MIRA INFORM REPORT

 

 

Report Date :

18.06.2013

 

IDENTIFICATION DETAILS

 

Name :

DOUGLAS OHI LLC

 

 

Registered Office :

Al Mina Street (Hay Al Mina) PO Box 1639 Muscat 114

 

 

Country :

Oman

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

01.02.1982

 

 

Com. Reg. No.:

1/12445/5

 

 

Legal Form :

Limited Liability Company – LLC

 

 

Line of Business :

General construction contractors.

 

 

No. of Employees :

3,500

 

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 :

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

 

 

SUMMARY

 

Company Name                                     : DOUGLAS OHI LLC

Country of Origin                                    : Oman

Legal Form                                            : Limited Liability Company – LLC

Registration Date                                   : 1st February 1982

Commercial Registration Number                        : 1/12445/5

Chamber Membership Number                : 271

Issued Capital                                        : RO 1,000,000

Paid up Capital                                      : RO 1,000,000

Total Workforce                                     : 3,500

Activities                                               : General construction contractors.

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Raj Kumar, Financial Controller


COMPANY NAME

 

DOUGLAS OHI LLC

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : Al Mina Street (Hay Al Mina)

 

PO Box             : 1639

 

Town                 : Muscat 114

Country             : Oman

 

Telephone         : (968) 24590540 / 24601402

Facsimile          : (968) 24594657 / 24601562

Mobile               : (968) 95561060

Email                : info@douglasohi.com / ohidoug@omantel.net.om

 

Premises

 

Subject operates from a large suite of offices that are owned and located in the Central Business Area of Muscat.

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Maqbool Bin Humaid Bin Mohamed Al Salim                                       Chairman

 

·       Abdul Amir Bin Humaid Bin Mohamed Al Salim                                               Managing Director

 

·       Haytham Bin Tariq Al Saeed                                                              Director

 

·       Adham Bin Tariq Al Saeed                                                                 Director

 

·       Ian Gordon                                                                                        General Manager

 

·       Mike Whittingham                                                                             Operations Manager

 

·       R Nagrajan                                                                                       Finance Manager

 

·       Raj Kumar                                                                                        Financial Controller

 

·       Chris Morrison                                                                                  Commercial Manager

 

·       Daniel Van Biljon                                                                               Contracts Manager

 

·       Rami Maqbool Al Saleh                                                                     Business Development Manager

 

·       Stuart Gray                                                                                       Planning Manager

 

·       Alan Cruikshank                                                                                Plant Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1st February 1982

 

Legal Form                  : Limited Liability Company – LLC

 

Commercial Reg. No.  : 1/12445/5

 

Chamber Member No. : 271

 

Issued Capital              : RO 1,000,000

 

Paid up Capital            : RO 1,000,000

 

Name of Shareholder (s)                                                         Percentage

 

·       Oman Holdings International SAOG (OHI)                                51%

Muscat

 

·       Interserve Plc Group                                                              49%

United Kingdom

 

 

OPERATIONS

 

Activities: Engaged as general construction contractors, specialising in the construction of buildings, roads, bridges and factories. Subject also operates its own joinery division, producing carved doors and other decorative

ornate finishes.

 

Subject is also involved in wastewater management and the purifying of domestic wastewater using the Bionest system.

 

Douglas OHI has a track record second to none on power station construction having been substantially involved in the civil and building works on 4 of the Sultanate’s 5 Independent Power Projects.

Subject also carried out the design and construction of all the buildings on the Sohar Refinery Project.

Subject’ Quality Management System received ISO 9001 accreditation in March 1996 and in May 2003    obtained certification to ISO 14001 and OHSAS 18001 for its Environmental and Safety Management  Systems respectively.

           

Subject’s current contracts involve working for the following: Sohar IPP, Sur IPP 2000 MW, German University Staff Accommodation, Shadeed Iron & Steel LLC, Al-Sukri Commercial Building, Sheikh Yaqoub Al-Harthy Office Building, The Chedi Pool & Gym and the Sheraton Hotel.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 3,500 employees.

 

 

FINANCIAL DATA

 

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 50,000,000                          RO 45,000,000

 

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

 

The above figures were provided by Mr Raj Kumar, Financial Controller

 

 

BANKERS

 

·       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

 

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.57.73

UK Pound

1

Rs.90.61

Euro

1

Rs.76.96

 

 

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.