MIRA INFORM REPORT

 

 

Report Date :

03.01.2013

 

IDENTIFICATION DETAILS

 

Name :

MODERN STEEL MILLS LLC

 

 

Registered Office :

Rusayl Industrial Estate Modern Street, Road No. 17 PO Box 174 Rusayl 124

 

 

Country :

Oman

 

 

Financials (as on) :

31.12.2011

 

 

Year of Establishment :

1997

 

 

Com. Reg. No.:

1/60506/2

 

 

Legal Form :

Limited Liability Company – LLC

 

 

Line of Business :

Manufacture of steel pallets.

 

 

No. of Employees :

350

 

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

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Oman

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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. 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.

Source : CIA

 

SUMMARY

 

Company Name                                     : MODERN STEEL MILLS LLC

Country of Origin                                    : Oman

Legal Form                                            : Limited Liability Company – LLC

Start Date                                             : 1997

Registration Date                                   : 1st November 2003

Commercial Registration Number            : 1/60506/2

Issued Capital                                        : RO 7,000,000

Paid up Capital                                      : RO 7,000,000

Total Workforce                                     : 350

Activities                                               : Manufacture of steel pallets.

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Taleb Mohamed Al Bloushi, Public Relations Manager

 

COMPANY NAME

 

MODERN STEEL MILLS LLC

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : Rusayl Industrial Estate

Street               : Modern Street, Road No. 17

 

PO Box             : 174

 

Town                 : Rusayl 124

Country             : Oman

 

Telephone         : (968) 24449039 / 24629039

Facsimile          : (968) 24449064 / 24629064

Mobile               : (968) 99009099

Email                : msm2001@omantel.net.om

 

Premises

 

Subject operates from a large suite of offices and a factory that are rented and located in the Industrial Area of Rusayl.

 

 

KEY PRINCIPALS

 

     Name                                                           Nationality                     Position

 

·       Hamad Bin Hamd Bin Abid Al Ghafari        -                            Managing Director

 

·       Mohamed Hamad Al Ghafari                                  -                            Director

 

·       Salem Bin Saeed Bin Hamad Oribi                        -                            Director

 

·       Ashwin Drumsingh                                           Indian                         Director

 

·       Abdul Qader Salem Gassim                                  -                            Director

 

·       Abd Allam Bin Mustahil Al Khyod                          -                            Director

 

·       Mohamed Bin Hamd Bin Abid Al Ghafari                -                            Administration Manager

 

·       Dani Doleh                                                           -                            Commercial Manager

 

·       Nalesh Sait                                                          -                            Finance Manager

 

·       Taleb Mohamed Al Bloushi                                    -                            Public Relations Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : Subject’s operations date back to 1997, however it was registered on 1st November 2003

 

Legal Form                  : Limited Liability Company – LLC

 

Commercial Reg. No.  : 1/60506/2

 

Membership No.          : 1057

 

Issued Capital              : RO 7,000,000

 

Paid up Capital            : RO 7,000,000

 

Name of Shareholder (s)

 

·       Hamad Bin Hamd Bin Hamoud Al Ghafari

 

·       Hamad Bin Hamd Bin Abid Al Ghafari

 

·       Salem Bin Saeed Bin Hamd Al Fana Al Arumai

 

·       Ashwin Drumsingh

 

·       Oman International Co For Investment & Development

 

·       Al Mamoura for Furniture & Office Equipment

 

·       Gulf Transport LLC

 

·       Al Serrain Co LLC

 

 

AFFILIATED COMPANIES

 

Subject belongs to the Assarain group of companies that consists of the following concerns:

 

·       Assarain Furnishing LLC

·       Blue Falcon Travel & Commercial Company

·       Assarain Insurance Division

·       National Marketing & Trading

·       Hatat Polyclinic LLC

·       The Raymond Shop

·       Wadi Adai Auto Service Centre

·       Assarain Food Products LLC

·       Assarain Telecommunications

·       Kalhat Services & Trading LLC

·       Al Haq Trading & Contracting Co LLC

·       Assarain Concrete Products LLC

·       Shamal Plastic Industries LLC

·       Gulf Acrylic Industries LLC

·       Hay Al Rahbah Trading & Contracting Co LLC

·       Assarain International Contracting Co LLC

·       Cluttons & Partners LLC

·       Kone Lifts Division

·       Strabag Oman LLC

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of steel pallets.

 

Import Countries: India and Europe

 

Operating Trend: Steady

 

Subject has a workforce of approximately 350 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Riyal Omani (RO)

 

                                                Year Ending 31/12/10:                Year Ending 31/12/11:

 

Total Sales                                RO 8,500,000                            RO 9,250,000

 

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

 

The above financial figures are based on estimations by our local sources.

 

 

BANKERS

 

·       Bank Muscat SAOG

Ruwi Main Branch

       PO Box: 6326

       Muscat

       Tel: (968) 24561399 / 24708543

       Fax: (968) 24561036

 

·       National Bank of Oman Limited (SAOG)

Muttrah Business District

PO Box: 751, Ruwi 112

Muscat

Tel: (968) 24708894 / 24708630 / 24708684

Fax: (968) 24707781 / 24703972

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Omani billet producer Modern Steel Mills plans to increase its production capacity over the next few years to cater for the prospective growth of long product output in the country, driven by infrastructural investments, the company tells Steel Business Briefing.


The plant was set up in 2001 with a nameplate capacity of 84,000 tonnes/year of billet and has since hiked its production capability to over 160,000 t/y. This will be increased further to 200,000 t/y through rationalisation and debottlenecking of plant infrastructure in the next 2-3 years.


The company operates an electric arc furnace, ladle furnace, continuous billet caster, and scrap processing facility. It sources 75% of its scrap feedstock from the local market with the remainder coming from the United Arab Emirates.
Long product consumption in Oman, as in the majority of Gulf Cooperation Council countries, is set to increase significantly over the medium term as new infrastructure, public building and residential construction is carried out, funded mainly by sizeable government oil revenues.

 

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.54.39

UK Pound

1

Rs.88.76

Euro

1

Rs.72.19

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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%)

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.