|
Report Date : |
29.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
DHOFAR CATTLE FEED CO SAOG |
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Registered Office : |
Raysut Industrial Area PO Box 1220 & 1298 Salalah 211 |
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Country : |
Sultanate of Oman |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
13.01.1983 |
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Com. Reg. No.: |
2/01752/0 |
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Legal Form : |
Omani Public Joint Stock Company |
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Line of Business : |
Subject operates several division like Feed Mill Division, Farm Division |
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No. of Employees : |
600 |
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 : |
Good |
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Payment Behaviour : |
Regular |
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|
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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 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.
However, increases in social welfare benefits, particularly since the Arab
Spring, will challenge the government's ability to effectively balance its
budget if oil revenues decline. 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. In 2012,
continued surpluses resulting from sustained high oil prices and increased
enhanced oil recovery allowed the government to maintain growth in social
subsidies and public sector job creation. However, the Sultan made widely
reported statements indicating this would not be sustainable, and called for expanded
efforts to support SME development and entrepreneurship. Government agencies
and large oligarchic group companies heeded his call, announcing new
initiatives to spin off non-essential functions to entrepreneurs, incubate new
businesses, train and mentor up and coming business people, and provide
financing for start-ups. In response to fast growth in household indebtedness,
the Central Bank reduced the ceiling on personal interest loans from 8 to 7%,
lowered mortgage rates, capped the percentage of consumer loans at 50% of
borrower's salaries for personal loans and 60% for housing loans, and limited
maximum repayment terms to 10 and 25 years respectively. In 2012 the Central
Bank also issued final regulations governing Islamic banking and two full-fledged
Islamic banks held oversubscribed IPOs while four traditional banks opened
sharia-compliant Islamic windows.
|
Source : CIA |
Company Name : DHOFAR CATTLE FEED CO SAOG
Country of Origin : Oman
Legal Form : Omani Public Joint Stock Company
Registration Date : 13th January 1983
Commercial Registration Number : 2/01752/0
Issued Capital : RO 7,700,000
Paid up Capital : RO 7,700,000
Total Workforce : 600
Activities : Subject operates several divisions (see below for details)
Financial Condition : Fair
Payments : Nothing detrimental uncovered
Operating Trend : Steady
DHOFAR CATTLE FEED CO SAOG
Registered &
Physical Address
Location : Raysut
Industrial Area
PO Box : 1220 & 1298
Town : Salalah 211
Country : Sultanate of
Oman
Telephone : (968) 23210551
/ 23210360
Facsimile : (968) 23210886
Email : dcfco@omantel.net.om / saeedalshanfari@dcfoman.com
Premises
Subject operates from rented premises located in the Raysut Industrial
Area and consists of a medium sized suite of offices, and 400 hectares of
agricultural land rented from the Ministry of Agriculture and Fisheries. The
area is used for cattle breeding, dairy products manufacturing and grass
cultivation.
Branch Office (s)
Location Description
· PO Box: 1273, Ruwi
111 Dairy
Processing Plant
Muscat
Tel: (968)
24799268
· Garzaiz Farm Owned
Farm
PO Box: 298
Salalah
211
Tel:
(968) 23225381 / 23219228 / 23225382 / 23225866
Fax:
(968) 23219070 / 23225482
· Sahnout Farm Owned
Farm
PO Box: 298
Salalah 211
Tel: (968)
23296561
Name Position
· Sheikh Hamoud Bin
Musthail Ahmed Al Mashani Chairman
· Sheikh Ahmed Bin
Abdullah Saeed Al Rawas Vice
Chairman
· Saeed Bin Salim
Ahmed Al Shanfari Managing
Director
· Sheikh Abdullah
Bin Hamed Hamoud Al Gafri Director
· Sheikh Mohamed Bin
Abdullah Fatah Zabanoot Director
· Sheikh Mohamed Bin
Abdullah Saeed Al Rawas Director
· Sheikh Ahmed Bin
Alawi Abdullah Al Ibrahim Director
· Sheikh Amer Bin
Ahmed Ali Al Rawas Director
· Sheikh Ahmed Bin
Suliman Ahmed Al Gafri Director
· Sheikh Khalid Bin
Abdullah Saeed Al Rawas Director
· Dr Ahmed Bin
Suhail Ahmed Al Hadhri General
Manager
· Ghazi Thaher Jaber Dairy
Manager
· Jeevan Sadavisan Feed
Mill Manager
· Willem Van
Leuteren Dairy
Farm Manager
· William Downey Sales
& Marketing Manager
Date of
Establishment : 13th
January 1983
Legal Form : Societe Anonyme
Omani General - SAOG (Omani Public Joint Stock Company)
Commercial Reg.
No. : 2/01752/0
Issued Capital : RO 7,700,000
Paid up Capital : RO 7,700,000
Name of Shareholder
(s) Percentage
· Muscat overseas
LLC 17.83%
· Sheikh Musthail
Ahmed Al Mashani 13.92%
· Al Rawas Develop.
& Investment LLC 10.47%
· Al Barka
Investment LLC 5.27%
· Omani businessmen
& private investors 52.51%
Name Percentage
Held
· Dhofar Poultry
Company SAOG (DPC) 85.00%
· International
Plastic Industries Company LLC (IPI) 100.00%
· Oman Vegetable
Oils & Derivatives Co. LLC (OVOD) 33.33%
· Dhofar Beverages
and Foodstuffs Company SAOG (DBFC) 30.45%
· Salalah Mills Co
SAOG 13.01%
· Dhofar
International Development & Investment Holding (SAOG) (DIDIC)
7.11%
Activities: Subject’s operations are performed through the following divisions:
·
Feed Mill Division
Established in 1984, this division
is engaged in the production of animal feed using maize and sardines as raw
materials. The product range includes general feed, cattle feed, sheep feed,
dairy-18, calf rearing, heifer nuts, chick starter, pullet grower, layer mash,
broiler starter, broiler finisher, poultry concentrates and barley grain.
Production
Capacity: 160 tonnes of cattle feed per day
·
Farm Division
This division is responsible for
operating the dairy and crops farms in Garziz and Sahnout. It is also involved
in animal breeding and the production of dairy products.
Import Countries: Switzerland, Germany, India and Australia.
International Suppliers:
· Buhler AG Switzerland
Brand Names: A’SAFWAH
Operating Trend: Steady
Subject has a workforce of approximately 600 employees.
Financial highlights provided by local sources are given below:
Currency: Riyal Omani (RO’000)
BALANCE SHEET 31/12/09 31/12/10
|
ASSETS |
|
|
|
Biological assets |
5,073 |
5,036 |
|
Property, plant, and equipment |
14,204 |
13,721 |
|
Investment in subsidiaries |
2,154 |
2,154 |
|
Investment in associates |
2,812 |
2,812 |
|
Available for sale investments |
23,468 |
19,094 |
|
Investment properties |
865 |
575 |
|
Deferred tax asset |
501 |
378 |
|
|
────── |
────── |
|
Total non-current assets |
49,077 |
43,770 |
|
|
────── |
────── |
|
Trading investments |
121 |
- |
|
Inventories and biological assets |
3,673 |
3,424 |
|
Trade receivables, prepayments and others |
4,258 |
3,921 |
|
Cash at bank and in hand |
2,060 |
2,024 |
|
|
────── |
────── |
|
Total current assets |
10,112 |
9,369 |
|
|
────── |
────── |
|
Total assets |
59,189 |
53,139 |
|
|
══════ |
══════ |
|
EQUITY AND LIABILITIES |
|
|
|
Equity |
|
|
|
Share capital |
7,000 |
7,000 |
|
Legal reserve |
2,345 |
2,345 |
|
Investment fluctuation reserve |
12,965 |
10,108 |
|
Voluntary reserve |
3,500 |
3,500 |
|
Retained earnings |
12,341 |
17,465 |
|
|
────── |
────── |
|
Equity attributable to the shareholders’ of
the company |
38,151 |
40,418 |
|
Minority interest |
- |
- |
|
|
────── |
────── |
|
Total equity |
38,151 |
40,418 |
|
|
────── |
────── |
|
Term loans, excluding current maturities |
2,606 |
- |
|
Deferred government grant |
- |
- |
|
|
────── |
────── |
|
Total non-current liabilities |
2,606 |
- |
|
|
────── |
────── |
|
Bank borrowings |
11,604 |
7,209 |
|
Payables and accruals |
3,896 |
3,124 |
|
Current maturities of term loans |
2,888 |
2,056 |
|
Income tax |
44 |
44 |
|
|
────── |
────── |
|
Total current liabilities |
18,432 |
12,433 |
|
|
────── |
────── |
|
Total liabilities |
21,038 |
12,721 |
|
|
────── |
────── |
|
Total equity and liabilities |
59,189 |
53,139 |
STATEMENT OF INCOME 31/12/09 31/12/10
|
Revenue |
19,737 |
20,097 |
|
|
(13,677) |
(15,506) |
|
Cost of sales |
||
|
|
────── |
────── |
|
|
6,060 |
4,591 |
|
Gross profit |
||
|
|
|
|
|
Realised gain on available for sale investments released from
investment fluctuation reserve |
4 |
5,578 |
|
|
(952) |
(1,131) |
|
Administrative and general expenses |
||
|
|
(2,867) |
(3,366) |
|
Selling and distribution expenses |
||
|
|
- |
- |
|
Net Impairment of receivables |
||
|
|
(885) |
(1,219) |
|
Net financing cost |
||
|
|
667 |
1,060 |
|
Other income |
||
|
|
(61) |
(101) |
|
Directors’ remuneration |
||
|
|
(3,063) |
(290) |
|
Impairment of investment in an associate |
||
|
|
- |
- |
|
Share of results of associates |
||
|
|
────── |
────── |
|
|
(1,537) |
5,247 |
|
Profit before tax |
||
|
|
- |
(123) |
|
Income tax |
||
|
|
────── |
────── |
|
|
(1,537)
|
5,124 |
|
Profit for the year |
||
|
|
══════ |
══════ |
|
Attributable to: |
|
|
|
|
(1,537) |
5,124 |
|
Equity holders of the parent |
||
|
|
- |
- |
|
Minority interest |
||
|
|
────── |
────── |
|
|
(1,537) |
5,124 |
|
Profit for the year |
Local sources consider subject’s financial condition to be Fair.
·
National Bank of Oman Limited (SAOG)
Hafa Branch
PO Box: 824
Salalah 211
Tel: (968) 23291952
Fax: (968) 23290066
·
Bank Dhofar Al Omani Al Fransi
Mutrah Business
District
PO Box: 1507, Ruwi
112
Muscat
Tel: (968)
24790466
Fax: (968)
24797246
A/c No. 01/411/01344/00
·
Oman International Bank
Al Jaame Street
PO Box:
4216
Muscat
Tel:
(968) 24703614 / 24707328 / 24793450
·
Oman Bank of Agriculture & Fisheries SAOC
Ruwi 112
PO Box: 3077
Muscat
Tel:
(968) 24701761 / 24701763
Fax:
(968) 24706473
No complaints regarding subject’s payments have been reported.
Amount overdue 0 0
Payment terms 60
days 60
days
Payment Method Letters
of Credit Letters
of Credit
Paying record No Complaints No Complaints
Currency Euros US
Dollars
Dhofar Cattle Feed Co SAOG is Oman’s largest cattle feed producer and
also produces milk and yoghurt.
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.68.36 |
|
UK Pound |
1 |
Rs.106.03 |
|
Euro |
1 |
Rs.91.47 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.