MIRA INFORM REPORT

 

 

Report Date :

17.01.2013

 

IDENTIFICATION DETAILS

 

Name :

BAHWAN ENGINEERING CO LLC (BEC)

 

 

Registered Office :

Bahwan Centre, Jabir Bin Zaid Street, Al Ghoubra, Ruwi, PO Box 703, Muscat 112

 

 

Country :

Sultanate of Oman

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

19.01.1977

 

 

Com. Reg. No.:

1/04638/1, Muscat

 

 

Legal Form :

Limited Liability Company – LLC

 

 

Line of Business :

Subject operates several divisions, power projects division, mechanical & electrical construction division, instrumentation division, etc.

 

 

No. of Employees :

13,000

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

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

(31.03.2012)

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                                     : 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, Accountant

 

 

 


 

COMPANY NAME

 

BAHWAN ENGINEERING CO LLC (BEC)

 

COMPANY ADDRESS

 

Registered & Physical Address

 

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

 

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

 

·       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.

 

 

 

 

 

 

 

KEY PRINCIPALS

 

 

     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

 

·       S K Virmani                                                                                      Chief Executive Officer

 

·       C K Khanna                                                                                      General Manager

 

·       Anil Kumar K Nahar                                                                           Finance Manager

 

·       Shamseddine Sheikh                                                             Accountant

 

·       Goss Ahmed                                                                                    Legal Manager

 

LEGAL FORM & OWNERS

 

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

 

Name of Shareholder (s)                                             Percentage

 

·       Suhail Bahwan Group Holding LLC                                          90%

Muscat

 

·       Bahwan Trading Co LLC                                                         10%

Muscat

 

 

AFFILIATED COMPANIES

 

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

 

OPERATIONS

 

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 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 165,000,000             RO 177,000,000

 

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

 

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

 

BANKERS

 

·       Oman Arab Bank

     Head Office

     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

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

GENERAL COMMENTS

 

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.54.82

UK Pound

1

Rs.87.99

Euro

1

Rs.72.82

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

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%)

 

 

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