
|
|
|
Line of Business : |
Engaged in the
manufacture of oil well drilling chemicals and cement additives. |
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$ 200,000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
SUMMARY
Company Name : DRILLING MUD PRODUCTS COMPANY LLC
Country of Origin : Sultanate of Oman
Legal Form : Limited Liability Company - LLC
Registration Date : 1st April 1997
Commercial Registration Number : 1549430
Membership Number : 943
Issued Capital : RO 500,000
Paid up Capital : RO 500,000
Total Workforce : 30
Line of Business : Manufacturers of oil well drilling chemicals and cement additives.
Financial Condition : Fair
Payments : Nothing detrimental uncovered
Operating Trend : Steady
COMPANY NAME
DRILLING MUD
PRODUCTS COMPANY LLC
ADDRESS
Registered & Physical Address
Location : STS Building,
First Floor, Office No 18, Dohat Al Khuwair
PO Box : 1160
Town : Ruwi 112
Country : Sultanate of
Oman
Telephone : (968-24) 698415
Facsimile : (968-24)
605017
Email :
odmps@omantel.net.om
Premises
Subject operates
from a small suite of offices that are rented and located in the Central
Business Area of Ruwi.
Branch Offices
Subject has a
factory located in Salalah.
KEY PRINCIPALS
·
Salem Makki Managing
Director
·
Abdul Nabi
Makki Director
·
Yousef Bin
Abdullah Director
·
C M Murali
Dharan General
Manager
·
Subhash Kumar Factory
Manager
·
M Radhakrishan
Finance
Manager
LEGAL FORM & OWNERS
Date of Establishment : 1st
April 1997
Legal Form :
Sharikat Thet Massouliya
Mahdoudeh (Limited Liability Company - LLC)
Commercial Reg. No. : 1549430
Membership
No. : 943
Issued Capital : RO 500,000
Paid up Capital : RO 500,000
Name of Shareholder (s)
·
Salem Makki
·
Abdul Nabi
Makki
·
Yousef Bin
Abdullah
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 oil well
drilling chemicals and cement additives.
Import Countries :
Europe and GCC countries.
Operating Trend
: Steady
Subject has a
workforce of 30 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 Sales RO
3,250,000 RO
3,600,000
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
·
Bank Dhofar Al
Omani Al Fransi
Al Burj Street
PO Box : 4507
Ruwi
Tel : (968-24) 798012 / 798013
Fax : (968-24) 798015
·
Oman Arab Bank
Al Khuwair Branch
PO Box : 5010
Ruwi
Tel : (968-24) 603520
Fax : (968-24) 602948
PAYMENT HISTORY
No complaints
regarding subject’s payments have been reported.
GENERAL COMMENTS
Opinion on the
credit figure of US$ 150,000:
Established in
1997, subject is involved in the manufacture of oil well drilling chemicals and
cement additives.
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$ 200,000
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%)