|
Report Date : |
06.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
MODERN STEEL MILLS LLC |
|
|
|
|
Registered Office : |
Rusayl Industrial Estate Modern Street, Road |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
01.11.2003 |
|
|
|
|
Com. Reg. No.: |
1/60506/2 |
|
|
|
|
Legal Form : |
Limited Liability Company – LLC |
|
|
|
|
Line of Business : |
Subject is engaged in the manufacture of steel pallets |
|
|
|
|
No. of Employees |
350 |
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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
|
Source
: CIA |
Company Name : MODERN STEEL MILLS LLC
Country of Origin : Oman
Legal Form : Limited Liability Company – LLC
Start Date : 1997
Registration Date : 1st November 2003
Commercial Registration Number : 1/60506/2
Issued Capital : RO 7,000,000
Paid up Capital : RO 7,000,000
Total Workforce : 350
Activities : Manufacture of steel pallets.
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
Person Interviewed : Jiss Varghese, Financial Controller
MODERN STEEL MILLS LLC
Location : Rusayl
Industrial Estate
Street : Modern
Street, Road No. 17
PO Box : 174
Town : Rusayl 124
Country : Oman
Telephone : (968) 24449039
/ 24629039 / 24449063
Facsimile : (968) 24449064
/ 24629064
Mobile : (968) 99009099 / 99382685
Email : msm2001@omantel.net.om
Subject operates from a large suite of offices and a factory that are rented
and located in the Industrial Area of Rusayl.
Name Nationality Position
· Hamad Bin Hamd Bin Abid Al Ghafari - Managing
Director
· Mohamed
Hamad Al Ghafari - Director
· Salem
Bin Saeed Bin Hamad Oribi - Director
· Ashwin
Drumsingh Indian Director
· Abdul
Qader Salem Gassim - Director
· Abd
Allam Bin Mustahil Al Khyod - Director
· Mohamed Bin Hamd Bin Abid Al Ghafari - Administration
Manager
· Dani Doleh - Commercial Manager
· Nalesh Sait - Finance
Manager
· Taleb Mohamed Al Bloushi - Public
Relations Manager
· Jiss Varghese - Financial
Controller
Date of
Establishment : Subject’s
operations date back to 1997, however it was registered on 1st
November 2003
Legal Form : Limited Liability
Company – LLC
Commercial Reg.
No. : 1/60506/2
Membership No. : 1057
Issued Capital : RO 7,000,000
Paid up Capital : RO 7,000,000
· Hamad Bin Hamd Bin Hamoud Al Ghafari
· Hamad Bin Hamd Bin Abid Al Ghafari
· Salem Bin Saeed Bin Hamd Al Fana Al Arumai
· Ashwin
Drumsingh
· Oman International Co For Investment & Development
· Al Mamoura for Furniture & Office Equipment
· Gulf Transport LLC
· Al Serrain Co LLC
Subject belongs to the Assarain group of
companies that consists of the following concerns:
· Assarain
Furnishing LLC
· Blue Falcon Travel
& Commercial Company
· Assarain Insurance
Division
· National Marketing
& Trading
· Hatat Polyclinic
LLC
· The Raymond Shop
· Wadi Adai Auto
Service Centre
· Assarain Food
Products LLC
· Assarain
Telecommunications
· Kalhat Services
& Trading LLC
· Al Haq Trading
& Contracting Co LLC
· Assarain Concrete
Products LLC
· Shamal Plastic
Industries LLC
· Gulf Acrylic
Industries LLC
· Hay Al Rahbah
Trading & Contracting Co LLC
· Assarain
International Contracting Co LLC
· Cluttons &
Partners LLC
· Kone Lifts
Division
· Strabag Oman LLC
Activities: Engaged in the manufacture of steel pallets.
Import Countries: India and China
International Suppliers:
· Shijizhuang Iron
& Steel China
·
Beijing Carbon China
Operating Trend: Steady
Subject has a workforce of approximately 350 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
39,400,000 RO
36,319,000
Local sources consider subject’s financial condition to be Good.
The above figures were provided by Mr Jiss Varghese, Financial
Controller
·
Bank Muscat SAOG
Ruwi Main Branch
PO Box: 6326
Muscat
Tel: (968) 24561399 / 24708543
Fax: (968) 24561036
·
National Bank of Oman Limited (SAOG)
Muttrah Business District
PO Box: 751, Ruwi 112
Muscat
Tel: (968) 24708894 / 24708630 / 24708684
Fax: (968)
24707781 / 24703972
No complaints regarding subject’s payments have been reported.
Omani billet producer Modern Steel Mills plans to increase its
production capacity over the next few years to cater for the prospective growth
of long product output in the country, driven by infrastructural investments,
the company tells Steel Business Briefing.
The company operates an electric arc furnace, ladle furnace, continuous billet
caster, and scrap processing facility. It sources 75% of its scrap feedstock
from the local market with the remainder coming from the United Arab Emirates.
Long term product consumption in Oman, as in the majority of Gulf Cooperation
Council countries, is set to increase significantly over the medium term as new
infrastructure, public building and residential construction is carried out,
funded mainly by sizeable government oil revenues.
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.60.44 |
|
|
1 |
Rs.98.64 |
|
Euro |
1 |
Rs.78.20 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
NIS |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.