MIRA INFORM REPORT

 

 

Report Date :

03.04.2014

 

IDENTIFICATION DETAILS

 

Name :

FLEXIBLE INDUSTRIAL PACKAGES CO SAOG (FIPCO)

 

 

Registered Office :

Road No. 21, Plot No. 225/226, Rusayl Industrial Area, P O Box  200 & 989 & 60, Ruwi 112, Muscat

 

 

Country :

Oman

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

10.05.1998

 

 

Com. Reg. No.:

1/59063/4, Muscat

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Engaged in the production and marketing of flexible packaging laminates and materials.

 

 

No. of Employees

85

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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.

 

Source : CIA

 

SUMMARY

 

Company Name                                    : FLEXIBLE INDUSTRIAL PACKAGES CO SAOG (FIPCO)

Country of Origin                                   : Oman

Legal Form                                           : Limited Liability Company – LLC

Registration Date                                  : 10th May 1998

Commercial Registration Number           : 1/59063/4, Muscat

Chamber Membership Number               : 1021/1

Issued Capital                                       : RO 4,000,000

Paid up Capital                                     : RO 2,120,804

Total Workforce                                     : 85

Activities                                               : Producers and marketers of flexible packaging laminates and materials.

Financial Condition                                : Poor

Payments                                             : Nothing detrimental uncovered

 

COMPANY NAME

 

FLEXIBLE INDUSTRIAL PACKAGES CO SAOG (FIPCO)

 

 

company ADDRESS

 

Registered & Physical Address

Street               : Road No. 21, Plot No. 225/226

Area                 : Rusayl Industrial Area

PO Box            : 200 & 989 & 60, Ruwi 112

Town                : Muscat

Country             : Sultanate of Oman

Telephone         : (968) 24446121 / 24626121 / 24707770

Facsimile          : (968) 24446890 / 24626890 / 24782141

Mobile              : (968) 99808752

Email                : fipco@omantel.net.om / info@fipco.net

 

Premises

Subject operates from a medium sized suite of offices, a factory and storage facilities that are owned and located in the Industrial Area of Muscat.

 

 

KEY PRINCIPALS

 

     Name                                                           Nationality                                Position

 

·       Usama Bin Mohammad Bin Ali Al Barwani      Omani                                       Chairman

 

·       Sushil Kumar Srivastava                                    -                                          Vice Chairman

 

·       Lakshmi Narasimhan                                        -                                           Director

 

·       Khalid Mohammad Obaid                                   -                                          Director

 

·       Tariq Bin Mohammed Bin Ali Al Barwani              -                                          Director

 

·       Murali Chidambaram                                        -                                            Director

 

·       Mohamed Al Kendi                                       Omani                                       Finance Manager

 

·       Vivek Bhatt                                                   Indian                                       Production Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 10th May 1998

 

Legal Form                  : Omani Public Joint Stock Company

 

Commercial Reg. No.   : 1/59063/4, Muscat

 

Chamber Member No.  : 1021/1

 

Issued Capital              : RO 4,000,000

 

Paid up Capital            : RO 2,120,804

 

Name of Shareholder (s)                                                        Percentage

·       MB Holding Company LLC                                                    34.28%

·       Trans Gulf Industrial Investment Co SAOG                             20.27%

·       Al Safat Investment Co KSC                                                 16.89%

·       Al Marjan Financial Services Company                                   11.27%

·       Omani businessmen and private investors                             17.29%

 

 

OPERATIONS

 

Activities: Engaged in the production and marketing of flexible packaging laminates and materials.

 

Production Capacity: 1,300 tonnes per year.

 

Import Countries: Germany and Asia

 

Export Countries: Saudi Arabia, Iran and South Africa

 

Subject has a workforce of 85 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Riyal Omani (RO)

 

Balance Sheet                                                                                                 31/12/13                31/12/12

 

Income Statement

 

 

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

 

 

BANKERS

 

·       National Bank of Oman Limited (SAOG)

Muttrah Business District

PO Box: 751

Muscat 112

Tel: (968) 24708894 / 24708630 / 24708684

Fax: (968) 24707781 / 24703972

 

·       Oman Arab Bank

     Head Office

     Muttrah Business District

     PO Box: 2010

     Muscat 112

     Tel: (968) 24700161 / 24706265 / 24706267

     Fax: (968) 24797736

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Flexible Industrial Packages Co SAOG (FIPCO) commenced operations in 1998 and is engaged in the production and marketing of flexible packaging laminates and materials.

 

During the year ended 31st December 2013, the company has incurred a net loss of RO 1,275,911 resulting in a net deficit in equity amounting to RO 607,089 and, as of this date the company’s current liabilities exceeded its current assets by RO 2,841,470. However, these financial statements have been prepared under the going concern basis as the company intends to issue additional share capital and the major shareholders have agreed to provide the necessary financial support to the company to enable it to continue its operations and meet its liabilities as they fall due.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.59.64

UK Pound

1

Rs.99.21

Euro

1

Rs.82.39

                

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.