MIRA INFORM
REPORT
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Report Date : |
11.07.2011 |
IDENTIFICATION DETAILS
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Name : |
SWEETS OF OMAN SAOG |
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Registered Office : |
Sweets of Oman Building, Road No. 8, Rusayl Industrial Estate, P.O. Box 49, Rusayl 124 |
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Country : |
Oman |
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Date of Incorporation : |
01.01.1989 |
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Com. Reg. No.: |
1/28686/2 |
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Legal Form : |
Omani General Joint Stock Company |
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Line of Business : |
Manufacturers, distributors and exporters of a wide range of chocolates, toffees, bonbons and other confectionery. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
DLRS 150,000 |
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Status : |
Moderate |
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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 – March 31st, 2011
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Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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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
SWEETS OF OMAN SAOG
company ADDRESS
Building : Sweets of Oman Building
Street : Road No. 8
Area : Rusayl Industrial Estate
P.O. Box : 49
Town : Rusayl 124
Country : Oman, Sultanate of
Telephone : (968) 2444 6278 / 2444 6279 ext 108 (accounts) / 2444 6280
Fax : (968) 2444 6276
E-Mail : sweets@omantel.net.om / info@sweetsofoman.com
Website : www.sweetsofoman.com
SENIOR COMPANY PERSONNEL
Name Position
1. Redha Baqir Suleiman Jaffer Al Lawati Chairman
2. Mahdi Abdul Baqi Deputy Chairman
3. Mohammed Abdul Hussain Baqer Al Lawati Director
4. S.K. Rao Director
5. Ceruseri Srinivasan Badrinath Director
6. S. Balakrishna General Manager &
Board Secretary
7. Siby Kumar Executive Secretary
8. Sajith Parambath Chief Accountant
Total Employees : 190
PAYMENTS
No complaints have been heard regarding payments from local suppliers
or banks.
Sweets of Oman was founded in 1988, but did not commence production
until July 1991. The company incurred losses up to 1999; made a small
profit in 2000; a small loss in 2001, and much increased profit in
2002-2006. Resulting from past accumulated losses the 2007 balance
sheet shows a negative shareholder's equity, however subject shows positive shareholder’s equity from 2008 to 2010 and has also remained profitable in these years.
The company continues to enjoy the support of its suppliers, bankers
and principal shareholders. In view of the associations we consider
it consider it acceptable to deal with subject for MEDIUM amounts.
Where larger or protracted dealings are envisaged international
suppliers may wish to seek some additional comfort from one of the
principal participating shareholder groups.
Opinion on maximum credit : RO 100,000
Trade risk assessment : Above average (see above comments)
Opinion on the credit figure of US DLRS 150,000 :
We consider the above figure to be within the company's financial
capabilities.
PRINCIPAL BANKERS
NAME : BANK MUSCAT (SAOG)
Branch : Main Branch
Street : Al Burj Street, Muttrah Commercial District 1073
P.O. Box : 134, Ruwi 112
Town : Muscat
Telephone: (968) 2470 3044 / 2478 8638 / 2470 8653
Fax : (968) 2478 9886 / 2478 8638
The company has also an account with the following banks:
1. Standard Chartered Bank
Bait AI Falaj Street
PO Box 2353 Ruwi 112
Muscat
Telephone: (968) 2470 3999
Fax : (968) 2479 6864
2. Oman Arab Bank
Main branch
Al Markazi Street, Muttrah Business District
PO Box 2010 Ruwi 112
Muscat
Telephone: (968) 2470 6265 / 2470 1060
Fax : (968) 2479 7736 / 2470 1091
AUDITORS
1. PricewaterhouseCoopers LLP
Hatat House, Suites 204-210
Wadi Adai
PO Box 3075 Ruwi 112
Muscat
Telephone: (968) 2455 9110
Fax : (968) 2456 4408
2. Moore Stephens
PO Box 933 Ruwi
PC 112
Muscat
Telephone : (968) 2481 2041
Fax : (968) 2481 2043
FINANCIAL INFORMATION
Balance sheets as at
31 December 2010, showed :
31/12/2010 31/12/2009 31/12/2008
(in
thousands of RO)
ASSETS
Time Deposits 265 529 377
Cash & Cash
Equivalents 265 529 377
Accounts Receivables
1,592 1,316 1,144
Provision for
Doubtful
Receivables (15) (22) (53)
Net Receivables 1,577 1,294 1,091
Current receivables 1,577 1,294 1,091
Raw Material 624 455 255
Packaging Material 414 408 268
Other Raw Materials 0 4 11
Goods in Transit 315 225 448
Work in Process 91 76 93
Finished Goods 151 108 207
Total Inventory 1,595 1,276 1,282
Provision
(Inventory) (16) (15) (1)
Net Inventory 1,579 1,261 1,281
Advance Payments to
Suppliers 90 120 373
Due from Sister
Companies/Associates 0 0 83
Loans to employees
(under one year) 12 0 0
Prepaid Expenses ST 73 26 20
Other Current
Assets 4 19 16
Total Current Assets
3,600 3,249 3,240
Land & Buildings
248 2,219 239
Furniture &
Equipment 170 153 141
Machinery 2,359 0 1,517
Other Fixed
Assets 54 67 45
Accumulated
Depreciation (1,943)
(1,712) (1,553)
Capital work in
Progress 93
10 31
Fixed Assets 981 737 421
Due From Tax
Authority 10 4 0.37
Total Long Term
Assets 991 741 421
Total Assets 4,591 3,990 3,661
LIABILITIES &
SHAREHOLDERS EQUITY
Current Portion of
Long Term Debt 274 323 811
Current Portion of
Long Term Lease 78 71 58
Accounts
Payable 732 812 935
Accrued Expenses 361 533 342
Other Current
Liabilities 336 0 173
Total Current
Liabilities 1,781 1,739 2,320
Long Term Debt 482 780 771
Capital Lease 61 138 101
Total Long-term
Liabilities 543 918 872
Total Liabilities 2,324 2,657 3,192
Tax Provision 132 106 62
Provision for
Employees'
Termination
Benefits 158 130 94
Total Provisions 290 236 156
Total Liabilities
& Provisions 2,614 2,893 3,348
Paid-up Capital 700 700 700
Legal/Statutory
Reserve 233 233 164
Due To
Shareholders\Appropriation 280 70 0
Retained Earnings
/ Accumulated losses
764 94 (551)
Total Shareholders'
Equity 1,977 1,097 313
Total Liabilities
& Shareholders'
Equity 4,591 3,990 3,661
Comm. &
Contingent Liab. 2,173 1,856 1,155
INCOME STATEMENT
Gross Revenue 8,478 7,332 5,951
Cost of Goods Sold (5,883) (4,991) (4,401)
Gross Margin 2,595 2,341 1,550
S.G. & A. (1,239) (1,193) (888)
Depreciation Expense
(241) (169) (97)
Net Operating Profit
1,115 978 565
Interest Expense (66) (61) (74)
Provisions (12) (37) (14)
Provisions for
Doubtful Debts 0 (20) (7)
Other Income 39 27 40
Net Profit Before
Taxes/Zakat 1,076 887 510
Tax / Zakat
Provision (126) (103) (63)
Net Profit After
Taxes or Zakat 950 784 448
Net Profit After
Unusual Items 950 784 448
Financial year ends 31 December.
Loans
The term loan from the Government of the Sultanate of Oman is
interest free and should have been repaid in ten annual instalments
commencing from 1 January 1996. The repayment was rescheduled in the
year 2006 and an amount of RO 388,594 is now repayable in varying
annual instalments to end substantially in the year 2012. During the
year the Company had paid RO 80,000 (2007 - RO 46,695) towards the
principal amount.
The total value attributable to the term loan from the Government of
the Sultanate of Oman includes their carrying values as determined in
accordance with the method described in note 2 n) to the financial
statements of RO 334,740 (2007 - RO 383,423) including RO 53,853
(2007 - RO 85,170) being the amount of unamortized deferred income.
The Government soft loan is secured by a mortgage on the property,
plant and equipment of the Company [see note 3 c)].
The loan 1 from a local commercial bank is interest free and to be
repaid in 9 annual varying instalments commencing from the year 1997.
The Company has defaulted in its repayment and at the balance sheet
date, the entire loan is overdue and has been classified under
current liabilities. Effective 15 June 2007, the commercial bank has
started levying interest on the loan at 7% per annum and at the
balance sheet date the interest too has not been paid. The
negotiations for the settlement of the loan are at an advanced stage
of completion subject to formal acceptance by the Board of Directors.
The loan 2 is also from the same local commercial bank availed during
the year 2007, subject to interest at 9% per annum, secured against
corporate guarantees provided by two promoter shareholders and
repayable in monthly installments of RO 4,200 commencing April 2008
(2007 - same terms). During the year the Company has paid RO 37,800
towards principal. The carrying value of loan 2 approximates its fair
value at the balance sheet date.
Secured charges
The Government soft loan is secured by a mortgage on the property,
plant and equipment of the Company.
LEGAL STATUS AND HISTORY
Date Started : 1 January 1989
History : The subject company was established on 1 January 1989 but production did not start until 1 July
1991.
C.R. No. : 1/28686/2 (issued on: 1 April 1990, expiry date: 23 March 2013)
Authorised Capital : RO 700,000
Paid up Capital : RO 700,000
Societe Anonyme Omani Generale (Omani general joint stock company)
with the following directors and shareholders :
Directors
1. Redha Baqir Suleiman Jaffer Al Lawati (Chairman)
2. Mahdi Abdul Baqi (Representing Muscat Agency Trading)
3. Mohammed Abdul Hussain Baqer Al Lawati
4. S.K. Rao (Representing Al Mekyal Import & Export Trading Co. LLC)
5. Ceruseri Srinivasan Badrinath (Representing Muscat Trading Co)
Shareholders Percentage
1. Redha Baqir Suleiman Jaffer Al Lawati 10%
(Omani national)
2. Al Mekyal Import & Export Trading Co. LLC 10%
Oman
3. Members of the public 80%
Affiliated companies of Sweets of Oman SAOG :
Associates
1. Bhacker Suleiman Jaffer Company
Bhacker Suleiman Bldg, Block No 6, 1st floor
opposite Oman Flour Mills, Muttrah, Jibroo Cornishe
PO Box 39
Muscat 113
Telephone: (968) 2471 4922
Fax : (968) 2471 1335
2. Al Farahidy Technology Information LLC
PO Box 746
Jibroo 114
Telephone: (968) 2471 2238
Fax : (968) 2471 2258
Email : aftisoft@omantel.net.om
3. Oman Insecticides and Aerosols Fresheners Co
PO Box 39
Muscat 100
Telephone: (968) 2471 4922
Fax : (968) 2471 1335
Email : bsjgroup@omantel.net.om
4. The National Detergent Co. S.A.O.G.
PO Box 3104 Ruwi 112
Muscat
Telephone: (968) 2449 3824
Fax : (968) 2449 2145
Email : ndcoman@omantel.net.om
5. Highland & Bhacker Suleman
PO Box 39
Muscat 100
Telephone: (968) 2471 2319
Fax : (968) 2471 2248
Email : bsjgroup@omantel.net.om
6. Bhacker Suleman Jaffer Distribution Co
PO Box 39
Muscat 100
Telephone: (968) 2471 4922
Fax : (968) 2471 1335
Email : bsjgroup@omantel.net.om
7. Muttrah Coast for Real Estate
PO Box 39
Muscat 100
Telephone: (968) 2471 4922
Fax : (968) 2471 1335
Email : bsjgroup@omantel.net.om
8. International Motoring Club
PO Box 39
Muscat 100
Telephone: (968) 2471 4922
Fax : (968) 2471 1335
Email : info@imcholding.com
ACTIVITIES
The Company is involved in the following activities :
Manufacturers, distributors and exporters of a wide range of
chocolates, toffees, bonbons and other confectionery.
NACE Code: 1082 / 4636
Subject supplies to the local market and other Gulf Countries and to
Eritrea, Ethiopia, Saudi Arabia, Kenya and CIS states.
Brands : Chiko, Chelsea, Bentley’s, Foley and Court, Trents.
Subject obtained HACCP Certification in April, 2004.
Subject has also obtained BRC (Global Standards for Foods) certification in 2008.
Imports from UK, Ireland, India, Sri Lanka, Malaysia and Australia.
Exports 75% to GCC countries, Far East, Asia (including Sri Lanka),
USA, Canada, New Zealand, South Africa, Australia, European
countries, CIS states and African countries.
FACILITIES
The Company has the following facilities :
Leased premises comprising several administrative offices and a factory with integrated storage facilities located at the heading address as well as 6 warehouses located elsewhere in Oman.
The company previously used from P.O. Box 6779 and 16426.
SPECIAL NOTE
Interviewed : Sajith Parambath (Chief Accountant)
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.44.33 |
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UK Pound |
1 |
Rs.70.74 |
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Euro |
1 |
Rs.63.65 |
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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.