MIRA INFORM
REPORT
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Report Date : |
23.02.2011 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
Road No. 18, |
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Country : |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
01.08.1997 |
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Com. Reg. No.: |
1/53280/4 |
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Legal Form : |
Omani Closed Joint Stock Company |
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Line of Business : |
Manufacturers of sewing threads |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
US$ 400,000 |
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Status : |
Satisfactory |
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Payment
Behaviour : |
No Complaints |
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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 – June 30, 2010
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Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
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a2 |
a2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
SUMMARY
Company Name :
Country of Origin :
Legal Form : Omani Closed Joint Stock Company
Registration Date : 1st August 1997
Commercial Registration Number : 1/53280/4
Issued Capital : RO 805,000
Paid up Capital : RO 805,000
Total Workforce : 64
Activities : Manufacturers of sewing threads
Financial Condition : Fair
Payments : Nothing detrimental uncovered
Operating Trend : Steady
Recommended Credit Limit : US$ 400,000
COMPANY NAME
company ADDRESS
Registered & Physical Address
Location : Road No. 18
PO Box : 122
Town : Al Rusayl 124
Country : Sultanate of
Telephone : (968) 24446806
Facsimile : (968) 24446807
Email : threadi@omantel.net.om / dinesh@mtm.com.om
Premises
Subject operates
from a medium sized suite of offices and a factory that are rented and located
in the Industrial Area of Al Rusayl.
KEY PRINCIPALS
Name Position
·
Mukhtar
M Hasan Chairman
·
Abdul
Wahab Nasser Al Mandhari Vice
Chairman
·
Srinivasan
Ramakrishnan Director
·
Balachandran
T Chatoth Director
·
Gopalan
Arunachalam Director
·
Taizoon
Khorakiwala Director
·
Nihal S
Kodagoda General
Manager
·
Dinesh
Kumar Finance
Manager
LEGAL FORM & OWNERS
Date of Establishment : 1st
August 1997
Legal Form :
Omani Closed Joint Stock
Company
Commercial Reg. No. : 1/53280/4
Issued Capital : RO 805,000
Paid up Capital : RO 805,000
Name of Major
Shareholder (s) Percentage
·
Qais
Omani Establishment LLC 18.96%
·
·
Al
Barij International LLC 13.19%
·
Members
of the general public & private investors 50.30%
OPERATIONS
Activities: Engaged in the manufacture of sewing
threads.
Export
Countries:
Operating Trend: Steady
Subject has a
workforce of 64 employees.
FINANCIAL DATA
Financial
highlights provided by local sources are given below:
Currency: Riyal
Omani (RO)
Balance Sheet 31/12/09 31/12/08
Assets
Non-current assets
Property, plant and
equipment 1,024,537 1,060,171
Current assets
Inventories 628,292 651,496
Trade and other
receivables 584,288 674,401
Amount due from
related parties 587 171
Cash in hand and at
bank 19,837 17,584
Total current
assets 1,233,004 1,343,652
Total assets 2,257,541 2,403,823
Equity and
Liabilities
Capital and
reserves
Share capital 805,000 700,000
Legal reserve 64,089 58,341
Retained earnings 131,241 79,508
Proposed dividend - 105,000
Total equity 1,000,330 942,849
Liabilities
Non-current
liabilities
Term loan 285,648 455,010
Deferred Government
grant 46,871 57,021
Deferred tax
liability 14,764 23,704
End of service
benefits 38,238 33,557
Total non-current
liabilities 385,521 559,292
Current liabilities
Current portion of
term loan 253,680 259,865
Short term bank
borrowings 336,015 393,048
Trade and other
payables 281,995 242,640
Amount due to
related parties - 6,129
Total current
liabilities 871,690 901,682
Total liabilities 1,257,211 1,460,974
Total equity and
liabilities 2,257,541 2,403,823
Income
Statement
Revenue 2,662,810 2,865,989
Cost of sales 2,132,088 2,080,008
Gross profit 530,722 785,981
Other income 3,585 8,339
Distribution
expenses 61,741 73,862
Administrative
expenses 267,833 301,375
Impairment
allowance for slow moving inventories 32,585 36,000
Impairment allowance
for doubtful trade receivables 24,000 76,000
Profit from
operations 148,148 307,083
Finance expenses 86,656 82,491
Profit for the year
before tax 61,492 224,592
Income tax 4,011 22,799
Net profit for the
year 57,481 201,793
Local sources
consider subject’s financial condition to be Fair.
Total revenue for the year ending 31st December 2010 was RO
3,539,633 and profit for the year was RO 200,026.
BANKERS
·
Bank of
Greater Muttrah
PO Box: 6326, Ruwi
Tel: (968) 24701769
Fax: (968) 24796488
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.45.20 |
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|
1 |
Rs.73.07 |
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Euro |
1 |
Rs.61.41 |
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 |
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.