MIRA INFORM REPORT

Report Date :

28.04.2011

IDENTIFICATION DETAILS

Name :	AL SALLAN FOOD INDUSTRIES CO SAOC

Registered Office :	Sohar Industrial Area, Plot No. 151/152 PO Box 970 Sohar 311

Country :	Sultanate of Oman

Financials (as on) :	31.03.2009

Date of Incorporation :	17.10.1994

Com. Reg. No.:	3/15758/0

Legal Form :	Omani Closed Joint Stock Company

Line of Business :	Production of bakery products.

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Usually Correct
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 – December 31, 2010

Country Name

Previous Rating

(30.09.2010)

Current Rating

(31.12.2010)

Oman

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

SUMMARY

Company Name : AL SALLAN FOOD INDUSTRIES CO SAOC

Country of Origin : Oman

Legal Form : Omani Closed Joint Stock Company

Registration Date : 17^th October 1994

Commercial Registration Number : 3/15758/0

Membership Number : 82

Issued Capital : RO 2,000,000

Paid up Capital : RO 2,000,000

Total Workforce : 450

Activities : Production of bakery products.

Financial Condition : Poor

Payments : Nothing detrimental uncovered

Recommended Credit Limit : US$ 20,000

Person Interviewed : Nisheet Sanwal, Export Manager

COMPANY NAME

AL SALLAN FOOD INDUSTRIES CO SAOC

ADDRESS

Registered & Physical Address

Location : Sohar Industrial Area, Plot No. 151/152

PO Box : 970

Town : Sohar 311

Country : Sultanate of Oman

Telephone : (968) 26750623

Facsimile : (968) 26750940

Email : alsallan@omantel.net.om

Premises

Subject operates from a large suite of offices and a factory that are leased and located in the Industrial Area of Sohar.

KEY PRINCIPALS

Name Position

· Kanaksi G Khimji Managing Director

· Nusli N Wadia Director

· Vinita Bali Director

· Rajesh Kumar Lal Director

· Durgesh Mehta Director

· C Taneja Director

· Parshant Vatkar Chief Executive Officer

· Nisheet Sanwal Export Manager

· Aldrin E Pasanat Finance Manager

LEGAL FORM & OWNERS

Date of Establishment : 17^th October 1994

History : Subject was formed as an Omani Public Joint Stock Company, but in October 2010 it

changed legal form to become an Omani Closed Joint Stock Company.

Legal Form : Omani Closed Joint Stock Company

Commercial Reg. No. : 3/15758/0

Membership No. : 82

Issued Capital : RO 2,000,000

Paid up Capital : RO 2,000,000

Name of Shareholder (s)

· Kanaksi G Khimji

· Anil M Khimji

· Ajay M Khimji

· Pankaj K Khimji

· Nailesh K Khimji

· Al Brittannia & Associates

Dubai

OPERATIONS

Activities: Engaged in the production of bakery products, specialising in biscuits, cookies, fruit filled rolls and

chocolates.

Production Capacity: 4,593,000 tonnes per annum

Customers:

· Burtons United Kingdom

Import Countries: Switzerland, France and the United Kingdom

Export Countries : Subject exports to over 50 countries, although its main markets are the GCC region and India.

Brand Names: BAKERS PRIDE, BRITANNIA and NUTRO

Subject has a workforce of approximately 450 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: Riyal Omani (RO)

Balance Sheet 31/03/09 31/03/08

Non-current assets

Property, plant and equipment 3,355,185 3,287,906

Current assets

Inventories 961,598 550,819

Account and other receivables 420,924 467,287

Cash and bank balances 126,734 53,371

1,509,256 1,071,477

Total assets 4,864,441 4,359,383

Equity

Share capital 2,000,000 2,000,000

Accumulated losses (10,637,027) (10,041,547)

Loan from shareholders 6,182,645 6,182,645

(2,454,382) (1,858,902)

Non-current liabilities

Term loans 4,531,946 4,831,945

Employees end of service benefits 51,847 47,690

4,583,793 4,879,635

Current liabilities

Term loans 308,536 250,019

Bank borrowings 813,071 18,824

Account and other payables 1,613,423 1,069,807

2,735,030 1,338,650

Total liabilities 7,318,823 6,218,285

Total equity and liabilities 4,864,441 4,359,383

Income Statement

Income from operations 6,304,074 3,240,512

Cost of operations (5,660,563) (2,860,104)

Gross profit 643,511 380,408

Other income 9,372 61,805

Administrative expenses (645,813) (307,022)

Selling and distribution expenses (400,055) (241,575)

Loss from operations (392,985) (106,384)

Finance charges (202,495) (167,313)

Loss for the period (595,480) (273,697)

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

Subject’s income from operations for the year ending 31^st March 2010 was RO 7,560,000, Net loss for the same period was RO 680,000.

Further financial statements were not available due to the subject becoming an Omani Closed Joint Stock Company during 2010.

BANKERS

· National Bank of Oman Limited (SAOG)

PO Box: 497

Sohar 497

Tel: (968) 26850207

Fax: (968) 26850234

· Oman International Bank

Al Jaame Street

PO Box: 4216

Muscat

Tel: (968) 24703614 / 24707328 / 24793450

· Bank Muscat SAOG

PO Box: 13981

Sohar

Tel: (968) 26841785

Fax: (968) 26841786

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

GENERAL COMMENTS

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.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.40
UK Pound	1	Rs.73.26
Euro	1	Rs.65.17

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	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
--	NB	New Business	--

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%)

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