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Report Date : |
22.07.2014 |
IDENTIFICATION DETAILS
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Name : |
REEM BATTERIES
& POWER APPLIANCES CO SAOC |
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Registered Office : |
Rusayl Industrial
Area, Road No. 7, |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
11.07.1982 |
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Com. Reg. No.: |
1/13775/1 |
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Legal Form : |
Omani Joint Stock Company-Closed |
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Line of Business : |
·
Engaged in the manufacture and distribution of
automotive batteries, heavy duty industrial batteries and UPS systems. Engaged in
manufacturing dry charged battery Subject was set up in technical collaboration
with Johnson Controls Battery Group of the USA |
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No of Employees : |
420
(Approximately) |
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 |
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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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Oman |
A2 |
A2 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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 |
Company Name : REEM BATTERIES & POWER APPLIANCES CO SAOC
Country of Origin : Oman
Legal Form : Omani Joint Stock Company-Closed
Registration Date : 11th July 1982
Commercial Registration Number : 1/13775/1
Chamber Membership Number : 610
Issued Capital : RO 3,000,000
Paid up Capital : RO 3,000,000
Total Workforce : 420
Activities : Manufacture of automotive batteries, heavy duty industrial batteries and
UPS systems.
Financial Condition : Fair
Payments : Nothing detrimental uncovered
Operating Trend : Steady
Person Interviewed : Srinivath
Aponso, Finance Manager
REEM BATTERIES & POWER APPLIANCES CO
SAOC
Registered &
Physical Address
Location : Rusayl Industrial Area, Road
No. 7
PO Box : 3
Town : Rusayl 124
Country : Sultanate of Oman
Telephone : (968) 24445200
Facsimile : (968) 24446190
Mobile : (968) 99386450
Email : reem@omzest.com / reembat@omzest.com
Premises
Subject operates
from a large suite of offices and a factory that are owned and located in the
Industrial Area of Rusayl.
Name Position
·
Ali Bin
Hamed Bin Abdullah Al Hasani Chairman
·
Col. Nasser Killabi Director
·
D H Tambe Kumar Director
·
Saleh Buothmani Director
·
Kamel Mohamed Director
·
V Venkat Raman Director
·
Srinivathan Gopalan Chief
Executive Officer
·
Buddhen Misra Operations
Manager
·
Suresh Kumar Marketing
Manager
·
Srinivath
Aponso Finance
Manager
Date of Establishment : 11th
July 1982
Legal Form :
Societe Anonyme Omani Close
- SAOC (Omani Joint Stock Company-Closed)
Commercial Reg. No. : 1/13775/1
Chamber Member No. : 610
Issued Capital : RO 3,000,000
Paid up Capital : RO 3,000,000
Name of Shareholder
(s) Percentage
·
Omzest
Group of Companies LLC 60%
·
Dr Omar
Abdulmoiem Al Zawawi 25%
·
Approximately
325 private individuals 15%
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
·
Amiantit
Oman SAOC
·
Areej
Vegetable Oils & Derivatives SAOG
·
Bausher
Chemicals SAOG
·
Decorative
Glass Manufacturing LLC
·
Jyoti
Sohar Switchgear LLC
·
Keemya
Oman SAOG
·
Modern
Poultry Farms Company SAOG
·
National
Heaters Industries Co LLC
·
Oman
Agriculture Development Company SAOG
·
Oman
Fiber Optic Co SAOG
·
Oman
Textile Mills Co SAOG
·
Oman
Water Pumps Mfg Co SAOG
·
Oman
Water Treatment
·
Omani
Marble Company LLC
·
Protein
Products International LLC
·
Waleed
Associates LLC
·
Riyam
Investment & Trading Est LLC
·
Sadolin
Paints (Oman) Ltd
·
The
National Detergent Company SAOG
·
Advertising
International Company SAOC
·
Al-Rimah
Medical Centre LLC
·
Circle
Freight International (Oman)
·
Gulf of
Oman Services
·
Gulf
Seagull Co
·
Impact
Films LLC
·
Maersk
Shipping Services & Co LLC
·
Mezoon
Travel LLC
·
Muscat
Contract Cleaning & Maintenance LLC
·
Riyam
Computer Services LLC
·
Waleed
Catering & Services Co LLC (WACASCO)
·
YBA
Kanoo (Oman)
·
Areej
Business Systems Co LLC
·
Bishara
Establishment LLC
·
General
Electronics & Trading Co
·
Medical
& Scientific Supplies LLC
·
Muscat
Cold Stores LLC
·
National
Oilfield Supply Co LLC
·
Office
Supplies Co LLC
·
Oman Mechanical
Services Co Ltd LLC (OMSC)
·
Oman
Services & Supply Organisation
·
Omzest
Beijing
·
Omzest
Business Division
·
Reem
Scientific & Energy Technologies & Trade LLC
·
Riyam
Engineering & Services LLC
·
Riyam
Marketing & Services Co LLC
·
Waleed
Communications Co (WACOM) Ltd
·
Waleed
Pharmacy LLC
·
Waljat
Modern Technology
·
Zawawi
Business Machines LLC
·
Zawawi
Trading Company LLC
Activities: Engaged in the manufacture and distribution
of automotive batteries, heavy duty industrial batteries and UPS systems.
Subject was set up in technical
collaboration with Johnson Controls Battery Group of the USA. It is ISO
9001:2000 accredited.
The
company’s clients include defence forces in Oman, UAE, Qatar, Bahrain, and
Syria.
Production
Capacity: 1.75 million
batteries per annum
Import
Countries: United States of
America and Europe
Export
Countries: Subject’s
exports account for 90% of its sales with markets throughout the Middle East,
Europe, Asia and Africa
Brand Names: ANTARA, ANTARA GOLD,
POWERPACK, GULFSTAR and GULFRACER
Operating Trend: Steady
Subject has a
workforce of approximately 420 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 16,538,000 RO 17,209,000
Local sources
consider subject’s financial condition to be Fair.
The above figures
were provided by Mr. Srinivath Aponso, Finance Manager
·
Standard
Chartered Bank
PO Box: 2353
Ruwi 112
Tel: (968) 24703999 / 24703796 / 24703574
Fax: (968) 24796864
·
Oman
Arab Bank
Muttrah Business District
PO Box: 2010, Ruwi 112
Muscat
Tel: (968) 24700161 / 24706265
/ 24706267
Fax: (968) 24797736
No complaints regarding
subject’s payments have been reported.
Amount overdue 0 0
Payment terms 180
days 180
days
Payment Method Letters
of Credit Letters
of Credit
Paying record No
Complaints No Complaints
Currency Pounds
Sterling Euros
Established in
1982, subject belongs to the Omzest group of companies, a very large and
well-known group that contains some of the leading Omani companies. Reem
Batteries & Power Appliances Co SAOC is the
largest dry charged battery manufacturing company in the Middle East.
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.60.19 |
|
UK Pound |
1 |
Rs.102.87 |
|
Euro |
1 |
Rs.81.48 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
MNL |
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 |
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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 |
|
<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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.