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Report No. : |
339456 |
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Report Date : |
09.09.2015 |
IDENTIFICATION DETAILS
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Name : |
LARSEN & TOUBRO ELECTROMECH LLC |
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Registered Office : |
Ghala Industrial Area, PO Box 1999, Ruwi 112, Muscat |
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Country : |
Oman |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
2000 |
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Com. Reg. No.: |
1/04445/1 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Engaged in the operation and maintenance of electromechanical systems for building utilities, and is a major contractor to PDO in oilfield projects. Subject operates in four key business units, mechanical and engineering project services, electrical and instrumentation for oil and gas companies, engineering and maintenance contracts for electrical and instrumentation and facilities management. |
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No. of Employees : |
300 |
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 : |
Good |
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Payment Behaviour : |
Regular |
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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, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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 heavily dependent on dwindling oil resources, which
generates 77% of government revenue. It is using enhanced oil recovery
techniques to boost production. 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 from 46% to 9% by
2020. Muscat also is focused on 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, have challenged
the government's ability to effectively balance its budget as oil prices
decline. Despite government acknowledgement that Oman’s expansive social
welfare benefits are unsustainable, Oman authorities are comfortable with
short-term budget deficits and have approved an expansionary 2015 budget.
Concurrently, Oman has expanded efforts to support the development of small and
medium-size enterprises and entrepreneurship. Government agencies and large
oligarchic group companies have announced 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.
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Source
: CIA |
Company Name :
LARSEN & TOUBRO ELECTROMECH LLC
Country of Origin :
Oman
Legal Form :
Limited Liability Company – LLC
Registration Date :
2000
Commercial Registration Number :
1/04445/1
Issued Capital :
RO 300,000
Paid up Capital :
RO 300,000
Total Workforce : 300
Activities :
Operation and maintenance of electromechanical systems for building
utilities.
Financial Condition :
Good
Payments :
Nothing detrimental uncovered
Operating Trend :
Steady
LARSEN & TOUBRO ELECTROMECH LLC
Registered &
Physical Address
Location : Ghala
Industrial Area
PO Box : 1999, Ruwi 112
Town : Muscat
Country : Oman
Telephone : (968) 24590577
/ 24626500 / 24597438 / 24797445
Facsimile : (968) 24590811
/ 24626555
Mobile : (968)
99356626 / 99890192
Email : mds@intemoman.com
/ intmneom@omantel.net.om
Premises
Subject operates from a large suite of offices that are rented and
located in the Industrial Area of Muscat.
Name Position
K Venkataramanan Chairman
P S Kapoor Director
D R Saxena Director
S D Navare Director
Rashad M Al Zubair Director
C S Badrinath Director
M Meenakshi Sundaram Chief
Executive Officer
Date of Establishment : 2000
Legal Form : Limited Liability
Company – LLC
Commercial Reg. No. : 1/04445/1
Issued Capital : RO 300,000
Paid up Capital : RO 300,000
Name of
Shareholder (s) Percentage
Larsen & Toubro International FZE 65%
Sharjah
United Arab Emirates
Muscat Trading Company LLC 35%
Muscat
Larsen & Toubro (Oman) LLC
L&T Modular Fabrication Yard LLC
Larsen & Toubro Saudi Arabia LLC
Larsen & Toubro Kuwait Construction General Contracting Company WLL
L&T Electrical & Automation FZE
L&T Infotech Ltd
L&T Heavy Engineering LLC
L&T Sargent & Lundy Ltd
L&T Infrastructure Finance Ltd
Larsen & Toubro Qatar LLC
Activities: Engaged in the operation and maintenance of electromechanical systems for building utilities, and is a major contractor to PDO in oilfield projects. Subject operates in four key business units, mechanical and engineering project services, electrical and instrumentation for oil and gas companies, engineering and maintenance contracts for electrical and instrumentation and facilities management.
Current Projects:
EPCC of power generation and distribution facility at Daleel oilfields
(phase II) for Daleel Petroleum LLC. Contract value RO 13,200,000.
EPC of fuel farm and fire hydrant system for the Salalah Airport
Development project for Larsen & Toubro Ltd. Contract value RO 7,600,000.
C, M, E & I construction works for gas field development project as
Lekhwair for Larsen & Toubro Ltd. Contract value RO 17,300,000.
Larsen & Toubro Limited – Hydro Carbon
(Oman Branch) Saih Rawl Depletion Compression project RO 23.0 mn
Hyundai Engineering Musandam gas plant
project RO 5.7 mn
Larsen & Toubro Limited
- Hydrocarbon and Infrastructure ICs
Additional orders received on existing projects RO 2.9 mn
Various clients (Vale International, SEPCO
III, Occidental of Mukhaizna) Additional orders / Change orders received on
existing projects RO 5.1 mn
Operating Trend: Steady
Subject has a workforce of approximately 300 employees.
Financial highlights provided by local sources are given below:
Currency: Indian Rupees (Lakhs)
Balance Sheet 31/12/12 31/12/11
SOURCES OF FUNDS
Shareholders’ Funds
Share capital 35,560,200 35,560,200
Reserves and surplus 1,604,659,605 1,326,294,816
1,640,219,805 1,361,855,016
Current Liabilities
Trade Payables 1,576,879,042 1,000,441,327
Other Current Liabilities 279,220,943 552,604,883
Short Term Provisions 210,253,976 331,405,169
2,066,353,960 1,884,451,379
TOTAL 3,706,573,765
3,246,306,396
ASSETS
Non-Current Assets
Fixed assets
Gross block 1,371,332,096 929,173,362
Less: Depreciation 783,418,884 567,016,070
Net block 587,913,212 362,157,292
Current Assets
Inventories 396,972,545 239,658,732
Trade Receivables 998,344,511 1,527,043,577
Cash and Bank Balances 353,463,359 517,697,487
Short Term Loans and advances 377,967,432 374,509,592
Other Current Assets 991,912,706 225,239,717
3,118,660,553 2,884,149,104
TOTAL 3,706,573,765
3,246,306,396
Statement of
Income
REVENUE
Revenue from operations (Net) 5,946,683,983 4,769,425,215
Other income 16,455,899 6,955,200
TOTAL REVENUE 5,963,139,882
4,776,380,415
EXPENSES
Manufacturing, Construction & Operating
Expenses
Cost of raw materials, components 681,550,100 562,911,563
Stores, spares and tools 234,043,808 164,560,489
Sub-contracting charges 1,885,504,236 1,326,593,886
Other manufacturing, construction and
operating expenses 745,183,192 563,159,949
3,546,281,337 2,617,225,888
Employee benefits expenses 1,552,907,810 1,297,514,159
Sales, administration and other expenses 313,747,632 160,764,380
Finance costs 49,213 -
Depreciation, obsolescence and amortisation
expense 202,377,654 143,345,057
TOTAL EXPENSES 5,615,363,646
4,218,849,484
Profit before tax 347,776,236
557,530,931
Tax expense 41,882,978 73,345,794
Profit after tax
carried to Balance Sheet 305,893,258
484,185,137
Figures for the years ending 31/12/13 and 31/12/14 were not made
available.
Local sources consider subject’s financial condition to be Good.
Commercial Bank of Oman SAOG
Muttrah Business District
PO Box: 1696, Ruwi 112
Muscat
Tel: (968) 24793225 / 24793226 /
24793228
Fax: (968) 24793229
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.66.60 |
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1 |
Rs.102.30 |
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Euro |
1 |
Rs.74.61 |
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
TPT |
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.