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Report Date : |
08.09.2014 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
Road No. 18, PO Box : 122, Al Rusayl 124 |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
01.08.1997 |
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Com. Reg. No.: |
1/53280/4 |
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Legal Form : |
Omani Closed Joint
Stock Company |
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Line of Business : |
Subject is engaged in the manufacture of sewing threads. |
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No. of Employees : |
75 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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 – 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 :
Country of Origin :
Oman
Legal Form :
Omani Closed Joint Stock Company
Registration Date :
1st August 1997
Commercial Registration Number :
1/53280/4
Issued Capital :
RO 1,344,189
Paid up Capital :
RO 1,344,189
Total Workforce :
75
Activities :
Manufacturers of sewing threads
Financial Condition :
Fair
Payments :
Nothing detrimental uncovered
Operating Trend :
Steady
MUSCAT THREAD
MILLS SAOG
Registered &
Physical Address
Location : Road No. 18
PO Box : 122
Town : Al Rusayl
124
Country : Sultanate of
Oman
Telephone : (968) 24446806
Facsimile : (968) 24446807
Mobile : (968)
95766939
Email : threadi@omantel.net.om
/ dinesh@mtm.com.om
Premises
Subject operates from a medium sized suite of offices and a factory that
are rented and located in the Industrial Area of Al Rusayl.
Name Position
Mukhtar M Hasan Chairman
Abdul Wahab Nasser Al Mandhari Vice
Chairman
Srinivasan Ramakrishnan Director
Balachandran T Chatoth Director
Gopalan Arunachalam Director
Taizoon Khorakiwala Director
Nihal S Kodagoda General
Manager
Dinesh Kumar Finance
Manager
Date of Establishment : 1st August 1997
Legal Form : Omani Closed Joint
Stock Company
Commercial Reg. No. : 1/53280/4
Issued Capital : RO 1,344,189
Paid up Capital : RO 1,344,189
Name of Major Shareholder
(s) Percentage
Qais Omani Establishment LLC 18.96%
Muscat Overseas LLC 17.55%
Al Barij International LLC 13.19%
Members of the general public & private investors 50.30%
Activities: Engaged in the
manufacture of sewing threads.
Export Countries: India,
Pakistan, Turkey, UAE, Bahrain, Jordan, Kenya, Bangladesh and Saudi Arabia
Operating Trend: Steady
Subject has a workforce of 75 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 812,409 867,657
Investment in a subsidiary 19,654 19,654
Deferred tax asset 28,766 11,285
Current assets
Inventories 640,163 565,017
Trade and other receivables 901,901 1,069,686
Cash in hand and at bank 149,643 23,446
Total current assets 1,691,707 1,658,149
Total assets 2,552,536 2,556,745
Equity and Liabilities
Capital and reserves
Share capital 1,221,990 1,018,325
Legal reserve 148,000 131,169
Retained earnings 256,124 308,315
Total equity 1,626,114 1,457,809
Liabilities
Non-current liabilities
End of service benefits 93,105 84,352
Current liabilities
Current portion of term loan - 23,348
Short term bank borrowings 584,970 658,609
Trade and other payables 223,790 293,178
Taxation 24,557 39,449
Total current liabilities 833,317 1,014,584
Total liabilities 926,422 1,098,936
Total equity and liabilities 2,552,536 2,556,745
Income Statement
Revenue 3,181,331 3,510,894
Cost of sales (2,596,157) (2,761,859)
Gross profit 585,174 749,035
Other income 15,479 570
Distribution expenses (66,883) (90,380)
Administrative expenses (283,889) (311,609)
Impairment allowance for slow moving inventories (15,851) (5,112)
Impairment allowance for doubtful trade receivables (7,129) (52,431)
Profit from operations 226,901 290,073
Finance expenses (52,257) (56,161)
Profit for the year before tax 174,644 233,912
Income tax (6,339) (24,461)
Net profit for the year 168,305 209,451
Local sources consider subject’s financial condition to be Fair.
Bank of Muscat
Al Burj Street
Greater Muttrah
PO Box: 6326, Ruwi
Muscat
Tel: (968) 24701769
Fax: (968) 24796488
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.60.44 |
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|
1 |
Rs.98.64 |
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Euro |
1 |
Rs.78.20 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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Report Prepared
by : |
SHG |
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.