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Report Date : |
08.11.2014 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
Plot No. 11, Sohar Industrial Port, Majees 452, Sohar 322 |
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Country : |
Oman |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
18.09.2005 |
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Com. Reg. No.: |
3/24306/0 |
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Legal Form : |
Limited Liability Company – LLC |
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Line of Business : |
Engaged in the production of steel billets and moulds. |
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No of Employees : |
250 |
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 – June 1, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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.
|
Source
: CIA |
Company Name : SOHAR STEEL LLC
Country of Origin : Oman
Legal Form : Limited Liability Company – LLC
Registration Date : 18th September 2005
Commercial Registration Number : 3/24306/0
Membership Number : 231
Issued Capital : RO 1,000,000
Paid up Capital : RO 1,000,000
Total Workforce : 250
Activities : Production of steel billets and moulds.
Financial Condition : Fair
Payments : Nothing detrimental uncovered
Operating Trend : Steady
Person Interviewed : L Saravanan, Finance Manager
SOHAR STEEL LLC
Location : Plot No. 11, Sohar Industrial Port
Area : Majees
PO Box : 452
Town : Sohar 322
Country : Oman
Telephone : (968) 26850205 / 26751567
Facsimile : (968) 26850204
Mobile : (968) 96781295 / 92898927 /
96631755
Email : info@soharsteelsms.com
Subject operates
from a large suite of offices and a factory that are rented and located in the
Industrial Area of Sohar.
Name Position
·
Mohamed
Reda Abdul Amir Managing
Director
·
Taqi Jawad Abdul Rasool Director
·
Tawfiq Jawad Abdul Rasool Director
·
Jameel Ali Sultan Director
·
G N
Khadse Chief
Executive Officer
·
Subha
Madhav Rao General
Manager
·
Thabet
Al Hamdramy Administration
Manager
·
L Saravanan Finance
Manager
·
Ravi Shanker Financial
Controller
Date of Establishment : 18th
September 2005
Legal Form :
Limited Liability Company –
LLC
Commercial Reg. No. : 3/24306/0
Membership
No. : 231
Issued Capital : RO 1,000,000
Paid up Capital : RO 1,000,000
·
Mohamed
Reda Abdul Amir
·
Taqi Jawad Abdul Rasool
·
Tawfiq Jawad Abdul Rasool
·
Jameel Ali Sultan
·
Al
Sharq Sohar Steel Rolling Mills LLC
PO Box: 12
Sohar 327
Tel: (968) 26751567 / 26851567
Fax: (968) 26751569
·
Middle
East Conversion Industry LLC
Muscat
Activities: Engaged in the production of steel billets
and mould.
The present plant
facilities include Ultra High Power (UHP) Electric Arc Furnace (EAF) with 36 MT
capacity, powered by 30 MVA transformer and Ladle Furnace (LF) of 5 MVA power.
The 3 strand Caster of 6 meter radius can cast billet sizes of 100, 120 and 130 mm. Hydraulic shear is used for
the automatic cutting of billets. The plant is capable of receiving scrap, DRI
and HBI as raw material.
Subject has
recently announced that by the end of 2014 production capacity will rise to
700,000 mt per annum
Production
Capacity: 300,000 MT of
steel billets per year.
Import
Countries: Europe and the
Far East
International Suppliers:
·
Jindal Steel India
Operating Trend: Steady
Subject has a
workforce of approximately 250 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 79,000,000 RO 76,445,000
Local sources
consider subject’s financial condition to be Fair.
The above figures
were provided by Mr L Saravanan,
Finance Manager
·
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.
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
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.52 |
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|
1 |
Rs.97.39 |
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Euro |
1 |
Rs.76.16 |
INFORMATION DETAILS
|
Report Prepared
by : |
SMN |
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 |
-- |
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.