|
Report No. : |
302147 |
|
Report Date : |
08.01.2015 |
IDENTIFICATION DETAILS
|
Name : |
MAJAN GLASS
COMPANY SAOG |
|
|
|
|
Registered Office : |
Sohar Industrial
Estate, P O Box: 17, Sohar 327 |
|
|
|
|
Country : |
Oman |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
17.05.1995 |
|
|
|
|
Com. Reg. No.: |
3/19456/6 |
|
|
|
|
Legal Form : |
Omani Public Joint Stock Company |
|
|
|
|
Line of Business : |
Manufacture of glass
containers for the soft drink, food and pharmaceutical industries. |
|
|
|
|
No. of Employees : |
148 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
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 : MAJAN
GLASS COMPANY SAOG
Country of Origin : Oman
Legal Form :
Omani Public Joint Stock Company
Registration Date : 17th
May 1995
Commercial
Registration Number : 3/19456/6
Issued Capital : RO 4,202,330
Paid up Capital : RO 4,202,330
Total Workforce : 148
Activities :
Manufacturers of glass containers.
Financial Condition : Poor
Payments :
Nothing detrimental uncovered
Operating Trend : Steady
MAJAN GLASS COMPANY
SAOG
Location : Sohar Industrial Estate
PO Box : 17
Town : Sohar 327
Country : Oman
Telephone : (968) 26751654
Facsimile : (968) 26751658
Email : mgglass@omantel.net.om
Subject operates from
a large suite of offices and a factory that are rented and located in the
Industrial Area of Sohar.
Name Position
·
Anwar
Ali Sultan Chairman
·
Ali
Mohamed Redha Jafar Vice
Chairman
·
Hilal
Hamad Al Hasani Director
·
Ali
Hassan Sulaiman Director
·
Eid
Khair Al Balushi Director
·
Ali
Saif Al Hadi Director
·
Mustafa
Ahmed Salman Director
·
Ali H.
Dareai Director
·
Sami Al
Saheb Director
·
Ramesh
Mani General
Manager
Date of Establishment : 17th
May 1995
Legal Form :
Sharikat Al Mousahama Al
Omania (Societe Anonyme Omani
General - SAOG) (Omani Public Joint Stock
Company)
Commercial Reg. No. : 3/19456/6
Authorised
Capital : RO 5,000,000
Issued Capital : RO 4,202,330
Paid up Capital : RO 4,202,330
·
Ministry
of Finance 75.2%
·
Anwar
Ali Sultan ]
]
·
Ali
Mohamed Redha Jafar ]
]
·
Hilal
Hamad Al Hasani ]
]
·
Ali
Hassan Sulaiman ]
] 24.8%
·
Eid
Khair Al Balushi ]
]
·
Ali
Saif Al Hadi ]
]
·
Mustafa
Ahmed Salman ]
]
·
Omani
businessmen & private investors ]
Activities: Engaged in the manufacture of glass
containers for the soft drink, food and pharmaceutical industries.
Subject has an
installed capacity of producing 220 MT of Empty Glass Containers per day with
two furnaces and equipment designed to produce Glass Containers in 88ml to
1000ml range in different sizes and in flint and coloured glass
Import
Countries: Europe and the
Far East.
Operating Trend: Steady
Subject has a
workforce of 148 employees.
Financial
highlights provided by local sources are given below:
Currency: Riyal
Omani (RO)
31/12/2013 31/12/2012
|
Balance Sheet ASSETS |
|||||
|
Non-current
assets |
|||||
|
Property, plant and equipment |
|
10,089,102
|
11,015,821 |
||
|
|
|
||||
|
Current
assets |
|||||
|
Inventories |
|
4,269,825
|
3,638,335 |
||
|
Trade and other receivables |
|
2,360,337
|
2,207,446 |
||
|
Bank balances and cash |
|
3,740 |
5,991 |
||
|
|
6,633,902 5,851,772 |
||||
|
|
|
||||
|
Assets held for sale |
|
69,104 |
69,104 |
||
|
|
|
||||
|
|
|
||||
|
|
|
||||
|
Total
assets |
16,792,108 |
16,936,697 |
|||
|
|
|
||||
|
EQUITY
AND LIABILITIES |
|||||
|
Equity |
|||||
|
Share capital |
|
4,202,330
|
3,820,300 |
||
|
Statutory reserve |
|
1,273,305
|
1,273,305 |
||
|
Retained earnings |
6,352,991 |
7,902,961 |
|||
|
|
|
||||
|
Total
equity |
11,828,626 |
12,996,566 |
|||
|
|
|
||||
|
Non-current
liabilities |
|||||
|
Employees’ end of service benefit |
|
184,322 |
145,451 |
||
|
Borrowings – non-current portion |
|
200,000 |
400,000 |
||
|
Deferred tax liability |
|
491,558 |
520,624 |
||
|
|
|
||||
|
|
875,880 1,066,075 |
||||
|
|
|
||||
|
Current
liabilities |
|||||
|
Borrowings – current portion |
|
1,477,622
|
881,381 |
||
|
Bank overdraft |
|
1,007,886
|
13,437 |
||
|
Trade and other payables |
|
1,602,094
|
1,672,372 |
||
|
Income tax payable |
|
- |
306,866 |
||
|
|
|
||||
|
|
4,087,602 2,874,056 |
||||
|
|
|
||||
|
Total
liabilities |
4,963,482 |
3,940,131 |
|||
|
|
|
||||
|
Total
equity and liabilities |
16,792,108 |
16,936,697 |
|||
Income Statement
|
Sales |
7,453,284 |
7,310,107 |
|||
|
Cost of sales |
|
(6,449,089)
|
(5,176,141) |
||
|
|
|
||||
|
GROSS
PROFIT |
1,004,195 |
2,133,966 |
|||
|
Other income |
|
65,737 |
36,844 |
||
|
Selling and distribution expenses |
(360,773) |
(313,587) |
|||
|
Loss due to fire |
|
(507,065)
|
- |
||
|
General and administrative expenses
|
|
(714,936)
|
(574,520) |
||
|
Impairment on assets written off |
- |
(209,349) |
|||
|
|
(512,842) 1,073,354 |
||||
|
|
|
||||
|
Finance costs |
|
(85,726) |
(33,739) |
||
|
|
|
||||
|
(LOSS)/PROFIT
BEFORE TAX |
(598,568) |
1,039,615 |
|||
|
Income tax expense |
|
(187,342)
|
(121,126) |
||
|
|
|
||||
|
(LOSS)/PROFIT
AND TOTAL COMPREHENSIVE (EXPENSE)/INCOME FOR THE YEAR |
(785,910) |
918,489 |
|||
Local sources
consider subject’s financial condition to be Poor.
·
National
Bank of Oman Limited (SAOG)
PO Box: 497
Sohar
Tel: (968) 26850207
Fax: (968) 26850234
Slow but correct
During the year 2012, the subject completed a rebuild of 70 TPD furnace
which took around 60 days. The profit margins of the company have fallen
sharply due to provision for impairment loss of RO 209,349 created in the books
of account as per IFRS for the above mentioned old 70 TPD Furnace. The other
major reasons for the lower profit are increase in cost of labour and
depreciation.
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.63.45 |
|
|
1 |
Rs.95.99 |
|
Euro |
1 |
Rs.75.28 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
NIT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.