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Report Date : |
11.08.2014 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
Rusayl Industrial Estate, PO Box: 137 Rusayl 124 |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
13.01.1996 |
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Com. Reg. No.: |
0/53341/1 |
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Legal Form : |
Omani Closed Joint Stock Company |
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Line of Business : |
Subject is engaged in the processing, packing and distributing of rice
and other foodstuffs, including sugar, milk powder, spices, pickles, edible
oils and pasta. |
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No. of Employees |
60 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but Correct |
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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 – June 01, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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Oman |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 :
Country of Origin :
Oman
Legal Form :
Omani Closed Joint Stock Company
Registration Date :
13th January 1996
Commercial Registration Number :
0/53341/1
Authorised Capital :
RO 8,500,000
Issued Capital :
RO 2,000,000
Paid up Capital :
RO 2,000,000
Total Workforce :
60
Activities :
Processing, packing and distributing of rice and other foodstuffs
Financial Condition :
Poor
Payments :
Nothing detrimental uncovered
Operating Trend :
Steady
COMPANY NAME
OMAN FOODS INTERNATIONAL SAOG
ADDRESS
Registered &
Physical Address
Location : Rusayl
Industrial Estate
PO Box : 137
Town : Rusayl 124
Country : Sultanate of Oman
Telephone : (968) 24446213
/ 24446548
Facsimile : (968) 24446203
Mobile : (968)
99612234
Email : nrmrice@omantel.net.om
Premises
Subject operates from a medium sized suite of offices and a factory that
are rented and located in the Industrial Area of Rusayl.
KEY PRINCIPALS
Name Position
Saam Abdullah Saleh Al Habsi Chairman
Issam Kamal Abdul Redha Sultan Vice
Chairman
Malallah Ali Yousuf Al Zadjali Director
Deepak Atal Director
Salim Abdullah Bin Rashid Al Ghufaili Director
Ahmed Mohamed Ahmed Al Humaidi Director
Sarosh Gupta General
Manager
Jaikumar Menon Chief
Financial Officer
LEGAL FORM & OWNERS
Date of Establishment : 13th
January 1996
History : Subject was
previously called “National Rice Mills SAOG” but changed its name to the
present style on the 11th
December 2006.
Legal Form : Omani Closed Joint
Stock Company
Commercial Reg. No. : 0/53341/1
Authorised Capital : RO 8,500,000
Issued Capital : RO 2,000,000
Paid up Capital : RO 2,000,000
Name of
Shareholder (s) Percentage
Bank Muscat SAOG 30.25%
Bank Dhofar SAOG 25.90%
Oman Arab Bank SAOC 12.44%
Oman Government 8.06%
Private investors and members of the general public 23.35%
OPERATIONS
Activities: Engaged in the processing, packing and distributing of rice and other foodstuffs,
including sugar, milk powder, spices, pickles, edible oils and pasta.
Subject’s rice milling capacity is 25,000 MT per year.
Operating Trend: Steady
Brand Names: THAMER, BASMAH,
AL AHLI, AL WATANI, AL KHAROOF, DANIA, AL KHALEEJ, AL MALIK,
NAKHAL, PARTY, REEM 64, SOHAR, BARAKA, JENNA, SHAFFAF GOLD and ASILA
GOLD
Subject has a workforce of 60 employees.
FINANCIAL DATA
Financial highlights provided by local sources are given below:
Currency: Riyal Omani (RO)
Balance Sheet 31/12/13 31/12/12
ASSETS
Non-current assets
Property, plant and equipment 1,132,374
687,934
Investments 682,482
774,159
1,814,856 1,462,093
Current assets
Inventories 505,737
756,619
Trade receivables 1,616,561 1,419,923
Prepayment and other receivables 132,454 72,610
Cash and cash equivalents 52,392
61,495
2,307,144 2,310,647
TOTAL ASSETS 4,122,000 3,772,740
EQUITY AND
LIABILITIES
Capital and
reserves
Share capital 2,000,000
6,200,721
Legal reserve 172,355
172,355
Surplus on revaluation of fixed assets 516,865 -
Fair value reserve (3,396) 88,281
Accumulated losses (1,289,118) (5,340,303)
1,396,706 1,121,054
Non-current
liabilities
Term loans, excluding current maturities 225,496 289,811
Deferred government grant 37,004
60,189
End of service benefits 23,559
18,474
Total non-current liabilities 286,059
368,474
Current liabilities
Trade and other payables 796,281
885,518
Current maturities of term loans 87,500 100,000
Bank borrowings 1,555,454 1,297,694
Total current liabilities 2,439,235
2,283,212
Total liabilities 2,725,294
2,651,686
TOTAL EQUITY AND
LIABILITIES 4,122,000 3,772,740
Statement of Income
Revenue 5,500,032
4,412,031
Cost of turnover (4,882,184) (4,009,993)
Gross profit 617,848
402,038
General and administrative expenses (367,479) (348,203)
Selling and distribution expenses (433,535) (359,099)
Finance cost (115,349) (39,925)
(916,363) (747,227)
Operating loss (298,515)
(345,189)
Other income 148,979
119,776
Loss for the year before tax (149,536)
(225,413)
Taxation -
-
Loss for the year after tax (149,536)
(225,413)
Local sources consider subject’s financial condition to be Poor.
BANKERS
Bank of Muscat
Al Rakha Street
PO Box: 109
Muscat
Tel: (968) 24736565
Fax: (968) 24736187
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.55 |
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UK Pound |
1 |
Rs.103.50 |
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Euro |
1 |
Rs.82.41 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
DPT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to
overcome financial difficulties seems comparatively below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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.