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Report Date : |
27.10.2014 |
IDENTIFICATION DETAILS
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Name : |
OMAN CABLES INDUSTRY SAOG |
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Registered Office : |
Plot No. 6, Building No. 206 Road No. 2 Rusayl Industrial Estate, Rusayl 124 PO Box
25
Muscat |
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Country : |
Oman |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
21.03.1984 |
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Com. Reg. No.: |
1/8675/2 |
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Legal Form : |
Omani Public Joint Stock Company |
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Line of Business : |
Manufacturers of low, medium and high voltage power cables, conductors and building wires. |
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No. of Employees |
630 |
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 |
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
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Oman |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 :
OMAN CABLES INDUSTRY SAOG
Country of Origin : Oman
Legal Form : Omani Public Joint Stock Company
Registration Date : 21st March 1984
Commercial Registration Number : 1/8675/2
Issued Capital : RO 8,970,000
Paid up Capital : RO 8,970,000
Total Workforce : 630
Activities : Manufacturers of low, medium and high voltage power cables, conductors and building wires.
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
OMAN CABLES INDUSTRY SAOG
Building :
Plot No. 6, Building No. 206
Street : Road No. 2
Area : Rusayl
Industrial Estate, Rusayl 124
PO Box : 25
Town : Muscat
Country : Oman
Telephone : (968) 24446464
Facsimile : (968) 24446096
Email : omancabl@omantel.net.om
/ management@omancables.com
Subject operates from a large suite of offices and a factory that are owned
and located in the Industrial Area of Muscat.
Branch Office (s)
Location Description
· PO Box: 24410 Office
premises
Salwa Road
Doha
Qatar
Tel: (974) 4688384
Fax: (974) 4687663
· PO Box: 25864 Office
premises
Sharjah
United Arab Emirates
Tel: (971-6)
5743558
Fax: (971-6)
5731039
· 5th
Floor, Sahara Complex Office
premises
Ibn Khaldoon
Street
Hawalli
Kuwait
Name Position
· Mustafa Mukhtar
Ali Al Lawati Chairman
· Frank Francis
Dorjee Vice
Chairman
· Hussain Bin Salman
Al Lawati Director
· Maqbool Ali Salman Director
· Christian Raskin Director
· Fabio Ignazio
Romeo Director
· K K Yeung Director
· Gert Hoefman Chief
Executive Officer
Date of
Establishment : 21st
March 1984
Legal Form : Sharikat Al
Mousahama Al Omania (Societe Anonyme Omani
General - SAOG)
(Omani Public Joint Stock Company)
Commercial Reg.
No. : 1/8675/2
Issued Capital : RO 8,970,000
Paid up Capital : RO 8,970,000
· Draka Holding NV 34.78%
Netherlands
· Mustafa Mukhtar
Ali Al Lawati 12.54%
· Hussain Bin Salman
Al Lawati 12.14%
· Omani businessmen
& private investors 40.54%
Name Percentage Held
· Oman Aluminium Processing Industries LLC 51%
Muscat
· Associated Cables Pvt Ltd (ACPL) 40%
India
Activities: Engaged in the manufacture of low, medium and high voltage power
cables, conductors and building
wires.
Import Countries: Europe and the United States of America.
Operating Trend: Steady
Subject has a workforce of approximately 630 employees.
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 25,834,174 23,721,576
Investment in a subsidiary 2,226,660 2,226,660
Investment in a associate 578,608 607,699
Investments available for sale 177,059 136,422
Held to maturity investments 1,251,204 1,251,204
Total non-current assets 30,067,705 27,943,561
Current assets
Inventories 50,865,876 46,070,420
Trade and other receivables 62,908,574 47,956,719
Due from related parties 2,192,247 1,985,772
Cash and bank balances 1,175,358 1,719,095
Total current assets 117,142,055 97,732,006
Total assets 147,209,760 125,675,567
EQUITY AND LIABILITIES
Capital & reserves
Share capital 8,970,000 8,970,000
Share premium 977,500 977,500
Legal reserve 2,990,000 2,990,000
General reserve 5,958,241 4,377,918
Retained earnings 47,129,164 39,185,266
Cumulative changes in fair values 33,881 1,000,688
Total equity 66,058,786 57,501,372
Liabilities
Non- current liabilities
Deferred tax liability 792,569 781,342
Employee’s end of service benefits 1,192,697 1,064,501
Total non- current liabilities 1,985,266 1,845,843
Current liabilities
Trade and other payables 20,406,407 17,219,184
Due to related parties 290,398 404,644
Bank borrowings 56,389,835 47,196,357
Taxation 2,079,068 1,508,167
Total current liabilities 79,165,708 66,328,352
Total liabilities 81,150,974 68,174,195
Total equity and liabilities 147,209,760 125,675,567
Profit & Loss
Account
Sales 263,483,655 213,180,393
Cost of sales (237,630,692) (194,120,214)
Gross profit 25,852,963 19,060,179
Other income 534,331 902,107
Administrative expenses (4,382,422) (4,248,694)
Selling and distribution expenses (3,222,740) (2,395,414)
Depreciation (220,430) (193,277)
Operating profit 18,561,702 13,124,901
Finance costs (828,480) (795,757)
Finance income 112,386 122,486
Share of results of an associate 38,357 3,629
Profit before income tax 17,883,965 12,455,259
Income tax expense (2,080,744) (1,470,104)
Profit for the year 15,803,221 10,985,155
Local sources consider subject’s financial condition to be Good.
· Commercial Bank of Oman SAOG
Muttrah
Business District
PO Box:
1696, Ruwi 112
Muscat
Tel:
(968) 24793225 / 24793226 / 24793228
Fax:
(968) 24793229
·
National Bank of Oman Limited (SAOG)
Muttrah Business District
PO Box: 751, Ruwi 112
Muscat
Tel: (968) 24708894 / 24708630 / 24708684
Fax: (968) 24707781 / 24703972
·
Bank of Muscat
Al Burj
Street
Greater
Muttrah
PO Box:
6326, Ruwi 112
Muscat
Tel: (968)
24701769
Fax:
(968) 24796488
No complaints regarding subject’s payments have been reported.
Credit amount 862,122
Amount overdue 0
Payment terms 90
days
Payment Method Letters
of Credit
Paying record No
Complaints
Currency Euros
Established in 1984, subject is involved in the manufacture of low,
medium and high voltage power cables, conductors and building wires.
The cable industry in Oman mainly comprises of
multiple local or regional players. Fierce competition among the players is
witnessed and targeting economies of scale are an important factor for success.
Opportunity for the cable industry is arising
from the increasing demand for electricity, which in turn is based on economic
growth. Most regional economies are capitalizing on the oil revenues to
increase investments in job creation and social programs. Also major
initiatives for infrastructure development are scheduled that fuel the
electrical cable demand. Oman Cables is located in the growth area and its
strategy of backward integration, product diversification, modern machinery,
world class quality manufacturing and testing, is well positioned to capitalize
on opportunities in Oman, the MENA region and selected world markets.
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.61.24 |
|
|
1 |
Rs.98.67 |
|
Euro |
1 |
Rs.77.97 |
INFORMATION DETAILS
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Analysis Done by
: |
SUM |
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Report Prepared
by : |
NIS |
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.