MIRA INFORM REPORT

 

 

Report Date :

23.04.2014

 

IDENTIFICATION DETAILS

 

Name :

AL JUFAIR FOOD INDUSTRY LLC

 

 

Registered Office :

Ruwi Street, Al Wadi Al Kabir Industrial Area, P O Box 1842, Ruwi 112, Muscat

 

 

Country :

Oman

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

15.11.1989

 

 

Com. Reg. No.:

1/28860/1, Muscat

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

manufacturer of potato chips and confectionery products.

 

 

No. of Employees :

600 (Approximately)

 

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 :

Satisfactory

 

 

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

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                                    : AL JUFAIR FOOD INDUSTRY LLC

Country of Origin                                   : Oman

Legal Form                                           : Limited Liability Company – LLC

Registration Date                                  : 15th November 1989

Commercial Registration Number           : 1/28860/1, Muscat

Chamber Membership Number               : 1736

Issued Capital                                       : RO 3,601,000

Paid up Capital                                     : RO 3,601,000

Total Workforce                                     : 600

Activities                                               : Manufacturers of potato chips and confectionery products.

Financial Condition                                : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Saurab Manna, Financial Manager

 

 

 

COMPANY NAME

 

AL JUFAIR FOOD INDUSTRY LLC

 

 

company ADDRESS

 

Registered & Physical Address

Street               : Ruwi Street

Area                 : Al Wadi Al Kabir Industrial Area

PO Box            : 1842, Ruwi 112

Town                : Muscat

Country             : Oman

Telephone         : (968) 24813617 / 24817634 / 24813617 / 24815416 / 24815418

Facsimile          : (968) 24815355 / 24813771

Mobile              : (968) 99410124 / 99419849

Email                : alipofak@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

·       Ali Bin Khadat Bin Ahmed Al Shaihani                                    Managing Director

·       Tariq Bin Khadat Bin Ahmed Al Shaihani                                Director

·       Zakrayat Ali Bin Khadat Bin Ahmed Al Shaihani                      Director

·       Pankashram Mailagan                                                           General Manager

·       Saurab Manna                                                                      Financial Manager

·       Ajay Kumar                                                                          Sales Manager

·       M T Raghavan                                                                      Plant Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 15th November 1989

 

Legal Form                  : Limited Liability Company – LLC

 

Commercial Reg. No.   : 1/28860/1, Muscat

 

Chamber Member No.  : 1736

 

Issued Capital              : RO 3,601,000

 

Paid up Capital            : RO 3,601,000

 

Name of Shareholder (s)                                                       Percentage

·       Ali Bin Khadat Bin Ahmed Al Shaihani                                    99.94%

·       Tariq Bin Khadat Bin Ahmed Al Shaihani                                  0.03%

·       Zakrayat Ali Bin Khadat Bin Ahmed Al Shaihani                        0.03%

 

 

AFFILIATED COMPANIES

 

Subject is a member of the Ali Shaihani Group of Companies, which consists of the following concerns:

 

·       Ali Al Shaihani Food Industries

PO Box: 1842

Ruwi 112

Muscat

Tel: (968) 7713617

Fax: (968) 7715355

 

·       Ali Al Shaihani Juice Filling Industry

       PO Box: 1842

Ruwi 112

Muscat

Tel: (968) 7713617

Fax: (968) 7715355

    

·       Ali Al Shaihani Paper Industry

       PO Box: 1842

Ruwi 112

Muscat

Tel: (968) 7713617

Fax: (968) 7715355

 

·       Ali Al Shaihani Trading & Contracting Est

       PO Box: 1842

Ruwi 112

Muscat

Tel: (968) 7713617

Fax: (968) 7715355

 

·       Bowshar Hotel

       PO Box: 1842

Ruwi 112

Muscat

Tel: (968) 7713617

Fax: (968) 7715355

OPERATIONS

 

Activities: Engaged in the manufacture of potato chips and confectionery products.

 

Import Countries: Europe and the United States of America.

 

Export Countries: Bahrain, Qatar, Kuwait, Saudi Arabia, Sri Lanka, Maldives, Russian Federation and Pakistan.

 

Brand Names: CHIPS OMAN, SKY CHIPS, SHAWARMA CHIPS, SAHAM CHIPS, SHINAS, CHIPS, TAM TOM,

                         SARA CHIPS, NOORA CHIPS and CHIPS STIX

 

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)       

 

                                                Year Ending 31/12/12:               Year Ending 31/12/13:

 

Total Revenue                           RO 14,129,893                          RO 14,684,706

 

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

 

The above figures were provided by Mr Saurab Manna, Financial Manager

 

 

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

 

·       Oman International Bank

PO Box: 4216, Ruwi 112

     Muscat

     Tel: (968) 24703614 / 24707328

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                               October 2013

Amount overdue                                    0

Payment terms                                      90 days

Payment Method                                   Letters of Credit

Paying record                                       No Complaints

Currency                                               Euros

 

 

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.60.71

UK Pound

1

Rs.102.04

Euro

1

Rs.83.77

 

INFORMATION DETAILS

 

Analysis Done by :

Div

 

 

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.