MIRA INFORM REPORT

Report Date :

15.02.2013

IDENTIFICATION DETAILS

Name :	OMAN FIBRE OPTIC CO SAOG (OFO)

Registered Office :	Road No. 4 Rusayl Industrial Estate PO Box: 5 Rusayl 124

Country :	Sultanate of Oman

Financials (as on) :	31.12.2011

Date of Incorporation :	30.06.1996

Com. Reg. No.:	1/54308/3

Legal Form :	Limited Liability Company – LLC

Line of Business :	Manufacturers of optical fibres.

No. of Employees :	200

RATING & COMMENTS

MIRA’s Rating :

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: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30^th, 2012

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Oman

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

SUMMARY

Company Name : OMAN FIBRE OPTIC CO SAOG (OFO)

Country of Origin : Oman

Legal Form : Limited Liability Company – LLC

Registration Date : 30^th June 1996

Commercial Registration Number : 1/54308/3

Issued Capital : RO 4,744,057

Paid up Capital : RO 4,744,057

Total Workforce : 200

Activities : Manufacturers of optical fibres.

Financial Condition : Good

Payments : Nothing detrimental uncovered

Operating Trend : Steady

COMPANY NAME

OMAN FIBRE OPTIC CO SAOG (OFO)

ADDRESS

Registered & Physical Address

Street : Road No. 4

Area : Rusayl Industrial Estate

PO Box : 5

Town : Rusayl 124

Country : Sultanate of Oman

Telephone : (968) 24446991 / 24446992 / 24448444

Facsimile : (968) 24446996 / 24446886 / 24448448

Email : ofoco@omantel.net.om / gopinath@omanfiber.com

Premises

Subject operates from a suite of offices and a factory covering an area of 5,000 square metres that are owned and located in the Industrial Area of Rusayl.

KEY PRINCIPALS

Name Position

· Dr Amer Awadh Salim Al Rawas Chairman

· Meshari Ali Hassan Al Bader Vice Chairman

· Ayed Al Shamrani Director

· Rajiv Dhar Director

· Mohammed Khamis Mohamed Al Sanaidi Director

· Hilal Al Hassni Director

· Mohammed Harith Al Barashdy General Manager

· Bhartendu Chobisa Production Manager

· Sami Habib Ali Administration Manager

· G S Bhavani Prasad Company Secretary

LEGAL FORM & OWNERS

Date of Establishment : 30^th June 1996

Legal Form : Societe Anonyme Omani General - SAOG (Omani Public Joint Stock Company)

Commercial Reg. No. : 1/54308/3

Issued Capital : RO 4,744,057

Paid up Capital : RO 4,744,057

Name of Shareholder (s) Percentage

· Oman Telecommunications Co. SAOG 40.96%

· H.E. Dr Omar Abdulmunim Yousif Al Zawawi 21.47%

· Oman and Emirates Investment Holding Co. SAOG 20.91%

· Members of the general public & private investors 16.66%

AFFILIATED COMPANIES

Name Stake Held

· Omania E-Commerce LLC 20%

OPERATIONS

Activities: The Company designs, develops and manufactures optical fibres including multi mode fibres in 50/125 & 62.5/125 core diameters, G.655 complaint non-zero dispersion shifted fibres, G.653 complaint dispersion shifted fibres, G.652C low OH peak fibres & G.652D low OH peak low PMD fibres. Optical fibre cables are also provided in a range of cables including single and double steel armoured, dielectric, metallic, ADSS aerial, figure-8, FRP-armoured, indoor cables and indoor/outdoor cables. OFO also provides cable accessories and end-to-end cabling solutions.

The plant is ISO 9001:2000 certified

Production Capacity: 8,000 – 12,000 kilometres of cable per annum

Import Countries: Finland and the United Kingdom

International Suppliers:

· Nextrom Oy Finland

· Photon Kinetics United Kingdom

Operating Trend: Steady

Subject has a workforce of approximately 200 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: Riyal Omani (RO)

Balance Sheet 31/12/11 31/12/10

ASSETs

Non-current assets

Property, plant and equipment 2,832,036 2,846,390

Investment in a subsidiary 21,338 -

Intangible assets 9,679 6,103

Deferred tax asset 15,384 11,851

2,878,437 2,864,344

Current assets

Inventories 2,437,438 2,345,609

Trade and other receivables 9,369,917 4,752,734

Due from related parties 1,419,864 2,243,604

Cash and cash equivalents 344,942 410,287

13,572,161 9,752,234

Total assets 16,450,598 12,616,578

EQUITY

Capital and reserves

Share capital 3,649,275 3,649,275

Legal reserve 1,216,425 1,127,533

Retained earnings 5,572,501 4,397,724

Total equity 10,438,201 9,174,532

LIABILITIES

Non-current liabilities

End of service benefits 113,819 111,945

Long term loan - 348,337

Deferred government grant - 26,663

113,819 486,945

Current liabilities

Current portion of long term loan 375,000 375,000

Bank borrowings 677,597 440,596

Trade and other payables 4,511,051 1,886,398

Due to related parties 12,712 20,078

Taxation 322,218 233,029

5,898,578 2,955,101

Total liabilities 6,012,397 3,442,046

Total equity and liabilities 16,450,598 12,616,578

Income Statement

INCOME

Sales 5,136,595 6,539,910

Services 2,736,111 4,501,896

Contract revenues 8,398,313 -

Other income 42,421 1,577

16,313,440 11,043,383

EXPENSES

Cost of materials consumed (5,928,294) (3,986,006)

Sub contract costs (4,498,728) (2,249,349)

Employee costs (1,650,455) (1,289,213)

Depreciation and amortisation (444,403) (453,499)

Other operating expenses (1,063,999) (678,724)

(13,585,879) (8,656,791)

Profit from operations 2,727,561 2,386,592

Interest income 28,089 44,837

Interest expense (71,613) (101,439)

Exchange loss (6,900) (33,149)

Finance costs - net (50,424) (89,751)

Income from investments - 60,757

Profit before taxation 2,677,137 2,357,598

Taxation (318,685) (236,056)

Profit and total comprehensive income for the year 2,358,452 2,121,542

Local sources consider subject’s financial condition to be Good.

BANKERS

· National Bank of Oman Limited (SAOG)

Mutrah Business District

PO Box: 751, Ruwi 112

Muscat

Tel: (968) 24708894 / 24708630 / 24708684

Fax: (968) 24707781 / 24703972

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

Date of transaction September 2007

Credit amount 150,000

Amount overdue 0

Payment terms 60 days

Payment Method Letters of Credit

Paying record No Complaints

Currency US Dollars

GENERAL COMMENTS

Established in 1996, Oman Fibre Optic Co SAOG (OFO) is a leading manufacturer of optical fibres in Oman.

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.53.87
UK Pound	1	Rs.83.59
Euro	1	Rs.72.37

INFORMATION DETAILS

Report Prepared by :

PRL

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.