MIRA INFORM REPORT
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Report No. : |
313595 |
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Report Date : |
23.03.2015 |
IDENTIFICATION DETAILS
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Name : |
SWEETS
OF OMAN SAOG |
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Registered Office : |
Sweets of Oman Building Road No. 8 Rusayl Industrial Estate 49 Rusayl 124 |
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Country : |
Oman |
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Financial As on : |
31.12.2014 |
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Date of Incorporation : |
01.01.1989 |
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Com. Reg. No.: |
1/28686/2 |
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Legal Form : |
Omani Public
Joint Stock Company |
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Line of Business : |
Engaged in the
production and marketing of chocolate and sugar
confectionery, including toffees, fudges, eclairs, bon bons, enrobed
chocolates and premium gift boxes. |
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No. of Employee : |
330 |
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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 |
SUMMARY
Company Name : SWEETS OF OMAN SAOG
Country of Origin : Oman
Legal Form :
Omani Public Joint Stock Company
Registration Date : 1st
January 1989
Commercial
Registration Number : 1/28686/2
Issued Capital : RO
700,000
Paid up Capital : RO
700,000
Total Workforce : 330
Activities :
Production and marketing of chocolate and sugar confectionery
Financial Condition : Fair
Payments :
Nothing detrimental uncovered
Operating Trend : Steady
COMPANY
NAME
SWEETS
OF OMAN SAOG
ADDRESS
Registered & Physical
Address
Building : Sweets of Oman Building
Street : Road No. 8
Area :
Rusayl Industrial Estate
PO Box : 49
Town : Rusayl 124
Country : Sultanate of Oman
Telephone : (968) 24446278 / 24446279 / 24446280
Facsimile : (968) 24446276
Email : sweets@omantel.net.om
Premises
Subject operates
from a large suite of offices and a factory that are owned and located in the
Industrial Area of Rusayl.
KEY
PRINCIPALS
Name Position
·
Redha Bhacker Suleiman Jaffer Chairman
· Mahdi
Abdul Baqi Vice
Chairman
·
Mohamed Bin Suleiman Al Ismaili Director
·
Mohammed Bin Abdul Hussain Bin
Bhacker Director
· Ceruseri
Srinivasan Badrinath Director
· Ali
Malallah Habib Al Lawati Director
· Mohamed Abdul
Hussain Baqer Al Lawati Director
· N Janardhan Director
· S K
Rao Director
·
S Balakrishana General
Manager
·
Arthur J B Colaco Marketing
Manager
·
M M Raghavan Operations
Manager
·
S Mukherjee Finance Manager
LEGAL
FORM & OWNERS
Date of Establishment : 1st
January 1989
Legal Form :
Societe Anonyme Omani
General - SAOG (Omani Public Joint Stock Company)
Commercial Reg. No. : 1/28686/2
Issued Capital : RO 700,000
Paid up Capital : RO 700,000
Name of
Shareholder (s)
·
Redha Bhacker Suleiman Jaffer
·
Sabco
LLC
·
Zubair
Enterprises
·
Omani
businessmen and private investors
OPERATIONS
Activities: Engaged in the production and marketing of chocolate and sugar confectionery, including toffees,
fudges,
eclairs, bon
bons, enrobed chocolates and premium gift boxes.
Production
Capacity: 3,000
tonnes per annum
Import
Countries: France, Italy
and Turkey
Export
Countries: Canada, New
Zealand, United Kingdom, Africa and the Gulf Region
Brand Names: CHIKO,
CHIKO BON BONS, CHIKO BONNY, CHIKO BINSY, CHIKO ECLAIRS, CHIKO FARIS,
CHIKO TOFFEES,
CHIKO TWIST, CHIKO ROYAlE, and CHIKO NARJEELA
Operating Trend: Steady
Subject has a
workforce of approximately 330 employees.
FINANCIAL
DATA
Financial
highlights provided by local sources are given below:
Currency: Riyal
Omani (RO)
Balance Sheet 31/12/14 31/12/13
ASSETS
Non-current assets
Property, plant
and equipment 1,583,609
1,441,867
Deferred taxation
67,648
47,190
Total non-current
assets 1,651,257
1,489,057
Current assets
Inventories 3,075,612
2,885,449
Accounts and
other receivables 3,177,428
3,268,482
Bank balances and
cash 345,311
543,748
Total current
assets 6,598,351
6,697,679
Total assets 8,249,608
8,186,736
SHAREHOLDERS’ EQUITY AND LIABILITIES
Shareholders’ equity
Share capital 700,000
700,000
Legal reserve 233,333
233,333
Retained earnings
3,253,784
2,702,364
Total
shareholders’ equity 4,187,117
3,635,697
LIABILITIES
Non-current liabilities
Non-current
portion of term loans 36,505
123,859
Employees’ end of
service benefits 314,600
259,666
Total non-current
liabilities 351,105
383,525
Current liabilities
Current portion
of term loans 280,643
264,531
Bank borrowings 1,381,532
1,056,748
Accounts and
other payables 1,909,922
2,711,236
Taxation 139,289
134,999
Total current
liabilities 3,711,386
4,167,514
Total liabilities
4,062,491
4,551,039
Total shareholders’ equity and liabilities 8,249,608
8,186,736
Income Statement
Sales 12,506,075
11,640,132
Cost of sales (9,095,697)
(8,366,597)
Gross profit 3,410,378
3,273,535
Other income 65,728
73,925
General and
administration (679,693)
(569,350)
Selling and
distribution (1,689,439)
(1,624,854)
Profit from
operations 1,106,974
1,153,256
Finance charges (86,723)
(77,298)
Profit for the
year before taxation 1,020,251
1,075,958
Taxation (118,831)
(121,777)
Net profit and total comprehensive income for the year 901,420 954,181
Local sources
consider subject’s financial condition to be Fair.
BANKERS
·
Bank
Muscat SAOG
Ruwi Main Branch
PO Box: 6326
Muscat
Tel: (968) 24561399 / 24708543
Fax: (968) 24561036
Acc No. 0103-400080081018
PAYMENT
HISTORY
No complaints
regarding subject’s payments have been reported.
GENERAL
COMMENTS
Sweets
of Oman SAOG was established in 1989 and is engaged in the production and marketing of chocolate and sugar confectionery.
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.62.49 |
|
|
1 |
Rs.92.26 |
|
Euro |
1 |
Rs.66.80 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
ANK |
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 |
|
<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.