|
Report Date : |
12.07.2013 |
IDENTIFICATION DETAILS
|
Name : |
LARSEN & TOUBRO ELECTROMECH LLC |
|
|
|
|
Registered Office : |
Ghala Industrial Area PO Box 1999, Ruwi 112 Muscat |
|
|
|
|
Country : |
Oman |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Year of Incorporation : |
2000 |
|
|
|
|
Com. Reg. No.: |
1/04445/1 |
|
|
|
|
Legal Form : |
Limited Liability Company – LLC |
|
|
|
|
Line of Business : |
Operation and maintenance of electromechanical systems for building utilities. |
|
|
|
|
No. of Employees : |
300 |
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 : |
Good |
|
Payment Behaviour : |
Regular |
|
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 |
|
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 : LARSEN & TOUBRO ELECTROMECH LLC
Country of Origin : Oman
Legal Form : Limited Liability Company – LLC
Registration Date : 2000
Commercial Registration Number : 1/04445/1
Issued Capital : RO 300,000
Paid up Capital : RO 300,000
Total Workforce : 300
Activities : Operation and maintenance of electromechanical systems for building
utilities.
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
LARSEN & TOUBRO ELECTROMECH LLC
Location : Ghala Industrial
Area
PO Box : 1999, Ruwi 112
Town : Muscat
Country : Oman
Telephone : (968) 24590577
Facsimile : (968) 24590811
Mobile : (968)
99356626
Email : mds@intemoman.com
/ intmneom@omantel.net.om
Subject operates from a large suite of offices that are rented and
located in the Industrial Area of Muscat.
Name Position
· K Venkataramanan Chairman
· P S Kapoor Director
· D R Saxena Director
· S D Navare Director
· Rashad M Al Zubair Director
· C S Badrinath Director
· M Meenakshi
Sundaram Chief
Executive Officer
Date of
Establishment : 2000
Legal Form : Limited Liability
Company – LLC
Commercial Reg.
No. : 1/04445/1
Issued Capital : RO 300,000
Paid up Capital : RO 300,000
· Larsen &
Toubro Ltd 100%
L & T House
Ballard Estate
PO Box: 278
Mumbai 400 001
India
Tel: (91-22) 67525656
Fax: (91-22) 55525858
· Muscat Trading
Company LLC
· Larsen &
Toubro (Oman) LLC
· L&T Modular
Fabrication Yard LLC
· Larsen &
Toubro Saudi Arabia LLC
· Larsen &
Toubro Kuwait Construction General Contracting Company WLL
· L&T Electrical
& Automation FZE
· L&T Infotech
Ltd
· L&T Heavy
Engineering LLC
· L&T Sargent
& Lundy Ltd
· L&T
Infrastructure Finance Ltd
· Larsen &
Toubro Qatar LLC
Activities: Engaged in the operation and maintenance of electromechanical systems
for building utilities, and is a
major contractor to PDO in oilfield
projects. Subject operates in four key business units, mechanical and
engineering project services, electrical and instrumentation for oil and gas
companies, engineering and maintenance
contracts for electrical and instrumentation and facilities management.
Current Projects:
EPCC of power generation and distribution facility
at Daleel oilfields (phase II) for Daleel Petroleum LLC. Contract value RO
13,200,000.
EPC of fuel farm and fire hydrant system for the
Salalah Airport Development project for Larsen & Toubro Ltd. Contract value
RO 7,600,000.
C, M, E & I construction works for gas field
development project as Lekhwair for Larsen & Toubro Ltd. Contract value RO
17,300,000.
Operating Trend: Steady
Subject has a workforce of approximately 300 employees.
Financial highlights provided by local sources are given below:
Currency: Indian Rupees (IR)
Balance Sheet 31/12/11 31/12/10
SOURCES OF FUNDS
Shareholders’ Funds
Share capital 35,560,200
35,560,200
Reserves and surplus 1,326,294,816 753,651,825
TOTAL 1,361,855,016
789,212,025
APPLICATION OF FUNDS
Fixed assets
Gross block 929,173,361 712,544,001
Less: Depreciation 567,016,070 341,116,212
Net block 362,157,291 371,427,789
Current Assets, Loans and advances
Inventories 239,658,732 162,169,974
Sundry Debtors 1,527,043,576 904,700,402
Cash and Bank Balances 517,697,487 436,349,158
Other Current Assets 225,239,717 679,159,387
Loans and advances 374,509,591 32,400,574
2,884,149,103 2,214,779,495
Less: Current Liabilities and Provisions
Liabilities 1,627,830,548 1,612,573,763
Provisions 256,620,830 184,421,496
1,884,451,378 1,796,995,259
Net current assets 999,697,725
417,784,236
TOTAL 1,361,855,016
789,212,025
Statement of
Income
Sales & Service 4,769,425,215 4,582,816,590
Other income 19,639,055 9,074,672
Interest income 5,984,187 14,233,309
4,795,048,457 4,606,124,571
EXPENDITURE
Construction & Operating Expenses 2,590,520,574 2,743,140,592
Staff Expenses 1,297,514,160 1,039,208,652
Sales, administration and other expenses 206,137,736 280,078,484
Interest expenses and other finance costs – 448,381
Depreciation 143,345,057 134,338,429
4,237,517,527 4,197,214,538
Profit Before Tax 557,530,930
408,910,033
Income Tax paid 1,878,209 1,801,357
Provision for current taxes 71,467,585 47,418,729
Provision for deferred tax –
–
73,345,794 49,220,086
Profit After Tax 484,185,136
359,689,947
Add: Balance brought forward from previous year 761,848,647 473,367,972
Profit available for distribution 1,246,033,783
833,057,919
Proposed dividend 109,267,442 71,209,272
Balance carried to Balance Sheet 1,136,766,341
761,848,647
Basic and diluted Earnings per equity share 1,613.95 1,198.97
Local sources consider subject’s financial condition to be Good.
· Commercial Bank of Oman SAOG
Muttrah
Business District
PO Box:
1696, Ruwi 112
Muscat
Tel:
(968) 24793225 / 24793226 / 24793228
Fax:
(968) 24793229
No complaints regarding subject’s payments have been reported.
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.59.64 |
|
|
1 |
Rs.90.14 |
|
Euro |
1 |
Rs.77.98 |
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%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.