MIRA INFORM REPORT

 

 

Report No. :

326695

Report Date :

15.06.2015

 

IDENTIFICATION DETAILS

 

Name :

DHOFAR CATTLE FEED CO SAOG

 

 

Registered Office :

Raysut Industrial Area, PO Box 1220 & 1298, Salalah 211

 

 

Country :

Oman

 

 

Financials (as on) :

2014

 

 

Date of Incorporation :

13.01.1983

 

 

Com. Reg. No.:

2/01752/0

 

 

Legal Form :

Omani Public Joint Stock Company

 

 

Line of Business :

Subject’s operations are performed through the following divisions:

 

·         Feed Mill Division

·         Farm Division

 

 

No. of Employees :

600

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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 heavily dependent on dwindling oil resources, which generates 77% of government revenue. It is using enhanced oil recovery techniques to boost production. 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 from 46% to 9% by 2020. Muscat also is focused on 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, have challenged the government's ability to effectively balance its budget as oil prices decline. Despite government acknowledgement that Oman’s expansive social welfare benefits are unsustainable, Oman authorities are comfortable with short-term budget deficits and have approved an expansionary 2015 budget. Concurrently, Oman has expanded efforts to support the development of small and medium-size enterprises and entrepreneurship. Government agencies and large oligarchic group companies have announced 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.

 

Source : CIA


SUMMARY

 

Company Name                                    : DHOFAR CATTLE FEED CO SAOG

Country of Origin                                   : Oman

Legal Form                                           : Omani Public Joint Stock Company

Registration Date                                  : 13th January 1983

Commercial Registration Number           : 2/01752/0

Issued Capital                                       : RO 7,700,000

Paid up Capital                                     : RO 7,700,000

Total Workforce                                     : 600

Activities                                               : Subject operates several divisions (see below for details)

Financial Condition                                : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

 

 

COMPANY NAME

 

DHOFAR CATTLE FEED CO SAOG

 

 

ADDRESS

 

Registered & Physical Address

 

Location           : Raysut Industrial Area

PO Box            : 1220 & 1298

Town                : Salalah 211

Country             : Sultanate of Oman

Telephone         : (968) 23210551 / 23210360

Facsimile          : (968) 23210886

Email                : dcfco@omantel.net.om / saeedalshanfari@dcfoman.com / ceo@dcfoman.om

 

Premises

 

Subject operates from rented premises located in the Raysut Industrial Area and consists of a medium sized suite of offices, and 400 hectares of agricultural land rented from the Ministry of Agriculture and Fisheries. The area is used for cattle breeding, dairy products manufacturing and grass cultivation.

 

Branch Office (s)

 

Location                                                                                               Description

 

PO Box: 1273, Ruwi 111                                                                        Dairy Processing Plant

Muscat

Tel: (968) 24799268

 

Garzaiz Farm                                                                                         Owned Farm

PO Box: 298

Salalah 211

Tel: (968) 23225381 / 23219228 / 23225382 / 23225866

Fax: (968) 23219070 / 23225482

 

Sahnout Farm                                                                                       Owned Farm

PO Box: 298

Salalah 211

Tel: (968) 23296561

 

 

KEY PRINCIPALS

 

Name                                                                                       Position

 

Sheikh Hamoud Bin Musthail Ahmed Al Mashani                         Chairman

 

Sheikh Ahmed Bin Abdullah Saeed Al Rawas                              Vice Chairman

 

Saeed Bin Salim Ahmed Al Shanfari                                           Managing Director

 

Sheikh Khalid Bin Musthail Ahmed Mashani                                Director

 

Sheikh Abdullah Bin Hamed Hamoud Al Gafri                             Director

 

Sheikh Mohamed Bin Abdullah Fatah Zabanoot                          Director

 

Sheikh Mohamed Bin Abdullah Saeed Al Rawas                          Director

 

Sheikh Ahmed Bin Alawi Abdullah Al Ibrahim                               Director

 

Sheikh Amer Bin Ahmed Ali Al Rawas                                         Director

 

Sheikh Ahmed Bin Suliman Ahmed Al Gafri                                 Director

 

Sheikh Khalid Bin Abdullah Saeed Al Rawas                               Director

 

Dr Hassan Saeed Kashoob                                                        Director

 

Aftab Ahmed Patel                                                                    Director

 

K M S Sreenivas                                                                       Chief Executive Officer

 

Dr Ahmed Bin Suhail Ahmed Al Hadhri                                       General Manager

 

Ghazi Thaher Jaber                                                                    Dairy Manager

 

Jeevan Sadavisan                                                                     Feed Mill Manager

 

Willem Van Leuteren                                                                  Dairy Farm Manager

 

William Downey                                                                         Sales & Marketing Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 13th January 1983

 

Legal Form                  : Societe Anonyme Omani General - SAOG (Omani Public Joint Stock Company)

 

Commercial Reg. No.   : 2/01752/0

 

Issued Capital              : RO 7,700,000

 

Paid up Capital            : RO 7,700,000

 

Name of Shareholder (s)                                                           Percentage

 

Muscat overseas LLC                                                                17.83%

 

Sheikh Musthail Ahmed Al Mashani                                            13.92%

 

Al Rawas Develop. & Investment LLC                                         10.47%

 

Al Barka Investment LLC                                                            5.27%

 

Omani businessmen & private investors                                     52.51%

 

 

AFFILIATED COMPANIES

 

Name                                                                                                                           Percentage Held

 

Dhofar Poultry Company SAOG (DPC)                                                                           85.00%

 

International Plastic Industries Company LLC (IPI)                                                           100.00%

 

Oman Vegetable Oils & Derivatives Co. LLC (OVOD)                                                      33.33%

 

Dhofar Beverages and Foodstuffs Company SAOG (DBFC)                                           30.45%

 

Salalah Mills Co SAOG                                                                                                  13.01%

 

Dhofar International Development & Investment Holding (SAOG) (DIDIC)                         7.11%

 

 

OPERATIONS

 

Activities: Subject’s operations are performed through the following divisions:

 

Feed Mill Division

 

Established in 1984, this division is engaged in the production of animal feed using maize and sardines as raw materials. The product range includes general feed, cattle feed, sheep feed, dairy-18, calf rearing, heifer nuts, chick starter, pullet grower, layer mash, broiler starter, broiler finisher, poultry concentrates and barley grain.

 

Production Capacity: 160 tonnes of cattle feed per day

 

Farm Division

 

This division is responsible for operating the dairy and crops farms in Garziz and Sahnout. It is also involved in animal breeding and the production of dairy products.

 

Import Countries: Switzerland, Germany, India and Australia.

 

International Suppliers:

 

Buhler AG         Switzerland

 

Brand Names: A’SAFWAH

 

Operating Trend: Steady

 

Subject has a workforce of approximately 600 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Riyal Omani (RO’000)

 

BALANCE SHEET

                                                            Subject                             Subject                            Subject  

                                        Group          Company      Group           Company    Group           Company

                                        2014             2014               2013            2013            2012             2012

ASSETS

Non-current assets

Property, plant and equipment

 

20,753

13,852

17,734

13,444

15,466

12,735

Investments in subsidiaries

 

--

3,070

--

3,070

--

2,154

Investments in associates

 

2,868

2,812

3,003

2,812

3,109

2,812

Available for sale investments

 

23,579

23,579

24,131

24,131

17,903

17,903

Investment properties

 

477

477

585

585

540

540

Biological assets

 

4,033

4,033

4,127

4,127

5,110

5,110

Deferred tax asset

 

218

179

179

179

179

179

Total non-current assets

51,928

48,002

49,759

48,348

42,307

41,433

Current assets

Inventories and biological assets

 

8,662

6,739

5,803

4,831

5,375

4,861

Accounts and other receivables

 

8,054

7,143

6,991

5,801

7,407

6,774

Bank balances and cash

 

438

426

451

317

545

179

Total current assets

17,154

14,308

13,245

10,949

13,327

11,814

Total assets

69,082

62,310

63,004

59,297

55,634

53,247

 

EQUITY AND LIABILITIES

Equity

Share capital

 

7,700

7,700

7,700

7,700

7,700

7,700

Legal reserve

 

2,486

2,486

2,486

2,486

2,486

2,486

Voluntary reserve

 

3,641

3,641

3,641

3,641

3,641

3,641

Revaluation reserve

 

525

--

525

--

597

--

Retained earnings

10,236

10,370

12,908

12,283

17,235

16,931

Fair value reserve

 

16,113

16,113

16,432

16,432

9,877

9,877

Equity attributable to Shareholders of the Parent Company

40,701

40,310

43,692

42,542

41,536

40,635

Non-controlling interest

440

--

541

--

377

--

Total equity and non-controlling interest

41,141

40,310

44,233

42,542

41,913

40,635

LIABILITIES

Non-current liabilities

Non-current portion of term loans

 

4,156

2,379

1,384

1,283

19

--

Retention payable

 

20

31

31

--

--

Deferred tax liability

 

  --

       --

63

--

60

--

Employees’ end of service benefits

 

509

 404

467

387

406

341

Total non-current liabilities

4,685

2,803

1,945

1,701

485

341

Current liabilities

Current portion of term loans

 

1,162

700

101

67

66

--

Taxation

 

49

44

103

44

76

44

Bank borrowings

 

14,206

12,145

12,189

11,173

10,571

10,081

Accounts and other payables

 

7,839

6,308

4,433

3,770

2,523

2,146

Total current liabilities

23,256

19,197

16,826

15,054

13,236

12,271

Total liabilities

27,941

22,000

18,771

16,755

13,721

12,612

Total equity and liabilities

69,082

62,310

63,004

59,297

55,634

53,247

 

STATEMENT OF INCOME

                                                                                  Subject                                      Subject

                                                     Group                 Company Group              Company

                                                     2014                      2014                   2013                 2013

INCOME

Revenue

 

31,873

29,255

29,517

25,961

Cost of sales

 

(27,201)

(25,100)

(25,549)

(23,426)

Gross profit

4,672

4,155

3,968

2,535

EXPENSES

Selling and distribution

 

(4,841)

(4,213)

(4,455)

(3,991)

General and administration

 

(2,631)

(2,091)

(2,328)

(1,922)

Directors’ remuneration and meeting

attendance fees

 

(129)

(86)

(127)

(76)

Loss from operations

(2,929)

(2,235)

(2,942)

(3,454)

Investment income (net)

 

644

696

468

498

Other income

 

304

284

181

174

Share of result of associates

 

(83)

--

(5)

--

Finance costs (net)

 

(811)

(658)

(583)

(557)

Loss before taxation

(2,875)

(1,913)

(2,881)

(3,339)

Taxation

 

102

--

(61)

--

Net loss for the year

(2,773)

(1,913)

(2,942)

(3,339)

 

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

 

 

BANKERS

 

National Bank of Oman Limited (SAOG)

Hafa Branch

PO Box: 824

Salalah 211

Tel: (968) 23291952

Fax: (968) 23290066

 

Bank Dhofar Al Omani Al Fransi

Mutrah Business District

PO Box: 1507, Ruwi 112

Muscat

Tel: (968) 24790466

Fax: (968) 24797246

A/c No. 01/411/01344/00

 

Oman International Bank

Al Jaame Street

PO Box: 4216

Muscat

Tel: (968) 24703614 / 24707328 / 24793450

 

Oman Bank of Agriculture & Fisheries SAOC

Ruwi 112

PO Box: 3077

Muscat

Tel: (968) 24701761 / 24701763

Fax: (968) 24706473

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                                February 2002                           December 2008

Credit amount                                       255,000                         150,000

Amount overdue                                    0                                              0

Payment terms                                      60 days                                                60 days

Payment Method                                   Letters of Credit                                    Letters of Credit

Paying record                                       No Complaints                          No Complaints

Currency                                               Euros                                       US Dollars

 

 

GENERAL COMMENTS

 

Dhofar Cattle Feed Co SAOG is Oman’s largest cattle feed producer and also produces milk and yoghurt.

 

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.64.09

UK Pound

1

Rs.99.57

Euro

1

Rs.71.84

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 

               

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.