|
Report Date : |
25.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
AL JAZEERA STEEL
PRODUCTS CO SAOG |
|
|
|
|
Formerly Known as : |
Al Jazeera Tube
Mills Co SAOG |
|
|
|
|
Registered Office : |
Road No. 3, Sohar
Industrial Estate, P O Box 40, Sohar 327 |
|
|
|
|
Country : |
Oman |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
01.04.1997 |
|
|
|
|
Com. Reg. No.: |
1/55043/8 |
|
|
|
|
Legal Form : |
Omani Joint Stock Company |
|
|
|
|
Line of Business : |
Engaged in the manufacturing and sale of
steel pipes and tubes. |
|
|
|
|
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 : |
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 – 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 Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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 sales 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 |
Company Name : AL JAZEERA STEEL PRODUCTS CO SAOG
Country of Origin : Oman
Legal Form : Omani Joint Stock Company
Registration Date : 1st April 1997
Commercial Registration Number : 1/55043/8
Chamber Membership Number : 922
Issued Capital : RO 12,489,796
Paid up Capital : RO 12,489,796
Total Workforce : 600
Activities : Manufacture and sale of steel pipes and tubes
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
Person Interviewed : Ali Al Shizawi, Public Relations Manager
AL JAZEERA STEEL
PRODUCTS CO SAOG
Registered &
Physical Address
Street : Road No. 3
Area : Sohar Industrial Estate
PO Box : 40
Town : Sohar 327
Country : Oman
Telephone : (968) 26751763 / 26751764 / 26751765
Facsimile : (968) 26751766
Mobile : (968) 99855384
Email : contact@aljazeerasteel.com / ajtmc@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 Sohar.
Name Position
·
Sulaiman
Mohamed Shaheen Al Rubaie Chairman
·
Rajeev
Kulkarni Vice
Chairman
·
Subrata Mitra Director
·
Ghanem Sulaiman Al Ghenaiman Director
· Joseph Joseph Director
· Rajiv Nakani Director
· Taki Ali Sultan Director
· Dr Bhaskar Dutta Chief
Executive Officer
· P K Venkatesan Finance
Manager
· Arun Kumar Sinha Marketing
Manager
· Ali Al Shizawi Public
Relations Manager
Date of Establishment : 1st
April 1997
History : Subject was originally established in 1997 under
the name of “Al Jazeera Tube Mills Co
SAOG”. However subject changed
to the current style of “Al Jazeera Steel Products Co
SAOG” in 2007
Legal Form :
Omani Joint Stock Company
Commercial Reg. No. : 1/55043/8
Chamber Member No. : 922
Issued Capital : RO 12,489,796
Paid up Capital : RO 12,489,796
Name of Shareholder
(s) Percentage
·
Global
Buyout Fund LP 51%
·
Moosa Abdul Rahman Hassan & Company LLC 9%
·
Abjar
Trading LLC 6%
·
Abdullah
Moosa Abdul Rahman 6%
·
Members
of the general public & private investors 28%
Activities: Engaged in the manufacture and sale of
steel pipes and tubes.
Production Capacity: 263,435 metric tonnes in
2011
295,550 metric tonnes in
2012
Import
Countries: India
Export
Countries: United States of
America and the GCC region
Operating Trend: Steady
Subject has a
workforce of approximately 600 employees.
Financial
highlights provided by local sources are given below:
Currency: Riyal Omani
(RO)
BALANCE SHEET 31/12/2013 31/12/2012 31/12/2011
ASSETS
Non-current assets
Property, plant
and equipment 23,902,287 25,751,687
27,241,682
Current assets
Inventories 18,272,601 27,805,259 20,502,400
Trade and other
receivables 24,949,203 25,967,650 25,428,899
Cash and cash
equivalents 2,275,655 1,434,051 1,648,419
Total current assets 45,497,459 55,206,960 47,579,718
Total assets 69,399,746 80,958,647 74,821,400
EQUITY AND LIABILITIES
Equity
Share capital 12,489,796 12,489,796 12,489,796
Share premium 13,856,484 13,856,484 13,856,484
Legal reserve 2,651,178 2,195,875 1,854,061
Retained earnings
8,333,004 6,233,641 5,030,793
Total equity 37,330,462 34,775,796 33,231,134
LIABILITIES
Non-current liabilities
Borrowings 4,002,502 6,002,502 1,155,000
Employees’ end of
service benefits 214,615 122,161 82,991
Deferred tax
liability 697,295 925,014 857,530
Total non-current liabilities 4,914,412 7,049,677 2,095,521
Current liabilities
Borrowings -
current portion 17,448,147 24,040,223 25,603,444
Trade and other
payables 8,756,422 15,092,951 13,891,301
Income tax
payable 950,303 - -
Total current liabilities 27,154,872 39,133,174 39,494,745
Total liabilities 32,069,284 46,182,851 41,590,266
Total equity and liabilities 69,399,746 80,958,647 74,821,400
INCOME STATEMENT
Sale 88,370,890 98,314,618 91,196,884
Cost of sales (76,614,799) (86,978,842) (81,154,547)
Gross profit 11,756,091 11,335,776 10,042,337
Selling and
distribution expenses (3,851,999) (4,342,275) (3,511,442)
General and
administrative expenses (1,545,776) (2,106,953) (1,604,323)
Other operating
expenses (39,020) (120,461) (44,065)
Operating profit 6,319,296 4,766,087 4,882,507
Net finance costs
(1,043,679) (1,258,281) (1,828,389)
Profit before taxation 5,275,617 3,507,806 3,054,118
Income tax
expense (722,584) (89,669) (23,325)
Profit and total comprehensive
income for the year 4,553,033 3,418,137 3,030,793
Local sources
consider subject’s financial condition to be Good.
·
National
Bank of Oman SAOG
PO Box: 497
Sohar 497
Tel: (968) 26850207
Fax: (968) 26850234
·
Bank
Dhofar SAOG
Mutrah Business District
PO Box: 1507, Ruwi 112
Muscat
Tel: (968) 24790466
Fax: (968) 24797246
·
Oman
International Bank
Al Jaame Street
PO Box: 4216
Muscat
Tel: (968) 24703614 / 24707328
/ 24793450
No complaints
regarding subject’s payments have been reported.
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.61.07 |
|
|
1 |
Rs.102.77 |
|
Euro |
1 |
Rs.84.49 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.