MIRA INFORM REPORT

 

 

Report Date :

06.09.2007

 

IDENTIFICATION DETAILS

 

Name :

OMAN FIBRE OPTIC CO SAOG (OFO)

 

 

Registered Office :

Road No. 4, Rusayl Industrial Estate, P O Box 5, Rusayl 124

 

 

Country :

Sultanate of Oman

 

 

Date of Incorporation :

1996

 

 

Legal Form :

Omani Public Joint Stock Company

 

 

Line of Business :

Designs, develops and manufactures optical fibres.

 

 

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$ 300,000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

SUMMARY

 

Company Name                         : OMAN FIBRE OPTIC CO SAOG (OFO)

Country of Origin                                    : Sultanate of Oman

Legal Form                                            : Omani Public Joint Stock Company

Registration Date                                   : 1996

Issued Capital                                        : RO 3,649,275

Paid up Capital                                      : RO 3,649,275

Total Workforce                                     : 60

Line of Business                                    : Designs, develops and manufactures optical fibres.

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                         : Steady

 

 

 

COMPANY NAME

 

OMAN FIBRE OPTIC CO SAOG (OFO)

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Road No. 4

Area                 : Rusayl Industrial Estate

PO Box             : 5

Town                 : Rusayl 124

Country             : Sultanate of Oman

Telephone         : (968) 24446991 / 24446992

Facsimile          : (968) 24446996

Email                : ofoco@omantel.net.om

                          gopinath@omanfiber.com

 

 

Premises

 

Subject operates from a suite of offices and a factory covering an area of 5,000 square metres that are owned and located in the Industrial Area of Rusayl.

 

 

KEY PRINCIPALS

 

·       Mohsin Bin Hassan Al Raisi                                                   Chairman

 

·       Hani Al Shakhs                                                                     Vice Chairman

 

·       Awad Mohamed Faraj Bamkhalef                                            Director

 

·       Ismail Noor Mohamed Mansuri                                               Director

 

·       Abdullah Masood Hameed Al Harthy                                       Director

 

·       Mohamed Al Theeb                                                               General Manager

 

·       Bhartendu Chobisa                                                                Production Manager

 

·       M. G. Premanand                                                                    Finance Manager

 

·       Stephen Czupryna                                                                                        Sales Manager

 

·       Sami Habib Ali                                                                                               Administration Manager

 

 

 

 

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1st January 1999

 

Legal Form                  : Sharikat Al Mousahama Al Omania (Societe Anonyme Omani General - SAOG) (Omani

                                      Public Joint Stock Company)

 

Issued Capital              : RO 3,649,275

 

Paid up Capital            : RO 3,649,275

 

 

Name of Shareholder (s)         Percentage

 

·         Oman Telecommunications Co. SAOG                                              25.96%

 

·         Gulf Investment Corporation, Kuwait                                                   25.00%

 

·         H.E. Dr Omar Abdulmunim Yousif Al Zawawi                                      21.47%

 

·         Oman and Emirates Investment Holding Co. SAOG                            15.62%

 

·         Members of the general public & private investors                               11.95%

 

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                                                                       Stake Held

 

·       Omania E-Commerce LLC                                              20%

 

 

LINE OF BUSINESS

 

Operations : The Company designs, develops and manufactures optical fibres including multi mode fibres in 50/125 & 62.5/125 core diameters, G.655 complaint non-zero dispersion shifted fibres, G.653 complaint dispersion shifted fibres, G.652C low OH peak fibres & G.652D low OH peak low PMD fibres. Optical fibre cables are also provided in a range of cables including single and double steel armoured, dielectric, metallic, ADSS aerial, figure-8, FRP-armoured, indoor cables and indoor/outdoor cables. OFO also provides cable accessories and end-to-end cabling solutions.

 

The plant is ISO 9001:2000 certified

 

Production Capacity:   8,000 – 12,000 kilometres of cable per annum

 

Import Countries : Finland and the United Kingdom.

 

 

International Suppliers :

 

·       Nextrom Oy              Finland

·       Photon Kinetics        United Kingdom

 

Operating Trend : Steady

 

Subject has a workforce of 60 employees.

 

 

FINANCIAL HIGHLIGHTS

 

Financial highlights provided by outside sources are given below:

 

Currency: Riyal Omani (RO)

 

Balance Sheet

2006

2005

 

RO

RO

ASSETS

 

 

Non-current assets

 

 

Property, plant and equipment

2,540,219

3,047,452

Investment in associate

432,500

-

Long term deposits

               -

1,868,176

 

2,972,719

4,915,628

 

 

 

Current assets

 

 

Inventories

608,438

720,648

Trade and other receivables

768,704

1,042,526

Due from a related parties

353,673

267,478

Deposits

3,139,807

1,113,800

Cash and bank

   121,344

   143,609

 

4,991,966

3,288,061

 

 

 

Total assets

7,964,685

8,203,689

 

 

 

 

 

 

EQUITY AND LIABILITIES

 

 

Capital and reserves

 

 

Share capital

3,649,275

3,649,275

Legal reserve

442,606

386,421

Retained earnings

678,594

683,831

Proposed dividend

   510,899

   437,913

 

5,281,374

5,157,440

 

 

 

Non-current liabilities

 

 

Borrowings

1,875,000

2,250,000

Deferred income tax

49,232

49,232

End of service benefits

     50,053

     42,699

 

1,974,285

2,341,931

Current liabilities

 

 

Borrowings

375,000

375,000

Trade and other payables

333,241

329,318

Due to a related party

       785

            -

 

709,026

704,318

 

 

 

Total liabilities

2,683,311

3,046,249

 

 

 

Total equity and liabilities

7,964,685

8,203,689

 

 

Income Statement

2006

2005

 

RO

RO

 

 

 

Revenue

3,781,136

3,346,633

Other income

     35,688

     58,091

 

3,816,824

3,404,724

 

 

 

Cost of materials consumed

(1,969,172)

(1,497,790)

Employee costs

(456,993)

(484,577)

Depreciation

(533,091)

(517,104)

Other operating expenses

(289,146)

(293,426)

Profit from operations

568,422

611,827

 

 

 

Finance income/(costs) 

10,925

   (9,240)

Share of loss of an associate

  (17,500)

             -

 

 

 

Profit for the year

561,847

602,587

 

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

 

 

BANKERS

 

·       National Bank of Oman Limited (SAOG)

Mutrah Business District

PO Box : 751, Ruwi 112

Muscat

Tel: (968) 24708894 / 24708630 / 24708684

Fax: (968) 24707781 / 24703972

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Opinion on the credit figure of US$ 150,000

 

Established in 1996, Oman Fibre Optic Co SAOG (OFO) is a leading manufacturer of optical fibres in Oman.

 

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 and the above credit figure is admissible.

 

Maximum suggested credit figure: US$ 300,000

 

 

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.

 

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