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Report Date : |
12.09.2013 |
IDENTIFICATION DETAILS
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Name : |
LARSEN & TOUBRO (OMAN) LLC |
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Registered Office : |
Bank Muscat Building, Main Street, PO Box
3308 & 598, Ruwi 112, Muscat |
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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 : |
29.01.1994 |
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Com. Reg. No.: |
1/40304/4 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Engaged in the provision of construction and project management services for high rise buildings and factories, roads, bridges, airports, industrial electrification and transmission lines, energy and petrochemicals, minerals, metals and bulk materials, oil, gas and fertilizers. |
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No. of Employees : |
150 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 |
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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 :
LARSEN & TOUBRO (OMAN) LLC
Country of Origin :
Oman
Legal Form :
Limited Liability Company – LLC
Registration Date :
29th January 1994
Commercial Registration Number :
1/40304/4
Chamber Membership Number :
776
Issued Capital :
RO 1,457,144
Paid up Capital :
RO 1,457,144
Total Workforce :
150
Activities :
Providers of construction and project management services.
Financial Condition :
Good
Payments :
Nothing detrimental uncovered
Operating Trend :
Steady
Person Interviewed :
Satish Narnjan, Finance Manager
LARSEN & TOUBRO (OMAN) LLC
Building : Bank Muscat
Building
Street :
Main Street
PO Box :
3308 & 598, Ruwi 112
Town :
Muscat
Country :
Sultanate of Oman
Telephone :
(968) 24797445 / 24797466 / 24762200 / 24762202 / 24762203 / 24797029
Facsimile :
(968) 24797024
Email :
itofin@omantel.net.om / niranjan@lntecc.com
Subject operates from a large suite of offices that are rented and
located in the Central Business Area of Muscat.
Name Position
· Hussam Bin Mohamed
Al Zubair Managing
Director
· Rashad Bin Mohamed
Al Zubair Director
· P R Surindhra Babu Chief
Executive Officer
· D Suraish Kumar Procurement
Manager
· S Nagrajan Chief
Financial Officer
· Satish Narnjan Finance
Manager
Date of Establishment : 29th January 1994
Legal Form : Limited Liability
Company – LLC
Commercial Reg.
No. : 1/40304/4
Chamber Member No. : 776
Issued Capital : RO 1,457,144
Paid up Capital : RO 1,457,144
· Larsen &
Toubro International FZE 65%
Sharjah
United Arab
Emirates
· Muscat Trading Co LLC 35%
Muscat
Activities: Engaged in the provision of construction and project management services for high rise buildings and
factories, roads, bridges, airports, industrial electrification and transmission lines, energy and petrochemicals, minerals, metals and bulk materials, oil, gas and fertilizers.
In November 2011,
subject won two orders worth Rs 875 crore from the Muscat
Municipality and Ministry of Transport
and Communication of the Sultanate of Oman. The orders are for the construction
of two road
projects on the Wadi
Kabir-Darsait road and Mahlah Ghubbrat al Tam-Ismaiyah road.
In July 2013, subject was awarded a
contract worth RO 135.6 million to build a road project in the
northwest of the country, a tender board
official said on Wednesday. "Larsen & Toubro is the successful
bidder for the Batinah road project package 4. The project will take two
years to build.
Subject is also involved in the Salalah
Youth Complex project, worth RO 29 million which is due to be
completed in 2015/16.
Import Countries: Europe and the
United States of America.
Operating Trend: Steady
Subject has a
workforce of approximately 150 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
160,000,000 RO
142,121,094
Local sources
consider subject’s financial condition to be Good.
The above figures
were provided by Mr Satish Narnjan, Finance Manager
· 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.
Local sources
report that payment obligations are met in a generally timely manner and the
operating history is clear. As such the company is deemed a fair trade risk.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian
Rupees |
|
US Dollar |
1 |
Rs.63.90 |
|
UK Pound |
1 |
Rs.100.46 |
|
Euro |
1 |
Rs.84.65 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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 |
|
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 |
-- |
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.