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MIRA INFORM REPORT
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Report No. : |
512521 |
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Report Date : |
31.05.2018 |
IDENTIFICATION DETAILS
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Name : |
JINDAL SHADEED
IRON & STEEL LLC |
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Formerly Known As : |
SHADEED IRON & STEEL LLC |
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Registered Office : |
Mina Sohar
Industrial Area, Al Batinah Region, Plot No. 12 |
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Country : |
Oman |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
12.01.2005 |
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Com. Reg. No.: |
1/77776/9 |
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Legal Form : |
Limited Liability
Company – LLC |
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Line of Business : |
Subject engaged
in the production of hot direct reduced iron (HDRI |
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No. of Employees : |
1,000 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Good |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
OMAN - ECONOMIC OVERVIEW
Oman is heavily dependent on oil and gas resources, which can generate between and 68% and 85% of government revenue, depending on fluctuations in commodity prices. In 2016, low global oil prices drove Oman’s budget deficit to $13.8 billion, or approximately 20% of GDP, but the budget deficit is estimated to have reduced to 12% of GDP in 2017 as Oman reduced government subsidies. As of January 2018, Oman has sufficient foreign assets to support its currency’s fixed exchange rates. It is issuing debt to cover its deficit.
Oman is using enhanced oil recovery techniques to boost production, but it has simultaneously pursued a development plan that focuses on diversification, industrialization, and privatization, with the objective of reducing the oil sector's contribution to GDP. The key components of the government's diversification strategy are tourism, shipping and logistics, mining, manufacturing, and aquaculture.
Muscat also has notably focused on creating more Omani jobs to employ the rising number of nationals entering the workforce. However, high social welfare benefits - that had increased in the wake of the 2011 Arab Spring - have made it impossible for the government to balance its budget in light of current oil prices. In response, Omani officials imposed austerity measures on its gasoline and diesel subsidies in 2016. These spending cuts have had only a moderate effect on the government’s budget, which is projected to again face a deficit of $7.8 billion in 2018.
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Source
: CIA |
SUMMARY
Company Name :
JINDAL SHADEED IRON & STEEL LLC
Country of Origin :
Oman
Legal Form :
Limited Liability Company – LLC
Registration Date :
12th January 2005
Commercial Registration Number :
1/77776/9
Chamber Membership Number :
1490
Issued Capital :
RO 99,400,000
Paid up Capital :
RO 99,400,000
Total Workforce :
1,000
Activities :
Production of hot direct reduced iron (HDRI)
Financial Condition :
Good
Payments :
No Complaints
Operating Trend :
Steady
COMPANY
NAME
JINDAL SHADEED IRON & STEEL LLC
ADDRESS
Registered & Physical Address
Location : Mina Sohar
Industrial Area, Al Batinah Region, Plot No. 12
PO Box :
2816, Ruwi 112
312, Al Tareef 321
404, Falaj Al Qabail 322
Town : Sohar
Country : Sultanate of
Oman
Telephone : (968) 26865700
/ 26850449 / 26846659 / 26840718 / 26850403 / 26850459 / 26850438
Facsimile : (968) 26846649
/ 26850438 / 26855043 / 24706800
Mobile : (968)
93211116 / 93211119
Email : info@shadeed.co.om /
commercial@jindalshadeed.com
/ accounts@jindalshadeed.com
hamed.alfarsi@jindahshadeed.com
Premises
Subject operates from a suite of offices and a factory on a plot of more
than 1 million square metres that are owned and located in the Sohar Industrial
Area.
KEY
PRINCIPALS
Name Nationality Position
Rajesh Bhatia Indian Chairman
Ansari Naushad Akhter Indian Managing
Director
Musallam Mubarak Musallam Al Jabri
Omani Director
Nochad Akhtar Ansar - Chief
Executive Officer
Avinash Potaria - Finance Manager
Hamed Al Farsi - Human
Resources Manager
Sanjay Sharma - Project
Manager
LEGAL
FORM & OWNERS
Date of Establishment : 12th
January 2005
History : Subject began in 2005 under the name
“Shadeed Iron & Steel LLC”. However in 2011 it
changed name to “Jindal Shadeed Iron &
Steel LLC”.
Legal Form : Limited Liability
Company – LLC
Commercial Reg. No. : 1/77776/9
Chamber Member No. : 1490
Issued Capital : RO 99,400,000
Paid up Capital : RO 99,400,000
Name of Shareholder (s) Percentage
Jindal Steel & Power Co 99.9%
Mauritius
Rajesh Bhatia 0.1%
OPERATIONS
Activities: Engaged in the production of hot direct reduced iron (HDRI).
The project is conceived in three phases. Phase-I consists of putting up
the facilities to produce 1.5 million tonnes of Hot Direct Reduced Iron (HDRI).
The steel making facility to produce 1.1 million tonnes of steel billets is
being installed in phase-II. The project also envisages converting the billets
into seamless tube, sections and bars in phase-III.
The construction of the phase-I of the plant started in the second
quarter of 2006. The facilities in this phase includes a Mega Module-Midrex
with Hot link facility and other support facilities like Air Separation Plant,
Desalination plant, Main Receiving Substation for power supply, Raw Material
Handling System and a jetty of 600 metre length and 19 metre draft capable to
handle cape size vessels bringing pellets to the plant. These support
facilities are planned to meet the requirements up to steel making stage.
Jindal Shadeed Iron and Steel Co's rebar rolling mill project, with
1.4mn-tonnes-per-annum (MTPA) production capacity, will be commissioned in the
first quarter of 2016.
Cold trial is expected in October this year, according to leading Indian
producer Jindal Steel and Power Ltd (JSPL), which owns the Oman plant.
In its financial results for the first quarter ended June 30, 2015, JSPL
said its Oman operation continued its robust performance during the first
quarter. “At the Oman plant, billet and rounds production increased to 0.25MT.
Similarly sales and Ebitda on a year-on-year basis grew by six per cent and
nine per cent respectively. The rolling mill project with a capacity of 1.4MTPA
rebar is progressing well and cold trial is expected in October. The mill will
be commissioned in the first quarter of 2016,” JSPL said.
Planned Production Capacity: 7 million tonnes per annum
Import Countries: Japan, Europe and the United States of America
Operating Trend: Steady
Subject has a workforce of approximately 1,000 employees.
FINANCIAL
DATA
Financial highlights provided by local sources are given below:
Currency: United States Dollars (US$)
Year
Ending 31/12/16: Year Ending
31/12/17:
Total sales US$ 1,200,000,000 US$ 1,385,000,000
Local sources consider subject’s financial condition to be Good.
The above financial figures are based on estimations by our local
sources.
BANKERS
National Bank of Oman Ltd
Ruwi Branch
PO Box: 3752
Muscat
Tel: (968) 24708898
PAYMENT
HISTORY
No complaints regarding subject’s payments have been reported.
Date of transaction January
2014
Credit amount 25,000
Amount overdue 0
Payment terms 90
days
Payment Method Letters
of Credit
Paying record No
Complaints
Currency Euros
GENERAL
COMMENTS
The subject and its shareholders/owners have been searched in the
following databases; Office of Foreign Assets Control (OFAC), United Nations
Security Council Sanctions, Australian Sanctions List, US Consolidated
Sanctions List, EU Financial Sanctions List and UK Financial Sanctions List and
nothing adverse could be found on the exact names listed within the report.
Local sources report that the subject’s operating history is clear with payment
obligations met in a generally timely manner. The financial position is
satisfactory and the company is deemed 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 |
INR 67.63 |
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1 |
INR 89.70 |
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Euro |
1 |
INR 78.20 |
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OMR |
1 |
INR 175.15 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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NIS |
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Report Prepared
by : |
KET |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
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Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.