MIRA
INFORM REPORT

Report Date :

20.12.2012

Tel. No.:

968 26751675, 26750675

IDENTIFICATION DETAILS

Name :

GULF STONE CO. SAOG

Registered Office :

Industrial Estate P.O.Box 47Sohar Sohar, 327

Country :

Oman

Financials (as on) :

31.12.2011

Date of Incorporation :

31.03.1999

Legal Form :

Public Independent

Line of Business :

Subject is engaged in the manufacture of agglomerated
quartz stone.

No. of Employees :

65

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal
commitments.

Satisfactory

Status :

Satisfactory

Payment Behaviour :

No Complaints

Litigation :

Clear

NOTES :

Any query related to this report can be made
on e-mail: [email-masked]
while quoting report number, name and date.

ECGC Country Risk Classification List – June 30th, 2012

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Oman

A2

A2

Risk Category

ECGC
Classification

Insignificant

A1

Low

A2

Moderate

B1

High

B2

Very High

C1

Restricted

C2

Off-credit

D

oman - ECONOMIC OVERVIEW

Oman is a middle-income economy that is heavily dependent on dwindling
oil resources. Because of declining reserves and a rapidly growing labor force,
Muscat has actively pursued a development plan that focuses on diversification,
industrialization, and privatization, with the objective of reducing the oil
sector's contribution to GDP to 9% by 2020 and creating more jobs to employ the
rising numbers of Omanis entering the workforce. Tourism and gas-based
industries are key components of the government's diversification strategy. By
using enhanced oil recovery techniques, Oman succeeded in increasing oil
production, giving the country more time to diversify, and the increase in
global oil prices through 2011 provided the government greater financial
resources to invest in non-oil sectors.

Source : CIA

Company name and address

GULF STONE CO. SAOG

Industrial Estate

P.O.Box 47Sohar

Sohar, 327

Oman

Tel:                               968-26-751675

Fax:                              968-26-750186

Website:                      www.gulfstone-oman.com

Employees:                  65

Company Type:             Public
Independent

Traded:                         Muscat
Securities Market:          GSCI

Incorporation Date:        31-Mar-1999

Auditor:                        KPMG

Financials in:                 USD  (In Millions)

Fiscal Year End:            31-Dec-2011

Reporting Currency:      Rial
Omani

Annual Sales:                9.7  1

Net Income:                  1.2

Total Assets:                15.9  2

Market Value:                8.5

(04-Dec-2011)

Business Description

Gulf Stone Co SAOG (GSC) is an Oman-based company engaged in
the manufacture of agglomerated quartz stone. The Companyâ€™s
products fall into three categories namely mirror, non-mirror and mosaic
products that are used in a variety of applications as indoor flooring, raised
floor systems, internal wall cladding, table tops, vanity tops, kitchen
counters, tables for laboratories, stairs and sills, bathrooms and swimming
pools among other application purposes. GSC operates through its production
unit located in Sohar, Oman, with exports to Europe, Australia, United Kingdom,
United States of America, India, Asia and the Middle East regions. As of
December 31, 2011, the Company's main shareholders included First National LLC
(29.64%), Arab Mining Co. (25%) and Bitumat Company Limited (20%). For the nine
months ended 30 September 2012, Gulf Stone Co. SAOG revenues increased 4% to
OMR2.8M. Net income decreased 38% to OMR195K. Revenues reflect an increase in
demand for the Company's products and services due to favorable market
conditions. Net income was offset by Marketing & Selling Expenses increase
of 20% to OMR112K (expense), Other Income decrease of 84% to OMR3K (income).

Industry

Industry

Construction
- Supplies and Fixtures

ANZSIC 2006:

2029 -
Other Ceramic Product Manufacturing

NACE 2002:

2630 -
Manufacture of ceramic tiles and flags

NAICS 2002:

327122 -
Ceramic Wall and Floor Tile Manufacturing

UK SIC 2003:

2630 -
Manufacture of ceramic tiles and flags

UK SIC 2007:

2331 -
Manufacture of ceramic tiles and flags

US SIC 1987:

3253 -
Ceramic Wall and Floor Tile

Key Executives

Name

Title

Abdul Moneim Mohammed Abdullah Al Murshidi

General Manager

Shammas Bin Khalid Al Reesi

Secretary to the Board

Ahmad Mohammed Al Rasbi

Non-Executive Chairman of the Board

Mohammed Said Al Ajeel

Non-Executive Vice Chairman of the Board

Suleiman Ahmad Al Haqani

Non-Executive Member of the Board

Significant Developments

Topic

#*

Most Recent Headline

Date

Mergers & Acquisitions

1

Gulf Stone Co SAOG Approves To Acquire New
Production Line

25-Jul-2012

Dividends

1

Gulf Stone Co SAOG Issues Further Information
Concerning Capital Increase Through Bonus Share Issue

24-Mar-2012

* number of
significant developments within the last 12 months

Financial Summary

As of 30-Sep-2012

Key Ratios

Company

Industry

Current Ratio (MRQ)

1.93

2.04

Quick Ratio (MRQ)

0.92

1.12

Debt to Equity (MRQ)

0.25

1.04

Sales 5 Year Growth

2.28

-0.71

Net Profit Margin (TTM) %

9.06

-1.38

Return on Assets (TTM) %

5.72

-0.0060

Return on Equity (TTM) %

8.43

-2.72

Stock Snapshot

Traded: Muscat Securities Market: GSCI

As of
31-Dec-2011

Financials in: OMR

Recent Price

0.08

Price/Book

0.73

Avg. Volume (mil)

0.0000

Market Value (mil)

3.27

Price % Change

Rel S&P 500%

4 Week

0.0000%

1.49%

13 Week

0.0000%

-1.14%

52 Week

0.0000%

-1.37%

Year to Date

0.0000%

1.25%

1 - Profit & Loss Item Exchange Rate: USD 1 = OMR 0.385032

2 - Balance Sheet Item Exchange Rate:
USD 1 = OMR 0.385

Corporate
Overview

Location

Industrial Estate

P.O.Box 47Sohar

Sohar, 327

Oman

Tel:                                           968-26-751675

Fax:                                          968-26-750186

Website:                                   www.gulfstone-oman.com

Quote Symbol – Exchange        GSCI - Muscat
Securities Market

Sales OMR(mil):                        3.7

Assets OMR(mil):                      6.1

Employees:                              65

Fiscal Year End:                        31-Dec-2011

Industry:                                   Construction
- Supplies and Fixtures

Incorporation Date:                    31-Mar-1999

Company Type:                         Public
Independent

Quoted Status:                          Quoted

Secretary to the Board:              Shammas
Bin Khalid Al Reesi

Industry Codes

ANZSIC 2006 Codes:

2029

-

Other Ceramic Product Manufacturing

2090

-

Other Non-Metallic Mineral Product Manufacturing

NACE 2002 Codes:

2630

-

Manufacture of ceramic tiles and flags

2670

-

Cutting, shaping and finishing of ornamental and building
stone

NAICS 2002 Codes:

327122

-

Ceramic Wall and Floor Tile Manufacturing

327991

-

Cut Stone and Stone Product Manufacturing

US SIC 1987:

3253

-

Ceramic Wall and Floor Tile

3281

-

Cut Stone and Stone Products

UK SIC 2003:

2630

-

Manufacture of ceramic tiles and flags

2670

-

Cutting, shaping and finishing of ornamental and building
stone

UK SIC 2007:

2331

-

Manufacture of ceramic tiles and flags

2370

-

Cutting, shaping and finishing of stone

Business Description

Gulf Stone Co SAOG (GSC) is an Oman-based company engaged in
the manufacture of agglomerated quartz stone. The Companyâ€™s
products fall into three categories namely mirror, non-mirror and mosaic
products that are used in a variety of applications as indoor flooring, raised
floor systems, internal wall cladding, table tops, vanity tops, kitchen
counters, tables for laboratories, stairs and sills, bathrooms and swimming
pools among other application purposes. GSC operates through its production
unit located in Sohar, Oman, with exports to Europe, Australia, United Kingdom,
United States of America, India, Asia and the Middle East regions. As of
December 31, 2011, the Company's main shareholders included First National LLC
(29.64%), Arab Mining Co. (25%) and Bitumat Company Limited (20%). For the nine
months ended 30 September 2012, Gulf Stone Co. SAOG revenues increased 4% to
OMR2.8M. Net income decreased 38% to OMR195K. Revenues reflect an increase in
demand for the Company's products and services due to favorable market
conditions. Net income was offset by Marketing & Selling Expenses increase
of 20% to OMR112K (expense), Other Income decrease of 84% to OMR3K (income).

More Business Descriptions

Production of quartz
agglomerate stone

Flooring Tile & Stone
Product Mfr

Financial Data

Financials in:

OMR(mil)

1 Year Growth

Revenue:

3.7

8.4%

Net Income:

0.5

21.0%

Assets:

6.1

3.7%

Long Term Debt:

0.6

Total Liabilities:

2.0

Working Capital:

0.0

Date of Financial Data:

31-Dec-2011

Market Data

Quote Symbol:

GSCI

Exchange:

Muscat Securities Market

Currency:

OMR

Stock Price:

0.1

Stock Price Date:

12-04-2011

52 Week Price Change %:

0.0

Market Value (mil):

3,267.0

SEDOL:

6560490

ISIN:

OM0000002671

Equity and Dept
Distribution:

03/2008, Scrip Issue, 5
new shares for every 100 shares held. 03/2009, Script Issue, 19.05 shares for
every 100 shares held. 03/2010, Scrip Issue, 20 new shares for every 100 shares
held. 03/2011, Scrip Issue, 10 new shares for every 100 shares held (Factor:
1.1). 3/2012, Scrip Issue, 10 new shares for every 100 shares held (Factor:
1.1).

Shareholders

Major Shareholders

First National LLC (29.64%);
Arab Mining Co (25%); Bitumat Company Limited (20%)

Key Corporate Relationships

Auditor:            KPMG

Auditor:            KPMG,
KPMG

Board of Directors

Name

Title

Function

Ahmad Mohammed Al Rasbi

Non-Executive Chairman of the Board

Chairman

Mohammed Said Al Ajeel

Non-Executive Vice Chairman of the Board

Vice-Chairman

Hirki, Nawwar Abdul Karim Al

Board Member

Director/Board Member

Suleiman Ahmad Al Haqani

Non-Executive Member of the Board

Director/Board Member

Biography:

Mr. Suleiman Ahmad Al Haqani serves as Non-Executive Member of the
Board of Gulf Stone Co SAOG since March 22, 2009. He also serves as
Chairman of the Board at another two Companies, as well as Member of the
Board of another Company.

Nawwar Abdul Karim Al Hirki

Non-Executive Member of the Board, representing Bitumat Company
Limited

Director/Board Member

Saliaman Ahmaed Al Hookani

Director

Director/Board Member

Mohammed Ahmad Abdul Aziz Al Shehhi

Non-Executive Member of the Board, representing Arab Mining Co.

Director/Board Member

Fares Mahmoud Fadl Allah

Non-Executive Member of the Board

Director/Board Member

Biography:

Mr. Fares Mahmoud Fadl Allah serves as Non-Executive Member of the
Board of Gulf Stone Co SAOG since 2010. He also serves as Member of the
Board at another two Companies.

Haifa A. Hamid

Board Member

Director/Board Member

Executives

Name

Title

Function

Abdul Moneim Mohammed Abdullah Al Murshidi

General Manager

Division Head Executive

Age: 38

Shammas Bin Khalid Al Reesi

Secretary to the Board

Company Secretary

Significant
Developments

Gulf Stone Co SAOG Approves To Acquire New Production Line

Jul 25, 2012

Gulf Stone Co SAOG announced that its Board of Directors has approved to
acquire new production line to enhance the Company's production.

Gulf Stone Co SAOG Issues Further Information Concerning
Capital Increase Through Bonus Share Issue

Mar 24, 2012

Gulf Stone Co SAOG announced that its Shareholders, during their Annual General
Meeting held on March 24, 2012, has approved to issue bonus shares of 10% of
the paid up capital, representing 10 bonus shares for each 100 outstanding
shares and thus increasing the Company's capital from OMR 3,300,000 to OMR
3,630,000.

Annual
Income Statement

Financials
in: USD (mil)

Except
for share items (millions) and per share items (actual units)

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

31-Dec-2007

Period Length

12 Months

12 Months

12 Months

12 Months

12 Months

UpdateType/Date

Updated Normal

31-Dec-2011

Updated Normal

31-Dec-2010

Restated Normal

31-Dec-2010

Updated Normal

31-Dec-2008

Updated Normal

31-Dec-2007

Filed Currency

OMR

OMR

OMR

OMR

OMR

Exchange Rate (Period
Average)

0.385032

0.385008

0.384999

0.384956

0.384897

Auditor

KPMG

KPMG

Khalid Majid Rahman

Deloitte & Touche
LLP

Deloitte & Touche
LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified

Net Sales

9.7

8.9

10.0

12.9

11.9

Revenue

9.7

8.9

10.0

12.9

11.9

Total Revenue

9.7

8.9

10.0

12.9

11.9

Cost of Revenue

7.2

6.8

7.4

9.7

8.4

Cost of Revenue, Total

7.2

6.8

7.4

9.7

8.4

Gross Profit

2.5

2.1

2.6

3.2

3.6

Selling/General/Administrative
Expense

1.2

1.0

1.1

1.5

1.2

Total Selling/General/Administrative Expenses

1.2

1.0

1.1

1.5

1.2

Other Operating Expense

-

-

-

0.2

-

Other, Net

-0.1

0.0

0.0

-0.1

-0.1

Other Operating Expenses, Total

-0.1

0.0

0.0

0.2

-0.1

Total Operating Expense

8.4

7.7

8.4

11.4

9.5

Operating Income

1.3

1.2

1.6

1.5

2.4

Interest
Expense - Non-Operating

-0.2

-0.2

-0.3

-0.3

-0.3

Interest Expense, Net
Non-Operating

-0.2

-0.2

-0.3

-0.3

-0.3

Interest Income (Expense) - Net Non-Operating Total

-0.2

-0.2

-0.3

-0.3

-0.3

Income Before Tax

1.2

1.0

1.3

1.2

2.2

Total Income Tax

0.0

0.0

0.0

0.0

0.1

Income After Tax

1.2

1.0

1.3

1.2

2.0

Net Income Before Extraord Items

1.2

1.0

1.3

1.2

2.0

Net Income

1.2

1.0

1.3

1.2

2.0

Income Available to Common Excl Extraord Items

1.2

1.0

1.3

1.2

2.0

Income Available to Common Incl Extraord Items

1.2

1.0

1.3

1.2

2.0

Basic/Primary Weighted Average Shares

36.3

36.3

36.3

36.3

36.3

Basic EPS Excl Extraord Items

0.03

0.03

0.04

0.03

0.06

Basic/Primary EPS Incl Extraord Items

0.03

0.03

0.04

0.03

0.06

Diluted Net Income

1.2

1.0

1.3

1.2

2.0

Diluted Weighted Average Shares

36.3

36.3

36.3

36.3

36.3

Diluted EPS Excl Extraord Items

0.03

0.03

0.04

0.03

0.06

Diluted EPS Incl Extraord Items

0.03

0.03

0.04

0.03

0.06

Dividends per Share - Common Stock Primary Issue

-

0.00

0.00

0.29

0.07

Gross Dividends - Common Stock

-

0.0

0.0

-

-

Interest Expense, Supplemental

0.2

0.2

0.3

0.3

0.3

Depreciation, Supplemental

0.7

0.7

0.6

0.6

0.0

Normalized Income Before Tax

1.2

1.0

1.3

1.2

2.2

Inc Tax Ex Impact of Sp Items

0.0

0.0

0.0

0.0

0.1

Normalized Income After Tax

1.2

1.0

1.3

1.2

2.0

Normalized Inc. Avail to Com.

1.2

1.0

1.3

1.2

2.0

Basic Normalized EPS

0.03

0.03

0.04

0.03

0.06

Diluted Normalized EPS

0.03

0.03

0.04

0.03

0.06

Rental Expenses

-

-

-

0.0

0.0

Advertising Expense, Supplemental

-

-

-

0.0

0.0

Normalized EBIT

1.3

1.2

1.6

1.5

2.4

Normalized EBITDA

2.0

1.9

2.2

2.1

2.5

Deferred Tax - Domestic

0.0

0.0

0.0

0.0

0.1

Deferred Tax - Total

0.0

0.0

0.0

0.0

0.1

Income Tax - Total

0.0

0.0

0.0

0.0

0.1

Annual
Balance Sheet

Financials in: USD (mil)

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

31-Dec-2007

UpdateType/Date

Updated Normal

31-Dec-2011

Reclassified
Normal

31-Dec-2011

Updated Normal

31-Dec-2009

Updated Normal

31-Dec-2008

Updated Normal

31-Dec-2007

Filed Currency

OMR

OMR

OMR

OMR

OMR

Exchange Rate

0.385

0.385

0.38495

0.38505

0.385

Auditor

KPMG

KPMG

Khalid Majid Rahman

Deloitte & Touche
LLP

Deloitte & Touche
LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified

Cash & Equivalents

0.5

0.5

0.5

1.0

0.8

Cash and Short Term Investments

0.5

0.5

0.5

1.0

0.8

Accounts
Receivable - Trade, Gross

3.0

1.8

1.1

1.1

1.2

Provision
for Doubtful Accounts

-0.1

-0.1

-0.1

-0.2

-0.2

Trade Accounts Receivable - Net

2.9

1.7

0.9

0.9

1.0

Other Receivables

0.0

0.0

0.0

0.0

-

Total Receivables, Net

2.9

1.7

1.0

0.9

1.0

Inventories - Finished Goods

1.0

1.0

1.1

0.4

0.4

Inventories - Work In Progress

0.2

0.2

0.3

0.1

0.2

Inventories - Raw Materials

2.0

2.2

2.4

3.3

2.4

Inventories - Other

0.0

0.0

-0.1

-0.2

0.0

Total Inventory

3.2

3.3

3.6

3.7

2.9

Prepaid Expenses

0.3

0.2

0.2

0.4

0.3

Total Current Assets

6.9

5.8

5.3

5.9

5.1

Buildings

-

-

-

3.4

3.4

Machinery/Equipment

-

-

-

9.8

9.5

Construction
in Progress

-

-

-

0.2

0.1

Property/Plant/Equipment - Gross

13.8

13.7

13.8

13.5

13.1

Accumulated Depreciation

-4.8

-4.2

-3.6

-3.1

-2.5

Property/Plant/Equipment - Net

8.9

9.5

10.1

10.3

10.5

Total Assets

15.9

15.3

15.4

16.3

15.6

Accounts Payable

1.2

0.7

0.9

1.3

1.1

Accrued Expenses

0.2

0.2

-

-

-

Notes Payable/Short Term Debt

0.0

4.0

2.8

0.9

0.0

Current Portion - Long Term Debt/Capital Leases

1.4

0.0

0.3

1.9

1.6

Customer Advances

0.0

0.0

-

-

-

Other Payables

0.1

0.1

-

-

-

Other Current liabilities, Total

0.1

0.1

-

-

-

Total Current Liabilities

3.0

5.0

4.0

4.1

2.7

Long Term Debt

1.5

0.2

2.3

4.3

6.3

Total Long Term Debt

1.5

0.2

2.3

4.3

6.3

Total Debt

2.9

4.1

5.4

7.1

7.9

Deferred Income Tax - LT Liability

0.7

0.7

0.7

0.7

0.8

Deferred Income Tax

0.7

0.7

0.7

0.7

0.8

Pension Benefits - Underfunded

0.1

0.1

0.1

0.1

0.0

Other Liabilities, Total

0.1

0.1

0.1

0.1

0.0

Total Liabilities

5.3

5.9

7.0

9.2

9.7

Common Stock

8.6

8.6

6.5

5.5

5.2

Common Stock

8.6

8.6

6.5

5.5

5.2

Retained Earnings (Accumulated Deficit)

2.0

0.8

1.9

1.6

0.7

Total Equity

10.6

9.4

8.4

7.1

5.9

Total Liabilities & Shareholdersâ€™
Equity

15.9

15.3

15.4

16.3

15.6

Shares Outstanding - Common Stock
Primary Issue

36.3

36.3

36.3

36.3

36.3

Total Common Shares Outstanding

36.3

36.3

36.3

36.3

36.3

Number of Common Shareholders

-

-

41

41

43

Deferred Revenue - Current

0.0

0.0

0.0

0.1

-

Total Long Term Debt, Supplemental

1.5

2.9

5.1

6.2

7.9

Long Term Debt Maturing within 1 Year

1.5

2.8

2.8

1.9

1.6

Long Term Debt Maturing in Year 2

0.0

0.2

1.9

1.9

1.9

Long Term Debt Maturing in Year 3

0.0

0.0

0.1

0.8

1.4

Long Term Debt Maturing in Year 4

0.0

0.0

0.1

0.8

1.4

Long Term Debt Maturing in Year 5

0.0

0.0

0.1

0.8

1.4

Long Term Debt Maturing in 2-3 Years

0.0

0.2

2.1

2.7

3.4

Long Term Debt Maturing in 4-5 Years

0.0

0.0

0.2

1.6

2.9

Long Term Debt Matur. in Year 6 & Beyond

0.0

0.0

0.0

0.0

0.0

Total Operating Leases, Supplemental

-

-

-

0.6

0.6

Operating Lease Payments Due in Year 1

-

-

-

0.0

0.0

Operating Lease Payments Due in Year 2

-

-

-

0.0

0.0

Operating Lease Payments Due in Year 3

-

-

-

0.0

0.0

Operating Lease Payments Due in Year 4

-

-

-

0.0

0.0

Operating Lease Payments Due in Year 5

-

-

-

0.0

0.0

Operating Lease Pymts. Due in 2-3 Years

-

-

-

0.1

0.1

Operating Lease Pymts. Due in 4-5 Years

-

-

-

0.1

0.1

Oper. Lse. Pymts. Due in Year 6 & Beyond

-

-

-

0.4

0.5

Annual
Cash Flows

Financials in: USD (mil)

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

31-Dec-2007

Period Length

12 Months

12 Months

12 Months

12 Months

12 Months

UpdateType/Date

Updated Normal

31-Dec-2011

Reclassified
Normal

31-Dec-2011

Updated Normal

31-Dec-2009

Updated Normal

31-Dec-2009

Updated Normal

31-Dec-2007

Filed Currency

OMR

OMR

OMR

OMR

OMR

Exchange Rate (Period
Average)

0.385032

0.385008

0.384999

0.384956

0.384897

Auditor

KPMG

KPMG

Khalid Majid Rahman

Deloitte & Touche
LLP

Deloitte & Touche
LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified

Net Income/Starting Line

1.2

1.0

1.3

1.2

2.2

Depreciation

0.7

0.7

0.6

0.6

0.5

Depreciation/Depletion

0.7

0.7

0.6

0.6

0.5

Unusual Items

0.1

0.0

0.0

-

-

Other Non-Cash Items

0.2

0.2

0.3

0.5

0.3

Non-Cash Items

0.2

0.2

0.3

0.5

0.3

Accounts Receivable

-1.3

-0.8

0.1

0.0

-0.5

Inventories

0.2

0.3

0.0

-0.9

-0.5

Payable/Accrued

0.6

0.1

-0.4

0.3

0.1

Changes in Working Capital

-0.6

-0.4

-0.3

-0.7

-0.9

Cash from Operating Activities

1.5

1.5

1.9

1.7

2.1

Purchase of Fixed Assets

-0.1

0.0

-0.4

-0.4

-0.7

Capital Expenditures

-0.1

0.0

-0.4

-0.4

-0.7

Sale of Fixed Assets

0.0

0.0

0.0

0.0

-

Other Investing Cash Flow Items, Total

0.0

0.0

0.0

0.0

-

Cash from Investing Activities

-0.1

0.0

-0.4

-0.4

-0.7

Other Financing Cash Flow

0.1

0.7

-0.8

0.6

-0.3

Financing Cash Flow Items

0.1

0.7

-0.8

0.6

-0.3

Long Term
Debt Issued

-

-

-

-

0.1

Long Term
Debt Reduction

-

-

-

-

-1.3

Long Term Debt, Net

-1.4

-2.1

-1.1

-1.7

-1.2

Issuance (Retirement) of Debt, Net

-1.4

-2.1

-1.1

-1.7

-1.2

Cash from Financing Activities

-1.4

-1.5

-2.0

-1.1

-1.5

Net Change in Cash

0.0

0.0

-0.5

0.2

-0.2

Net Cash - Beginning Balance

0.5

0.5

1.0

0.8

1.0

Net Cash - Ending Balance

0.5

0.5

0.5

1.0

0.8

Cash Interest Paid

0.2

0.2

0.3

0.3

0.3

Annual
Income Statement

Financials
in: USD (mil)

Except
for share items (millions) and per share items (actual units)

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

31-Dec-2007

Period Length

12 Months

12 Months

12 Months

12 Months

12 Months

UpdateType/Date

Updated Normal

31-Dec-2011

Updated Normal

31-Dec-2010

Restated Normal

31-Dec-2010

Updated Normal

31-Dec-2008

Updated Normal

31-Dec-2007

Filed Currency

OMR

OMR

OMR

OMR

OMR

Exchange Rate (Period
Average)

0.385032

0.385008

0.384999

0.384956

0.384897

Auditor

KPMG

Khalid Majid Rahman

Deloitte & Touche
LLP

Deloitte & Touche
LLP

Deloitte & Touche
LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified

Revenue

9.7

8.9

10.0

12.9

11.9

Total Revenue

9.7

8.9

10.0

12.9

11.9

Cost of Sales

7.2

6.8

7.4

9.7

8.4

Administrative & General
Expenses

0.9

0.7

0.8

1.0

0.9

Selling & Marketing Expenses

0.3

0.3

0.3

0.5

0.4

Provision for Slow Moving Stock

-

-

-

0.2

-

Other Operating Income

-0.1

0.0

0.0

-0.1

-0.1

Total Operating Expense

8.4

7.7

8.4

11.4

9.5

Interest Expense

-0.2

-0.2

-0.3

-0.3

-0.3

Net Income Before Taxes

1.2

1.0

1.3

1.2

2.2

Provision for Income Taxes

0.0

0.0

0.0

0.0

0.1

Net Income After Taxes

1.2

1.0

1.3

1.2

2.0

Net Income Before Extra. Items

1.2

1.0

1.3

1.2

2.0

Net Income

1.2

1.0

1.3

1.2

2.0

Income Available to Com Excl ExtraOrd

1.2

1.0

1.3

1.2

2.0

Income Available to Com Incl ExtraOrd

1.2

1.0

1.3

1.2

2.0

Basic Weighted Average Shares

36.3

36.3

36.3

36.3

36.3

Basic EPS Excluding ExtraOrdinary Items

0.03

0.03

0.04

0.03

0.06

Basic EPS Including ExtraOrdinary Items

0.03

0.03

0.04

0.03

0.06

Diluted Net Income

1.2

1.0

1.3

1.2

2.0

Diluted Weighted Average Shares

36.3

36.3

36.3

36.3

36.3

Diluted EPS Excluding ExtraOrd Items

0.03

0.03

0.04

0.03

0.06

Diluted EPS Including ExtraOrd Items

0.03

0.03

0.04

0.03

0.06

DPS-Common Stock

-

0.00

0.00

0.29

0.07

Gross Dividends - Common Stock

-

0.0

0.0

-

-

Normalized Income Before Taxes

1.2

1.0

1.3

1.2

2.2

Inc Tax Ex Impact of Sp Items

0.0

0.0

0.0

0.0

0.1

Normalized Income After Taxes

1.2

1.0

1.3

1.2

2.0

Normalized Inc. Avail to Com.

1.2

1.0

1.3

1.2

2.0

Basic Normalized EPS

0.03

0.03

0.04

0.03

0.06

Diluted Normalized EPS

0.03

0.03

0.04

0.03

0.06

Depreciation

0.7

0.7

0.6

0.6

0.0

Rental Expenses

-

-

-

0.0

0.0

Interest Expense

0.2

0.2

0.3

0.3

0.3

Advertising Expense

-

-

-

0.0

0.0

Deferred Tax

0.0

0.0

0.0

0.0

0.1

Deferred Tax - Total

0.0

0.0

0.0

0.0

0.1

Income Tax - Total

0.0

0.0

0.0

0.0

0.1

Annual
Balance Sheet

Financials in: USD (mil)

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

31-Dec-2007

UpdateType/Date

Updated Normal

31-Dec-2011

Reclassified
Normal

31-Dec-2011

Updated Normal

31-Dec-2009

Updated Normal

31-Dec-2008

Updated Normal

31-Dec-2007

Filed Currency

OMR

OMR

OMR

OMR

OMR

Exchange Rate

0.385

0.385

0.38495

0.38505

0.385

Auditor

KPMG

Khalid Majid Rahman

Deloitte & Touche
LLP

Deloitte & Touche
LLP

Deloitte & Touche
LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified

Raw Material

2.0

2.2

2.4

3.3

2.4

Material in Process

0.2

0.2

0.3

0.1

0.2

Finished Goods

1.0

1.0

1.1

0.4

0.4

Allowances for Contingencies

0.0

0.0

-0.1

-0.2

0.0

Trade Receivables

3.0

1.8

1.1

1.1

1.2

Impairment Loss

-0.1

-0.1

-0.1

-0.2

-0.2

Prepaid Expenses

0.0

0.1

0.0

0.0

0.0

Other Advances

0.3

0.2

0.2

0.4

0.3

Other Receivables

0.0

0.0

0.0

0.0

-

Cash & Equivalents

0.5

0.5

0.5

1.0

0.8

Total Current Assets

6.9

5.8

5.3

5.9

5.1

Tangibles, Gross

13.8

13.7

13.8

-

-

Plant & Machinery

-

-

-

8.8

8.7

Building

-

-

-

3.4

3.4

Motor Vehicles

-

-

-

0.6

0.5

Furnitures & Fixtures

-

-

-

0.1

0.1

Computer & Other Equipments

-

-

-

0.1

0.1

Tools

-

-

-

0.2

0.2

Work in Progress

-

-

-

0.2

0.1

Depreciation

-4.8

-4.2

-3.6

-3.1

-2.5

Total Assets

15.9

15.3

15.4

16.3

15.6

Interest Bearing Loans

-

-

0.3

1.9

1.6

Bank Borrowings

0.0

4.0

2.8

0.9

-

Payables & Accruals

-

-

0.9

1.3

1.1

Trade Payables

1.2

0.7

-

-

-

Accrued Expense

0.2

0.2

-

-

-

Leave Provision

0.1

0.1

-

-

-

Working Capital Facilities

1.4

0.0

-

-

-

Advances from Customers

0.0

0.0

-

-

-

Total Current Liabilities

3.0

5.0

4.0

4.1

2.7

Interest Bearing Loans

0.0

0.2

2.3

3.7

5.3

Term Loans

1.5

-

-

-

-

Deferred Government Grants

-

-

-

0.6

0.9

Total Long Term Debt

1.5

0.2

2.3

4.3

6.3

Deferred Tax

0.7

0.7

0.7

0.7

0.8

Provision for End of Services
Indemnity

0.1

0.1

0.1

0.1

0.0

Total Liabilities

5.3

5.9

7.0

9.2

9.7

Share Capital

8.6

8.6

6.5

5.5

5.2

Legal Reserve

0.8

0.7

0.6

0.5

0.3

Accumulated Losses

0.1

0.1

1.3

1.2

0.3

Net Income after Tax

1.1

0.0

-

-

-

Total Equity

10.6

9.4

8.4

7.1

5.9

Total Liabilities & Shareholders' Equity

15.9

15.3

15.4

16.3

15.6

S/O-Common Stock

36.3

36.3

36.3

36.3

36.3

Total Common Shares Outstanding

36.3

36.3

36.3

36.3

36.3

Advance Payment

0.0

0.0

0.0

0.1

-

Shareholders

-

-

41

41

43

Payable within 1 Year

1.5

2.8

2.8

1.9

1.6

Payable within 1-2 Years

0.0

0.2

1.9

1.9

1.9

Payable within 2-5 Years

0.0

0.0

0.4

2.4

4.3

More than 5 Year

0.0

0.0

0.0

-

0.0

Total Long Term Debt, Supplemental

1.5

2.9

5.1

6.2

7.9

Operating Lease Maturing Within 1 Year

-

-

-

0.0

0.0

Operating Lease Maturing Within 1-5 Year

-

-

-

0.1

0.1

Operating Lease Maturing After 5 Years

-

-

-

0.4

0.5

Total Operating Leases

-

-

-

0.6

0.6

Annual
Cash Flows

Financials in: USD (mil)

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

31-Dec-2007

Period Length

12 Months

12 Months

12 Months

12 Months

12 Months

UpdateType/Date

Updated Normal

31-Dec-2011

Reclassified
Normal

31-Dec-2011

Updated Normal

31-Dec-2009

Updated Normal

31-Dec-2009

Updated Normal

31-Dec-2007

Filed Currency

OMR

OMR

OMR

OMR

OMR

Exchange Rate (Period
Average)

0.385032

0.385008

0.384999

0.384956

0.384897

Auditor

KPMG

Khalid Majid Rahman

Deloitte & Touche
LLP

Deloitte & Touche
LLP

Deloitte & Touche
LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified

Net Income

1.2

1.0

1.3

1.2

2.2

Depreciation

0.7

0.7

0.6

0.6

0.5

Allowance for Impairment in Other
Advanc

-

-

-

-

0.0

Loss on Dispos. of Capital Work in
Progr

0.1

0.0

-

-

-

Net Finance Costs

0.2

0.2

0.3

0.3

0.3

Provision for End of Services
Indemnity

0.0

0.0

0.0

0.0

0.0

Loss on Disposal of Prop., Plant
& Equi.

0.0

0.0

0.0

-

-

Provision for Slow Moving Stock

-

-

-

0.2

-

Adjustment for Prop., Plant &
Equip.

-

-

0.0

-

-

Inventories

0.2

0.3

0.0

-0.9

-0.5

Receivables & Prepayments

-1.3

-0.8

0.1

0.0

-0.5

Payables & Accruals

0.6

0.1

-0.4

0.3

0.1

Cash from Operating Activities

1.5

1.5

1.9

1.7

2.1

Purchase of Prop., Plant, Equip.

-0.1

0.0

-0.4

-0.4

-

Sale of Prop., Plant, Equipment

0.0

0.0

0.0

0.0

-

Capital Expenditure

-

-

-

-

-0.7

Cash from Investing Activities

-0.1

0.0

-0.4

-0.4

-0.7

Term Loan

-1.4

-2.1

-1.1

-1.7

-

Government Loan Received

-

-

-

-

0.1

Government Loan Repayment

-

-

-

-

-1.3

Bank Borrowings

0.2

0.9

-0.6

0.9

-

Net Finance Costs

-0.2

-0.2

-0.3

-0.3

-0.3

Cash from Financing Activities

-1.4

-1.5

-2.0

-1.1

-1.5

Net Change in Cash

0.0

0.0

-0.5

0.2

-0.2

Cash Beginning Balance

0.5

0.5

1.0

0.8

1.0

Cash Ending Balance

0.5

0.5

0.5

1.0

0.8

Cash Interest Paid

0.2

0.2

0.3

0.3

0.3

Financial
Health

Financials
in: USD (mil)

Except
for share items (millions) and per share items (actual units)

Key IndicatorsÂ USD (mil)

Â

Quarter

Ending

30-Sep-2012

Quarter

Ending

Yr Ago

Annual

Year End

31-Dec-2011

1 Year

Growth

3 Year

Growth

5 Year

Growth

Total Revenue1 (?)

2.2

-15.94%

9.7

8.41%

-9.05%

2.28%

Operating Income1 (?)

0.1

-62.75%

1.3

11.19%

-3.58%

-5.70%

Income Available to Common Excl Extraord Items1 (?)

0.1

-72.85%

1.2

21.05%

-0.72%

-1.59%

Basic EPS Excl Extraord Items1 (?)

0.00

-74.19%

0.03

20.75%

-0.77%

-1.64%

Capital Expenditures2 (?)

0.1

0.20%

0.1

206.17%

-29.73%

-33.86%

Cash from Operating Activities2 (?)

0.1

-92.49%

1.5

-0.34%

-3.66%

-13.73%

Free Cash Flow (?)

0.0

-99.01%

1.3

-6.99%

2.39%

-7.51%

Total Assets3 (?)

16.1

5.15%

15.9

3.68%

-0.90%

1.77%

Total Liabilities3 (?)

5.0

-2.17%

5.3

-10.91%

-17.01%

-13.27%

Total Long Term Debt3 (?)

0.2

-89.97%

1.5

815.45%

-29.62%

-28.56%

Total Common Shares Outstanding3 (?)

36.3

0.00%

36.3

0.00%

0.00%

0.00%

1-ExchangeRate: OMR to USD Average for Period

0.384701

Â

0.385032

Â

Â

Â

2-ExchangeRate: OMR to USD Average for Period

0.384874

Â

0.385032

Â

Â

Â

3-ExchangeRate: OMR to USD Period End Date

0.385050

Â

0.385000

Â

Â

Â

Key Ratios

Â

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

31-Dec-2007

Profitability

Gross Margin (?)

25.54%

23.64%

26.00%

24.62%

29.99%

Operating Margin (?)

13.69%

13.35%

15.65%

11.49%

20.46%

Pretax Margin (?)

12.11%

10.86%

13.01%

9.27%

18.01%

Net Profit Margin (?)

12.48%

11.17%

13.04%

9.59%

17.14%

Financial Strength

Current Ratio (?)

2.33

1.17

1.34

1.45

1.89

Long Term Debt/Equity (?)

0.14

0.02

0.27

0.61

1.07

Total Debt/Equity (?)

0.28

0.44

0.64

1.00

1.34

Management Effectiveness

Return on Assets (?)

7.75%

6.49%

8.22%

7.74%

13.58%

Return on Equity (?)

12.07%

11.21%

16.85%

19.05%

42.30%

Efficiency

Receivables Turnover (?)

4.23

6.78

10.87

13.45

15.47

Inventory Turnover (?)

2.21

1.96

2.03

2.94

3.14

Asset Turnover (?)

0.62

0.58

0.63

0.81

0.79

Market ValuationÂ USD (mil)

P/E (TTM) (?)

8.58

.

Enterprise Value2 (?)

11.0

Price/Sales (TTM) (?)

0.86

.

Enterprise Value/Revenue (TTM) (?)

1.11

Price/Book (MRQ) (?)

0.69

.

Enterprise Value/EBITDA (TTM) (?)

6.17

Market Cap as of 04-Dec-20111 (?)

8.5

.

1-ExchangeRate: OMR to USD on 4-Dec-2011

0.385000

2-ExchangeRate: OMR to USD on 30-Sep-2012

0.385050

Annual
Ratios

Financials
in: USD (mil)

Except
for share items (millions) and per share items (actual units)

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

31-Dec-2007

Financial Strength

Current Ratio (?)

2.33

1.17

1.34

1.45

1.89

Quick/Acid Test Ratio (?)

1.15

0.45

0.37

0.46

0.68

Working Capital1 (?)

4.0

0.9

1.4

1.9

2.4

Long Term Debt/Equity (?)

0.14

0.02

0.27

0.61

1.07

Total Debt/Equity (?)

0.28

0.44

0.64

1.00

1.34

Long Term Debt/Total Capital (?)

0.11

0.01

0.17

0.30

0.46

Total Debt/Total Capital (?)

0.22

0.31

0.39

0.50

0.57

Payout Ratio (?)

-

0.00%

0.00%

841.22%

127.19%

Effective Tax Rate (?)

-3.00%

-2.88%

-0.23%

-3.49%

4.83%

Total Capital1 (?)

13.5

13.5

13.8

14.2

13.7

Efficiency

Asset Turnover (?)

0.62

0.58

0.63

0.81

0.79

Inventory Turnover (?)

2.21

1.96

2.03

2.94

3.14

Days In Inventory (?)

165.22

186.50

179.58

124.05

116.27

Receivables Turnover (?)

4.23

6.78

10.87

13.45

15.47

Days Receivables Outstanding (?)

86.21

53.83

33.57

27.15

23.60

Profitability

Gross Margin (?)

25.54%

23.64%

26.00%

24.62%

29.99%

Operating Margin (?)

13.69%

13.35%

15.65%

11.49%

20.46%

EBITDA Margin (?)

20.42%

20.97%

22.01%

16.24%

20.79%

EBIT Margin (?)

13.69%

13.35%

15.65%

11.49%

20.46%

Pretax Margin (?)

12.11%

10.86%

13.01%

9.27%

18.01%

Net Profit Margin (?)

12.48%

11.17%

13.04%

9.59%

17.14%

COGS/Revenue (?)

74.46%

76.36%

74.00%

75.38%

70.01%

SG&A Expense/Revenue (?)

12.41%

10.68%

10.61%

11.91%

10.24%

Management Effectiveness

Return on Assets (?)

7.75%

6.49%

8.22%

7.74%

13.58%

Return on Equity (?)

12.07%

11.21%

16.85%

19.05%

42.30%

Valuation

Free Cash Flow/Share2 (?)

0.04

0.04

0.04

0.03

0.04

Operating Cash Flow/Share 2 (?)

0.04

0.04

0.05

0.05

0.06

1-ExchangeRate: OMR to USD Period End Date

0.385

0.385

0.38495

0.38505

0.385

2-ExchangeRate: OMR to USD Average for Period

0.385

0.385

0.38495

0.38505

0.385

Current Market Multiples

Market Cap/Earnings (TTM) (?)

9.43

Market Cap/Equity (MRQ) (?)

0.76

Market Cap/Revenue (TTM) (?)

0.86

Market Cap/EBIT (TTM) (?)

7.49

Market Cap/EBITDA (TTM) (?)

4.76

Enterprise Value/Earnings (TTM) (?)

12.22

Enterprise Value/Equity (MRQ) (?)

0.99

Enterprise Value/Revenue (TTM) (?)

1.11

Enterprise Value/EBIT (TTM) (?)

9.70

Enterprise Value/EBITDA (TTM) (?)

6.17

FOREIGN EXCHANGE RATES

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.73

UK Pound

1

Rs.89.02

Euro

1

Rs.72.48

INFORMATION DETAILS

Report
Prepared by :

SDA

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%)