MIRA INFORM REPORT

 

 

Report Date :

03.04.2014 

 

IDENTIFICATION DETAILS

 

Name :

THE NATIONAL DETERGENT COMPANY SAOG (NDC)

 

 

Registered Office :

Way No. 3605 Al Ghubra PO Box 3104, Ruwi 112 Muscat Sultanate of Oman

 

 

Country :

Oman

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

29.06.1981

 

 

Com. Reg. No.:

1/11414/0, Muscat

 

 

Legal Form :

Omani Public Joint Stock Company

 

 

Line of Business :

Manufacturing and marketing of detergent powder, dishwashing liquid, toilet   soaps and household cleaners

 

 

No. of Employees :

240

 

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 :

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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                                    : THE NATIONAL DETERGENT COMPANY SAOG (NDC)

Country of Origin                                   : Oman

Legal Form                                           : Omani Public Joint Stock Company

Registration Date                                  : 29th June 1981

Commercial Registration Number           : 1/11414/0, Muscat

Issued Capital                                       : RO 1,701,250

Paid up Capital                                     : RO 1,701,250

Total Workforce                                     : 240

Activities                                               : Manufacturing and marketing of detergent powder, dishwashing liquid,  toilet soaps and household cleaners

Financial Condition                                : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

 

 

 


 

COMPANY NAME

 

THE NATIONAL DETERGENT COMPANY SAOG (NDC)

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Way No. 3605

Area                 : Al Ghubra

 

PO Box:             3104, Ruwi 112

 

Town                : Muscat

Country             : Sultanate of Oman

 

Telephone         : (968) 24493824

Facsimile          : (968) 24492145

Email                : ndcoman@omantel.net.om

 

Premises

 

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

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Abdul Hussain Bin Bhacker Al Lawati                                                 Chairman

 

·       Redha Baqir Al Lawati                                                                       Vice Chairman

 

·       Anwar Ali Sultan                                                                               Director

 

·       Mohammed Abdul Hussain Bhacker                                                   Director

 

·       Rajiv Dhar                                                                                        Director

 

·       Mahdi Abdul Baqi                                                                             Director

 

·       V Venkataraman                                                                               Director

 

·       V Sundaresan                                                                                   Director & General Manager

 

·       Deepak Jain                                                                                     Finance Manager

 

·       N Krishnan                                                                                       Sales & Marketing Manager

 

·       Ali Mohamed Ali                                                                               Human Resources Manager

 

·       Hussain Abdul Khaliq                                                                        Business Development Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 29th June 1981

 

Legal Form                  : Societe Anonyme Omani General - SAOG (Omani Public Joint Stock Company)

 

Commercial Reg. No.   : 1/11414/0, Muscat

 

Issued Capital              : RO 1,701,250

 

Paid up Capital            : RO 1,701,250

 

Name of Shareholder (s)                                                             Percentage

 

·       Oman International Development & Investment Co SAOG                       20.9%

 

·       Dr Omar Bin Abdul Muniem Al Zawawi                                                   19.9%

 

·       Bhacker Sulaiman Jaffer Co                                                                  13.7%

 

·       Abdul Hussain Bin Bhacker Al Lawati                                         10.0%

 

·       Omani businessmen & private investors                                                 35.5%

 

 

AFFILIATED COMPANIES

 

     Name                                                                                               Stake Held

 

·       Bausher Chemicals SAOG                                                                   19.50%

     Oman

 

·       Keemya Oman SAOG                                                                         17.11%

     Oman

 

·       Middle East Detergent Manufacture & Trading WLL                              40.00%

     Bahrain

 

 

OPERATIONS

 

Activities: Engaged in the manufacturing and marketing of detergent powder, dishwashing liquid, toilet soaps and   household cleaners. Subject began commercial production in 1984.

 

The Sulphonation Division is engaged in the manufacture of Sulphonic Acid, a surface active agent used in

the detergent and home care products. Part of the production is for captive consumption and the balance

volume is sold mainly to other manufacturers in the region and nearby export markets.

 

Subject has ISO 9001 certification.

 

Import Countries: United Kingdom, Austria, Spain, Italy, Netherlands, Japan and India

 

International Suppliers:

 

·       Imperial Chemicals Industries (ICI)      United Kingdom

·       Neupack GmbH                                Austria

·       G. Mazzoni SpA                               Italy

·       Maschmeijer                                     Netherlands

·       Crimidessa                                       Spain

·       Nissho Iwai Corp                              Japan

·       Grassim Industries Ltd                      India

 

Operating Trend: Steady

 

Subject has a workforce of approximately 240 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Riyal Omani (RO)

 

Balance Sheet                                                                          31/12/2012                    31/12/2013

 

Assets

Non-current asset

Property, plant and equipment                                                   13,501,133                    13,796,858

Current assets

Inventories                                                                                2,595,391                     3,992,452

Trade and other receivables                                                       5,664,847                      5,005,080

Cash and bank balances                                                            746,300                         1,278,495

9,006,538                      10,276,027

Total assets                                                                              22,507,671                    24,072,885

 

Equity

Share capital                                                                             1,701,250                      1,701,250

Share premium                                                                          364,263                         364,263

Legal reserve                                                                            567,083                         567,083

Revaluation reserve                                                                   7,228,682                      7,228,682

Proposed dividend                                                                    595,438                         680,500

Retained earnings                                                                      2,212,528                      2,588,527

Total equity                                                                               12,669,244                    13,130,305

Liabilities

Non-current liabilities

Long term loans                                                                        2,223,613                      2,340,281

Deferred tax                                                                              1,051,150                      1,061,033

End of service benefits                                                                         503,036                         577,021

3,777,799                      3,978,335

Current liabilities

Current maturities of term loans                                                  583,332                         583,332

Short term loans and overdrafts                                                             1,656,796                      1,500,000

Trade and other payables                                                          3,754,290                      4,750,818

Taxation                                                                                    66,210                          130,095

6,060,628                      6,964,245

Total liabilities                                                                           9,838,427                      10,942,580

Total equity and liabilities                                                           22,507,671                    24,072,885

 

Income Statement

 

Sales                                                                                       21,014,583                    21,703,585

Cost of sales                                                                            (16,398,664)                  (16,182,558)

GROSS PROFIT                                                                        4,615,919                      5,521,027

Selling and distribution expenses                                               (2,821,484)                    (3,172,806)

Administrative and general expenses                                          (859,226)                       (976,082)

Other operating income                                                                         48,836                          36,531

PROFIT FROM OPERATIONS                                                    984,045                         1,408,670

Finance costs                                                                           (200,597)                       (182,193)

Finance income                                                                         2,938                            -

Finance costs - net                                                                    (197,659)                       (182,193)

Directors’ remuneration                                                             (18,500)                        (30,000)

Profit before tax                                                                        767,886                         1,196,477

Taxation                                                                                    (88,679)                        (139,978)

PROFIT AND TOTAL COMPREHENSIVE INCOME FOR

THE YEAR                                                                                679,207                         1,056,499

 

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

 


 

BANKERS

 

·       National Bank of Oman Limited (SAOG)

Mutrah Business District

PO Box: 751, Ruwi 112

Muscat

Tel: (968) 24708894 / 24708630 / 24708684

Fax: (968) 24707781 / 24703972

 

·       Bank of Oman, Bahrain & Kuwait

     BOBK House

     Al Burj Street

     PO Box: 4708, Ruwi 112

     Muscat

     Tel: (968) 24701528 / 24701532 / 24701788

     Fax: (968) 24705607 / 24793536

 

·       Oman Arab Bank

     Head Office

     Muttrah Business District

     PO Box: 2010, Ruwi 112

     Muscat

     Tel: (968) 24700161 / 24706265 / 24706267

     Fax: (968) 24797736

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

The National Detergent Company SAOG (NDC) was established in 1981 and is engaged in the manufacturing and marketing of detergent powder, dishwashing liquid, toilet soaps and household cleaners.

 

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.59.65

UK Pound

1

Rs.99.21

Euro

1

Rs.82.39

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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

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.