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Report Date : |
17.10.2014 |
IDENTIFICATION DETAILS
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Name : |
A SAFFA FOODS SAOG |
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Registered Office : |
Ghala Roundabout,
Ruwi, 3436, Muscat 112 |
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Country : |
Oman |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
30.12.2001 |
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Com. Reg. No.: |
2/16733/6 |
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Legal Form : |
Omani Public Joint Stock Company |
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Line of Business : |
Engaged in the processing
of poultry, meat, fish and related products. |
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No. of Employees : |
700 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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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 1, 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 |
Company Name : A SAFFA
FOODS SAOG
Country of Origin : Oman
Legal Form :
Omani Public Joint Stock Company
Start Date :
30th December 2001
Commercial
Registration Number : 2/16733/6
Issued Capital : RO
11,576,250
Paid up Capital : RO
11,576,250
Total Workforce : 700
Activities :
Processing of poultry, meat, fish and related products
Financial Condition : Good
Payments :
Nothing detrimental uncovered
Operating Trend : Steady
A SAFFA FOODS SAOG
Location : Ghala Roundabout
Area : Ruwi
PO Box : 3436
Town : Muscat 112
Country : Sultanate of Oman
Telephone : (968) 24591800 / 24789770 / 24796072
Facsimile : (968) 24592800 / 24789774
Email : asaffa@omantel.net.om
Subject operates
from a large suite of offices that are rented and located in the Central
Business Area of Muscat.
Branch Office
(s)
Location Description
·
Tamreed
Area Production
& processing plant
PO Box: 458
Salalah 211
Tel: (968) 23288333
Fax: (968) 23202775
Name Position
·
Saleh
Mohamed Al Shanfary Chairman
·
Fahad
Mohamed Al Abdul Kader Vice
Chairman
·
Suleiman
Bin Nasser Bin Suleiman Al Lamki Director
·
Mubarak
Suleiman Al Mantheri Director
·
Saeed
Ali Salem Al Fannah Al Arami Director
·
Areej
Mohammed Al Kleeb Director
·
Hamad
Saad M A Al Kuwari Director
·
Dr
Nasser Zaher Nasser Al Ma'awali Chief Executive Officer
·
Dr
Bassam Naifah Administration
Manager
·
Muhammed
Rafique Chaudhry Finance
Manager
·
Kannan
Dirzan Financial
Controller
Date of Establishment : 30th
December 2001
History : Subject began in 2001 under the name ‘A
Saffa Poultry Farms SAOG’. However it re-
registered under the current style of “A
Saffa Foods SAOG” on 24th March 2010.
Legal Form :
Omani Public Joint Stock
Company
Commercial Reg. No. : 2/16733/6
Issued Capital : RO 11,576,250
Paid up Capital : RO 11,576,250
·
Gulf
Investment Corporation 33.25%
·
Arab
Authority for Agricultural Investment & Development 33.25%
·
National
United Engineering & Contracting Co LLC 10.00%
·
Internal
Security Service Pension Fund 10.00%
·
Omani
businessmen & private investors 13.50%
Name Percentage Held
·
A Saffa
Meat Processing LLC 100%
Activities: Engaged in the processing of poultry, meat,
fish and related products.
Import
Countries: India and
Europe.
Operating Trend: Steady
Subject has a
workforce of approximately 700 employees.
Financial highlights
provided by local sources are given below:
Currency: Riyal
Omani (RO)
Balance Sheet 31/12/13 31/12/12 31/12/13 31/12/12
Subject’s
figures Group figures
ASSETS
Non-current assets
Property, plant
and equipment 19,033,508 19,284,065
24,136,691 21,196,117
Investment in
subsidiary company 1,350,000 1,000,000
-
-
Available-for-sale
financial assets 50,000 50,000
50,000 50,000
Total non-current assets 20,433,508
20,334,065 24,186,691 21,246,117
Current assets
Inventories 2,868,647 4,430,803
3,358,329 4,430,803
Biological assets
1,345,707 1,280,259
1,345,707 1,280,259
Trade and other
receivables 5,776,189 8,587,111
5,711,918 9,272,397
Cash and cash
equivalents 5,083,712 448,705
5,085,014 473,276
Short term
deposits 2,007,138 2,007,138
2,007,138 2,007,138
Total current assets 17,081,393
16,754,016 17,508,106 17,463,873
Total assets 37,514,901
37,088,081 41,694,797 38,709,990
EQUITY
Shareholders’ equity
Share capital 11,576,250 11,025,000
11,576,250 11,025,000
Legal reserve 2,707,543 1,985,575
2,707,543 1,985,575
Retained earnings
14,415,164 10,122,453
14,353,296 10,103,305
Total equity 28,698,957
23,133,028 28,637,089 23,113,880
LIABILITIES
Non-current liabilities
Borrowings 3,463,740 5,477,630
6,321,527 6,613,350
Deferred
government grant 530,400 684,510
530,400 684,510
Finance lease
liabilities - 1,350
- 1,350
End of service
benefits 301,164 215,381
303,853 215,381
Total non-current liabilities 4,295,304
6,378,871 7,155,780 7,514,591
Current liabilities
Borrowings 2,111,708 4,681,963
3,059,565 4,885,771
Finance lease
liabilities 1,359 8,201
1,359 8,201
Trade and other
payables 2,407,573 2,886,018
2,841,004 3,187,547
Total current liabilities 4,520,640
7,576,182 5,901,928 8,081,519
Total liabilities 8,815,944
13,955,053 13,057,708 15,596,110
Total equity and liabilities 37,514,901
37,088,081 41,694,797 38,709,990
Statement of Income
Revenue 28,537,045 25,870,072 28,537,045 25,870,072
Cost of sales (16,566,827) (15,507,527)
(16,536,133) (15,507,527)
Gross profit 11,970,218 10,362,545 12,000,912 10,362,545
Selling and
distribution expenses (3,155,798) (2,802,012)
(3,155,798) (2,802,012)
General and
administrative expenses (1,421,230) (1,178,541)
(1,459,038) (1,178,541)
Pre-operative
expenses - -
- (15,558)
Other operating
income 47,433 1,237,805
47,433 1,237,805
Operating profit 7,440,623
7,619,797 7,433,509 7,604,239
Interest expense (280,940) (370,054)
(313,027) (370,054)
Interest income 59,488 43,004
59,541 43,268
Exchange gain /
(loss) - net 508 (6,850)
(3,064) (6,850)
Finance cost -
net (220,944) (333,900)
(256,550) (333,636)
Profit and total comprehensive income for the year 7,219,679 7,285,897 7,176,959 7,270,603
Local sources consider
subject’s financial condition to be Good.
·
National
Bank of Oman Limited (SAOG)
Mutrah Business District
PO Box: 751, Ruwi 112
Muscat
Tel: (968) 24708894 / 24708630 / 24708684
Fax: (968) 24707781 / 24703972
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.61.48 |
|
|
1 |
Rs.98.24 |
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Euro |
1 |
Rs.78.66 |
INFORMATION DETAILS
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Analysis Done by
: |
RAS |
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Report Prepared
by : |
PDT |
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.