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Report Date : |
04.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
MAJAN GLASS COMPANY SAOG |
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Registered Office : |
Sohar Industrial Estate, PO Box 17,
Sohar 327 |
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Country : |
Oman |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
17.05.1995 |
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Com. Reg. No.: |
3/19456/6 |
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Legal Form : |
Omani Public Joint Stock Company |
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Line of Business : |
Manufacturers of glass containers. |
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No. of Employees : |
140 |
RATING & COMMENTS
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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 |
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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 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
Oman |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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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 :
MAJAN GLASS COMPANY SAOG
Country of Origin :
Oman
Legal Form :
Omani Public Joint Stock Company
Registration Date :
17th May 1995
Commercial Registration Number :
3/19456/6
Issued Capital :
RO 3,322,000
Paid up Capital :
RO 3,322,000
Total Workforce :
140
Activities :
Manufacturers of glass containers.
Financial Condition :
Fair
Payments :
Nothing detrimental uncovered
Operating Trend :
Steady
MAJAN GLASS COMPANY SAOG
Registered &
Physical Address
Location : Sohar
Industrial Estate
PO Box : 17
Town : Sohar 327
Country : Oman
Telephone : (968) 26751654
Facsimile : (968) 26751658
Email : mgglass@omantel.net.om
Premises
Subject operates from a large suite of offices and a factory that are
rented and located in the Industrial Area of Sohar.
Name Position
Anwar Ali Sultan Chairman
Ali Mohamed Redha Jafar Vice
Chairman
Hilal Hamad Al Hasani Director
Ali Hassan Sulaiman Director
Eid Khair Al Balushi Director
Ali Saif Al Hadi Director
Mustafa Ahmed Salman Director
Ramesh Mani General
Manager
Date of Establishment : 17th
May 1995
Legal Form : Sharikat Al
Mousahama Al Omania (Societe Anonyme Omani
General - SAOG)
(Omani Public Joint Stock Company)
Commercial Reg. No. : 3/19456/6
Issued Capital : RO 3,322,000
Paid up Capital : RO 3,322,000
Name of
Shareholder (s) Percentage
Ministry of Finance 75.2%
Anwar Ali Sultan ]
]
Ali Mohamed Redha Jafar ]
]
Hilal Hamad Al Hasani ]
]
Ali Hassan Sulaiman ]
] 24.8%
Eid Khair Al Balushi ]
]
Ali Saif Al Hadi ]
]
Mustafa Ahmed Salman ]
]
Omani businessmen & private investors ]
Activities: Engaged in the
manufacture of glass containers.
Subject has an installed capacity of
producing 220 MT of Empty Glass Containers per day with two furnaces and equipment
designed to produce Glass Containers in 88ml to 1000ml range in different
sizes and in flint and coloured glass
Import Countries: Europe
and the Far East.
Operating Trend: Steady
Subject has a workforce of 140 employees.
Financial highlights provided by local sources are given below:
Currency: Riyal Omani (RO)
Balance Sheet 31/12/11 31/12/10
|
ASSETS |
|
|
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Non-current
assets |
|
|
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Property, plant and equipment |
|
10,700,536 |
9,629,170 |
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|
|
──────── |
──────── |
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Current assets |
|
|
|
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Inventories |
|
1,880,943 |
1,496,387 |
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Trade and other receivables |
|
1,919,485 |
2,465,182 |
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Bank balances and cash |
|
1,525,897 |
2,538,149 |
|
|
|
────────,326 |
──────── |
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|
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5,326,325 |
6,499,718 |
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Assets held for sale |
|
69,104 |
- |
|
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────────,326 |
──────── |
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|
|
5,395,429 |
6,499,718 |
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──────── |
──────── |
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Total assets |
|
16,095,965 |
16,128,888 |
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|
════════ |
════════ |
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EQUITY AND LIABILITIES |
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|
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Equity |
|
|
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Share capital |
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3,322,000 |
3,322,000 |
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Statutory reserve |
|
1,218,020 |
1,218,020 |
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Retained earnings |
|
8,368,557 |
8,617,767 |
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──────── |
──────── |
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Total equity |
|
12,908,577 |
13,157,787 |
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──────── |
──────── |
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Non-current liabilities |
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|
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Employees’ end of service benefit |
|
118,141 |
98,135 |
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Term loan |
|
600,000 |
800,000 |
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Deferred tax liability |
|
524,461 |
571,508 |
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──────── |
──────── |
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1,242, 602 |
1,469,643 |
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──────── |
──────── |
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Current liabilities |
|
|
|
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Term loan - current portion |
|
200,000 |
200,000 |
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Trade and other payables |
|
1,562,882 |
958,795 |
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Income tax payable |
|
181,904 |
342,663 |
|
|
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──────── |
──────── |
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|
|
1,944,786 |
1,501,458 |
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──────── |
──────── |
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Total liabilities |
|
3,187,388 |
2,971,101 |
|
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──────── |
──────── |
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Total equity and liabilities |
|
16,095,965 |
16,128,888 |
Statement of
Income
|
Sales |
|
8,707,153 |
9,845,930 |
|
Cost of sales |
|
(6,309,520) |
(6,187,969) |
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──────── |
──────── |
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GROSS PROFIT |
|
2,397,633 |
3,657,961 |
|
|
|
|
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Other income |
|
178,535 |
442,320 |
|
Selling and distribution expenses |
|
(293,320) |
(353,232) |
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General and administrative expenses |
|
(515,263) |
(595,992) |
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Impairment on assets held for sale |
|
(541,729) |
- |
|
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|
──────── |
──────── |
|
|
|
1,225,856 |
3,151,057 |
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Finance cost |
|
(15,845) |
(46,043) |
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──────── |
──────── |
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PROFIT BEFORE TAX |
|
1,210,011 |
3,105,014 |
|
|
|
|
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Income tax expense |
|
(130,421) |
(371,839) |
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──────── |
──────── |
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PROFIT AND TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
|
1,079,590 |
2,733,175 |
Sales for the year ending 31st December 2012 were RO
7,310,108 and net profit was RO 918,489.
Local sources consider subject’s financial condition to be Fair.
National Bank of Oman Limited (SAOG)
PO Box: 497
Sohar
Tel: (968) 26850207
Fax: (968) 26850234
No complaints regarding subject’s payments have been reported.
During the year 2012, the subject completed a
rebuild of 70 TPD furnace which took around 60 days. The profit margins of the
company have fallen sharply due to provision for impairment loss of RO 209,349
created in the books of account as per IFRS for the abovementioned old 70 TPD
Furnace. The other major reasons for the lower profit are increase in cost of
labour and depreciation.
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.53.32 |
|
|
1 |
Rs.84.60 |
|
Euro |
1 |
Rs.72.63 |
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 |
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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 |
|
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 |
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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 |
---- |
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.