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Report Date : |
27.09.2014 |
IDENTIFICATION DETAILS
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Name : |
DHOFAR BEVERAGE & FOODSTUFF CO SAOG |
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Registered Office : |
Building No. 9850 Al
Sada Area |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
15.08.1979 |
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Com. Reg. No.: |
2/01108/5 |
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Legal Form : |
Omani Public Joint Stock Company |
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Line of Business : |
Engaged in the production of beverages and foodstuffs, including fruit
juice, soft drinks, mineral water, chips and snacks. |
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No. of Employees : |
150 |
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 |
Company Name : DHOFAR BEVERAGE & FOODSTUFF CO SAOG
Country of Origin : Oman
Legal Form : Omani Public Joint Stock Company
Registration Date : 15th August 1979
Commercial Registration Number : 2/01108/5
Issued Capital : RO 2,000,000
Paid up Capital : RO 2,000,000
Total Workforce : 150
Activities : Producers of beverages and foodstuffs.
Financial Condition : Fair
Payments : Nothing detrimental uncovered
DHOFAR BEVERAGE & FOODSTUFF CO SAOG
Building : Building No.
9850
Area : Al Sada Area
PO Box : 390
Town : Salalah 211
Country : Oman
Telephone : (968) 23225705
Facsimile : (968) 23225706
Mobile : (968)
99494347
Email : dbcsal@omantel.net.om
Subject operates from a medium sized suite of offices and a factory that
are owned and located in the Industrial Area of Salalah.
Name Position
· Sheikh Mohammed Bin Aufait Abdullah Al
Shanfari Chairman
· Mustafa Bin Abdul Qader Salam Al Ghassani Vice
Chairman
· Azzan Bin Ahmed Mohammed Al Shanfari Director
· Salaem Bin Mubarak Salem Al Shanfari Director
· Salem Bin Ahmed Sabah Al Katheri Director
· Ahmed Bin Suhail Ahmed Al Hadri Director
· Ghazi Taher Jaber Mahmoud Director
· Omer Bin Salem Abdullah Al Dahab Director
· Ahmed Bin Ali Salem Qatan Director
· Mohamed Ahmed
Faraj Al Ojaily General
Manager
Date of
Establishment : 15th
August 1979
Legal Form : Sharikat Al
Mousahama Al Omania (Societe Anonyme Omani
General - SAOG)
(Omani Public Joint Stock Company)
Commercial Reg.
No. : 2/01108/5
Issued Capital : RO 2,000,000
Paid up Capital : RO 2,000,000
· Dhofar Cattle Feed
Co SAOG 30.45%
· Economic
Enterprises for Trade & Contracting 14.21%
· The Global Omani
Investment Company SAOC 10.05%
· Local businessmen
and private investors 45.29%
Activities: Engaged in the production of beverages and foodstuffs, including fruit
juice, soft drinks, mineral water,
chips and snacks.
Import Countries: Europe and the Far East.
Subject has a workforce of approximately 150 employees.
Financial highlights provided by local sources are given below:
Currency: Riyal Omani (RO)
Balance Sheet 31/12/12
31/12/13
|
ASSETS |
|
|
|
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Non-current Assets: |
|
|
|
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Available for sale investments |
|
171,846 |
171,383 |
|
Property, plant and equipment |
|
4,143,475 |
4,647,875 |
|
Total Non-current Assets |
|
4,315,321 |
4,819,258 |
|
|
|
|
|
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Current Assets: |
|
|
|
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Cash and bank balances |
|
21,614 |
24,833 |
|
Receivables and prepayments |
|
592,599 |
665,722 |
|
Inventories |
|
656,112 |
773,280 |
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Trading investments |
|
710,143 |
695,624 |
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Total Current Assets |
|
1,980,468 |
2,159,459 |
|
|
|
|
|
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TOTAL ASSETS |
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6,295,789 |
6,978,717 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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|
|
|
|
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|
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Shareholders' Equity: |
|
|
|
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Share capital |
|
2,000,000 |
2,000,000 |
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Share premium |
|
230,300 |
230,300 |
|
Statutory reserve |
|
361,580 |
383,756 |
|
General reserve |
|
151,011 |
73,187 |
|
Changes in fair value of land |
|
1,726,134 |
1,726,134 |
|
Accumulated profit |
|
-- |
177,406 |
|
Net Shareholders' Equity |
|
4,469,025 |
4,590,783 |
|
|
|
|
|
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Non-current Liabilities: |
|
|
|
|
End of service benefits Term loans |
|
57,820 -- |
76,907 344,952 |
|
Deferred taxation |
|
235,382 |
235,382 |
|
Total Non-current Liabilities |
|
293,202 |
657,241 |
|
|
|
|
|
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Current Liabilities: |
|
|
|
|
Due to banks |
|
665,079 |
929,087 |
|
Payables and accruals |
|
688,697 |
556,312 |
|
Term loan - current maturity |
|
160,077 |
240,000 |
|
Provision for taxation |
|
19,709 |
5,294 |
|
Total Current Liabilities |
|
1,533,562 |
1,730,693 |
|
|
|
|
|
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Total Liabilities |
|
1,826,764 |
2,387,934 |
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
|
6,295,789 |
6,978,717 |
Income Statement 31/12/12 31/12/13
|
Sales |
|
4,367,233 |
4,530,261 |
|
Cost
of Sales |
|
(3,089,952) |
(3,046,037) |
|
Gross profit |
|
1,277,281 |
1,484,224 |
|
Other income |
|
4,516 |
11,967 |
|
Selling and distribution expenses |
|
(741,091) |
(908,109) |
|
General and
administrative expenses |
|
(425,864) |
(462,236) |
|
Finance charges |
|
(6,110) |
(78,823) |
|
Investment income/(loss) |
|
80,064 |
178,655 |
|
Profit/(loss) before taxation |
|
188,796 |
225,678 |
|
Taxation |
|
(18,500) |
(3,920) |
|
Profit/ (loss) for the year |
|
170,296 |
221,758 |
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Other
comprehensive income |
|
|
|
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Revaluation of land (net of tax) |
|
1,726,134 |
-- |
|
Total comprehensive income/(loss) for the year |
|
1,896,430 |
221,758 |
Local sources consider subject’s financial condition to be Fair.
·
Bank of Muscat
Al Nadha
Street
PO Box:
18537
Salalah
Tel:
(968) 23290244
Fax: (968)
23292309
·
Oman International Bank SAOG
Al
Khuwair
PO Box:
1727, Seeb 111
Muscat
Tel:
(968-24) 682500
Fax:
(968-24) 682800
No complaints regarding subject’s payments have been reported.
Credit amount 25,000
Amount overdue 0
Payment terms 60
days
Payment Method Letters
of Credit
Paying record No
Complaints
Currency Euros
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 |
|
|
1 |
Rs.100.42 |
|
Euro |
1 |
Rs.78.44 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
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|
Report Prepared
by : |
NIS |
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 |
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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 |
|
|
-- |
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.