MIRA INFORM REPORT

 

 

Report Date :

27.09.2014

 

IDENTIFICATION DETAILS

 

Name :

ASSARAIN FOOD PRODUCTS LLC

 

 

Registered Office :

Assarain House, Madinat Al Qaboos, Al Khuwair PO Box: 1475 Ruwi 112

 

 

Country :

Oman

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

02.01.2002

 

 

Com. Reg. No.:

1/70532/6, Muscat

 

 

Legal Form :

Limited Liability Company – LLC

 

 

Line of Business :

Distributors of dry foodstuff products

 

 

No. of Employees :

125

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No complaints

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

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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                                     : ASSARAIN FOOD PRODUCTS LLC

Country of Origin                                    : Oman

Legal Form                                            : Limited Liability Company – LLC

Registration Date                                   : 2nd January 2002

Commercial Registration Number            : 1/70532/6, Muscat

Issued Capital                                        : RO 2,500,000

Paid up Capital                                      : RO 2,500,000

Total Workforce                                     : 125

Activities                                               : Distributors of dry foodstuff products

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Philip D’Souza , Finance Controller

 

 

 


COMPANY NAME

 

ASSARAIN FOOD PRODUCTS LLC

 

 

ADDRESS

 

Registered & Physical Address

 

Building             : Assarain House

Area                 : Madinat Al Qaboos, Al Khuwair

PO Box             : 1475

Town                 : Ruwi 112

Country             : Sultanate of Oman

 

Telephone         : (968) 24698162 / 24603166 / 24565505

Facsimile          : (968) 24607194 / 24564296

Email                : aefoods@omantel.net.om / aefoods@assarain.com

 

Premises

 

Subject operates from a medium sized suite of offices and a warehouse that are rented and located in the Suburban Business Area of Ruwi.

 

Branch Office (s)

 

Location                                                                                              Description

 

Nizwa                                                                                       Rented showroom premises

Tel: (968) 24525634

 

Sohar                                                                                        Rented showroom premises

 

 

KEY PRINCIPALS

 

Name                                                                                       Position

 

Said Salem Al Wahaibi                                                               Chairman

 

Salem Said Salem Al Wahaibi                                                    Managing Director

 

Khalid Said Salem Al Wahaibi                                                     Director

 

Ibrahim Said Salem Al Wahaibi                                                   Director

 

Neil Eapen                                                                                General Manager

 

Philip Pothanm                                                                          Sales Manager

 

Philip D’Souza                                                                           Finance Controller

 

Anivan Dey                                                                                Finance Manager

 

Girgan Thwari                                                                            Commercial Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 2nd January 2002

 

History                         : Subject was originally established in 1980 as a division of Assarain Enterprise LLC.

              However on 2nd January 2002 it was registered as a separate legal entity under the style

   of  Assarain Food Products LLC”

 

Legal Form                  : Limited Liability Company – LLC

 

Commercial Reg. No.  : 1/70532/6, Muscat

 

Issued Capital              : RO 2,500,000

 

Paid up Capital            : RO 2,500,000

 

Name of Shareholder (s)

 

Said Salem Al Wahaibi

 

Salem Said Salem Al Wahaibi

 

Khalid Said Salem Al Wahaibi

 

Ibrahim Said Salem Al Wahaibi

 

 

AFFILIATED COMPANIES

 

Subject is a member of the Assarain Group that was founded in 1976. The Group’s roots lie in the construction industry and its earliest forays were into related areas such as architectural projects, furnishing, property, concrete products and commercial services. Today, as a multi-million dollar international group, its diverse interests span construction, oil and gas, national infrastructure projects, consumer products, food distribution, travel and insurance, and health care.

 

The Assarain Group of Companies consists of the following concerns:

 

Assarain Enterprise LLC

Assarain Building, 4th Floor

Al Khuwair

PO Box: 1475

Ruwi 112

Tel: (968) 24604811

Fax: (968) 24604837

Email: assarain@assarain.com

 

Assarain Furnishing LLC

PO Box: 1475

Ruwi 112

Tel: (968) 27592151

Fax: (968) 27593124

 

Wadi Adai Auto Service Centre LLC

PO Box: 1475

Ruwi 112

Tel: (968) 24563396 / 24561955

Fax: (968) 24562671

 

Assarain Telecommunications LLC

PO Box: 1475

Ruwi 112

Tel: (968) 24789931 / 24789932

Fax: (968) 24789930

 

Blue Falcon Travels

PO Box: 1414

Ruwi 112

Tel: (968) 24604568

Fax: (968) 24604586

 

Assarain Concrete Products LLC

PO Box: 971

Madinat Al Sultan Qaboos 111

Tel: (968) 24605986

Fax: (968) 24695957

 

Assarain Garden Centre LLC

PO Box: 4475

Muscat

Tel: (968) 27561132

 

Drake & Scull Assarain LLC

Medina Qaboos

PO Box: 3146

Muscat

Tel: (968) 24602843

 

Assarain Textiles LLC

PO Box: 1475

Ruwi 112

Tel: (968) 24700149

 

Al Haq Trading & Contracting Co LLC

PO Box: 647

Salalah 211

Tel: (968) 23291428 / 23291044 / 23291278 / 23291428 / 23292644

Fax: (968) 23294535 / 23292644

 

Assarain Insurance

 

National Marketing & Trading

 

Hatat Polyclinic LLC

 

The Raymond Shop

 

Kalhat Services & Trading LLC

 

Modern Concrete Products & Trading LLC

 

Shamal Plastic Industries LLC

 

Gulf Acrylic Industries LLC

 

Modern Steel Mills LLC

 

Hay Al Rahbah Trading & Contracting Co LLC

 

Cluttons & Partners LLC

 

Strabag Oman LLC

 

 

OPERATIONS

 

Activities: Engaged in the import and distribution of dry foodstuff products, including Basmati rice as well as frozenfoodstuff with clients including hotels, restaurants and cafes. Subject operates a fleet of 40 refrigerated trucks.

 

Subject holds ISO 22000:2005 Certification for Food Safety Management Systems.

 

Import Countries: France, Netherlands, Canada, Brazil, Vietnam, Australia and Denmark.

 

International Suppliers:

 

Frangosul                      Brazil

Perdix                           Brazil

Dalia                             France

Lactalis                         France

Maccin                          France

Siblu                             Vietnam

Danpo                           Denmark

Towers Thompson          Australia

President                      France

 

Brand Names: MCCAIN, HEINZ WATTIES, BRF PERDIX, DOUX DALIA, JBS FRANGUSOL, FRESHLY FROZEN FOODS, AMERCAN FOODS GROUP, SIBLOU AND ALLANA

 

Operating Trend: Steady

 

Subject has a workforce of 125 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Riyal Omani (RO)

 

                                                Year Ending 31/12/12:              Year Ending 31/12/13:

 

Total Sales                                RO 14,500,000                          RO 13,855,873

 

Local sources consider subject’s financial condition to be Fair.

 

The above figures were provided by Mr Philip D’Souza, Finance Controller

 

 

BANKERS

 

National Bank of Oman Limited

Ruwi Branch

PO Box: 3752

Muscat

Tel: (968) 24708898

 

Oman International Bank

PO Box: 1216

Ruwi

Tel: (968) 24701528

 

Bank Muscat SAOG

Ruwi Main Branch

PO Box: 6326

Muscat

Tel: (968) 24561399 / 24708543

Fax: (968) 24561036

 

 

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

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.57

UK Pound

1

Rs.100.42

Euro

1

Rs.78.45

 

INFORMATION DETAILS

 

Analysis Done by :

 KAR

 

 

Report Prepared by :

SDA

 

               

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

 

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

 

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

 

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

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

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

NB

New Business

--

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.