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MIRA
INFORM REPORT
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Report Date : |
31.05.2007 |
IDENTIFICATION DETAILS
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Name : |
NATIONAL BISCUITS
INDUSTRIES LTD (SAOG) |
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Registered Office : |
Road No 2, Al
Rusayl Industrial Estate, |
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Country : |
Sultanate of |
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Date of Incorporation : |
1st January 1982 |
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Com. Reg. No.: |
1/14866/4 |
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Legal Form : |
Omani Public Joint Stock Company |
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Line of Business : |
Engaged in the manufacture and marketing
of biscuits, wafers, chocolate enrobed wafers and snacks. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
US$ 500,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
SUMMARY
Company Name : NATIONAL BISCUITS INDUSTRIES LTD (SAOG)
Country of Origin :
Sultanate of
Legal Form : Omani Public Joint Stock Company
Registration Date : 1st January 1982
Commercial Registration Number : 1/14866/4
Issued Capital : RO 1,000,000
Paid up Capital : RO 1,000,000
Total Workforce : 307
Line of Business :
Manufacture and marketing of biscuits, wafers,
chocolate enrobed wafers and snacks.
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
COMPANY NAME
NATIONAL BISCUITS
INDUSTRIES LTD (SAOG)
ADDRESS
Registered & Physical Address
Street : Road No 2
Area : Al Rusayl Industrial Estate
PO Box : 29
Town : Al Rusayl 124
Country : Sultanate of Oman
Telephone : (968) 24446034 / 24446035 / 24446036
Facsimile : (968) 24446048
Email : nabil@nabilbiscuits.com
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
·
Redha Baqir Al Lawati Chairman
·
Mohamed A H Bhacker Deputy
Chairman
·
Deepak Atal Director
·
S K Rao Director
·
P.R. Ramakrishnan Director
·
Mahdi Abdul Baqi Director
·
Juma Abdul Redha Al Lawati Board
Secretary
LEGAL FORM &
OWNERS
Date of Establishment : 1st
January 1982
Legal Form :
Sharikat Al Mousahama Al
Omania (Societe Anonyme Omani General - SAOG) (Omani
Public Joint Stock Company)
Commercial Reg. No. : 1/14866/4
Issued Capital : RO 1,000,000
Paid up Capital : RO 1,000,000
Name of Shareholder
(s) Percentage
·
·
Abdul
Hussain Bhacker 14.41%
·
Redha
Bhacker Suleiman Jaffer 14.39%
·
Oman
National Investment Corporation Holding SAOG 11.06%
·
Members
of the general public & private investors 31.22%
Note to the Legal Form
Public Joint stock companies may not be incorporated without the prior approval of the Ministry and the issuance of a license to that effect. Public joint stock companies must have a minimum capital of RO 150,000.
AFFILIATED COMPANIES
Name Shareholding
%
·
Nabil
Food Industries LLC 98%
LINE OF BUSINESS
Operations : Engaged
in the manufacture and marketing of biscuits, wafers, chocolate enrobed wafers
and snacks.
Import Countries
: India and Europe.
Export Countries
: Subject exports to more than
45 countries worldwide.
Operating Trend
: Steady
Subject has a
workforce of 307 employees.
FINANCIAL HIGHLIGHTS
Financial
highlights provided by outside sources are given below:
Balance Sheet 2006
2005
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ASSETS |
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Non-current
assets |
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Property, plant and equipment |
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Investment in a subsidiary |
98,000 |
98,000 |
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Intangible assets |
9,046 |
14,566 |
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-------------- |
-------------- |
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Total
non-current assets |
3,596,580 |
2,903,965 |
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-------------- |
-------------- |
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Current assets |
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Investments at fair value through profit or loss |
30 |
1,545 |
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Inventories |
748,402 |
569,990 |
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Accounts receivable and prepayments |
2,017,862 |
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Bank balances and cash |
164,963 |
38,660 |
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-------------- |
-------------- |
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Total current
assets |
2,751,212 |
2,628,057 |
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-------------- |
-------------- |
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Total assets |
6,347,792 |
5,532,022 |
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======== |
======== |
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EQUITY AND
LIABILITIES |
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Equity attributable to
shareholders of the Parent Company |
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Share capital |
1,000,000 |
1,000,000 |
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Legal reserve |
317,851 |
286,473 |
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Retained earnings |
384,875 |
102,472 |
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--------------- |
-------------- |
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1,702,726 |
1,388,945 |
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Minority interest |
-- |
-- |
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-------------- |
-------------- |
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Total equity |
1,702,726 |
1,388,945 |
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-------------- |
-------------- |
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Non-current
liabilities |
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Non-current portion of long term loans |
1,598,673 |
1,232,209 |
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Deferred Government grant |
71,043 |
94,078 |
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Deferred taxation |
118,421 |
101,982 |
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End of service benefits |
97,361 |
79,259 |
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-------------- |
-------------- |
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1,885,498 |
1,507,528 |
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-------------- |
-------------- |
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Current
liabilities |
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Accounts payable and accruals |
1,057,896 |
938,487 |
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Bank borrowings |
645,101 |
820,491 |
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Short term loan |
500,000 |
500,000 |
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Current portion of long term loans |
556,571 |
376,571 |
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-------------- |
-------------- |
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2,759,568 |
2,635,549 |
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-------------- |
-------------- |
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Total
liabilities |
4,645,066 |
4,143,077 |
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-------------- |
-------------- |
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Total equity and
liabilities |
6,347,792 |
5,532,022 |
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======== |
======== |
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Net assets per
share |
1.703 |
1.389 |
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===== |
===== |
Income Statement 2006 2005
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Sales |
6,985,597 |
5,583,681 |
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Cost of sales |
(6,096,979) |
(4,796,883) |
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---------------- |
---------------- |
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Gross profit |
888,618 |
786,798 |
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Other income |
158,819 |
42,207 |
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Dividend income
from subsidiary |
117,600 |
259,700 |
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---------------- |
---------------- |
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1,165,037 |
1,088,705 |
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---------------- |
---------------- |
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EXPENSES |
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Selling and
distribution |
(366,787) |
(342,544) |
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General and
administration |
(280,934) |
(351,078) |
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Amortisation of
intangible assets |
(5,520) |
(5,500) |
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Fair value changes
on investments at fair value through profit or loss |
(1,003) |
(153) |
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Directors’
meeting attendance fees |
(14,500) |
(16,500) |
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Net finance
costs |
(166,073) |
(148,980) |
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---------------- |
---------------- |
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(834,817) |
(864,755) |
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---------------- |
---------------- |
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Profit before taxation |
330,220 |
223,950 |
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Taxation |
(16,439) |
1,036 |
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---------------- |
---------------- |
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Profit for the
year |
313,781 |
224,986 |
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========= |
========= |
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Attributable to: |
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Equity holders of the Parent Company |
313,781 |
224,986 |
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Minority interest |
-- |
-- |
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---------------- |
---------------- |
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313,781 |
224,986 |
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========= |
========= |
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Earnings per
share |
0.314 |
0.225 |
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===== |
===== |
Local sources
consider subject’s financial condition to be Good.
BANKERS
·
Bank
Ruwi Main Branch
PO Box: 6326
Muscat
Tel: (968) 24561399 / 24708543
Fax: (968) 24561036
PAYMENT HISTORY
No complaints
regarding subject’s payments have been reported.
GENERAL COMMENTS
Opinion on the
credit figure of US$ 150,000:
National Biscuits
Industries Ltd (SAOG) has been in business for over 25 years and is engaged in
the manufacture and marketing of biscuits, wafers, chocolate
enrobed wafers and snacks.
During the course of this investigation nothing detrimental was uncovered regarding the manner in which payment obligations are fulfilled. The operating history is clear and the financial situation is satisfactory. As such we are of the opinion that the subject is a fair trade risk and the above credit figure is within subject’s financial means.
Maximum suggested
credit figure: US$ 500,000
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
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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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)