MIRA
INFORM REPORT
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Report Date : |
09.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
DHOFAR CATTLE FEED CO SAOG |
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Registered Office : |
Raysut Industrial
Area, P O Box 1220 & 1298, Salalah
211 |
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Country : |
Oman |
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Financials (as on) : |
2007 |
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Date of Incorporation : |
13.01.1983 |
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Com. Reg. No.: |
2/01752/0 |
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Legal Form : |
Omani Public Joint Stock Company |
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Line of Business : |
Subject
operates several divisions such as Feed
Mill Division, Farm Division |
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$ 1,500,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
SUMMARY
Company Name : DHOFAR CATTLE FEED CO SAOG
Country of Origin : Oman
Legal Form : Omani Public Joint Stock Company
Registration Date : 13th January 1983
Commercial Registration Number : 2/01752/0
Issued Capital : RO 7,000,000
Paid up Capital : RO 7,000,000
Total Workforce : 250
Activities : Subject operates several divisions (see below for details)
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
Recommended Credit Limit : US$ 1,500,000
COMPANY NAME
DHOFAR CATTLE FEED
CO SAOG
ADDRESS
Registered &
Physical Address
Location : Raysut Industrial Area
PO Box : 1220 & 1298
Town : Salalah 211
Country : Sultanate of Oman
Telephone : (968) 23210551 / 23210360
Facsimile : (968) 23210886
Email : dcfco@omantel.net.om
Premises
Subject operates
from rented premises located in the Raysut Industrial Area and consists of a
medium sized suite of offices, and 400 hectares of agricultural land rented
from the Ministry of Agriculture and Fisheries. The area is used for cattle
breeding, dairy products manufacturing and grass cultivation.
Branch Office
(s)
Location Description
·
PO Box : 1273,
Ruwi 111 Dairy
Processing Plant
Muscat
Tel : (968) 799268
·
Garzaiz Farm Owned
Farm
PO Box : 298
Salalah 211
Tel : (968) 23225381 / 23219228
/ 23225382 / 23225866
Fax : (968) 23219070 /
23225482
·
Sahnout Farm Owned
Farm
PO Box : 298
Salalah 211
Tel : (968) 296561
KEY PRINCIPALS
Name Position
·
Sheikh Hamed Bin Hamoud Al Ghafri Chairman
·
Sheikh Ahmed Bin Abdullah Saeed Al Rawas Vice
Chairman
·
Saeed Bin Salim Ahmed Al Shanfari Managing Director
·
Sheikh Saeed Bin Mustahail Ahmed Al Mashani Director
·
Sheikh Abdullah Bin Hamed Hamoud Al Gafri Director
·
Sheikh Mohamed Bin Abdullah Fatah Zabanoot Director
·
Sheikh Mohamed Bin Abdullah Saeed Al Rawas Director
·
Sheikh Ahmed Bin Alawi Abdullah Al Ibrahim Director
·
Sheikh Amer Bin Ahmed Ali Al Rawas Director
·
Sheikh Ahmed Bin Suliman Ahmed Al Gafri Director
·
Sheikh Khalid Bin Abdullah Saeed Al Rawas Director
·
Ghazi
Thaher Jaber Dairy
Manager
·
Jeevan
Sadavisan Feed
Mill Manager
·
Willem
Van Leuteren Dairy
Farm Manager
·
William
Downey Sales
& Marketing Manager
LEGAL FORM & OWNERS
Date of Establishment : 13th
January 1983
Legal Form :
Societe Anonyme Omani
General - SAOG (Omani Public Joint Stock Company)
Commercial Reg. No. : 2/01752/0
Issued Capital : RO 7,000,000
Paid up Capital : RO 7,000,000
Name of Shareholder (s) Percentage
·
Muscat overseas LLC 17.83%
·
Qais Al Omania Establishment LLC
17.38%
·
Al Rawas Develop. & Investment LLC 9.94%
·
Al Barka Investment LLC 5.27%
·
Omani
businessmen & private investors 49.58%
AFFILIATED COMPANIES
Name Percentage
Held
·
Dhofar
Poultry Company SAOG (DPC) 78.00%
·
International
Plastic Industries Company LLC (IPI) 100.00%
·
Oman Vegetable
Oils & Derivatives Co. LLC (OVOD) 33.33%
·
Dhofar
Agriculture Production & Marketing Co SAOC (DAPMC) 16.67%
·
Dhofar
Beverages and Foodstuffs Company SAOG (DBFC) 30.45%
·
Salalah Mills
Co SAOG 10.00%
·
Dhofar
International Development & Investment Holding (SAOG) (DIDIC)
7.11%
OPERATIONS
Activities: Subject’s operations are performed through
the following divisions:
· Feed Mill Division
Established in 1984, this division is engaged in the production of animal feed using maize and sardines as raw materials. The product range includes general feed, cattle feed, sheep feed, dairy-18, calf rearing, heifer nuts, chick starter, pullet grower, layer mash, broiler starter, broiler finisher, poultry concentrates and barley grain.
Production Capacity : 160
tonnes of cattle feed per day
· Farm Division
This
division is responsible for operating the dairy and crops farms in Garziz and
Sahnout. It is also involved in animal breeding and the production of dairy
products.
Import
Countries: Switzerland,
Germany, India and Australia.
International
Suppliers:
·
Buhler AG Switzerland
Brand Names: A’SAFWAH
Operating Trend: Steady
Subject has a
workforce of approximately 250 employees.
FINANCIAL DATA
Financial
highlights provided by local sources are given below:
Currency: Riyal
Omani (RO’000)
BALANCE SHEET 2007 2006
|
ASSETS |
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Biological
assets |
3,155 |
3,213 |
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Property,
plant, and equipment |
12,093 |
8,623 |
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Investment
in subsidiaries |
1,178 |
997 |
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Investment
in associates |
1,812 |
583 |
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Available
for sale investments |
26,469 |
18,037 |
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Investment
properties |
4,450 |
2,640 |
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Deferred
tax asset |
501 |
501 |
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────── |
────── |
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Total non-current assets |
49,658 |
34,594 |
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────── |
────── |
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Trading
investments |
3,411 |
1,762 |
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Inventories
and biological assets |
5,187 |
3,443 |
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Trade
receivables, prepayments and others |
4,590 |
2,962 |
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Cash
at bank and in hand |
490 |
26 |
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────── |
────── |
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Total current assets |
13,678 |
8,193 |
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────── |
────── |
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Total assets |
63,336 |
42,787 |
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══════ |
══════ |
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EQUITY AND LIABILITIES |
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Equity |
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Share
capital |
7,000 |
7,000 |
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Legal
reserve |
2,345 |
2,345 |
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Investment
fluctuation reserve |
17,701 |
10,037 |
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Voluntary
reserve |
3,500 |
3,500 |
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Retained
earnings |
13,630 |
4,066 |
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────── |
────── |
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Equity attributable to the
shareholders’ of the company |
44,176 |
26,948 |
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Minority interest |
- |
- |
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────── |
────── |
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Total equity |
44,176 |
26,948 |
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────── |
────── |
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Term
loans, excluding current maturities |
5,402 |
3,216 |
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Deferred
government grant |
- |
- |
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────── |
────── |
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Total
non-current liabilities |
5,402 |
3,216 |
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────── |
────── |
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Bank
borrowings |
9,056 |
9,298 |
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Payables
and accruals |
2,674 |
2,164 |
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Current
maturities of term loans |
1,984 |
1,117 |
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Income
tax |
44 |
44 |
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────── |
────── |
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Total current liabilities |
13,758 |
12,623 |
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────── |
────── |
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Total liabilities |
19,160 |
15,839 |
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────── |
────── |
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Total equity and liabilities |
63,336 |
42,787 |
STATEMENT OF
INCOME 2007 2006
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Sales |
15,625 |
10,812 |
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(12,573) |
(7,986) |
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Cost
of sales |
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────── |
────── |
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3,052 |
2,826
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Gross profit |
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Realised
gain on available for sale investments released from investment fluctuation
reserve |
8,223 |
1,039 |
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(1,049) |
(841) |
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Administrative
and general expenses |
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(2,041) |
(1,507) |
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Selling
and distribution expenses |
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- |
(425) |
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Net Impairment
of receivables |
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(885) |
(486) |
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Net
financing cost |
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3,597 |
1,674
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Other
income |
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(200) |
(87) |
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Directors’
remuneration |
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(83) |
- |
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Impairment
of investment in an associate |
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- |
- |
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Share
of results of associates |
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────── |
────── |
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10,614 |
2,193
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Profit before tax |
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- |
161 |
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Income
tax |
||
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────── |
────── |
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10,614 |
2,354
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Profit for the year |
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══════ |
══════ |
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Attributable
to: |
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10,614 |
2,354
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Equity
holders of the parent |
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- |
- |
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Minority
interest |
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────── |
────── |
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10,614 |
2,354
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Profit for the year |
Local sources consider
subject’s financial condition to be Good.
BANKERS
·
National Bank
of Oman Limited (SAOG)
Hafa Branch
PO Box : 824
Salalah 211
Tel : (968) 291952
Fax : (968) 290066
·
Bank Dhofar Al
Omani Al Fransi
Mutrah Business District
PO Box : 1507, Ruwi 112
Muscat
Tel : (968) 790466
Fax : (968) 797246
A/c No. 01/411/01344/00
·
Oman
International Bank
Al Jaame Street
P.O.Box : 4216
Muscat
Tel : (968) 703614 / 707328 /
793450
·
Oman Bank of
Agriculture & Fisheries SAOC
Ruwi 112
PO Box : 3077
Muscat
Tel : (968) 701761 / 701763
Fax : (968) 706473
PAYMENT HISTORY
No complaints
regarding subject’s payments have been reported.
Date of
transaction February
2002
Credit amount 255,000
Amount overdue 0
Payment terms 60
days
Payment Method Letters
of Credit
Paying record No
Complaints
Currency Euros
GENERAL COMMENTS
Dhofar Cattle Feed
Co SAOG is Oman’s largest cattle feed producer and also produces milk and
yoghurt.
In March 2008 DCF announced it would establish a new farm at
Naged for grass cultivation.
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 deemed
admissible.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.22 |
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UK Pound |
1 |
Rs.73.03. |
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Euro |
1 |
Rs.63.14 |
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 |
|
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. |
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 |
|
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%)