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Report Date : |
11.10.2013 |
IDENTIFICATION DETAILS
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Name : |
SADOLIN PAINTS (OMAN) SAOC |
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Registered Office : |
Sadolin Factory Building Road No. 18,
Way 2316 Rusayl Industrial Area PO
Box 531, Ruwi 112 Muscat Sultanate of Oman |
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Country : |
Oman |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
23.06.1977 |
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Com. Reg. No.: |
1/05329/9, Muscat |
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Legal Form : |
Omani Closed Joint Stock Company |
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Line of Business : |
Manufacture of paints and adhesives. |
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No. of Employees : |
130 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Oman |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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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. 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 :
SADOLIN PAINTS (OMAN) SAOC
Country of Origin : Oman
Legal Form : Omani Closed Joint Stock Company
Registration Date : 23rd June 1977
Commercial Registration Number : 1/05329/9, Muscat
Chamber Membership Number : 339
Issued Capital : RO 750,000
Paid up Capital : RO 750,000
Total Workforce : 130
Activities : Manufacture of paints and adhesives.
Financial Condition : Fair
Payments : Nothing detrimental uncovered
Operating Trend : Steady
Person Interviewed : Murlli Dharn, Finance Manager
SADOLIN PAINTS (OMAN) SAOC
Building : Sadolin Factory Building
Street : Road No. 18, Way 2316
Area : Rusayl Industrial Area
PO Box : 531, Ruwi 112
Town : Muscat
Country : Sultanate of
Oman
Telephone : (968) 24602780 / 24604907 / 24597599 / 24446218
Facsimile : (968) 24696186 / 24501789 / 24446962
Email : sado@omzest.com
Subject operates from a medium sized suite of offices and a factory that
are owned and located in the Industrial Area of Muscat.
Branch Offices
Subject has branch offices located in Nizwa and
Sohar.
Name Position
· N
Balachandran Chief
Executive Officer
· Ranji Thomas Commercial
Manager
· Murlli Dharn Finance Manager
· Utbal Basu Production
Manager
· Mohamed Amanullah Accountant
Date of
Establishment : 23rd
June 1977
History :
Subject
began in 1977 under the name “Sadolin Paints (Oman) Ltd (SPOL)”. However on
13th September 2013 subject
re-registered under the new name “Sadolin Paints (Oman)
SAOC”.
Legal Form : Omani Closed Joint
Stock Company
Commercial Reg.
No. : 1/05329/9, Muscat
Chamber Member No. : 339
Issued Capital : RO 750,000
Paid up Capital : RO 750,000
· Omar Zawawi Est
(OMZEST) 99.98%
· National Heater
LLC 0.01%
· Waleed Associates
LLC 0.01%
Subject belongs to the Omzest Group of Companies,
which contains the following concerns:
· Al Khuwair
Development & Services Co SAOG
· Modern Exchange
LLC
· Muscat Finance Co
Ltd (SAOG)
· Muscat Insurance
Company SAOC
· Muscat Life
Assurance Company SAOC
· Muscat National
Holding Company SAOG
· Oman International
Bank SAOG
· Oman Securities'
Portfolio Co SAOG
· Omzest Investment
Division
· Personal
Investments
· Personal Real
Estate Department
· United Business
& Investment Co
· Wilayat Holding Co
· Wipro Holding Co
· Mideast Integrated
Drilling & Well Services
· National Telephone
Services Co LLC
· Qurum Contractors
LLC
· Al Amal Industries
Co (SAOG)
· Al Wardha Footwear
& Leather Products Company
· Amiantit Oman SAOC
· Areej Vegetable
Oils & Derivatives SAOG
· Bausher Chemicals
SAOG
· Decorative Glass
Manufacturing LLC
· Jyoti Sohar
Switchgear LLC
· Keemya Oman SAOG
· Modern Poultry
Farms Company SAOG
· Oman Agriculture
Development Company SAOG
· Oman Fiber Optic
Co SAOG
· Oman Textile Mills
Co SAOG
· Oman Water Pumps
Mfg Co SAOG
· Oman Water
Treatment
· Omani Marble
Company LLC
· Protein Products
International LLC
· Riyam Investment
& Trading Est LLC
· Reem Batteries
& Power Appliances Co SAOC
· The National
Detergent Company SAOG
· Advertising
International Company SAOC
· Al-Rimah Medical
Centre LLC
· Circle Freight
International (Oman)
· Gulf of Oman
Services
· Gulf Seagull Co
· Impact Films LLC
· Maersk Shipping
Services & Co LLC
· Mezoon Travel LLC
· Muscat Contract
Cleaning & Maintenance LLC
· Riyam Computer
Services LLC
· Waleed Catering
& Services Co LLC (WACASCO)
· YBA Kanoo (Oman)
· Areej Business
Systems Co LLC
· Bishara
Establishment LLC
· General
Electronics & Trading Co
· Medical &
Scientific Supplies LLC
· Muscat Cold Stores
LLC
· National Oilfield
Supply Co LLC
· Office Supplies Co
LLC
· Oman Mechanical
Services Co Ltd LLC (OMSC)
· Oman Services
& Supply Organisation
· Omzest Beijing
· Omzest Business Division
· Reem Scientific
& Energy Technologies & Trade LLC
· Riyam Engineering
& Services LLC
· Riyam Marketing
& Services Co LLC
· Waleed
Communications Co (WACOM) Ltd
· Waleed Pharmacy
LLC
· Waljat Modern
Technology
· Zawawi Business
Machines LLC
· Zawawi Trading
Company LLC
Activities: Engaged in the manufacture of paints and adhesives, including decorative paints for interior and exterior
uses, furniture lacquers, wood protection coatings,
industrial coatings and a wide selection of adhesives.
Subject has a licensing agreements with
AKZO Nobel of Italy and Stoncor (Carboline) of the USA.
The company has ISO-9000
certification (for quality) and is also the first paint company in the Middle
East to get ISO-14000 certification.
Production Capacity: 15 million litres per annum
Import Countries: Italy, Denmark, United Kingdom, Germany, Malaysia
and the United States of America
International Suppliers:
· SCM Chemicals Ltd United Kingdom
· Naintsch
Mineralwerke GmbH Austria
· Pluss Stauffer AG Switzerland
· Revertex Sdn Bhd Malaysia
· Basf AG Germany
Brand Names: SADOLIN and FEVICOL
Operating Trend: Steady
Subject has a workforce of approximately 130 employees.
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
11,850,000 RO
12,400,000
Local sources consider subject’s financial condition to be Fair.
The above financial figures are based on estimations by our local
sources.
·
Oman Arab Bank
Al
Khuwair Branch
PO Box:
5010, Ruwi
Muscat
Tel:
(968) 24603520
Fax:
(968) 24602948
·
Oman International Bank
Al Jaame Street
PO Box:
4216
Muscat
Tel:
(968) 24703614 / 24707328
No complaints regarding subject’s payments have been reported.
Credit amount 150,000 150,000
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 US
Dollars US
Dollars
Established in 1977, Sadolin Paints (Oman) Ltd
(Spol) is a leading paint manufacturer in Oman enjoying a market share of
around 40%. It belongs to the Omzest group of companies, a very large
and well-known group that contains some of the leading Omani companies.
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.62.14 |
|
|
1 |
Rs.99.02 |
|
Euro |
1 |
Rs.83.87 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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 |
|
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.