MIRA
INFORM REPORT
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Report Date : |
11.05.2013 |
IDENTIFICATION DETAILS
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Name : |
BABIL INTERNATIONAL LLC |
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Registered Office : |
Main Street, Souq Al Khoud Area, PO Box 624, Al Koudh 132 |
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Country : |
Oman |
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Date of Incorporation : |
April, 1991 |
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Com. Reg. No.: |
1/60913/0 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subjects operations are performed through the following divisions: Babil Hypermarkets, Babil Kids, Wholesale
Division |
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No. of Employees : |
350 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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Oman |
A2 |
A2 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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.
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Source
: CIA |
Company Name :
BABIL INTERNATIONAL LLC
Country of Origin :
Oman
Legal Form :
Limited Liability Company – LLC
Start Date :
April 1991
Registration Date :
27th December 1998
Commercial Registration Number :
1/60913/0
Chamber Membership Number :
1492
Issued Capital :
RO 250,000
Paid up Capital :
RO 250,000
Total Workforce :
350
Activities :
Subject operates several divisions (see below for details)
Financial Condition :
Undetermined
Payments :
Nothing detrimental uncovered
BABIL INTERNATIONAL LLC
Registered &
Physical Address
Street : Main Street
Area : Souq Al
Khoud Area
PO Box : 624
Town : Al Koudh 132
Country : Oman
Telephone : (968) 24537815
/ 24545759 / 24543667
Facsimile : (968) 24544581
/ 24546951
Email : babil@omantel.net.om
Premises
Subject operates from a large suite of offices that are rented and
located in the Central Business Area of Muscat.
Name Nationality Position
Sayed Arakal Mohamed Basheer Indian Managing Director
Mohamed Nasser Hamood Al Rozaiqi Omani Director
Ali Thani Al Manzari Omani Director
Khamis Thani Al Manzari Omani Director
Date of Establishment : April 1991,
however subject was registered on 27th December 1998
Legal Form : Limited Liability
Company – LLC
Commercial Reg. No. : 1/60913/0
Chamber Member No. : 1492
Issued Capital : RO 250,000
Paid up Capital : RO 250,000
Name of
Shareholder (s)
Sayed Arakal Mohamed Basheer
Mohamed Nasser Hamood Al Rozaiqi
Ali Thani Al Manzari
Khamis Thani Al Manzari
Activities: Subjects operations are
performed through the following divisions:
Babil Hypermarkets
Engaged in the operation of hypermarkets.
Babil Kids
Engaged in the operation of children’s stores
for readymade garments.
Wholesale Division
Engaged in the import, wholesale and distribution of general foodstuff
and fast moving consumer goods.
Import Countries: China, India, Germany, Malaysia, Indonesia,
United Kingdom, Singapore, Cyprus, Iran, Brazil, Turkey, Italy and Greece.
Subject has a workforce of approximately 350 employees.
Companies registered in Oman are not legally required to make their
accounts public and no financial information was released by the company or
submitted by outside sources.
HSBC Bank Middle East
PO Box: 701528
Muscat
Tel: (968) 24799920
Fax: (968) 24704241
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.54.54 |
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1 |
Rs.84.19 |
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Euro |
1 |
Rs.71.11 |
INFORMATION DETAILS
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Report Prepared
by : |
SDA |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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.