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Report Date : |
23.01.2014 |
IDENTIFICATION DETAILS
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Name : |
JINDAL SHADEED IRON & STEEL LLC |
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Formerly Known as: |
Shadeed Iron & Steel LLC |
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Registered Office : |
Mina Sohar
Industrial Area, Al Batinah Region, Plot No. 12, P O Box 2816, Ruwi 112, 312,
Al Tareef 321, Sohar |
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Country : |
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Date of Incorporation : |
12.01.2005 |
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Com. Reg. No.: |
1/77776/9 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Engaged in the
production of hot direct reduced iron (HDRI) |
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No. of Employees : |
45 |
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 – September 30, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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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 : JINDAL SHADEED IRON & STEEL LLC
Previously Known As :
SHADEED IRON & STEEL LLC
Country of Origin : Oman
Legal Form : Limited Liability Company – LLC
Registration Date : 12th January 2005
Commercial Registration Number : 1/77776/9
Chamber Membership Number : 1490
Issued Capital : RO 500,000
Paid up Capital : RO 500,000
Total Workforce : 45
Activities : Production of hot direct reduced iron (HDRI)
Financial Condition : Undetermined
Payments : Nothing detrimental uncovered
Person Interviewed : Avinash Potaria, Finance Manager
JINDAL SHADEED IRON
& STEEL LLC
Registered &
Physical Address
Location : Mina Sohar Industrial Area, Al
Batinah Region, Plot No. 12
PO Box : 2816, Ruwi 112
312,
Al Tareef 321
Town : Sohar
Country : Sultanate of Oman
Telephone : (968) 26846659 / 26840718 / 26850403
/ 26850459 / 26850438
Facsimile : (968) 26846649 / 26850438
Mobile : (968) 99777798 / 93211116
Email : info@shadeed.co.om / commercial@jindalshadeed.com
/ accounts@jindalshadeed.com
Premises
Subject operates from
a suite of offices and a production plant on a plot of more than 1 million
square metres that are owned and located in the Sohar Industrial Area.
Name Nationality Position
·
Navil
Jindal Indian Chairman
·
Ravi
Uppal - Managing Director
·
V R
Sharma - Chief
Executive Officer
·
Nishat
Ansar - Plant
Manager
·
Avinash
Potaria - Finance
Manager
·
Shishir
Akhouri - Projects
Manager
Date of Establishment : 12th
January 2005
History : Subject began in 2005 under the name
“Shadeed Iron & Steel LLC”. However in 2011 it
changed name to “Jindal Shadeed Iron & Steel LLC”.
Legal Form :
Limited Liability Company –
LLC
Commercial Reg. No. : 1/77776/9
Chamber Member No. : 1490
Issued Capital : RO 500,000
Paid up Capital : RO 500,000
Name of
Shareholder (s)
·
Jindal
Steel Co
Mauritius
Activities: Engaged in the production of hot direct
reduced iron (HDRI).
The project is conceived in three phases. Phase-I consists of putting up
the facilities to produce 1.5 million tonnes of Hot Direct Reduced Iron (HDRI).
The steel making facility to produce 1.1 million tonnes of steel billets is
being installed in phase-II.The project also envisages converting the billets
into seamless tube, sections and bars in phase-III.
The construction of the phase-I of the plant started in the second
quarter of 2006. The facilities in this phase includes a Mega Module-Midrex
with Hot link facility and other support facilities like Air Separation Plant,
Desalination plant, Main Receiving Substation for power supply, Raw Material
Handling System and a jetty of 600 metre length and 19 metre draft capable to
handle cape size vessels bringing pellets to the plant. These support
facilities are planned to meet the requirements up to steel making stage.
Planned
Production Capacity: 7
million tonnes per annum
Import
Countries: Japan, Europe
and the United States of America
Subject has a workforce
of 45 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.
·
National
Bank of Oman Limited
Ruwi Branch
PO Box: 3752
Muscat
Tel: (968) 24708898
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.61.92 |
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1 |
Rs.101.98 |
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Euro |
1 |
Rs.83.93 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.