MIRA INFORM REPORT

 

 

Report Date :

18.09.2013

 

IDENTIFICATION DETAILS

 

Name :

VOLTAMP ENERGY SAOG

 

 

Registered Office :

Road No. 7, Rusayl Industrial Area, P O Box 75, Rusayl 124

 

 

Country :

Oman

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

01.01.1987

 

 

Com. Reg. No.:

1/26294/7

 

 

Legal Form :

Omani Joint Stock Company

 

 

Line of Business :

Manufacturers of power and distribution transformers and low voltage electrical panels

 

 

No. of Employees :

380

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

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                                     : VOLTAMP ENERGY SAOG

Country of Origin                                    : Oman

Legal Form                                            : Omani Joint Stock Company

Registration Date                                   : 1st January 1987

Commercial Registration Number            : 1/26294/7

Issued Capital                                        : RO 6,050,000

Paid up Capital                                      : RO 6,050,000

Total Workforce                                     : 380

Activities                                               : Manufacturers of power and distribution transformers and low voltage

                                                              electrical panels.

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

 

 

 


COMPANY NAME

 

VOLTAMP ENERGY SAOG

 

 

Company ADDRESS

 

Registered & Physical Address

Street               : Road No. 7

Area                 : Rusayl Industrial Area

PO Box             : 75

Town                 : Rusayl 124

Country             : Sultanate of Oman

Telephone         : (968) 24446501

Facsimile          : (968) 24446502

Mobile               : (968) 99387474

Email                : contact@voltampoman.com / ao@voltampoman.com

 

Premises

Subject operates from a large suite of offices and a factory that are rented and located in the Industrial Area of Rusayl.

 

 

KEY PRINCIPALS

 

     Name                                                                                              Position

·       Qais Bin Mohamed Al Yousef                                                 Chairman

·       Sayyid Aymen Bin Hamad Al Busaidi                                                 Vice Chairman

·       Abdulredha Bin Mustafa Sultan                                                           Director

·       Ahmed Hamed Saif Al Subhi                                                              Director

·       Hamad Mohamed Hamood Al Wahaibi                                                Director

·       Saibal Sen                                                                                        Director

·       Sebastian Manavalan                                                             Director

·       Satish Gupta                                                                                    General Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1st January 1987

 

Legal Form                  : Omani Joint Stock Company

 

Commercial Reg. No.  : 1/26294/7

 

Issued Capital              : RO 6,050,000

 

Paid up Capital            : RO 6,050,000

 

Name of Shareholder (s)                                                      Percentage

·         Al Anwar Holdings SAOG                                                     28.08%

·         Sabco LLC                                                                            7.82%

·         Ministry of Defence Pension Fund                                           7.43%

·         Local businessmen and private investors                                56.67%

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of power and distribution transformers and low voltage electrical panels.

 

Subject manufactures a wide range of power and distribution transformers, LV Switchgear and packaged sub-stations through its three manufacturing units in Rusayl Industrial Area and the new factory in Sohar.

 

Subject’s new 220KV power transformers factory, upgradable to 400KV, is the first such facility to be commissioned in the GCC. This factory is now fully operational and several units have been delivered.

 

With the commissioning of this factory, Voltamp Energy SAOG is the only Company in the MENA region which can manufacture transformers from 50KVA to 315MVA, including several special designs for oil & gas and industrial applications.

 

It is the only company in the MENA region which can conduct field services and workshop repairs on transformers of any make up to 400kV Class.

 

Import Countries: Europe and the Far East.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 380 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Riyal Omani (RO)

 

Consolidated Balance Sheet                                                           31/12/12                                       31/12/11

 

Assets

 

 

Non-current assets

Property, plant and equipment

 

9,747,995

9,447,920

Technology transfer fee

 

424,739

150,953

Deferred tax asset

 

70,216

80,872

Total non-current assets

                                    10,242,950

                  9,679,745

Current assets

Inventories

 

5,724,791

4,129,891

Trade and other receivables

 

5,569,284

4,507,070

Investments at fair value through profit and loss

 

2,481,785

2,384,041

Amount due from related parties

 

37,500

-

Deposit with leasing and finance companies

 

1,000,000

1,000,000

Bank deposits

 

200,000

1,700,000

Cash in hand and at banks

 

154,486

570,440

Total current assets

                                     15,167,846

                   14,291,442

Total assets

                                     25,410,796

                   23,971,187

Equity and liabilities

Equity

Share capital

 

6,050,000

5,500,000

Share premium

 

5,236,345

5,786,345

Legal reserve

 

1,763,819

1,571,141

Retained earnings

                                     2,163,326

                   2,148,786

Total equity

                                     15,213,490

                   15,006,272

Liabilities

Non-current liabilities

Long term loans

 

4,499,679

4,555,830

Deferred government grant

 

52,787

101,676

End of service benefits

 

229,184

171,047

Total non-current liabilities

                                     4,781,650

                  4,828,553

Current liabilities

Trade and other payables

 

4,142,737

3,289,826

Bank borrowings

 

405,862

508,083

Amount due to related parties

 

25,934

73,087

Current portion of term loans

 

841,123

265,366

Total current liabilities

                                     5,415,656

                  4,136,362

Total liabilities

                                     10,197,306

                  8,964,915

Total equity and liabilities

                                     25,410,796

                  23,971,187

 

Consolidated Statement of Income

 

Revenue

                                      17,282,950

                   14,701,477

Cost of sales

 

(13,550,554)

(11,078,212)

Gross profit

                                       3,732,396

                    3,623,265

Other income

 

  58,700

  60,781

Selling, administrative and general expenses

 

 (2,199,778)

 (1,964,708)

Profit from operations

                                      1,591,318

                    1,719,338

Finance income

                                      104,763

                    142,775

Gain/(loss) on investments at fair value through profit or loss

                                      190,164

                   (67,574)

Finance cost

                                     (266,794)

                   (123,598)

Profit for the year before taxation

                                      1,619,451

                    1,670,941

Taxation

 

(312,233)

(311,774)

Profit and total comprehensive income for the year

                                      1,307,218

                    1,359,167

 

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

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.

 

 

GENERAL COMMENTS

 

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.63.37

UK Pound

1

Rs.100.85

Euro

1

Rs.84.59

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

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.