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Report Date : |
18.02.2014 |
IDENTIFICATION DETAILS
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Name : |
ZAWAWI TRADING COMPANY LLC (ZTC) |
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Registered Office : |
Mercedes Benz Showroom, Zawawi Building, Sultan Kabous Street, Al
Qurum Area 58, Muscat 113 |
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Country : |
Oman |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
April 1977 |
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Com. Reg. No.: |
1/05407/4 |
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Legal Form : |
Limited Liability Company – LLC |
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Line of Business : |
Subject’s operations are performed through the following divisions ·
Automotive Division ·
Agricultural Division ·
Engineering Division ·
Marine Engineering
Division ·
Utilities Division |
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No of Employees : |
450 |
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 – december 01, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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.
|
Source
: CIA |
Company Name : ZAWAWI TRADING COMPANY LLC (ZTC)
Country of Origin : Oman
Legal Form : Limited Liability Company – LLC
Registration Date : April 1977
Commercial Registration Number : 1/05407/4
Chamber Membership Number : 21
Issued Capital : RO 5,250,000
Paid up Capital : RO 5,250,000
Total Workforce : 450
Activities : Subject operates several divisions (see below for details)
Financial Condition : Good
Payments : Nothing detrimental uncovered
Person Interviewed : Kailesh Bavushi, Financial Controller
COMPANY NAME: ZAWAWI TRADING COMPANY LLC (ZTC)
Building : Mercedes Benz
Showroom, Zawawi Building
Street : Sultan
Kabous Street
Area : Al Qurum
Area
PO Box : 58
Town : Muscat 113
Country : Oman
Telephone : (968) 24562077
Facsimile : (968) 24562747
Email : ztc@omzest.com
Subject operates from a large suite of offices that are rented and
located in the Central Business Area of Muscat.
Name Position
·
Dr Omar Bin Abdul Moniem Al Zawawi Managing
Director
·
Qais Omar Abdul Moniem
Al Zawawi Director
·
Zuhair Omar Abdul Moniem
Al Zawawi Director
·
Miraim Omar Abdul Moniem
Al Zawawi Director
·
Amanah Omar Abdul Moniem
Al Zawawi Director
·
Hala Omar Abdul Moniem
Al Zawawi Director
·
Samir Kumar General
Manager
·
Clive Hemant Assistant
General
Manager
·
Rakesh JampoSarya Finance
Manager
·
Kailesh Bavushi Financial
Controller
·
Rashid Kathiwalla Operations
Manager
Date of
Establishment : Subject’s
operations date back to 1972, however it was registered on April 1977
Legal Form : Limited Liability
Company – LLC
Commercial Reg. No. : 1/05407/4
Chamber Member No. : 21
Issued Capital : RO 5,250,000
Paid up Capital : RO 5,250,000
·
Dr Omar Bin Abdul Moniem Al Zawawi 69%
·
Qais Omar Abdul Moniem
Al Zawawi -
·
Zuhair Omar Abdul Moniem
Al Zawawi -
·
Miraim Omar Abdul Moniem
Al Zawawi -
·
Amanah Omar Abdul Moniem
Al Zawawi -
·
Hala Omar Abdul Moniem
Al Zawawi -
The total number of shareholders is 13.
Subject belongs to the Omzest Group of Companies,
which contains the following concerns:
·
Al Khuwair Development & Services Co SAOG
·
Modern Exchange LLC
·
Muscat Finance Co Ltd (SAOG)
·
Muscat Insurance Company SAOC
·
Muscat Life Assurance Company SAOC
·
Muscat National Holding Company SAOG
·
Oman International Bank SAOG
·
Oman Securities' Portfolio Co SAOG
·
Omzest Investment Division
·
Personal Investments
·
Personal Real Estate Department
·
United Business & Investment Co
·
Wilayat Holding Co
·
Wipro Holding Co
·
Mideast Integrated Drilling & Well Services
·
National Telephone Services Co LLC
·
Qurum Contractors LLC
·
Al Amal Industries Co (SAOG)
·
Al Wardha Footwear & Leather Products Company
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Amiantit Oman SAOC
·
Areej Vegetable Oils & Derivatives SAOG
·
Bausher Chemicals SAOG
·
Decorative Glass Manufacturing LLC
·
Jyoti Sohar Switchgear LLC
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Keemya Oman SAOG
·
Modern Poultry Farms Company SAOG
·
National Heaters Industries Co LLC
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Oman Agriculture Development Company SAOG
·
Oman Fiber Optic Co SAOG
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Oman Textile Mills Co SAOG
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Oman Water Pumps Mfg Co SAOG
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Oman Water Treatment
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Omani Marble Company LLC
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Protein Products International LLC
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Waleed Associates LLC
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Riyam Investment & Trading Est LLC
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Reem Batteries & Power Appliances Co SAOC
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The National Detergent Company SAOG
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Advertising International Company SAOC
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Al-Rimah Medical Centre LLC
·
Circle Freight International (Oman)
·
Gulf of Oman Services
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Gulf Seagull Co
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Impact Films LLC
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Maersk Shipping Services & Co LLC
·
Mezoon Travel LLC
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Muscat Contract Cleaning & Maintenance LLC
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Riyam Computer Services LLC
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Waleed Catering & Services Co LLC (WACASCO)
·
YBA Kanoo (Oman)
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Areej Business Systems Co LLC
·
Bishara Establishment LLC
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General Electronics & Trading Co
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Medical & Scientific Supplies LLC
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Muscat Cold Stores LLC
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National Oilfield Supply Co LLC
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Office Supplies Co LLC
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Oman Mechanical Services Co Ltd LLC (OMSC)
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Oman Services & Supply Organisation
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Omzest Beijing
·
Omzest Business Division
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Reem Scientific & Energy Technologies &
Trade LLC
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Riyam Engineering & Services LLC
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Riyam Marketing & Services Co LLC
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Waleed Communications Co (WACOM) Ltd
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Waleed Pharmacy LLC
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Waljat Modern Technology
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Zawawi Business Machines LLC
·
Sadolin Paints (Oman) Ltd (Spol)
Activities: Subject’s operations are performed through the following divisions:
· Automotive
Division
This division deals in vehicles ranging
from passenger cars to commercial vehicles, as well as spare parts and tyres.
It also provides a comprehensive maintenance and after sales service.
Subject is the exclusive distributor for the
entire range of Mercedes-Benz cars and commercial vehicles in Oman, it is one
of the largest automotive dealers and market leaders in the executive and
luxury car segment in the Sultanate of Oman. ZTC currently operates
Mercedes-Benz showrooms in Muscat and Salalah as well as a commercial vehicles
aftersales facility in Haima to provide prompt and expert services to
Mercedes-Benz owners in Haima and its vicinity.
· Agricultural
Division
Engaged in the import and distribution of
tractors and agricultural machinery.
· Engineering
Division
Under this division, the company undertakes
projects in the areas of communications, mechanical, and automation works.
· Marine Engineering
Division
This division is engaged in the sales and service of marine engineering
equipment like High Speed Diesel Engines under the brand names MTU, Detroit;
Marine Gearboxes ,waterjets and other marine and shipboard machinery; MTU
Onsite Energy solutions for land based power and energy requirements; MTU
diesel engines for other applications like Construction & Industrial,
railways, oil and gas.
· Utilities Division
This division deals in power
generation and transmission line equipment, raychem termination and joints.
Products include:
Power: Transmission Line Hardware, Insulators, Sub-station
Connectors, Surge Arrestors, Power / Distribution Transformers, MV / LV
Switchgear, Tyco Electronics Raychem Cable Joint / Termination &
Accessories (LV/MV/HV), FOC Accessories and Solar Energy Systems.
Oil & Gas: Tyco Thermal Heat Tracing systems, Leak Detection system, Down hole Heating
System, Thermoplastic Heat Shrinkable Material, Internal and External Epoxy and
Cathodic Protection of Pipeline and Tanks.
Water Systems:
MS steel pipes, EPC Contracts and O&M for Water Desalination & Waste
Water Treatment Plants.
Import Countries: Germany, India and the United States of America
International Suppliers:
·
Mercedes-Benz Germany
Subject has a workforce of approximately 450 employees.
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 43,400,000 RO 47,000,000
Local sources consider subject’s financial condition to be Good.
The above financial figures were confirmed by Kailesh Bavushi, Financial Controller.
·
Oman Arab Bank
Al
Khuwair Branch
PO Box:
5010, Ruwi
Muscat
Tel:
(968) 24603520
Fax:
(968) 24602948
·
Oman International Bank
Al Jaame Street
PO Box:
4216
Muscat
Tel:
(968) 24703614 / 24707328
·
HSBC Bank Middle East
Muttrah Business
District
PO Box: 240, Ruwi
112
Muscat
Tel: (968)
24700810 / 24799920 / 24799927
Fax:
(968) 24704241
No complaints regarding subject’s payments have been reported.
Credit amount 250,000
Amount overdue 0
Payment terms 180
days
Payment Method Letters
of Credit
Paying record No
Complaints
Currency Euros
Zawawi Trading Company LLC was established in 1972 and is a well known concern
in the Omani market with diversified operations.
It belongs to the Omzest group of companies, a very large and well-known
group that contains some of the leading Omani companies.
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. 61.95 |
|
|
1 |
Rs. 104.02 |
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Euro |
1 |
Rs. 84.95 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
RATING EXPLANATIONS
|
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.