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Report Date : |
29.05.2014 |
IDENTIFICATION DETAILS
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Name : |
AL SALLAN FOOD INDUSTRIES CO SAOC |
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Registered Office : |
Sohar Industrial Area, Plot No. 151/152 PO Box : 970 Sohar 311 |
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Country : |
Oman |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
17.10.1994 |
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Com. Reg. No.: |
3/15758/0 |
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Legal Form : |
Omani Closed Joint Stock Company |
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Line of Business : |
Production of bakery products. |
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No. of Employees |
450 |
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 : |
No Complaints |
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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 – March 31st, 2014
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
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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 |
Company Name : AL SALLAN FOOD INDUSTRIES CO SAOC
Country of Origin :
Oman
Legal Form :
Omani Closed Joint Stock Company
Registration Date :
17th October 1994
Commercial Registration Number :
3/15758/0
Membership Number :
82
Issued Capital :
RO 2,000,000
Paid up Capital :
RO 2,000,000
Total Workforce :
450
Activities :
Production of bakery products.
Financial Condition :
Poor
Payments :
Nothing detrimental uncovered
Person Interviewed :
Aldrin E Pasanat, Finance Manager
AL SALLAN FOOD INDUSTRIES CO SAOC
Registered &
Physical Address
Location : Sohar
Industrial Area, Plot No. 151/152
PO Box : 970
Town : Sohar 311
Country : Sultanate of
Oman
Telephone : (968) 26750623
Facsimile : (968) 26750940
Mobile : (968)
93215356 / 99434810
Email : alsallan@omantel.net.om
/ nuteshnaik@britindia.com
Premises
Subject operates from a large suite of offices and a factory that are
leased and located in the Industrial Area of Sohar.
Name Position
Kanaksi G Khimji Managing
Director
Nusli N Wadia Director
Vinita Bali Director
C Taneja Director
Parshant Vatkar Chief
Executive Officer
Nutesh Naik Purchasing
Manager
Jasvinder Singh Commercial
Manager
Aldrin E Pasanat Finance
Manager
Date of Establishment : 17th
October 1994
History : Subject was
formed as an Omani Public Joint Stock Company, but in October 2010 it changed
legal form to become an Omani Closed Joint Stock Company.
Legal Form : Omani Closed Joint
Stock Company
Commercial Reg.
No. : 3/15758/0
Membership No. : 82
Issued Capital : RO 2,000,000
Paid up Capital : RO 2,000,000
Name of
Shareholder (s) Percentage
Al Brittannia & Associate (Dubai) Pvt Co Ltd 65.464%
India
Members of the Khimji family 27.000%
Local businessmen and private investors 7.536%
Activities: Engaged in the production of bakery products, specialising in biscuits,
cookies, fruit filled rolls and
chocolates.
Production Capacity: 4,593,000 tonnes per annum
Customers:
Burtons United Kingdom
Import Countries: Switzerland, France and the United Kingdom
Export Countries : Subject exports to over 50 countries, although its
main markets are the GCC region and India.
Brand Names: BAKERS PRIDE, BRITANNIA and NUTRO
Subject has a workforce of approximately 450 employees.
Financial
highlights provided by local sources are given below:
Currency: Riyal
Omani (RO)
Balance Sheet 31/03/10 31/03/09 31/03/08
Non-current assets
Property, plant and
equipment 3,206,237 3,355,185 3,287,906
Current assets
Inventories 986,071 961,598 550,819
Account and other
receivables 704,944 420,924 467,287
Cash and bank
balances 200,234 126,734 53,371
1,891,249 1,509,256 1,071,477
Total assets 5,097,466 4,864,441 4,359,383
Equity
Share capital 2,000,000 2,000,000 2,000,000
Accumulated losses (11,315,040) (10,637,027) (10,041,547)
Loan from
shareholders 6,182,645 6,182,645 6,182,645
(3,132,395) (2,454,382) (1,858,902)
Non-current
liabilities
Term loans 4,131,946 4,531,946 4,831,945
Employees end of
service benefits 56,778 51,847 47,690
4,188,724 4,583,793 4,879,635
Current liabilities
Term loans 407,416 308,536 250,019
Bank borrowings 746,386 813,071 18,824
Account and other
payables 2,887,335 1,613,423 1,069,807
4,041,137 2,735,030 1,338,650
Total liabilities 8,229,861 7,318,823 6,218,285
Total equity and
liabilities 5,097,466 4,864,441 4,359,383
Income Statement
Income from
operations 7,560,080 6,304,074 3,240,512
Cost of operations (7,015,244) (5,660,563) (2,860,104)
Gross profit 544,836 643,511 380,408
Other income 23,555 9,372 61,805
Administrative expenses (686,289) (645,813) (307,022)
Selling and
distribution expenses (354,371) (400,055) (241,575)
Loss from
operations (472,269) (392,985) (106,384)
Finance charges (205,744) (202,495) (167,313)
Loss for the period (678,013) (595,480) (273,697)
Local sources consider subject’s financial condition to be Poor.
Subject’s income from operations for the year ending 31st
March 2012 was RO 8,900,000.
Further financial statements were not available due to the subject
becoming an Omani Closed Joint Stock Company during 2010.
National Bank of Oman Limited (SAOG)
PO Box: 497
Sohar 497
Tel: (968) 26850207
Fax: (968) 26850234
Oman International Bank
Al Jaame Street
PO Box: 4216
Muscat
Tel: (968) 24703614 / 24707328 / 24793450
Bank Muscat SAOG
PO Box: 13981
Sohar
Tel: (968) 26841785
Fax: (968) 26841786
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.59.08 |
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UK Pound |
1 |
Rs.99.20 |
|
Euro |
1 |
Rs.80.53 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
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Report Prepared
by : |
SDA |
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.