MIRA INFORM REPORT

Report Date :

29.12.2014

IDENTIFICATION DETAILS

Name :	AL KHALILI UNITED ENTERPRISES LLC
Registered Office :	Al Wadi Al Kabir, Way No. 65511, Building No. 1100 PO Box 1869 Muscat 112 Sultanate of Oman
Country :	Oman
Financials (as on) :	31.12.2013
Date of Incorporation :	20.01.1976
Com. Reg. No.:	1/02435/3
Legal Form :	Limited Liability Company – LLC
Line of Business :	Import and distribution of building materials, general hardware, plywood & MDF boards, light fixtures and fittings, structural steel, tools and industrial equipment.
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 :	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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
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.

Source : CIA

SUMMARY

Company Name : AL KHALILI UNITED ENTERPRISES LLC

Country of Origin : Oman

Legal Form : Limited Liability Company – LLC

Registration Date : 20^th January 1976

Commercial Registration Number : 1/02435/3

Chamber Membership Number : 1524

Issued Capital : RO 1,500,000

Paid up Capital : RO 1,500,000

Total Workforce : 300

Activities : Import and distribution of building materials, tools and light fixtures and

fittings

Financial Condition : Good

Payments : Nothing detrimental uncovered

Operating Trend : Steady

Person Interviewed : Ayoub Khan, Chief Financial Officer

COMPANY NAME

AL KHALILI UNITED ENTERPRISES LLC

ADDRESS

Registered & Physical Address

Location : Al Wadi Al Kabir, Way No. 65511, Building No. 1100

PO Box : 1869

Town : Muscat 112

Country : Sultanate of Oman

Telephone : (968) 24816303 / 24493565 / 24455348 / 24616900 / 22035000

Fax Number : (968) 24815384 / 24613503

Mobile : (968) 99353195 / 96784375

Email : khalico@omantel.net.om / info@alkhalili.com

Premises

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

Branch Office (s)

Location Description

· Sohar Office premises

Tel: (968) 26751074

· Mabela Office premises

Tel: (968) 24455348

· Soor Office premises

Tel: (968) 25546670

· Ibiri Office premises

Tel: (968) 25690858

KEY PRINCIPALS

Name Position

· Qais Salim Hilall Al Khalili Managing Director

· Bassam Salim Hilall Al Khalili Director

· Talal Salim Hilall Al Khalili Director

· Sult Salim Hilall Al Khalili Director

· Ajit Kumar General Manager

· Ayoub Khan Chief Financial Officer

· Vijay Nair Commercial Manager

· Ravi Chandram Sales Manager

LEGAL FORM & OWNERS

Date of Establishment : 20^th January 1976

Legal Form : Limited Liability Company – LLC

Commercial Reg. No. : 1/02435/3

Chamber Member No. : 1524

Issued Capital : RO 1,500,000

Paid up Capital : RO 1,500,000

Name of Shareholder (s) Percentage

· Qais Salim Hilall Al Khalili 25.5%

· Talal Salim Hilall Al Khalili 25.5%

· Sult Salim Hilall Al Khalili 24.5%

· Bassam Salim Hilall Al Khalili 24.5%

AFFILIATED COMPANIES

· Al Kazem Contracting LLC

Muscat

· Al Khalili Construction LLC

Muscat

· Al Khalili Electrical LLC

Muscat

· Al Khalili Technology LLC

Muscat

· Al Khalili Specialized Projects LLC

Muscat

· Al Khalili Logistics LLC

Muscat

· Al Khalili Auto Services LLC

Muscat

· Al Khalili Oil and Gas Services LLC

Muscat

OPERATIONS

Activities: Engaged in the import and distribution of building materials, general hardware, plywood & MDF boards, light fixtures and fittings, structural steel, tools and industrial equipment.

Import Countries: Europe and GCC countries

Operating Trend: Steady

Subject has a workforce of approximately 300 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: Riyal Omani (RO)

Year Ending 31/12/12: Year Ending 31/12/13:

Total Sales RO 38,380,000 RO 40,000,000

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

The above figures were provided by Mr Ayoub Khan, Chief Financial Officer

BANKERS

· Oman Arab Bank

Muttrah Business District

PO Box: 2010, Ruwi 112

Muscat

Tel: (968) 24700161 / 24706265 / 24706267

Fax: (968) 24797736

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

Date of transaction August 2007

Credit amount 150,000

Amount overdue 0

Payment terms 60 days

Payment Method Letters of Credit

Paying record No Complaints

Currency US Dollars

GENERAL COMMENTS

Established in 1976, subject is involved in the import and distribution of building materials, tools and light

fixtures and fittings.

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.63.64
UK Pound	1	Rs.98.98
Euro	1	Rs.77.74

INFORMATION DETAILS

Analysis Done by :	SUB
Report Prepared by :	NIS

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%)

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