MIRA INFORM REPORT

 

 

Report Date :

18.06.2013

 

IDENTIFICATION DETAILS

 

Name :

ALI & ABDUL KARIM TRADING CO LLC (AATCO)

 

 

Registered Office :

Building No. 687, Way No. 5007, Ghala Area, PO Box: 582 & 793, Ruwi 112, Muscat

 

 

Country :

Oman

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

1974

 

 

Com. Reg. No.:

1/20704/0

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacture of tomato ketchup, mayonnaise, hot sauce and exotic sauces and dressings.

 

 

No. of Employees :

330

 

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


SUMMARY

 

Company Name                                    : ALI & ABDUL KARIM TRADING CO LLC (AATCO)

Country of Origin                                   : Oman

Legal Form                                           : Limited Liability Company – LLC

Start Date                                             : 1974

Registration Date                                  : 23rd August 1984

Commercial Registration Number           : 1/20704/0

Industrial Registration Number                : 14675/3

Membership Number                             : 1330

Issued Capital                                       : RO 500,000

Paid up Capital                                     : RO 500,000

Total Workforce                                     : 330

Activities                                               : Manufacture of tomato ketchup, mayonnaise, hot sauce and exotic  sauces and dressings.

Financial Condition                                : Fair

Payments                                             : Nothing detrimental uncovered

Person Interviewed                                : Mac Krishnan, Finance Manager

 


COMPANY NAME

 

ALI & ABDUL KARIM TRADING CO LLC (AATCO)

 

 

ADDRESS

 

Registered & Physical Address

 

Building            : Building No. 687

Street               : Way No. 5007

Area                 : Ghala Area

PO Box            : 582 & 793, Ruwi 112

Town                : Muscat

Country             : Sultanate of Oman

 

Telephone         : (968) 22004100

Facsimile          : (968) 22004101

Email                : aatcoman@omantel.net.om / sobhi@aakgc.com

 

Please note that subject’s previous address was, Building No. 14, Al Washal, Greater Muttrah, Muscat. Subject moved to the above address on 6th June 2012.

 

Premises

 

Subject operates from a large suite of offices that are rented and located in the Central Business Area of Muscat.

 

Branch Office (s)

 

Location                                                                                   Description

 

PO Box: 130                                                                             Factory premises

Falaj Al Qabail 322

Tel: (968) 26751216

Fax: (968) 26751591

Email: oman@agc.com

 

Sohar Industrial Area                                                                 Factory premises

Sohar

Tel: (968) 2751216

 

 

KEY PRINCIPALS

 

Name                                                                                       Position

 

Abdul Karim Hassan Sulaiman                                                   Managing Director

 

Ali Hassan Sulaiman                                                                  Director

 

Greet Bujsman                                                                          General Manager

 

Ajay Menon                                                                               Marketing Manager

 

Mac Krishnan                                                                            Finance Manager

 

Sohbi Hassan Sulaiman                                                             Administration Manager

 

Anand Broskar                                                                          Sales Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1974, however subject was registered on 23rd August 1984

 

Legal Form                  : Limited Liability Company – LLC

 

Commercial Reg. No.   : 1/20704/0

 

Industrial Reg. No.       : 14675/3

 

Membership No.           : 1330

 

Issued Capital              : RO 500,000

 

Paid up Capital            : RO 500,000

 

Name of Shareholder (s)

 

Abdul Karim Hassan Sulaiman

 

Ali Hassan Sulaiman

 

 

AFFILIATED COMPANIES

 

Subject is a member of the Ali & Abdul Karim Group of Companies, which consists of the following concerns:

 

Nejood Carpet Manufacturing Co LLC

 

Al Khaleej Polypropylene Product Co SAOG

 

Remal Mutrah Co LLC

 

Sama International Co LLC

 

Horizon Gases Ltd

 

Al Qusay Investments LLC

 

Automatic Terrazzo Tiles LLC

 

Muttrah Investment Co LLC

 

Hussam Technologies LLC

 

 

OPERATIONS

 

Activities:                     Engaged in the manufacture of tomato ketchup, mayonnaise, hot sauce and exotic sauces and dressings marketed in a range of consumer and bulk packs.

 

Subject’s clients include Burger King, Kentucky Fried Chicken, Pizza Hut, Dairy Queen, Popeye's, Subway, and Herfy.

 

Import Countries:         Netherlands, United Kingdom and Turkey

 

Brand Names:              DELICIO, BARKA, KHABURAH and AL BUSTAN

 

Subject has a workforce of approximately 330 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Riyal Omani (RO)

 

                                                Year Ending 31/12/11:              Year Ending 31/12/12:

 

Total Sales                                RO 17,761,604                          RO 18,991,449

 

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

 

The above figures were provided by Mr Mac Krishnan, Finance Manager

 

 

BANKERS

 

Bank of Muscat

Al Burj Street

Greater Muttrah

PO Box: 6326, Ruwi

Muscat

Tel: (968) 24701769

Fax: (968) 24796488

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                                July 2006

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

 

According to local sources, subject meets its payment obligations in a timely manner and the business is considered to be a fair trade risk.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.57.73

UK Pound

1

Rs.90.61

Euro

1

Rs.76.96

 

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%)

 

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.