MIRA INFORM REPORT

 

 

Report Date :

20.07.2013

 

IDENTIFICATION DETAILS

 

Name :

MUSCAT THREAD MILLS SAOG 

 

 

Registered Office :

Road No 18, Rusayl Industrial Estate, P.O.Box 122, Muscat, 124

 

 

Country :

Oman

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

01.08.1997

 

 

Legal Form :

Public Independent Company

 

 

Line of Business :

manufacturer and marketing of polyester, cotton and embroidery sewing thread for local use and export.

 

 

No. of Employees :

66

 

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

 

ECGC Country Risk Classification List – March 31st 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 & address

 

Muscat Thread Mills SAOG

Road No 18, Rusayl Industrial Estate

P.O.Box 122

Muscat, 124

Oman

Tel:       968-24-446806

Fax:      968-24-446807

Web     www.mtm.com.om

           

 

Synthesis

 

Employees:                 66

Company Type:             Public Independent

Traded:                         Muscat Securities Market:          MTMI

Incorporation Date:        01-Aug-1997

Auditor:                                   KPMG LLP       

Financials in:                 USD (Millions)

Fiscal Year End:            31-Dec-2012

Reporting Currency:       Rial Omani

Annual Sales:               10.2  1

Net Income:                  0.7

Total Assets:                5.9  2

Market Value:                5.6 (25-Jun-2013)

 

 

Business Description     

 

Muscat Thread Mills SAOG (MTM) is an Oman-based joint stock joint stock company engaged in the manufacture and marketing of polyester, cotton and embroidery sewing thread for local use and export. The Company markets its products under two brands, namely Boat and Silver Falcon and exports to India, Pakistan, turkey, United Arab Emirates, Bahrain, Jordan, Kenya, Qatar, Kuwait, , Sri Lnaka, Indonesia, Madagascar, Bangladesh and Saudi Arabia. For the nine months ended 30 September 2012, Muscat Thread Mills SAOG revenues decreased 8% to OMR2.6M. Net income increased 8% to OMR179K. Revenues reflect India segment decrease of 90% to OMR20K, Turkey segment decrease of 25% to OMR126K. Net income reflects Provision for Slow Moving Inventories decrease from OMR58K (expense) to OMR1K (income), Interest Expense decrease of 36% to OMR20K (expense).

 

Industry            

Industry           Apparel and Accessories

ANZSIC 2006:   1312 - Natural Textile Manufacturing

NACE 2002:      171 - Preparation and spinning of textile fibres

NAICS 2002:     313113 - Thread Mills

UK SIC 2003:    171 - Preparation and spinning of textile fibres

UK SIC 2007:    1310 - Preparation and spinning of textile fibres

US SIC 1987:    2284 - Thread Mills

 

Key Executives   

 

Name

Title

Nihal S. Kadagoda

General Manager

Dinesh Kumar

Finance Manager and Company Secretary

Shahzad Khan

Marketing Manager

Ajith Rathnayake

Factory Manager

Mukhtar M. Hasan

Non-Executive Independent Chairman of the Board

 

 

Financial Summary    

 

 

As of 30-Sep-2012

Key Ratios

Company

Industry

Current Ratio (MRQ)

1.56

2.22

Quick Ratio (MRQ)

0.93

1.09

Debt to Equity (MRQ)

0.41

1.83

Sales 5 Year Growth

14.24

-1.82

Net Profit Margin (TTM) %

7.52

1.34

Return on Assets (TTM) %

11.30

1.80

Return on Equity (TTM) %

20.34

6.70

 

 

Stock Snapshot    

 

 

Traded: Muscat Securities Market: MTMI

 

As of 25-Jun-2013

   Financials in: OMR

Recent Price

0.18

 

EPS

0.02

52 Week High

0.19

 

Price/Sales

0.56

52 Week Low

0.15

 

Dividend Rate

0.01

Avg. Volume (mil)

0.0001

 

Price/Earnings

7.20

Market Value (mil)

2.18

 

Price/Book

1.57

 

Price % Change

Rel S&P 500%

4 Week

0.0000%

0.89%

13 Week

20.00%

13.86%

52 Week

10.10%

-5.00%

Year to Date

9.54%

-2.02%

1 - Profit & Loss Item Exchange Rate: USD 1 = OMR 0.3848844

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

 

 

Corporate Overview

 

Location

Road No 18, Rusayl Industrial Estate

P.O.Box 122

Muscat, 124

Oman

Tel:       968-24-446806

Fax:      968-24-446807

Web:    www.mtm.com.om

           

Quote Symbol - Exchange

MTMI - Muscat Securities Market

Sales OMR(mil):            3.9

Assets OMR(mil):          2.3

Employees:                  66

Fiscal Year End:            31-Dec-2012

Industry:                       Apparel and Accessories

Incorporation Date:        01-Aug-1997

Company Type:             Public Independent

Quoted Status:              Quoted

 

Finance Manager and Company Secretary:

Dinesh Kumar

 

Industry Codes

ANZSIC 2006 Codes:

1312     -          Natural Textile Manufacturing

 

NACE 2002 Codes:

171       -          Preparation and spinning of textile fibres

 

NAICS 2002 Codes:

313113  -          Thread Mills

 

US SIC 1987:

2284     -          Thread Mills

 

UK SIC 2003:

171       -          Preparation and spinning of textile fibres

 

UK SIC 2007:

1310     -          Preparation and spinning of textile fibres

 

Business Description

Muscat Thread Mills SAOG (MTM) is an Oman-based joint stock joint stock company engaged in the manufacture and marketing of polyester, cotton and embroidery sewing thread for local use and export. The Company markets its products under two brands, namely Boat and Silver Falcon and exports to India, Pakistan, turkey, United Arab Emirates, Bahrain, Jordan, Kenya, Qatar, Kuwait, , Sri Lanka, Indonesia, Madagascar, Bangladesh and Saudi Arabia. For the nine months ended 30 September 2012, Muscat Thread Mills SAOG revenues decreased 8% to OMR2.6M. Net income increased 8% to OMR179K. Revenues reflect India segment decrease of 90% to OMR20K, Turkey segment decrease of 25% to OMR126K. Net income reflects Provision for Slow Moving Inventories decrease from OMR58K (expense) to OMR1K (income), Interest Expense decrease of 36% to OMR20K (expense).

 

More Business Descriptions

Production of sewing thread

Thread Mfr

 

 

Financial Data

Financials in:

OMR(mil)

 

Revenue:

3.9

Net Income:

0.3

Assets:

2.3

Long Term Debt:

0.0

 

Total Liabilities:

0.9

 

Working Capital:

0.0

 

 

 

Date of Financial Data:

31-Dec-2012

 

1 Year Growth

NA

NA

NA

 

Market Data

Quote Symbol:

MTMI

Exchange:

Muscat Securities Market

Currency:

OMR

Stock Price:

0.2

Stock Price Date:

06-25-2013

52 Week Price Change %:

10.1

Market Value (mil):

2,175.1

 

SEDOL:

6592653

ISIN:

OM0000002036

 

Equity and Dept Distribution:

03/2008, 10-for-1 stock split. 04/2009, Scrip Issue, 15 new shares for every 100 shares held. 12/2009, Scrip Issue, 15 new shares for every 100 shares held. 3/2011, Scrip Issue 10 new shares for every 100 shares held (Factor: 1.1 ). 3/2012, Scrip Issue, 15 new shares for every 100 shares held (Factor: 1.15).

 

 

Shareholders

 

 

Major Shareholders

Qais Omani Establishment LLC (18.96%); Muscat Overseas LLC (17.55%); Al Barij International LLC (10.75%)

 

 

 

 

Key Corporate Relationships

Auditor:

KPMG LLP

 

Auditor:

KPMG LLP, Moore Stephens

 

 

 

 

 

 

 

 

Executive report

 

Board of Directors

 

Name

Title

Function

 

Mukhtar M. Hasan

 

Non-Executive Independent Chairman of the Board

Chairman

 

Education:

Institute of Chartered Accountants in England & Wales, CF (Corporate Finance)
Institute of Chartered Accountants in England & Wales, FCA (Accountancy)
University of Karachi, Bachelor of Commerce (Commerce)

 

Abdul Wahab Naseer Al Mandhari

 

Non-Executive Independent Vice Chairman of the Board

Vice-Chairman

 

 

Balachandran T. Chatoth

 

Non-Executive Independent Member of the Board

Director/Board Member

 

 

Taizoon F. Khorakiwala

 

Non-Executive Independent Member of the Board

Director/Board Member

 

 

Himansu Mohapatra

 

Member of the Board, representing Muscat Overseas Group

Director/Board Member

 

 

 

 

Executives

 

Name

Title

Function

 

Nihal S. Kadagoda

 

General Manager

Division Head Executive

 

Biography:

Mr. Nihal S. Kadagoda serves as General Manager of Muscat Thread Mills SAOG since June 10, 2010. He is a corporate member of the Institute of Management Services in the United Kingdom, which is the professional body for industrial engineers. He brings 32 years of experience in the textiles industry. He is responsible for the overall strategic management of the Company.

 

Dinesh Kumar

 

Finance Manager and Company Secretary

Company Secretary

 

 

Biography:

Mr. Dinesh Kumar serves as Finance Manager and Company Secretary of Muscat thread Mills SAOG. He has 12 years of experience in accounts and auditing. He is responsible for Finance and Administration.

 

Shahzad Khan

 

Marketing Manager

Marketing Executive

 

 

Biography:

Mr. Shahzad Khan serves as Marketing Manager of Muscat Thread Mills SAOG. He holds a Masters degree in Business Administration (Marketing) and a degree in Textiles Engineering. He has 16 years of experience in the textiles industry. He is responsible for Sales, Marketing and Customer Service.

 

Ajith Rathnayake

 

Factory Manager

Manufacturing Executive

 

 



significant Developments

 

Muscat Thread Mills SAOG Approves 20% Stock Dividend for FY 2012 Mar 24, 2013

 

Muscat Thread Mills SAOG announced that its Board of Directors has approved during their Annual General Meeting held on March 24, 2013 the declaration of 20% stock dividends of the Company's paid up capital, representing two shares for every 10 shares owned.

 

Muscat Thread Mills SAOG Issues Further Information Concerning Establishing New Manufacturing Facility In Bangladesh Dec 13, 2012

 

Muscat Thread Mills SAOG announced that its Board of Directors has decided to go ahead with establishing the manufacturing facility in Bangladesh. Project cost to be OMR 1.8 million and the capacity of manufacturing facility is 5 tonne per day. Factory will be established in Comilla EPZ. Construction period is expected to be 12 months and the factory should be operational in the (Q1) first quarter of 2014.

 

Muscat Thread Mills SAOG Approves To Establish Manufacturing Facility In Bangladesh Jul 24, 2012

 

Muscat Thread Mills SAOG announced that its Board of Directors has approved to establish a new manufacturing facility in Bangladesh with similar size to the production facility in Muscat.

 

 

Annual Income Statement

 

Financials in: USD (mil) 

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

 

 

 

31-Dec-2012

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

Period Length

12 Months

12 Months

12 Months

12 Months

12 Months

UpdateType/Date

Updated Normal 
31-Dec-2012

Updated Normal 
31-Dec-2011

Updated Normal 
31-Dec-2010

Updated Normal 
31-Dec-2009

Reclassified Normal 
31-Dec-2009

Filed Currency

OMR

OMR

OMR

OMR

OMR

Exchange Rate (Period Average)

0.384884

0.385032

0.385008

0.384999

0.384956

Auditor

 

KPMG LLP

KPMG Peat Marwick LLP

KPMG LLP

KPMG LLP

Auditor Opinion

 

Unqualified

Unqualified

Unqualified

Unqualified

 

 

 

 

 

 

    Net Sales

-

10.1

9.1

6.9

7.4

Revenue

-

10.1

9.1

6.9

7.4

Total Revenue

-

10.1

9.1

6.9

7.4

 

 

 

 

 

 

    Cost of Revenue

-

8.1

7.3

5.5

5.4

Cost of Revenue, Total

-

8.1

7.3

5.5

5.4

Gross Profit

-

2.1

1.8

1.4

2.0

 

 

 

 

 

 

    Selling/General/Administrative Expense

-

0.5

0.4

0.9

1.2

    Labor & Related Expense

-

0.5

0.6

-

-

    Advertising Expense

-

0.0

0.0

-

-

Total Selling/General/Administrative Expenses

-

1.1

1.0

0.9

1.2

    Depreciation

-

0.0

0.0

0.1

0.1

Depreciation/Amortization

-

0.0

0.0

0.1

0.1

    Other Operating Expense

-

0.0

0.1

-

-

Other Operating Expenses, Total

-

0.0

0.1

-

-

Total Operating Expense

-

9.2

8.4

6.5

6.7

 

 

 

 

 

 

Operating Income

-

0.9

0.7

0.4

0.8

 

 

 

 

 

 

        Interest Expense - Non-Operating

-

-0.1

-0.2

-0.2

-0.2

    Interest Expense, Net Non-Operating

-

-0.1

-0.2

-0.2

-0.2

Interest Income (Expense) - Net Non-Operating Total

-

-0.1

-0.2

-0.2

-0.2

    Other Non-Operating Income (Expense)

-

0.0

0.0

0.0

0.0

Other, Net

-

0.0

0.0

0.0

0.0

Income Before Tax

-

0.8

0.6

0.2

0.6

 

 

 

 

 

 

Total Income Tax

-

0.1

0.1

0.0

0.1

Income After Tax

-

0.7

0.5

0.2

0.5

 

 

 

 

 

 

Net Income Before Extraord Items

-

0.7

0.5

0.2

0.5

Net Income

-

0.7

0.5

0.2

0.5

 

 

 

 

 

 

Income Available to Common Excl Extraord Items

-

0.7

0.5

0.2

0.5

 

 

 

 

 

 

Income Available to Common Incl Extraord Items

-

0.7

0.5

0.2

0.5

 

 

 

 

 

 

Basic/Primary Weighted Average Shares

-

12.2

12.2

12.2

14.1

Basic EPS Excl Extraord Items

-

0.06

0.04

0.01

0.04

Basic/Primary EPS Incl Extraord Items

-

0.06

0.04

0.01

0.04

Diluted Net Income

-

0.7

0.5

0.2

0.5

Diluted Weighted Average Shares

-

12.2

12.2

12.2

14.1

Diluted EPS Excl Extraord Items

-

0.06

0.04

0.01

0.04

Diluted EPS Incl Extraord Items

-

0.06

0.04

0.01

0.04

Dividends per Share - Common Stock Primary Issue

-

0.03

0.02

0.00

0.00

Gross Dividends - Common Stock

-

0.4

-

0.0

0.0

Interest Expense, Supplemental

-

0.1

0.2

0.2

0.2

Depreciation, Supplemental

-

0.3

0.3

0.3

0.3

Normalized Income Before Tax

-

0.8

0.6

0.2

0.6

 

 

 

 

 

 

Inc Tax Ex Impact of Sp Items

-

0.1

0.1

0.0

0.1

Normalized Income After Tax

-

0.7

0.5

0.2

0.5

 

 

 

 

 

 

Normalized Inc. Avail to Com.

-

0.7

0.5

0.2

0.5

 

 

 

 

 

 

Basic Normalized EPS

-

0.06

0.04

0.01

0.04

Diluted Normalized EPS

-

0.06

0.04

0.01

0.04

Rental Expenses

-

0.1

0.1

0.1

0.1

Advertising Expense, Supplemental

-

0.0

0.0

0.0

0.0

Normalized EBIT

-

0.9

0.7

0.4

0.8

Normalized EBITDA

-

1.2

1.0

0.7

1.0

    Current Tax - Domestic

-

0.1

0.0

0.0

0.1

Current Tax - Total

-

0.1

0.0

0.0

0.1

    Deferred Tax - Domestic

-

0.0

0.0

0.0

0.0

Deferred Tax - Total

-

0.0

0.0

0.0

0.0

Income Tax - Total

-

0.1

0.1

0.0

0.1

 

 

Annual Balance Sheet

Financials in: USD (mil)

 

 

 

31-Dec-2012

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

UpdateType/Date

Updated Normal 
31-Dec-2012

Updated Normal 
31-Dec-2011

Updated Normal 
31-Dec-2010

Updated Normal 
31-Dec-2009

Updated Normal 
31-Dec-2008

Filed Currency

OMR

OMR

OMR

OMR

OMR

Exchange Rate

0.385

0.385

0.385

0.38495

0.38505

Auditor

 

KPMG LLP

KPMG Peat Marwick LLP

KPMG LLP

KPMG LLP

Auditor Opinion

 

Unqualified

Unqualified

Unqualified

Unqualified

 

 

 

 

 

 

    Cash & Equivalents

-

0.2

0.0

0.1

0.0

Cash and Short Term Investments

-

0.2

0.0

0.1

0.0

        Accounts Receivable - Trade, Gross

-

3.0

2.6

2.2

2.3

        Provision for Doubtful Accounts

-

-0.9

-0.9

-0.8

-0.8

    Trade Accounts Receivable - Net

-

2.2

1.8

1.4

1.6

Total Receivables, Net

-

2.2

1.8

1.4

1.6

    Inventories - Finished Goods

-

0.1

0.1

0.5

0.5

    Inventories - Work In Progress

-

0.1

0.1

0.1

0.1

    Inventories - Raw Materials

-

1.1

1.2

1.2

1.2

    Inventories - Other

-

-0.1

0.0

-0.2

-0.1

Total Inventory

-

1.1

1.5

1.6

1.7

Prepaid Expenses

-

0.2

0.6

0.1

0.2

Total Current Assets

-

3.6

3.8

3.2

3.5

 

 

 

 

 

 

        Buildings

-

0.7

0.7

0.7

0.7

        Machinery/Equipment

-

0.3

0.3

0.3

0.3

        Other Property/Plant/Equipment

-

4.9

4.8

4.7

4.5

    Property/Plant/Equipment - Gross

-

5.9

5.9

5.7

5.5

    Accumulated Depreciation

-

-3.6

-3.3

-3.0

-2.8

Property/Plant/Equipment - Net

-

2.3

2.6

2.7

2.8

Total Assets

-

5.9

6.4

5.9

6.2

 

 

 

 

 

 

Accounts Payable

-

0.9

0.9

0.7

0.6

Notes Payable/Short Term Debt

-

0.8

1.1

0.9

1.0

Current Portion - Long Term Debt/Capital Leases

-

0.4

0.7

0.7

0.7

    Other Payables

-

-

-

0.0

0.0

Other Current liabilities, Total

-

-

-

0.0

0.0

Total Current Liabilities

-

2.1

2.7

2.3

2.3

 

 

 

 

 

 

    Long Term Debt

-

0.0

0.4

0.7

1.2

Total Long Term Debt

-

0.0

0.4

0.7

1.2

Total Debt

-

1.2

2.2

2.3

2.9

 

 

 

 

 

 

    Deferred Income Tax - LT Liability

-

0.0

0.0

0.0

0.1

Deferred Income Tax

-

0.0

0.0

0.0

0.1

    Pension Benefits - Underfunded

-

0.2

0.1

0.1

0.1

    Other Long Term Liabilities

-

0.0

0.1

0.1

0.1

Other Liabilities, Total

-

0.2

0.2

0.2

0.2

Total Liabilities

-

2.3

3.3

3.3

3.8

 

 

 

 

 

 

    Common Stock

-

2.3

2.1

2.1

1.8

Common Stock

-

2.3

2.1

2.1

1.8

Retained Earnings (Accumulated Deficit)

-

1.3

1.0

0.5

0.6

Total Equity

-

3.6

3.1

2.6

2.4

 

 

 

 

 

 

Total Liabilities & Shareholders’ Equity

-

5.9

6.4

5.9

6.2

 

 

 

 

 

 

    Shares Outstanding - Common Stock Primary Issue

-

12.2

12.2

12.2

14.1

Total Common Shares Outstanding

-

12.2

12.2

12.2

14.1

Employees

-

66

60

64

66

Number of Common Shareholders

-

315

321

328

324

Total Long Term Debt, Supplemental

-

0.4

1.1

1.5

2.0

Long Term Debt Maturing within 1 Year

-

0.4

0.7

0.7

0.7

Long Term Debt Matur. in Year 6 & Beyond

-

0.1

0.4

0.9

1.3

Total Operating Leases, Supplemental

-

0.1

0.1

0.1

0.1

Operating Lease Payments Due in Year 1

-

0.0

0.0

0.0

0.0

Operating Lease Payments Due in Year 2

-

0.0

0.0

0.0

0.0

Operating Lease Payments Due in Year 3

-

0.0

0.0

0.0

0.0

Operating Lease Payments Due in Year 4

-

0.0

0.0

0.0

0.0

Operating Lease Payments Due in Year 5

-

0.0

0.0

0.0

0.0

Operating Lease Pymts. Due in 2-3 Years

-

0.0

0.0

0.0

0.0

Operating Lease Pymts. Due in 4-5 Years

-

0.0

0.0

0.0

0.0

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

-

0.1

0.1

0.1

0.1

 

 

Annual Cash Flows

Financials in: USD (mil)

 

 

 

31-Dec-2012

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

Period Length

12 Months

12 Months

12 Months

12 Months

12 Months

UpdateType/Date

Updated Normal 
31-Dec-2012

Updated Normal 
31-Dec-2011

Updated Normal 
31-Dec-2010

Updated Normal 
31-Dec-2009

Updated Normal 
31-Dec-2008

Filed Currency

OMR

OMR

OMR

OMR

OMR

Exchange Rate (Period Average)

0.384884

0.385032

0.385008

0.384999

0.384956

Auditor

 

KPMG LLP

KPMG Peat Marwick LLP

KPMG LLP

KPMG LLP

Auditor Opinion

 

Unqualified

Unqualified

Unqualified

Unqualified

 

 

 

 

 

 

Net Income/Starting Line

-

0.8

0.6

0.2

0.6

    Depreciation

-

0.3

0.3

0.3

0.3

Depreciation/Depletion

-

0.3

0.3

0.3

0.3

    Unusual Items

-

0.0

0.0

0.0

0.0

    Other Non-Cash Items

-

0.4

0.3

0.4

0.5

Non-Cash Items

-

0.4

0.3

0.4

0.5

    Accounts Receivable

-

0.0

-0.9

0.2

-0.4

    Inventories

-

0.2

0.1

0.0

-0.1

    Other Assets

-

-

-

-

0.0

    Payable/Accrued

-

-0.1

0.1

0.2

-0.1

    Other Liabilities

-

-

0.0

0.0

0.0

    Other Assets & Liabilities, Net

-

0.0

0.0

0.0

0.0

    Other Operating Cash Flow

-

-0.2

-0.2

-0.3

-0.3

Changes in Working Capital

-

-0.1

-0.8

0.0

-0.9

Cash from Operating Activities

-

1.4

0.3

0.8

0.5

 

 

 

 

 

 

    Purchase of Fixed Assets

-

-0.1

-0.2

-0.2

-0.6

Capital Expenditures

-

-0.1

-0.2

-0.2

-0.6

    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

-0.2

-0.2

-0.6

 

 

 

 

 

 

    Other Financing Cash Flow

-

0.1

0.0

0.0

0.4

Financing Cash Flow Items

-

0.1

0.0

0.0

0.4

    Cash Dividends Paid - Common

-

-0.2

-

0.0

-0.1

Total Cash Dividends Paid

-

-0.2

-

0.0

-0.1

    Short Term Debt, Net

-

-

-

0.0

-0.1

        Long Term Debt Issued

-

0.0

0.1

0.0

0.5

        Long Term Debt Reduction

-

-0.7

-0.5

-0.5

-0.7

    Long Term Debt, Net

-

-0.7

-0.4

-0.5

-0.2

Issuance (Retirement) of Debt, Net

-

-0.7

-0.4

-0.5

-0.3

Cash from Financing Activities

-

-0.9

-0.4

-0.5

0.0

 

 

 

 

 

 

Net Change in Cash

-

0.4

-0.2

0.1

-0.2

 

 

 

 

 

 

Net Cash - Beginning Balance

-

-0.3

-0.1

-0.2

0.0

Net Cash - Ending Balance

-

0.2

-0.3

-0.1

-0.2

Cash Interest Paid

-

0.2

0.2

0.2

0.2

Cash Taxes Paid

-

0.0

0.0

0.1

0.0

 

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

Updated Normal 
31-Dec-2009

Reclassified 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 LLP

KPMG Peat Marwick LLP

KPMG LLP

KPMG LLP

KPMG LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified

 

 

 

 

 

 

    Revenues

10.1

9.1

6.9

7.4

6.1

Total Revenue

10.1

9.1

6.9

7.4

6.1

 

 

 

 

 

 

    Cost of Saless

8.1

7.3

5.5

5.4

4.0

    Employee Related Expenses

-

-

-

-

0.5

    Depreciation

-

-

0.1

0.1

0.0

    Provision for Doubtful Debts

0.0

0.1

0.1

0.2

0.1

    Provision for Slow Moving Inventories

0.2

0.0

0.1

0.1

0.1

    General / Admin Expenses

0.1

0.1

0.6

0.7

0.2

    Employee Related Expenses-G&A

0.5

0.6

-

-

-

    Advertising-G&A

0.0

0.0

-

-

-

    Depreciation-G&A

0.0

0.0

-

-

-

    Other Expenses-G&A

0.0

0.1

-

-

-

    Selling & Distribution

0.2

0.2

0.2

0.2

0.6

    Advertisement and Sales Promotion

0.0

-

-

-

-

    Other Expenses

0.0

-

-

-

-

Total Operating Expense

9.2

8.4

6.5

6.7

5.4

 

 

 

 

 

 

    Finance Costs

-0.1

-0.2

-0.2

-0.2

-0.2

    Other Finance Costs

0.0

0.0

0.0

-

-

    Other Income

0.0

0.1

0.0

0.0

0.1

Net Income Before Taxes

0.8

0.6

0.2

0.6

0.6

 

 

 

 

 

 

Provision for Income Taxes

0.1

0.1

0.0

0.1

0.2

Net Income After Taxes

0.7

0.5

0.2

0.5

0.5

 

 

 

 

 

 

Net Income Before Extra. Items

0.7

0.5

0.2

0.5

0.5

Net Income

0.7

0.5

0.2

0.5

0.5

 

 

 

 

 

 

Income Available to Com Excl ExtraOrd

0.7

0.5

0.2

0.5

0.5

 

 

 

 

 

 

Income Available to Com Incl ExtraOrd

0.7

0.5

0.2

0.5

0.5

 

 

 

 

 

 

Basic Weighted Average Shares

12.2

12.2

12.2

14.1

14.1

Basic EPS Excluding ExtraOrdinary Items

0.06

0.04

0.01

0.04

0.03

Basic EPS Including ExtraOrdinary Items

0.06

0.04

0.01

0.04

0.03

Diluted Net Income

0.7

0.5

0.2

0.5

0.5

Diluted Weighted Average Shares

12.2

12.2

12.2

14.1

14.1

Diluted EPS Excluding ExtraOrd Items

0.06

0.04

0.01

0.04

0.03

Diluted EPS Including ExtraOrd Items

0.06

0.04

0.01

0.04

0.03

DPS-Common Stock

0.03

0.02

0.00

0.00

0.01

Gross Dividends - Common Stock

0.4

-

0.0

0.0

-

Normalized Income Before Taxes

0.8

0.6

0.2

0.6

0.6

 

 

 

 

 

 

Inc Tax Ex Impact of Sp Items

0.1

0.1

0.0

0.1

0.2

Normalized Income After Taxes

0.7

0.5

0.2

0.5

0.5

 

 

 

 

 

 

Normalized Inc. Avail to Com.

0.7

0.5

0.2

0.5

0.5

 

 

 

 

 

 

Basic Normalized EPS

0.06

0.04

0.01

0.04

0.03

Diluted Normalized EPS

0.06

0.04

0.01

0.04

0.03

Advertising Expense

0.0

0.0

0.0

0.0

-

Depreciation

0.3

0.3

0.3

0.3

0.0

Finance Costs

0.1

0.2

0.2

0.2

0.2

Rental Expense

0.1

0.1

0.1

0.1

-

    Current Tax

0.1

0.0

0.0

0.1

0.0

Current Tax - Total

0.1

0.0

0.0

0.1

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

0.1

0.1

0.0

0.1

0.2

 

 

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

Updated Normal 
31-Dec-2010

Updated Normal 
31-Dec-2009

Updated Normal 
31-Dec-2008

Reclassified Normal 
31-Dec-2008

Filed Currency

OMR

OMR

OMR

OMR

OMR

Exchange Rate

0.385

0.385

0.38495

0.38505

0.385

Auditor

KPMG LLP

KPMG Peat Marwick LLP

KPMG LLP

KPMG LLP

KPMG LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified

 

 

 

 

 

 

    Raw Materials

1.1

1.2

1.2

1.2

1.2

    Finished Goods

0.1

0.1

0.5

0.5

0.5

    Work in Progress

0.1

0.1

0.1

0.1

0.0

    Spare Parts & Consumables

0.1

0.1

0.1

0.1

0.0

    Inventory Provision

-0.2

0.0

-0.3

-0.2

-0.1

    Trade Receivables

3.0

2.6

2.2

2.3

2.0

    Provision for Doubtful Debts

-0.9

-0.9

-0.8

-0.8

-0.6

    Prepayments

0.2

0.6

0.1

0.2

0.2

    Amounts Due from Related Parties

0.0

0.0

0.0

0.0

0.0

    Cash & Banks

0.2

0.0

0.1

0.0

0.0

Total Current Assets

3.6

3.8

3.2

3.5

3.2

 

 

 

 

 

 

    Buildings

0.7

0.7

0.7

0.7

0.7

    Plant and Machinery

4.9

4.8

4.7

4.5

3.9

    Furnitures, Fixtures & Office Equipment

0.3

0.3

0.2

0.2

0.2

    Motor Vehicles

0.1

0.1

0.0

0.0

0.0

    Accumulated Depreciation

-3.6

-3.3

-3.0

-2.8

-2.5

Total Assets

5.9

6.4

5.9

6.2

5.6

 

 

 

 

 

 

    Trade Payables

0.9

0.9

0.7

0.6

0.6

    Due to Related Parties

-

-

0.0

0.0

0.0

    Current Port. of LT Loans

0.4

0.7

0.7

0.7

0.7

    Term Loans

0.8

1.1

0.9

1.0

0.6

Total Current Liabilities

2.1

2.7

2.3

2.3

1.9

 

 

 

 

 

 

    Term Loans

0.0

0.4

0.7

1.2

1.3

Total Long Term Debt

0.0

0.4

0.7

1.2

1.3

 

 

 

 

 

 

    Deferred Government Grant

0.0

0.1

0.1

0.1

0.2

    Staff Terminal Benefits

0.2

0.1

0.1

0.1

0.1

    Deferred Tax

0.0

0.0

0.0

0.1

0.1

Total Liabilities

2.3

3.3

3.3

3.8

3.6

 

 

 

 

 

 

    Share Capital

2.3

2.1

2.1

1.8

1.8

    Legal Reserve

0.3

0.2

0.2

0.2

0.1

    Proposed Dividends

0.3

0.2

0.0

0.3

0.1

    Proposed Stock Dividends

0.3

0.2

-

-

-

    Accumulated Losses

0.3

0.4

0.3

0.2

0.0

Total Equity

3.6

3.1

2.6

2.4

2.0

 

 

 

 

 

 

Total Liabilities & Shareholders' Equity

5.9

6.4

5.9

6.2

5.6

 

 

 

 

 

 

    S/O-Common Stock

12.2

12.2

12.2

14.1

14.1

Total Common Shares Outstanding

12.2

12.2

12.2

14.1

14.1

Full-Time Employees

66

60

64

66

65

Number of Shareholders

315

321

328

324

315

LT Debt Maturing within 1 Year

0.4

0.7

0.7

0.7

0.7

LT Debt Maturing in 5 Years

0.1

0.4

0.9

1.3

1.5

Total Long Term Debt, Supplemental

0.4

1.1

1.5

2.0

2.2

Operating Leases Maturing within 1 Year

0.0

0.0

0.0

0.0

0.0

Operating Leases Maturing 1-5 Years

0.0

0.0

0.0

0.0

0.0

Operating Leases Remaining Maturities

0.1

0.1

0.1

0.1

0.1

Total Operating Leases

0.1

0.1

0.1

0.1

0.2

 

 

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

Updated Normal 
31-Dec-2010

Updated Normal 
31-Dec-2009

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 LLP

KPMG Peat Marwick LLP

KPMG LLP

KPMG LLP

KPMG LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified

 

 

 

 

 

 

Net (loss) Profit

0.8

0.6

0.2

0.6

0.6

    Depreciation

0.3

0.3

0.3

0.3

0.2

    Provision for Doubtful Debts

0.0

0.1

0.1

0.2

0.1

    Provision for Slow Moving Inventories

0.2

0.0

0.1

0.1

0.1

    Sale of Property, Plant & Equipment

0.0

0.0

0.0

0.0

0.0

    Staff Terminal Benefits

-

-

0.0

0.0

0.0

    Finance Costs

0.2

0.2

0.2

0.2

0.2

    Unfunded Defined Benefit Scheme

0.0

0.0

-

-

-

    Inventories

0.2

0.1

0.0

-0.1

-0.4

    Receivables & Prepayments

0.0

-0.9

0.2

-0.4

-0.3

    Other Receivables

-

-

-

0.0

-

    Related Parties Balances

0.0

0.0

0.0

0.0

0.0

    Payables and Accruals

-0.1

0.1

0.2

-0.1

0.3

    Other Payables

-

-

-

0.0

-

    Net Finance Costs Paid

-0.2

-0.2

-0.2

-0.2

-0.2

    Due to Related Parties

-

0.0

0.0

0.0

-

    Staff Terminal Benefits

-

-

-

-

0.0

    Gratuity Paid

0.0

0.0

0.0

0.0

-

    Tax Paid

0.0

0.0

-0.1

0.0

-

Cash from Operating Activities

1.4

0.3

0.8

0.5

0.6

 

 

 

 

 

 

    Sale of Property, Plant & Equipment

0.0

0.0

0.0

0.0

-0.3

    Capital Expenditures

-0.1

-0.2

-0.2

-0.6

-

Cash from Investing Activities

-0.1

-0.2

-0.2

-0.6

-0.3

 

 

 

 

 

 

    Repayment of Long Term Loans

-

-

-

-

-0.6

    Receipts of a Loan

0.0

0.1

0.0

0.5

0.1

    Loans Against Trust Reciept

0.1

0.0

0.0

0.4

0.0

    Net ST Loans

-

-

0.0

-0.1

-

    Dividend Paid

-0.2

-

0.0

-0.1

-

    Repayment of Government Loan

-0.4

-0.1

0.0

-0.3

-

    Repayment of Term Loan

-0.3

-0.4

-0.5

-0.4

-

Cash from Financing Activities

-0.9

-0.4

-0.5

0.0

-0.4

 

 

 

 

 

 

Net Change in Cash

0.4

-0.2

0.1

-0.2

-0.1

 

 

 

 

 

 

Net Cash - Begining Balance

-0.3

-0.1

-0.2

0.0

0.0

Net Cash - Ending Balance

0.2

-0.3

-0.1

-0.2

0.0

    Cash Interest Paid

0.2

0.2

0.2

0.2

0.2

    Cash Taxes Paid

0.0

0.0

0.1

0.0

-

 

Financial Health

 

Financials in: USD (mil) 

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

Key Indicators USD (mil)

 

Quarter
Ending
31-Dec-2012

Quarter
Ending
Yr Ago

Annual
Year End

1 Year
Growth

3 Year
Growth

5 Year
Growth

Total Revenue1 

0.0

-99.91%

-

-

-

-

Income Available to Common Excl Extraord Items1 

0.0

-99.97%

-

-

-

-

Cash from Operating Activities2 

0.1

-79.55%

-

-

-

-

Free Cash Flow 

0.1

-

-

-

-

-

Total Assets3 

6.4

1.90%

-

-

-

-

Total Liabilities3 

2.7

-8.47%

-

-

-

-

Total Long Term Debt3 

0.0

-

-

-

-

-

Employees3 

-

-

-

-

-

-

Total Common Shares Outstanding3 

12.2

0.00%

-

-

-

-

1-ExchangeRate: OMR to USD Average for Period

0.384916

 

 

 

 

 

2-ExchangeRate: OMR to USD Average for Period

0.384874

 

 

 

 

 

3-ExchangeRate: OMR to USD Period End Date

0.385050

 

 

 

 

 

Key Ratios

 

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

Profitability

Gross Margin 

20.56%

20.02%

19.94%

27.43%

Operating Margin 

9.28%

7.78%

5.41%

10.43%

Pretax Margin 

7.54%

6.29%

2.33%

7.85%

Net Profit Margin 

6.73%

5.64%

2.18%

7.05%

Financial Strength

Current Ratio 

1.73

1.44

1.42

1.49

Long Term Debt/Equity 

0.01

0.12

0.29

0.47

Total Debt/Equity 

0.35

0.69

0.88

1.16

Management Effectiveness

Return on Assets 

11.12%

8.41%

2.49%

8.85%

Return on Equity 

20.38%

18.05%

5.97%

23.50%

Efficiency

Receivables Turnover 

5.17

5.71

4.65

5.09

Inventory Turnover 

6.26

4.72

3.34

3.22

Asset Turnover 

1.65

1.49

1.14

1.26

Market Valuation USD (mil)

P/E (TTM) 

7.89

.

Enterprise Value2 

7.1

Price/Sales (TTM) 

0.59

.

Enterprise Value/Revenue (TTM) 

0.75

Price/Book (MRQ) 

1.52

.

Enterprise Value/EBITDA (TTM) 

5.46

Market Cap as of 25-Jun-20131

5.6

.

 

 

1-ExchangeRate: OMR to USD on 25-Jun-2013

0.385100

 

 

 

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

Financial Strength

Current Ratio 

1.73

1.44

1.42

1.49

Quick/Acid Test Ratio 

1.12

0.68

0.65

0.68

Working Capital1 

1.5

1.2

0.9

1.1

Long Term Debt/Equity 

0.01

0.12

0.29

0.47

Total Debt/Equity 

0.35

0.69

0.88

1.16

Long Term Debt/Total Capital 

0.01

0.07

0.15

0.22

Total Debt/Total Capital 

0.26

0.41

0.47

0.54

Payout Ratio 

58.14%

45.06%

0.00%

0.00%

Effective Tax Rate 

10.73%

10.43%

6.45%

10.22%

Total Capital1 

4.8

5.3

4.9

5.3

 

 

 

 

 

Efficiency

Asset Turnover 

1.65

1.49

1.14

1.26

Inventory Turnover 

6.26

4.72

3.34

3.22

Days In Inventory 

58.31

77.35

109.40

113.27

Receivables Turnover 

5.17

5.71

4.65

5.09

Days Receivables Outstanding 

70.63

63.93

78.54

71.76

Revenue/Employee2 

153,756

152,346

108,090

112,776

Operating Income/Employee2 

14,261

11,848

5,845

11,765

EBITDA/Employee2 

18,859

16,656

10,432

15,818

 

 

 

 

 

Profitability

Gross Margin 

20.56%

20.02%

19.94%

27.43%

Operating Margin 

9.28%

7.78%

5.41%

10.43%

EBITDA Margin 

12.27%

10.93%

9.65%

14.03%

EBIT Margin 

9.28%

7.78%

5.41%

10.43%

Pretax Margin 

7.54%

6.29%

2.33%

7.85%

Net Profit Margin 

6.73%

5.64%

2.18%

7.05%

COGS/Revenue 

79.44%

79.98%

80.06%

72.58%

SG&A Expense/Revenue 

10.36%

11.11%

13.63%

16.29%

 

 

 

 

 

Management Effectiveness

Return on Assets 

11.12%

8.41%

2.49%

8.85%

Return on Equity 

20.38%

18.05%

5.97%

23.50%

 

 

 

 

 

Valuation

Free Cash Flow/Share2 

0.11

0.01

0.05

-0.01

Operating Cash Flow/Share 2 

0.11

0.03

0.07

0.03

1-ExchangeRate: OMR to USD Period End Date

0.385

0.385

0.38495

0.38505

2-ExchangeRate: OMR to USD Average for Period

0.385

0.385

0.38495

0.38505

 

Current Market Multiples

Market Cap/Earnings (TTM) 

7.89

Market Cap/Equity (MRQ) 

1.52

Market Cap/Revenue (TTM) 

0.59

Market Cap/EBIT (TTM) 

5.93

Market Cap/EBITDA (TTM) 

4.34

Enterprise Value/Earnings (TTM) 

9.93

Enterprise Value/Equity (MRQ) 

1.92

Enterprise Value/Revenue (TTM) 

0.75

Enterprise Value/EBIT (TTM) 

7.47

Enterprise Value/EBITDA (TTM) 

5.46


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.59.79

UK Pound

1

Rs.91.03

Euro

1

Rs.78.52

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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