MIRA INFORM REPORT

 

 

Report Date :

26.06.2013

 

IDENTIFICATION DETAILS

 

Name :

AL MUTAWAH TRADING CO LLC

 

 

Registered Office :

Al Mutawah Building, Sultan Qaboos Street, Al Ghobra, P O Box 17, Jibroo 114, Muscat

 

 

Country :

Oman

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

31.01.1976

 

 

Com. Reg. No.:

1/02536/8

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject operates through several divisions includes engineering division, building materials division, electrical products division, sanitary & special projects division, service division

 

 

No. of Employees :

140

 

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 – 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                                     : AL MUTAWAH TRADING CO LLC

Country of Origin                                    : Oman

Legal Form                                            : Limited Liability Company – LLC

Registration Date                                   : 31st January 1976

Commercial Registration Number                        : 1/02536/8

Chamber Membership Number                : 408

Issued Capital                                        : RO 275,000

Paid up Capital                                      : RO 275,000

Total Workforce                                     : 140

Activities                                               : Subject operates several divisions (see below for details)

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Natrajan Ramachandaran, Finance Manager


COMPANY NAME

 

AL MUTAWAH TRADING CO LLC

 

 

Company ADDRESS

 

Registered & Physical Address

Building             : Al Mutawah Building

Street               : Sultan Qaboos Street

Area                 : Al Ghobra

PO Box             : 17, Jibroo 114

Town                 : Muscat

Country             : Sultanate of Oman

Telephone         : (968) 24591871 / 24591872 / 24591521

Facsimile          : (968) 24592370

Email                : almutawa@omantel.net.om / info@al-mutawaa.com

 

Premises

Subject operates from a suite of offices, a showroom and a warehouse covering an area of 11,800 square metres, of which 1,800 are covered, that are owned and located in the Suburban Business Area of Muscat.

 

 

KEY PRINCIPALS

 

     Name                                                                                              Position

·       Suhail Sharabati                                                                                Managing Director

·       Ramez Suhail Sharabati                                                                    General Manager

·       Walid Haroon                                                                                    Marketing Manager

·       R Venkat Raman                                                                               Sales Manager

·       Natrajan Ramachandaran                                                                   Finance Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 31st January 1976

 

Legal Form                  : Limited Liability Company – LLC

 

Commercial Reg. No.  : 1/02536/8

 

Chamber Member No. : 408

 

Issued Capital              : RO 275,000

 

Paid up Capital            : RO 275,000

 

Name of Shareholder (s)                                              Percentage

·       Sheikh Suhail Salim Bahwan                                           51%

 

·       Libanit Holdings SA                                                        49%

Vaduz

Liechtenstein

 

 

AFFILIATED COMPANIES

 

·       Al Gaddag Engineering LLC

PO Box: 168

Muscat

Tel: (968) 24712470

 

·       Amiantit Oman SAO

PO Box: 1417

Seeb

Tel: (968) 24626600

 

·       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) 27564308

Fax (968) 27564309

 

·       Automobile Automotive Centre

PO Box : 6168

Muscat

Tel: (968) 27561377

Fax: (968) 27561631

 

·       Bahwan Engineering Company LLC

PO Box: 169

Muscat

Tel: (968) 24797581

Fax: (968) 24797169

 

·       Bahwan Contracting Company LLC

PO Box: 4098

Muscat

Tel: (968) 27591092

Fax: (968) 27591098

 

·       Bahwan Foods (Khalijana) Co LLC

PO Box: 3711

Muscat

Tel: (968) 27592492

 

·       Bahwan Travel Agencies LLC

PO Box: 282

Muscat

Tel: (968) 24740455

Fax: (968) 24700483

 

·       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) 27591461

 

·       Rent-A-Car LLC

PO Box: 282

Muscat

Tel: (968) 27561427

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 Omaniya Automobile Marketing LLC

PO Box: 2619

Seeb

Tel: (968) 27560925

Fax: (968) 27564309

 

·       Arabian Engineering Services LLC

PO Box: 6000

Muscat

Tel: (968) 27561377

Fax: (968) 27561631

 

·       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) 27562100

Fax: (968) 27562039

 

·       Port Services Corp SAOG

PO Box: 133

Muscat

Tel: (968) 24714001

Fax: (968) 24714007

 

·       Qurum Contractors LLC

PO Box: 7003

Muscat

Tel: (968) 27562720

 

·       Sogex Oman LLC

PO Box: 4739

Muscat

Tel: (968) 27563055

Fax: (968) 27564608

 

 

OPERATIONS

 

Activities: Subject’s operations are performed through the following divisions:

 

·       Engineering Division

 

       Engaged in the import and distribution of engineering products for use in the water, wastewater, petroleum, chemical, oil and gas industry. The product line includes Ductile Iron Pipes and fittings, Steel pipes, Casings and tubings, GRP and GRE pipes and fittings, HDPE pipes and fittings, valves such as gate, check, butterfly, air pressure and level control, etc., couplings and adapters, liquid storage tanks, flow measuring equipment, pre-insulated pipes, municipal castings, detectable tapes, fasteners, butt fusion and electro fusion machines, pumps, fire hydrants, water / waste water treatment equipment.

 

·       Building Materials Division

 

       This division specialises in the wholesale and retail of building finishing products such as ceiling and partitions, wall and door protection, expansion joint system, entrance matting, Mineralite exterior decorative renders and finishing, and raised access floor systems.

 

·       Electrical Products Division

 

       The electrical products division specialises in the wholesale and retail of indoor and outdoor lighting including tubular systems, recessed and surface mounted ceiling fixtures, track systems, modular outdoor systems, integrated decorative ceiling systems, pendants, floor and table lamps, luxury crystal chandeliers, switches with decorative finishes, flood lights, street light poles and masts, decorative outdoor poles, hand and face dryers, and water macerators.

 

·       Sanitary & Special Projects Division

 

       Under this division the subject supplies a complete range of bathroom suites, bathroom fittings, electronically operated sanitary fittings, wall and floor tiles.

 

·       Service Division

 

       This division undertakes interior decoration jobs and installation of the products supplied by Al Mutawaa.

 

Import Countries: United Kingdom, Spain, Switzerland, Italy, Germany, Belgium and France

 

International Suppliers:

 

·         Eternit AG                                                   Switzerland

·         Ismatec SA                                                 Switzerland

·         Space Decks Ltd                                         United Kingdom

·         J Blakeborough & Sons Ltd                           United Kingdom

·         Gaya Fores                                                 Spain

·         VAG Armatuern GmbH                                 Germany

·         Friedrich Krombach Gmbh & Co. KG Germany

·         Bopp & Reuther Messtechnik GmbH             Germany

·         Z-Line                                                         Belgium

·         Jacob Delafon                                              France

·         Marinco Srl                                                  Italy

 

Operating Trend: Steady

 

Subject has a workforce of approximately 140 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 6,900,000                            RO 8,000,000

 

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

 

The above figures were provided by Mr Natrajan Ramachandaran, Finance Manager

 

BANKERS

 

·       Oman Arab Bank SAO

Main Branch

PO Box: 5010

Muscat

Tel: (968) 24706265 / 24706277

    

·       Bank of Oman, Bahrain and Kuwait SAO

Al Burj Street

PO Box: 4708

Muscat

Tel: (968) 24701528 / 24701532

 

·       Commercial Bank of Oman SAOG

Muttrah Business District

PO Box: 1696

Muscat

Tel: (968) 24793225

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                  January 1999               June 2004                    June 2005

Amount overdue                         0                                  0                                  0

Payment terms                          60 days                         60 days                         60 days

Payment Method                                   Letters of Credit             Letters of Credit             Letters of Credit

Paying record                            No Complaints               No Complaints               No Complaints

Currency                                   Pounds Sterling             Canadian Dollars            Canadian Dollars

 

 

GENERAL COMMENTS

 

Al Mutawah Trading Co LLC began trading in 1976 and is very well established in the local business community. It has a number of divisions with operations covering engineering products, building materials, electrical products and sanitary ware materials.

 

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.59.70

UK Pound

1

Rs.92.25

Euro

1

Rs.78.38

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.