MIRA INFORM REPORT

 

 

Report Date :

04.03.2013

 

IDENTIFICATION DETAILS

 

Name :

DHOFAR CATTLE FEED CO SAOG

 

 

Registered Office :

Raysut Industrial Area PO Box 1220 & 1298 Salalah 211

 

 

Country :

Sultanate of Oman

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

13.01.1983

 

 

Com. Reg. No.:

2/01752/0

 

 

Legal Form :

Omani Public Joint Stock Company

 

 

Line of Business :

Subject operates several division like Feed Mill Division, Farm Division

 

 

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

Payment Behaviour :

Regular

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. 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                         : 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

 

 

 


COMPANY NAME

 

DHOFAR CATTLE FEED CO SAOG

 

 

ADDRESS

 

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

 

 


KEY PRINCIPALS

 

     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

 

 

LEGAL FORM & OWNERS

 

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%

 

 

AFFILIATED COMPANIES

 

     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%

 

 

OPERATIONS

 

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 DATA

 

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.

 

 

BANKERS

 

·       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

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                              February 2002                          December 2008

Credit amount                                        255,000                         150,000

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

 

 

GENERAL COMMENTS

 

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.54.48

UK Pound

1

Rs.82.72

Euro

1

Rs.71.27

 

 

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%)

 

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.