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MIRA
INFORM REPORT
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Report Date : |
17.02.2011 |
IDENTIFICATION DETAILS
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Name : |
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Formerly Known As : |
Electrical Wires And Cables Manufacturing
Company |
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Registered Office : |
Building No. 206, Road No. 2, Plot 205, Rusayl Industrial
Area, 25 Rusayl 124, |
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Country : |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
16.02.1984 |
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Com. Reg. No.: |
1/18675/2 |
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Legal Form : |
Omani General Joint Stock Company |
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Line of Business : |
Manufacturers, exporters, wholesalers and distributors of
household electrical cables and wires. |
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 : |
RO 3,500,000 |
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Status : |
Good |
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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
|
Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
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Oman |
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 |
COmpany NAME
Oman Cables Industry (SAOG) (Correct)
OMAN
CABLES INDUSTRY SAOG (Requested)
Company ADDRESS
Building
: Building No.
206,
Street :
Road No. 2, Plot 205,
Area :
Rusayl Industrial Area
P.O.
Box : 25 Rusayl 124
Town :
Muscat
Country :
Oman, Sultanate of
Telephone : (968) 2444 6464 / 2462
6464 / 2470 7312 / 2470 1986
Fax :
(968) 2462 6096 / 2470 7282
E-Mail :
management@omancables.com /admin@omancables.com
Website :
www.omancables.com
Shortform
Name : OCI / OCAI
Also
known as : Oman Cables
Formerly
known as : Electrical Wires and
Cables Manufacturing Company
SENIOR COMPANY PERSONNEL
Name Position
1.
Mustafa Bin Mukhtar Bin Ali Al Lawati Chairman
2.
Hussain Bin Salman Al Lawati Vice Chairman & Managing
Director
3.
Maqbool Ali Salman Director
4. Dr.
Mohammed Shihab Habib Director
5.
Christian F Raskin Director
6.
Salim Rabbani Director
7.
Hilal Hamed Al Ahasani Director
8.
Cornelis Johannes Meiring Chief Executive Officer
9. M.
M. Vaidya General Manager -
Corporate
Finance
10.Waseem
Bari Internal Auditor
11.Munirath
Total
Employees : 650
PAYMENTS
No
complaints have been heard regarding payments from local suppliers or banks.
We
consider it is acceptable to deal with subject for LARGE amounts.
Opinion
on maximum credit : RO 3,500,000
Trade
risk assessment :
Opinion
on the credit figure of US DLRS 1,500,000 :
We
consider the above figure to be within the company's financial capabilities.
TRADE REFERENCES
NAME :
UMICORE
Street :
Rue du Marais 31
Area :
Broekstraat
Town :
B 1000 Brussels
Country :
Belgium
NAME :
NORDDEUTSCHE AFFINERIE AG
Street :
Hovestrasse
Town : Hamburg
Country :
Germany
NAME :
STERLITE INDUSTRIES (INDIA) LTD
Street :
7 Kir
Area :
D V Yahihar (W)
Town :
Mumbai
Country :
India
NAME :
CRABTREE ELECTRICAL INDUSTRIES LIMITED
Area :
Lincoln Works
Town : Walsall WS1 2DN
Country :
United Kingdom
NAME :
KEMBLA WIRE ROD
Street :
Gloucester Boulevarde
Town :
Port Kembla
Province :
New South Wales 2505
Country :
Australia
NAME :
UNIVERSAL CABLES
Street :
33 Jalan Tiran
Town :
Kangar Tebru 81100
Country :
Malaysia
PRINCIPAL BANKERS
NAME :
BANK MUSCAT (SOAG)
Branch :
Main Branch
Street :
Al Burj Street, Muttrah Commercial District 1073
PO
Box :
134
Town :
Ruwi 112
Telephone : (968) 2470 3044 / 2478 8638 / 2470
8653
Fax :
(968) 2478 9886 / 2478 8638
The
company also has an account with :
National
Bank of Oman SAOG (NBO)
Main
Branch
PO Box
751 Ruwi 112, Muscat
Telephone:
(968) 2481 1711
Fax : (968) 2481 4830
AUDITORS
Ernst
& Young Oman
Ernst
& Young Building
Qurum
PO Box
1750 Ruwi 112, Muscat
Telephone:
(968) 2455 9559
Fax : (968) 2456 6043
FINANCIAL INFORMATION
Balance Sheet as of 31 December 2010 :
2010 2009
(in RO)
ASSETS
NON-CURRENT
ASSETS
Property,
plant and equipment
33,078,889 27,992,703
Investment
in a subsidiary
- -
Investment
in an associate
712,513 729,533
Available
for sale investments
523,043 9,005
Held to
maturity investments
1,251,204 1,251,204
Total
non-current Assets 35,565,649 29,982,445
CURRENT
ASSETS
Inventories 42,407,893 25,035,599
Trade
and other receivables
49,945,723 40,952,326
Due
from related parties
1,664,286 990,683
Cash
and bank balances
2,462,617 3,107,428
Total
current assets
96,480,519 70,086,036
Total
assets
132,046,168 100,068,481
EQUITY
AND LIABILITIES
EQUITY
Share capital 8,970,000 8,970,000
Share
premium
977,500 977,500
Legal
reserve
2,990,000 2,990,000
General
reserve 2,620,231 1,794,222
Retained
earnings
30,376,205 25,727,773
Cumulative
changes in fair values
(890,539) (105,859)
Equity
attributable to equity holders
of
theparent
45,043,397 40,353,636
Non-controlling
interests
1,855,809 1,156,558
Total
equity
46,899,206 41,510,194
LIABILITIES
NON-CURRENT
LIABILITIES
Term
loans 10,246,218 6,779,805
Deferred
government grant
7,282 21,633
Deferred
tax liability
812,475 826,278
Total
non-current liabilities
11,065,975 7,627,716
CURRENT
LIABILITIES
Trade
and other payables
31,404,577 14,300,662
Due to
related parties
75,199 104,650
Bank
borrowings
40,200,244 34,475,490
Current
maturities of term loans
1,243,718 1,251,000
Taxation
1,157,249 798,769
Total
current liabilities
74,080,987 50,930,571
Total
liabilities 85,146,962 58,558,287
Total
equity and liabilities
132,046,168 100,068,481
CONSOLIDATED
INCOME STATEMENT
Sales
200,884,822 155,603,066
Cost of
sales
(183,769,636) (140,748,788)
Gross
profit
17,115,186 14,854,278
Other
income
123,337 369,882
Administrative
expenses
(3,509,554) (3,210,440)
Selling
and distribution Expenses
(3,155,549) (2,271,453)
Depreciation (140,499) (169,484)
Operating
profit
10,432,921 9,572,783
Finance
costs
(1,171,200) (2,209,814)
Finance
income
119,980 117,265
Share
of results of an associate
(35,965) 52,646
Profit
before income Tax
9,345,736 7,532,880
Income
tax expense (1,271,234) (907,414)
Profit
for the year
8,074,502 6,625,466
Loss
for the year attributable to
Non-controlling
interests
90,939 48,583
Profit
for the year Attributable to
Shareholders
of the parent company
8,165,441 6,674,049
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Profit
for the year
8,074,502 6,625,466
OTHER
COMPREHENSIVE (LOSS) INCOME
Net movement
in hedging commodity and
Currency
future contracts
(931,813) 3,931,435
Net
movement in available
for
sale investments
4,038 (831)
Exchange
difference on foreign
currency
translation of associate
18,945 26,551
Other
comprehensive (loss)
income
for the year
(908,830) 3,957,155
Total
comprehensive
income
for the year
7,165,672 10,582,621
Attributable
to:
Equity
holders of
the
parent
7,380,761 10,631,204
Non-controlling
interests
(215,089) (48,583)
7,165,672 10,582,621
Financial
year ends 31 December.
Loans
Loans
from commercial banks include one loan of RO 999,572 repayable in 5 semi annual
instalments of RO 199,914 each up to March 2008 and another loan of RO
2,100,974 repayable in 7 semi annual instalments of RO 300,139 each up to March
2009 denominated in US Dollars. The loans carry interest at commercial rates.
Government
loans includes a government soft loan of RO 1,500,000 availed in 2005,
disbursed by a commercial bank in
Secured charges
Loans
from commercial banks are secured by a registered mortgage over the Company's
property, plant and equipment.
Government
loans are secured by a registered mortgage of the Company's property, plant and
equipment and endorsement of the insurance policy in respect of the property,
plant and equipment of the Company in favour of Oman Development Bank SAOG and
the Government.
LEGAL STATUS AND HISTORY
Date
Started : 16 February 1984
History : Subject was established in
Subject
was granted a soft loan when it was started in 1984 and customs free import and
tax exemption that expired in 997.
On 18
November 1991, which is Oman's national day, subject was awarded the trophy of
Best Industry in Oman for 1991 by His Majesty Sultan Qaboos, Ruler of Oman.
In
1997 subject benefited from a joint cooperation agreement with Draka Holdings
NV, Netherlands, and as part of the deal Draka injected RO 800,000, acquiring
an equity stake.
Former
director Eng. Ali Mohammed Abdullah Al Lawati died in an automobile accident in
2004.
C.R.
No. : 1/18675/2 (issued on 1
April 1984, expiry date: 20 March 2014)
Chamber
of Commerce Membership No. : 455 (issued on 1 April 1984,
expiry
date : 31/12/2012)
Authorised
Capital : RO 12,000,000
Paid up
Capital : RO 8,970,000 (increased from RO 2,990,000)
Societe
Anonyme Omani Generale (Omani general joint stock company) with the following
directors and shareholders :
Directors
1.
Mustafa Mukhtar Ali Al Lawati (Chairman)
2.
Hussain Bin Salman Al Lawati (Vice Chairman & Managing Director)
3.
Maqbool Ali Salman
4. Dr.
Mohammed Shihab Habib
5.
Christian F Raskin
6.
Salim Rabbani
7.
Hilal Hamed Al Ahasani
Shareholders
Percentage
1. Draka
Holding N.V. 34.78%
Gebouw 'OfficiaI'
De Boelelaan 7
PO Box 75979
1083 HJ Amsterdam
Netherlands
Telephone: (31 20) 568 9865
Fax
: (31 20) 568 9899
Email
: info@draka.com
Website
: www.draka.com
Holding comp[any for a group of over 50
operating companies, engaged worldwide in the development, production and sale
of wire and cable.
2.
Mustafa Bin Mukhtar Bin Ali Al Lawati 12.54%
(Omani national)
3.
Hussain Bin Salman Al Lawati 12.19%
(Omani national)
4.
Members of the public 40.49%
Affiliated
companies of Oman Cables Industry (SAOG) :
Subsidiaries
1.
Oman Power Conductors LLC 100.00%
Established 2001; not yet commenced
commercial operations.
2.
Oman Aluminium Processing Industries (OAPIL) 51.00%
Oman
Associates
1. Al
Saleh Enterprises
Ali Hassan Building, Honda Road, Central
Business District, Ruwi, PO Box 4736, Muscat
Telephone :
(968) 2470 7312 / 2470 3728 / 2470 6648
Fax
: (968) 2470 7282
Partners :
- Mustafa Bin Mukhtar Bin Ali Al Lawati
- Hussein Bin Salman Ghulam
2.
Associated Cables Pvt Ltd
India
Subsidiary of Draka Holding NV
In 2005 subject undertook to manage
Associated Cables for three years commencing November 2004 and for which a management fee is to be received
from Draka Holding NV
3.
Jenfel LLC
CBD Area, Nearr Oman Arab Bank
PO Box 1736, Ruwi 112
Telephone: (968) 2470 3426
Fax
: (968) 2479 4582
Partners :
- Mustafa Bin Mukhtar Bin Ali Al Lawati
- Hussein Bin Salman Ghulam
4.
Associated Cables Private Limited (ACPL)
Ajanta House, 2nd floor,
8/35, Marol Co-operative Industrial Estate
Ltd;
Off M. V. Road, Andheri (East), Mumbai 400 059, India
Telephone: (91 22) 4056 3400
Fax
: (91 22) 4056 3419
Email
: sales@aclcables.com
Website
: www.aclcables.com
ACTIVITIES
The
Company is involved in the following activities :
Manufacturers,
exporters, wholesalers and distributors of household electrical cables and
wires. Items include power cables, telephone cables, flexible cables, instrumental
cables, overhead conductors, special cables, low voltage cables, control cables
and building wires.
Production capacity :
-
140,000 tons of Aluminium rods and Electrical Conductors per year
Subject
manufactures the following :
- LV
Power & Control Cables
- LSF
LV Power & Control Cables
- LSF
Wiring Cables
-
Medium Voltage Cables
-
Overhead Line Conductors
-
Instrumentation Cables
Brand
: OCI
Subject
has the following certifications:
- ISO
- 9001 Certificate from TUV, Germany
Oman Cables
Industry (SAOG) was the first Omani Company certified ISO 9002 in 1994, by the
certification body TUV Germany.
This
certificate is renewed every 3 years after a stringent certification audit by
the international TUV Auditors. The current ISO 9001-2008 Quality Management
System certification is valid till June 2012.
- ISO
- 9001 Certificate from BASEC, UK
Oman
Cables Industry (SAOG) is also certified ISO 9001-2008 Quality Management
System Certification by BASEC, UK and certificate is valid till 22nd April
2012.
- QMS
Certificate for Product Related Functions from BASEC, UK
Oman
Cables Industry (SAOG) certified according to the BASEC Product Certification
Requirements, including clause 2.6 (formerly BA 2250 : 1996 part 1& 2)
“Enhanced
Quality Management Systems for Product Related Functions” and certificate is
valid till 22nd April 2012.
Product approval
OCI
products have been approved for the following quality standards:
-
BASEC Certification for various type of product from BASEC, UK
- BSI
Certificate from British Standards Institution at UK
- KEMA
Certificate from KEMA, The
- TAG
Corporation Certificate from Tag Corporation, India
-
Omani Quality Mark Certificate from DGMS, Oman
- VDE
Certificate from VDE, Germany
In 2001
Oman Cables Company (OCC) announced that it was investing RO 3.6 million over
an 18 month period in expanding its plant at Rusayl. The first phase expansion
increased the consumption of aluminium to 10,000 tonnes a year (t/y) from 3,000
t/y. Work started in May 2001 and was completed December 2001. Phase two of the
expansion OCC invested about RO 2.3 million to more than double the consumption
of copper from the 12,000 t/y, and increase the production of low voltage (
started
in October 2001 and was completed in 2002.
Imports
from Europe, mainly from
Exports
to
FACILITIES
The
Company has the following facilities :
Large
rented premises comprising administrative offices and a
manufacturing
unit occupying an area of around 135,000 square meters with integrated storage
facilities located at the heading address as well as a manufacturing unit with
storage facilities located elsewhere in Rusayl Industrial Area and 6 overseas
branch offices (sales offices) in Sharjah (UAE), Doha (Qatar), Riyadh (Saudi
Arabia), Amman (Jordan), Kuwait and the Netherlands (see ‘Branch Offices’
section).
The
manufacturing unit is situated on land leased from the Public Establishment for
Industrial Estates (PEIE), under agreements that expire on 31 December 2008 in
respect of first plot, 31 July 2019 in respect of a second and third plot, 31
December 2023 in respect of fourth plot, 2 June 2026 in respect of a fifth plot
and 28 March 2029 in respect of a sixth plot.
OCI is
also in the process of setting up a new plant for manufacturing of aluminium
rods & conductors at Sohar.
BRANCH OFFICES
1.
Sharjah Office
Corniche Road
PO Box
25864
Sharjah
United Arab Emirates
Telephone: (971 6) 574 3558
Fax
: (971 6) 573 1039
Email
: omancabl@emirates.net.ae
2.
Qatar Office
PO Box 24410
Salwa Road
Doha
Qatar
Telephone: (974) 4468 8384
Fax
: (974) 4468 7663
Email
: salesmanager@omancables-qatar.com
3.
Saudi Arabia Office
Office No. 305 Oman Cables Industry
Sada Business Centre No 1
Olaya, behind Sandook Al Aswad - Riyadh
PO Box 69806
Riyadh 11557
Saudi Arabia
Telephone: (966 1) 416 3351 / 462 8000 /
Mobile (966 55) 972 2500
Fax
: (966 1) 462 8543 / 462 9000
Email
: nassirbaba@omancables.com
4.
Jordan Insurance Building, 2nd Floor, Office No. 3
PO Box 35012
Amman 1118
Amman, Jordan
Telephone: (962 6) 464 4683 / Mobile (962
77) 747 7743
Fax
: (962 6) 464 4687
5.
Kuwait
6.
Europe Office
PO Box 327
5100 AH Dongen
Netherlands
Telephone: (31 6) 1255 5240
Email
: europe@omancables.net
GENERAL INFORMATION
Oman
Cables Industry (OCI) develops, manufactures and markets an integrated line of
low and medium voltage power cables, control and auxiliary cables,
instrumentation cables and overhead line conductors. The company also supplies
a range of alternative and customized designs in addition to special
applications.
OCI
commanded 75% of the local market share in 2008, representing 35% of its sales
turnover in Oman. The company exports to the Middle East, UK, Europe, America,
Africa and the Asia Pacific.
The
company has been enhancing its capacity and product range, since 2008, to boost
core sectors such as infrastructure, power, oil and gas and industry. Its
facilities in Rusayl Industrial Estate are spread over a 132,000 sq. m area
(1.4 million sq. ft.) and reserved for future expansion.
OCI
and the Takamul Investment Company entered into an agreement, in 2008, to set
up an aluminum rod and electrical conductor manufacturing plant in Sohar, with
an installed capacity of 48,000 tons of aluminum rod and electrical conductors
per year.
The
company’s profits declined annually by 59% to OMR6.1 million (USD16 million),
in 2008; the decline is attributed to a reduction of copper prices of
approximately 56%.
SPECIAL NOTE
The
address given by you: Plot No 6,Building No 206,Road No 2rusayl Industrial
Estate,Rusayl 124,P O Box25 Muscatxx is misspelt. Please note that subject's
correct administrative address is as per heading.
Interviewed:
Munirath
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.45 |
|
|
1 |
Rs.72.90 |
|
Euro |
1 |
Rs.61.43 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.