MIRA INFORM REPORT

 

 

Report Date :

12.03.2014

 

IDENTIFICATION DETAILS

 

Name :

BAHWAN TRADING COMPANY LLC (BTC)

 

 

Registered Office :

Al Rawaq Building, Qurum Commercial District, P O Box 169 & 455 & 2, Muscat 113

 

 

Country :

Oman

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

15.07.1995

 

 

Com. Reg. No.:

1/49185/7

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject’s activities are performed through the following divisions:-

 

Bahwan Projects & Telecoms

Bahwan Projects & Telecoms provides technology and engineering services for the development of core sectors such as Telecoms and Broadcasting, Oil & Gas, Petrochemicals, Power, Water, and Defence.

 

Bahwan Electronics

Bahwan Electronics is a major distributor and retailer of branded air conditioning systems (splits, window and central air conditioning) for light commercial and domestic application, as well as a wide range of electronic products and household appliances, including Laptop computers, Mobile telephones, Calculators, Cash registers, Homeware, Cameras, Watches and clocks, Electronic music instruments, Luggage, and Attendance recording systems.

 

 

No. of Employees

2,000 (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

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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. 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

 

 

SUMMARY

 

Company Name                                     : BAHWAN TRADING COMPANY LLC (BTC)

Country of Origin                                    : Oman

Legal Form                                            : Limited Liability Company – LLC

Registration Date                                   : 15th July 1995

Commercial Registration Number            : 1/49185/7

Issued Capital                                        : RO 1,000,000

Paid up Capital                                      : RO 1,000,000

Total Workforce                                     : 2,000

Activities                                               : Subject operates several divisions (see below for details)

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Rahul Kar, Chief Financial Officer

 


COMPANY NAME

 

BAHWAN TRADING COMPANY LLC (BTC)

 

 

company ADDRESS

 

Registered & Physical Address

Building             : Al Rawaq Building

Area                 : Qurum Commercial District

PO Box             : 169 & 455 & 2

Town                 : Muscat 113

Country             : Oman

Telephone         : (968) 24650000 / 24650651 / 24650652

Facsimile          : (968) 24796158

Mobile               : (968) 99505139 / 94000964

Email                : info@suhailbahwangroup.com

 

Please note that subject’s previous address was, Suhail Bahwan Building, Ground & Mezzanine Floors, Jaame Street, Ruwi Industrial Area, Muscat.

 

Premises

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

 

 

KEY PRINCIPALS

 

     Name                                                                                              Position

 

·       Sheikh Suhail Salem Abdullah Bahwan                                               Managing Director

 

·       Sheikh Ahmed Suhail Salem Abdullah Bahwan                                    Director

 

·       Amal Suhail Salem Abdullah Bahwan                                                  Director

 

·       Thoraya Suhail Salem Abdullah Bahwan                                              Director

 

·       Huda Suhail Salem Abdullah Bahwan                                                  Director

 

·       Noura Suhail Salem Abdullah Bahwan                                     Director

    

·       Gayda Suhail Salem Abdullah Bahwan                                                Director

 

·       Zubaida Suhail Salem Abdullah Bahwan                                              Director

 

·       Fatima Suhail Salem Abdullah Bahwan                                               Director

 

·       Ajay Talwar                                                                                       Finance Manager

 

·       Rahul Kar                                                                                         Chief Financial Officer

 

·       Abdullah Al Omraimi                                                                          Administration Manager

 

·       Avid Alex D’Souza                                                                             Project Manager

 

·       Nasser Al Farsi                                                                                 Public Relations Officer

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 15th July 1995

 

Legal Form                  : Limited Liability Company – LLC

 

Commercial Reg. No.  : 1/49185/7

 

Issued Capital              : RO 1,000,000

 

Paid up Capital            : RO 1,000,000

 

Name of Shareholder (s)

·       Sheikh Suhail Salem Abdullah Bahwan

·       Sheikh Ahmed Suhail Salem Abdullah Bahwan

·       Amal Suhail Salem Abdullah Bahwan

·       Thoraya Suhail Salem Abdullah Bahwan

·       Huda Suhail Salem Abdullah Bahwan

·       Noura Suhail Salem Abdullah Bahwan

·       Gayda Suhail Salem Abdullah Bahwan

·       Zubaida Suhail Salem Abdullah Bahwan

·       Fatima Suhail Salem Abdullah Bahwan

 

 

AFFILIATED COMPANIES

 

·       Al Gaddag Engineering LLC

PO Box: 168

Muscat

Tel: (968) 24712470

 

·       Suhail & Saud Bahwan Building Materials LLC

PO Box: 169

Muscat

Tel: (968) 24797581

Fax: (968) 24797169

 

·       Suhail & Saud Bahwan Building Materials LLC

Al Qurum District

PO Box 3168 / 703, Ruwi 112

Muscat

Tel: (968) 24700983 / 24793741 / 24561377

Fax: (968) 24793755

 

·       Amiantit Oman SAO

PO Box: 1417

Seeb

Tel: (968) 25626600

 

·       Arab Merchants Co LLC

PO Box: 6228

Muscat

Tel: (968) 24701221

 

·       Arabian Car Marketing Co LLC

PO Box: 169

Muscat

Tel: (968) 24793741

Fax: (968) 24796158

 

·       Arabian Caravans Furnishing & Trading Co LLC

PO Box: 169

Muscat

Tel: (968) 24797596

Fax: (968) 24562089

 

·       Auto Parts Centre LLC

PO Box: 2619

Muscat

Tel: (968) 24564308

Fax: (968) 24564309

 

·       Automobile Automotive Centre

PO Box: 6168

Muscat

Tel: (968) 24561377

Fax: (968) 24561631

 

·       Bahwan Contracting Company LLC

PO Box: 4098

Muscat

Tel: (968) 24591092

Fax: (968) 24591098

 

·       Bahwan Foods (Khalijana) Co LLC

PO Box: 3711

Muscat

Tel: (968) 24592492

 

·       Bahwan Travel Agencies LLC

PO Box: 282

Muscat

Tel: (968) 24740455

Fax: (968) 24700483

 

·       Bahwan Engineering Co LLC (BEC)

Bahwan Centre

Sultan Qaboos Street

Al Ghoubra , Ruwi

PO Box: 703

Muscat 112

Tel: (968) 24597510

Fax: (968) 24597511

 

·       Delta Ltd

PO Box: 4537

Muscat

Tel: (968) 24708483

 

·       Ebin Rushed Pharmacy Co LLC

PO Box: 169

Muscat

Tel: (968) 24701557

Fax: (968) 24701547

 

·       International Equipment & Contracting Co LLC

PO Box: 169

Muscat

Tel: (968) 24714482

Fax: (968) 24793755

 

·       National Crushers

PO Box: 961

Muscat

Tel: (968) 24591461

 

·       Rent-A-Car LLC

PO Box: 282

Muscat

Tel: (968) 24561427

Fax: (968) 24700483

 

·       Utmost Building Materials Co LLC

Al Burj Building, 1st Floor

Deira

PO Box: 55014

Dubai

United Arab Emirates

Tel: (971-4) 3553883

Fax: (971-4) 3553776

 

·       Gulf Mercantile Trading

Al Burj Building, 1st Floor

Deira

PO Box: 55014

Dubai

United Arab Emirates

Tel: (971-4) 3553883

Fax: (971-4) 3553776

 

·       Mercantile Information & Telecommunication Technology Est (MITTE)

Sheikha Aisha Building

Al Salam Street

PO Box: 41175

Abu Dhabi

United Arab Emirates

Tel: (971-2) 6458909

Fax: (971-2) 6458907

 

·       Al Mutawah Trading Co LLC

Al Mutawah Building

Sultan Qaboos Street

Al Ghobra

PO Box: 17, Muttrah 114

Muscat

Tel: (968) 24591871 / 24591872 / 24591521

Fax: (968) 24592370

 

·       Al Omaniya Automobile Marketing LLC

PO Box: 2619

Seeb

Tel: (968) 25560925

Fax: (968) 25564309

 

·       Arabian Engineering Services LLC

PO Box: 6000

Muscat

Tel: (968) 24561377

Fax: (968) 24561631

 

·       Bilad (Oman) LLC

PO Box: 42006

Rusayl

Tel: (968) 24626001

Fax: (968) 24591098

 

·       Electronics Company LLC

PO Box: 8111

Muttrah

Tel: (968) 24793741

Fax: (968) 24796158

 

·       Inma Company Oman LLC

PO Box: 3760

Muscat

Tel: (968) 24562100

Fax: (968) 24562039

 

·       Port Services Corp SAOG

PO Box: 133

Muscat

Tel: (968) 24714001

Fax: (968) 24714007

 

·       Qurum Contractors LLC

PO Box: 7003

Muscat

Tel: (968) 24562720

 

·       Sogex Oman LLC

PO Box: 4739

Muscat

Tel: (968) 24563055

Fax: (968) 24564608

 

 

OPERATIONS

 

Operations : Subject’s activities are performed through the following divisions:

 

Bahwan Projects & Telecoms

 

Bahwan Projects & Telecoms provides technology and engineering services for the development of core sectors such as Telecoms and Broadcasting, Oil & Gas, Petrochemicals, Power, Water, and Defence.

 

The division’s primary function is the promotion of infrastructure and industrial projects in Oman, association with international companies to execute them and coordination of in-house expertise in project implementation. In addition, as a result of wide experience gained over the years, Bahwan Projects & Telecoms is now executing turn key projects involving Telecommunications, Broadcast, Mechanical and Electrical Engineering, Power, Desalination, Chemical Process Equipment, Oil and Gas, and Security and Defence. The Division enjoys strong links with both the Private and Public Sectors.

 

·       Bahwan Electronics

 

Bahwan Electronics is a major distributor and retailer of branded air conditioning systems (splits, window and central air conditioning) for light commercial and domestic application, as well as a wide range of electronic products and household appliances, including Laptop computers, Mobile telephones, Calculators, Cash registers, Homeware, Cameras, Watches and clocks, Electronic music instruments, Luggage, and Attendance recording systems.

 

Import Countries : Japan, Asia, Europe and the United States of America.

 

Brand Names : TOSHIBA, IGNIS, TEMPSTAR, COOLINE, DOLPHIN, TITAN, DOMETIC,

 SEIKO, SONY ERICSSON, NAPRO, CORNING, AUSONIA, BENQ,

 CORBY, CASIO, CARRIER, and DAEWOO.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 2,000 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 2,520,000                            RO 3,000,000

 

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

 

The above figures were provided by Mr Rahul Kar, Chief Financial Officer

 

 

BANKERS

 

·       Oman Arab Bank

     Head Office

     Muttrah Business District

     PO Box: 2010, Ruwi 112

     Muscat

     Tel: (968) 24700161 / 24706265 / 24706267

     Fax: (968) 24797736

 

·       Oman International Bank

Al Jaame Street

     PO Box: 4216

     Muscat

     Tel: (968) 24703614 / 24707328 / 24793450

 

·       HSBC Bank Middle East

Muttrah Business District

PO Box: 240, Ruwi 112

Muscat

Tel: (968) 24700810 / 24799920 / 24799927

Fax: (968) 24704241

 

·       Bank Dhofar Al Omani Al Fransi

Al Burj Street

PO Box: 4507, Ruwi

Muscat

Tel: (968) 24798012 / 798013

Fax: (968) 24798015

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

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.60.70

UK Pound

1

Rs.100.97

Euro

1

Rs.84.16

 

 

INFORMATION DETAILS

 

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

 

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%)

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.