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Report Date : |
13.08.2013 |
IDENTIFICATION DETAILS
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Name : |
BAHWAN ENGINEERING CO LLC (BEC) |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
19.01.1977 |
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Com. Reg. No.: |
1/04638/1,
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Legal Form : |
Limited Liability Company – LLC |
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Line of Business : |
Subject operates several divisions ·
Power Projects Division ·
Mechanical &
Electrical Construction Division ·
Instrumentation
Division ·
Water And Waste Water
Treatment Division ·
Civil Construction
Division ·
Elevators &
Escalators Division ·
Diesel Power Generation
Division ·
Mechanical &
Electrical Products Division ·
Service &
Maintenance Division |
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No. of Employees : |
13,000 |
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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Oman |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
OMAN - ECONOMIC OVERVIEW
Oman is a middle-income economy that is heavily dependent on
dwindling oil resources. Because of declining reserves and a rapidly growing labor
force, Muscat has actively pursued a development plan that focuses on
diversification, industrialization, and privatization, with the objective of
reducing the oil sector's contribution to GDP to 9% by 2020 and creating more
jobs to employ the rising numbers of Omanis entering the workforce. Tourism and
gas-based industries are key components of the government's diversification
strategy. However, increases in social welfare benefits, particularly since the
Arab Spring, will challenge the government's ability to effectively balance its
budget if oil revenues decline. By using enhanced oil recovery techniques, Oman
succeeded in increasing oil production, giving the country more time to
diversify, and the increase in global oil prices through 2011 provided the
government greater financial resources to invest in non-oil sectors. In 2012,
continued surpluses resulting from sustained high oil prices and increased
enhanced oil recovery allowed the government to maintain growth in social
subsidies and public sector job creation. However, the Sultan made widely
reported statements indicating this would not be sustainable, and called for
expanded efforts to support SME development and entrepreneurship. Government
agencies and large oligarchic group companies heeded his call, announcing new
initiatives to spin off non-essential functions to entrepreneurs, incubate new
businesses, train and mentor up and coming business people, and provide
financing for start-ups. In response to fast growth in household indebtedness,
the Central Bank reduced the ceiling on personal interest loans from 8 to 7%,
lowered mortgage rates, capped the percentage of consumer loans at 50% of
borrower's salaries for personal loans and 60% for housing loans, and limited
maximum repayment terms to 10 and 25 years respectively. In 2012 the Central
Bank also issued final regulations governing Islamic banking and two
full-fledged Islamic banks held oversubscribed IPOs while four traditional
banks opened sharia-compliant Islamic windows.
Source
: CIA
Company Name : BAHWAN ENGINEERING CO LLC (BEC)
Country of Origin : Oman
Legal Form : Limited Liability Company – LLC
Registration Date : 19th January 1977
Commercial Registration Number : 1/04638/1, Muscat
Chamber Membership Number : 190
Issued Capital : RO 565,000
Paid up Capital : RO 565,000
Total Workforce : 13,000
Activities : Subject operates several divisions (see below for details)
Financial Condition : Undetermined
Payments : Nothing detrimental uncovered
Operating Trend : Steady
Person Interviewed : Shamseddine Sheikh, Financial Controller
BAHWAN ENGINEERING CO LLC (BEC)
Building : Bahwan
Centre
Street : Jabir Bin
Zaid Street
Area : Al Ghoubra, Ruwi
PO Box : 703
Town : Muscat 112
Country : Sultanate of
Oman
Telephone : (968) 24597510
/ 24594702
Facsimile : (968) 24597511
Email : becoman@becoman.com
/ becho@omantel.net.om
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
· PO Box: 25173 Office
premises
Dubai
United Arab
Emirates
Tel: (971-4)
3475878
Fax: (971-4)
3471855
· PO Box: 31747 Office
premises
Abu Dhabi
United Arab
Emirates
Tel: (971-2)
6414316
Fax: (971-2)
6414317
Subject also operates offices located in Wadi Kabir,
Azaiba, Seeb Souk, Ibri, Nizwa, Salalah, Barka, Ibra, Sohar and Sur.
Name Position
· Sheikh Suhail Salem Abdullah Bahwan Managing
Director
· Saad Suhail Salem Abdullah Bahwan Director
· Ahmed Suhail Salem Abdullah Bahwan Director
· Amal Suhail Salem Abdullah Bahwan Director
· C K Khanna General
Manager
· Shamseddine Sheikh Financial
Controller
· Ajit Walvakar Chief
Operating Officer
· P Ananthan Finance
Manager
· Santosh Nair Commercial
Manager
· Goss Ahmed Legal
Manager
Date of
Establishment : 19th
January 1977
Legal Form : Limited Liability
Company – LLC
Commercial Reg.
No. : 1/04638/1, Muscat
Chamber Member No. : 190
Issued Capital : RO 565,000
Paid up Capital : RO 565,000
· Suhail Bahwan
Group Holding LLC 90%
Muscat
· Bahwan Trading Co
LLC 10%
Muscat
Subject is a member of the well known Suhail & Saud
Bahwan group of companies that comprises the following concerns:
· Al Gaddag
Engineering LLC
PO Box: 168
Muscat
Tel: (968)
24712470
· Suhail & Saud
Bahwan Building Materials LLC
PO Box: 169
Muscat
Tel: (968)
24797581
Fax: (968)
24797169
· Suhail & Saud
Bahwan Building Materials LLC
Al Qurum District
PO Box: 3168 /
703, Ruwi 112
Muscat
Tel: (968)
24700983 / 24793741 / 24561377
Fax: (968)
24793755
· Amiantit Oman SAO
PO Box: 1417
Seeb
Tel: (968)
25626600
· Arab Merchants Co
LLC
PO Box: 6228
Muscat
Tel: (968) 24701221
· Arabian Car
Marketing Co LLC
PO Box: 169
Muscat
Tel: (968)
24793741
Fax: (968)
24796158
· Arabian Caravans
Furnishing & Trading Co LLC
PO Box: 169
Muscat
Tel: (968)
24797596
Fax: (968)
24562089
· Auto Parts Centre
LLC
PO Box: 2619
Muscat
Tel: (968)
24564308
Fax: (968)
24564309
· Automobile
Automotive Centre
PO Box: 6168
Muscat
Tel: (968)
24561377
Fax: (968)
24561631
· Bahwan Contracting
Company LLC
PO Box: 4098
Muscat
Tel: (968)
24591092
Fax: (968)
24591098
· Bahwan Foods
(Khalijana) Co LLC
PO Box: 3711
Muscat
Tel: (968)
24592492
· Bahwan Travel
Agencies LLC
PO Box: 282
Muscat
Tel: (968)
24740455
Fax: (968)
24700483
· Bahwan Trading
Company LLC
Suhail Bahwan Building
Ruwi
PO Box: 169 & 2
Muscat 113
Tel: (968) 24793750 / 24793741
Fax: (968) 24796158
· Delta Ltd
PO Box: 4537
Muscat
Tel: (968)
24708483
· Ebin Rushed
Pharmacy Co LLC
PO Box: 169
Muscat
Tel: (968)
24701557
Fax: (968)
24701547
· International
Equipment & Contracting Co LLC
PO Box: 169
Muscat
Tel: (968)
24714482
Fax: (968)
24793755
· National Crushers
PO Box: 961
Muscat
Tel: (968)
24591461
· Rent-A-Car LLC
PO Box: 282
Muscat
Tel: (968)
24561427
Fax: (968)
24700483
· Utmost Building
Materials Co LLC
Al Burj Building,
1st Floor
Deira
PO Box: 55014
Dubai
United Arab
Emirates
Tel: (971-4) 3553883
Fax: (971-4)
3553776
· Gulf Mercantile
Trading
Al Burj Building,
1st Floor
Deira
PO Box: 55014
Dubai
United Arab
Emirates
Tel: (971-4)
3553883
Fax: (971-4)
3553776
· Mercantile
Information & Telecommunication Technology Est (MITTE)
Sheikha Aisha Building
Al Salam Street
PO Box: 41175
Abu Dhabi
United Arab
Emirates
Tel: (971-2)
6458909
Fax: (971-2)
6458907
· Al Mutawah Trading
Co LLC
Al Mutawah Building
Sultan Qaboos Street
Al Ghobra
PO Box: 17, Muttrah 114
Muscat
Tel: (968) 24591871 / 591872 / 591521
Fax: (968) 24592370
· Al Omaniya
Automobile Marketing LLC
PO Box: 2619
Seeb
Tel: (968)
25560925
Fax: (968)
25564309
· Arabian
Engineering Services LLC
PO Box: 6000
Muscat
Tel: (968)
24561377
Fax: (968)
24561631
· Bilad (Oman) LLC
PO Box: 42006
Rusayl
Tel: (968)
24626001
Fax: (968)
24591098
· Electronics
Company LLC
PO Box: 8111
Muttrah
Tel: (968)
24793741
Fax: (968)
24796158
· Inma Company Oman
LLC
PO Box: 3760
Muscat
Tel: (968)
24562100
Fax: (968)
24562039
· Port Services Corp
SAOG
PO Box: 133
Muscat
Tel: (968)
24714001
Fax: (968)
24714007
· Qurum Contractors
LLC
PO Box: 7003
Muscat
Tel: (968)
24562720
· Sogex Oman LLC
PO Box: 4739
Muscat
Tel: (968)
24563055
Fax: (968)
24564608
· Universal
Engineering Services LLC
PO Box: 2688
Muscat
Tel: (968)
24597531
Fax: (968)
24597514
· Bahwan Contracting
Company LLC
PO Box: 1098
Muscat
Tel: (968)
24591092
Fax: (968)
24591098
Activities: Subject’s operations are performed through the following divisions:
·
Power Projects Division
These operations
encompass several aspects of engineering construction on a turnkey basis
comprising Design, Supply, Installation, Testing, Commissioning and
Maintenance. Projects include installations related to large power houses
comprising 132KV Transmission Lines, Indoor and Outdoor Gas Insulated
Switchgears and 132KV live line washing.
·
Mechanical & Electrical Construction Division
Building Services
Division has diverse experience in executing Mechanical & Electrical
installations for Hotels, Hospitals, Airports, Palaces, Ministry & Bank
Headquarters, Commercial Complexes and Industrial Projects. The division is
geared to execute installation of Central Air Conditioning Systems, Plumbing
& Sanitation, Electrical and specialised systems like Medical Gases, Nurse
Call, Incinerators, Surgical Panels, Operation Theatre Lighting, Fire Alarm,
Vaccum & Compressed Air, Boilers, Kitchen & Laundry equipment, Building
Management Systems
·
Instrumentation Division
Engaged in
planning, Installation, Testing and pre-commissioning of industrial projects in
Control, Automation and Instrumentation construction projects. It also
undertakes small / medium projects on Engineering, Procurement and Construction
basis ( EPC ) to construction of large projects of 10,000 and more loops in Oil&
Gas, Power, Water sector.
·
Water And Waste Water Treatment Division
Water and waste
water treatment operations offer construction solutions & maintenance for
Desalination Plants & Sewage Treatment Plants. The division also executes
indoor and outdoor Reverse Osmosis Plants for specialised uses such as
hospitals & Industrial Projects
·
Civil Construction Division
Established in
1975, this division specialises in total project management of Industrial Projects,
Commercial Buildings, Residential Buildings, Schools and Mosques.
·
Elevators & Escalators Division
This division
undertakes projects involving supply, installation and maintenance of elevators
and escalators on turnkey basis. The division is also involved in installing
equipment such as Dock lavelers, Lifting Platforms, Special Freight Platforms,
Scissor Lift Platforms for Airports and EOT Cranes. Some of the large projects
include installation of Trav-O-lator, the longest inclined walkway in the Gulf;
13 hospital elevators and 5 passenger elevators with VVVF Drive for Sohar
Hospital, Oman and fastest moving (2.5 meters per second) Elevators for
National bank of Oman headquarters.
·
Diesel Power Generation Division
This operation
integrates supply, installation, commissioning and maintenance of diesel power
generation projects.
·
Mechanical & Electrical Products Division
The mechanical
products division's portfolio encompasses trading in products covering the
broad spectrum of the Building Services Industry. From Air-conditioning to
Heating, Ventilation, Filtration, Building Management Systems, Piping &
Valves, to Air Distribution, the Division represents more than 30 Principals
worldwide.
·
Service & Maintenance Division
BEC ensures
satisfactory performance of the installations with Planned Preventive
Maintenance schedules, which reduces the Down Time to the minimum. This
division employs 900 people.
Import Countries: Europe, Asia and the United States of America
Operating Trend: Steady
Subject has a workforce of approximately 13,000 employees.
Financial highlights provided by local sources are given below:
Currency: Riyal Omani (RO)
Year
Ending 31/12/11: Year
Ending 31/12/12:
Total Sales RO
177,078,000 RO 189,657,000
Local sources consider subject’s financial condition to be Good.
The above figures were provided by Mr Shamseddine Sheikh, Financial
Controller
·
Oman Arab Bank
Muttrah
Business District
PO Box:
2010, Ruwi 112
Muscat
Tel:
(968) 24700161 / 24706265 / 24706267
Fax:
(968) 24797736
·
Oman International Bank
Al Jaame Street
PO Box:
4216
Muscat
Tel:
(968) 24703614 / 24707328 / 24793450
·
HSBC Bank Middle East
Muttrah Business
District
PO Box: 240, Ruwi
112
Muscat
Tel: (968)
24700810 / 24799920 / 24799927
Fax: (968)
24704241
No complaints regarding subject’s payments have been reported.
Bahwan Engineering Co LLC (BEC) is a leading concern in Oman and a
member of the Suhail & Saud Bahwan group of companies, which is a major
player in the Omani economy with over 30 diversified concerns.
During the course of this investigation nothing detrimental was
uncovered regarding subject’s operating history or the manner in which payments
are fulfilled. As such the company is considered to be a fair trade risk.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.80 |
|
|
1 |
Rs.94.21 |
|
Euro |
1 |
Rs.81.03 |
INFORMATION DETAILS
|
Report
Prepared by : |
SDA |
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 |
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 |
|
-- |
NB |
New Business |
-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.