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Report Date : |
11.07.2013 |
IDENTIFICATION DETAILS
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Name : |
LULU MUSCAT HYPERMARKET LLC |
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Registered Office : |
Sultan
Qaboos Street Ghubra Area PO Box 436 Muscat 130 |
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Country : |
Sultanate of Oman |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
05.06.2004 |
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Com. Reg. No.: |
1/75777/6, Muscat |
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Legal Form : |
Limited Liability Company – LLC |
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Line of Business : |
Operators of a hypermarket |
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No. of Employees : |
2,300 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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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. 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 : LULU MUSCAT HYPERMARKET LLC
Country of Origin : Oman
Legal Form : Limited Liability Company – LLC
Registration Date : 5th June 2004
Commercial Registration Number : 1/75777/6, Muscat
Chamber Membership Number : 1432
Issued Capital : RO 3,000,000
Paid up Capital : RO 3,000,000
Total Workforce : 2,300
Activities : Operators of a hypermarket
Financial Condition : Fair
Payments : Nothing detrimental uncovered
Operating Trend : Steady
Person Interviewed : Shamir Hamza, Finance Manager
LULU MUSCAT HYPERMARKET LLC
Street :
Sultan Qaboos Street
Area : Ghubra Area
PO Box :
436
Town :
Muscat 130
Country :
Sultanate of Oman
Telephone :
(968) 24504504 / 24584311
Facsimile :
(968) 24594747
Mobile : (968) 95214374 / 99480490 / 99243806
Email : contactus@luluhypermarket.com / lulumct@omantel.net.om
Subject operates from a large suite of offices and a hypermarket that
are rented and located in the Central Business Area of Muscat.
Branch Office (s)
Subject has branch showrooms located in Wadi Kabir, Seeb, Salalah, Nizwa, Bousher, Barka,
Buraimi, Khasab, and Darsait .
Name Nationality Position
· Yousaf Ali Mosyilam Vital Abdul Qader
Indian Managing
Director
· Sheikh Saud Bin Ali Abdullah Al Khalili Omani Director
· Shamir Hamza - Finance
Manager
· Nelson Philip - Commercial
Manager
· Nasser Mubarak - Human
Resources Manager
· Fahd Al Oraimi - Public
Relations Manager
Date of
Establishment : 5th
June 2004
Legal Form : Limited Liability
Company – LLC
Commercial Reg.
No. : 1/75777/6, Muscat
Chamber Member No. : 1432
Issued Capital : RO 3,000,000
Paid up Capital : RO 3,000,000
· Yousaf Ali Mosyilam Vital Abdul Qader
· Sheikh Saud Bin Ali Abdullah Al Khalili
Subject is a member of the well known EMKE Group
which has operations dating back to 1966. It has diversified activities
covering the department store/supermarket and hypermarket business, as well
as the import and distribution of food
stuff and consumer staple goods, garment manufacturing and also information
technology training.
Based in the United Arab Emirates, the EMKE Group’s
activities span the globe with operational bases in India, Hong Kong, Thailand,
Indonesia, Kenya, Tanzania, Spain and other Middle East countries such as Oman,
Qatar and Kuwait.
The EMKE Group consists of the following concerns:
· EMKE General
Trading
Al Qusais
PO Box: 60188
Dubai
United Arab
Emirates
Tel: (971-4)
2670077
Fax: (971-4)
2670088
· EMKE Stores
Saif Suhail Al Kheili Building
Madina Zayed
PO Box: 4048
Abu Dhabi
United Arab Emirates
Tel: (971-2) 6732131 / 6394949 / 6421800
Fax: (971-2) 6732151 / 6396807
· Al Tayeb Meat Est
Mina Free Zone
PO Box:
4048
Abu Dhabi
United
Arab Emirates
Tel:
(971-2) 6732141
Fax:
(971-2) 6732144
· Al Tayeb Cold
Stores LLC
Mina Free Port
PO Box:
4048
Abu Dhabi
United
Arab Emirates
Tel:
(971-2) 6731831 / 6730393
Fax:
(971-2) 6731124
Email: altcs@emirates.net.ae
· Gulf Star Est
PO Box: 27608
Abu Dhabi
United Arab
Emirates
Tel: (971-2)
4481200
Fax: (971-2) 4481718
· Huda Shipping
International
Mina
Zayed
PO Box:
4048
Abu Dhabi
United
Arab Emirates
Tel:
(971-2) 6224226
Fax:
(971-2) 6224244
· Syscoms
Information Technology
Liwa
Street
PO Box:
4048
Abu Dhabi
United
Arab Emirates
Tel:
(971-2) 6224226
Fax:
(971-2) 6224244
· Asif Jewellery
Hamdan Street
PO Box: 4048
Abu Dhabi
United Arab Emirates
Tel: (971-2) 6331366
Fax: (971-2) 6334466
· EMKE Stores
Mina
PO Box:
4048
Abu Dhabi
United
Arab Emirates
Tel:
(971-2) 6732131
Fax:
(971-2) 6732151
· Emke Commodities
(Kenya) Ltd
PO Box: 1556
Mombasa
Kenya
Tel: (254-11)
434463
Fax: (254-11)
432390
· EMKE Tanzania Ltd
PO Box: 40652
Dar Ed Salaam
Tanzania
· EMKE Garments
(Kenya) Ltd
PO Box: 1556
Mombasa
Kenya
Tel: (254-11)
432585
Fax: (254-11)
432390
· Fair Exports
(India) Pvt. Ltd
501
Madhava Bandra Kurla Complex
Bandra
(East)
Mumbai
400051
India
· E K Prima Exports
Thailand Ltd
64/16
Sukhumvil Soi-20
Bangkok
10110
Thailand
· E K Prima Exports
HongKong Ltd
Yu Cheong
Ind Centre, Room 5K
1 Wong Chuk
Yeung Street
Fotan
Hong Kong
· P.T.E.K. Prima
Ekspor Indonesia
J1,
Mangga Dua Raya
Block C
12
Jakarta
14430
Indonesia
Tel:
(62-21) 6128791/ 6128792
Fax:
(62-21) 6019438
· Y Tex Fashions
San
Joaquin, 99-101
Bajos 1,
08922
Santa
Coloma Degramnet
Barcelona
Spain
Activities: Engaged as operators of a hypermarket.
Import Countries: Europe and GCC countries
Operating Trend: Steady
Subject has a workforce of approximately 2,300 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
6,700,000 RO
7,150,000
Local sources consider subject’s financial condition to be Fair.
The above figures were provided by Mr Shamir Hamza,
Finance Manager
· Commercial Bank of Oman SAOG
Muttrah
Business District
PO Box:
1696, Ruwi 112
Muscat
Tel:
(968) 24793225 / 24793226 / 24793228
Fax: (968) 24793229
·
HSBC Bank Middle East
Mutrah 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.
Established in 2004, subject is involved as operators of a hypermarket.
Subject belongs to the well known EMKE Group of companies.
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.60.13 |
|
|
1 |
Rs.89.52 |
|
Euro |
1 |
Rs.76.89 |
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 |
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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.