MIRA INFORM REPORT

 

 

Report Date :

17.07.2007

 

IDENTIFICATION DETAILS

 

Name :

MEHDI FOODS LLC

 

 

Registered Office :

Rusayl Industrial Area, Road No. 8, P O Box 89, Al Rusayl 124

 

 

Country :

Sultanate of Oman

 

 

Financials (as on) :

31.12.2006

 

 

Date of Incorporation :

1991

 

 

Com. Reg. No.:

1/32085/8

 

 

Legal Form :

Limited Liability Company – LLC

 

 

Line of Business :

Engaged in the manufacture of chips, snacks and beverages.

 

 

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

 

Maximum Credit Limit :

US$ 400,000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

SUMMARY

 

Company Name                         : MEHDI FOODS LLC

Previously Known As                              : SUROOR FOOD INDUSTRIES LLC

Country of Origin                                    : Sultanate of Oman

Legal Form                                            : Limited Liability Company - LLC

Registration Date                                   : 1991

Commercial Registration Number            : 1/32085/8

Issued Capital                                        : RO 900,000

Paid up Capital                                      : RO 900,000

Total Workforce                                     : 130

Line of Business                                    : Manufacturers of chips, snacks and beverages.

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                         : Steady

 

 

 

COMPANY NAME

 

MEHDI FOODS LLC

 

 

PREVIOUSLY KNOWN AS

 

SUROOR FOOD INDUSTRIES LLC

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : Rusayl Industrial Area, Road No. 8

PO Box            : 89

Town                : Al Rusayl 124

Country             : Sultanate of Oman

Telephone         : (968) 24446942

Facsimile          : (968) 24446943

Email                : zaaky@omantel.net.om

 

 

Premises

 

Subject operates from a large suite of offices and a factory that are owned and located in the Industrial Area of Al Rusayl.

 

 

KEY PRINCIPALS

 

·       Mehdi Jawad Salman                                               Managing Director

 

·       Sadiq Mehdi Jawad Salman                                      Director

 

·       Jamy Mathew                                                          Production Manager

 

·       Aqeel Hashaman                                                     Export Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment : 1991

 

History                         : Subject was established in 1991 under the name “Suroor Food Industries LLC”,

                                      however in 2004 it re-registered under the new name of “Mehdi Foods LLC”.

 

Legal Form                 : Sharikat Thet Massouliya Mahdoudeh (Limited Liability Company - LLC)

 

Commercial Reg. No.  : 1/32085/8

 

Issued Capital             : RO 900,000

 

Paid up Capital           : RO 900,000

 

 

Name of Shareholder (s)

 

·       Mehdi Jawad Salman

 

·       Sadiq Mehdi Jawad Salman

 

Non Omani Participation

 

The participation of non-Omani nationals in a trade or business in Oman is governed by the Foreign Business Investment Law, which sets capital requirements and requires 35 % Omani participation in capital and profits.

 

Note to the Legal Form   The Limited Liability Company (LLC), or private company, is the form of business entity

usually chosen by foreign investors. It may be formed by a minimum of 2 and a maximum of 30 natural or legal persons, whose liability is limited to their shares in the company’s capital.  The minimum capital of a Limited Liability Company with foreign ownership should be RO 150,000, although this may be reduced to a minimum of RO 30,000 with the approval of the Minister of Commerce and Industry. For a company wholly owned by Omani nationals, the minimum capital is RO 10,000.

 

Contributions to capital may be made in cash of kind. Capital may not be increased by public subscription. The full amount of the share value must be paid in on subscription. Shares may not be assigned to a non-member, unless the other existing members are granted a pre-emptive right to purchase the shares.

 

 

LINE OF BUSINESS

 

Operations : Engaged in the manufacture of chips, snacks and beverages.

 

Import Countries : Europe and GCC countries.

 

Brand Names : SUROOR

 

Operating Trend : Steady

 

Subject has a workforce of 130 employees.

 

 

FINANCIAL HIGHLIGHTS

 

Financial highlights provided by outside sources are given below :

 

Currency : Riyal Omani (RO)

 

                                               Year Ending 31/12/05:                         Year Ending 31/12/06:

 

Total Revenue                           RO 3,120,000                                     RO 3,500,000

 

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

 

Legal Reserve Requirement        

 

A Limited Liability Company (LLC) is required each year to set aside 10% of its net profits as a legal reserve until the reserve reaches one-third of the company’s capital. This legal reserve is not available for distribution.

 

 

BANKERS

 

·       National Bank of Oman Limited (SAOG)

PO Box : 3751, Ruwi

Muscat

Tel : (968) 24734414 / 24734411

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                     April 2006                                  November 2006

Credit amount                            35,000                                      68,000

Amount overdue             0                                              0

Payment terms                          60 days                                     60 days

Payment Method                       Letters of Credit                         Letters of Credit

Paying record                            No Complaints                           No Complaints

Currency                                   Pounds Sterling                         Pounds Sterling

 

 

GENERAL COMMENTS

 

Opinion on the credit figure of US$ 150,000

 

Established in 1991, subject is involved in the manufacture of chips, snacks and beverages.

 

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 business is considered to be a fair trade risk and the above credit figure is deemed to be within subject’s financial means.

 

Maximum suggested credit figure: US$ 400,000

 

 

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

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

 

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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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