MIRA INFORM REPORT

 

 

Report No. :

323693

Report Date :

28.05.2015

 

IDENTIFICATION DETAILS

 

Name :

A SAFFA FOODS SAOG

 

 

Registered Office :

Ghala Roundabout, Ruwi 3436 Muscat 112

 

 

Country :

Oman

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

30.12.2001

 

 

Com. Reg. No.:

2/16733/6

 

 

Legal Form :

Omani Public Joint Stock Company

 

 

Line of Business :

Engaged in the processing of poultry, meat, fish and related products.

 

 

No of Employees :

700

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

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 Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

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                                    : A SAFFA FOODS SAOG

Country of Origin                                   : Oman

Legal Form                                           : Omani Public Joint Stock Company

Start Date                                             : 30th December 2001

Commercial Registration Number           : 2/16733/6

Issued Capital                                       : RO 12,000,000

Paid up Capital                                     : RO 12,000,000

Total Workforce                         : 700

Activities                                               : Processing of poultry, meat, fish and related products

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady


Company name

 

A SAFFA FOODS SAOG

 

 

company ADDRESS

 

Registered & Physical Address

 

Location           : Ghala Roundabout

Area                 : Ruwi

 

PO Box                        : 3436

 

Town                : Muscat 112

Country : Sultanate of Oman

 

Telephone         : (968) 24591800 / 24789770 / 24796072

Facsimile          : (968) 24592800 / 24789774

Email                : asaffa@omantel.net.om

 

Premises

 

Subject operates from a large suite of offices that are rented and located in the Central Business Area of Muscat.

 

Branch Office (s)

 

     Location                                                                                          Description

 

·       Tamreed Area                                                                                   Production & processing plant

PO Box: 458

Salalah 211

     Tel: (968) 23288333

     Fax: (968) 23202775

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Fahad Mohamed Al Abdul Kader                                                       Chairman

 

·       Dr Hamad Saad Majid Al Saad Al Kuwaari                                         Vice Chairman

 

·       Suleiman Bin Nasser Bin Suleiman Al Lamki                           Director

 

·       Mubarak Suleiman Al Mantheri                                                           Director

 

·       Saeed Ali Salem Al Fannah Al Arami                                      Director           

 

·       Areej Mohammed Al Kleeb                                                                Director

 

·       Ahmed Rashid Mohamed Al Mamari                                      Director

 

·       Abdul Aziz Mohamed Nasser Al Nadabi                                             Director

 

·       Ali Hilal Ali Al Kuwari                                                             Director

 

·       Rashid Saif Mohamed Al Saadi                                                         Director

 

·       Dr Nasser Zaher Nasser Al Ma'awali                                       Chief Executive Officer

 

·       Dr Bassam Naifah                                                                            Administration Manager

 

·       Muhammed Rafique Chaudhry                                                           Finance Manager

 

·       Kannan Dirzan                                                                                  Financial Controller

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 30th December 2001

 

History                         : Subject began in 2001 under the name ‘A Saffa Poultry Farms SAOG’. However it re-

  registered under the current style of “A Saffa Foods SAOG” on 24th March 2010.

 

Legal Form                  : Omani Public Joint Stock Company

 

Commercial Reg. No.   : 2/16733/6

 

Issued Capital              : RO 12,000,000

 

Paid up Capital            : RO 12,000,000

 

Name of Shareholder (s)                                                        Percentage

 

·       Gulf Investment Corporation                                      33.25%

 

·       Arab Authority for Agricultural Investment & Development      33.25%

 

·       National United Engineering & Contracting Co LLC                 10.00%

 

·       Internal Security Service Pension Fund                                  10.00%

 

·       Omani businessmen & private investors                                 13.50%

 

 

AFFILIATED COMPANIES

 

     Name                                                                           Percentage Held

 

·       A Saffa Meat Processing LLC                                               100%

 

 

OPERATIONS

 

Activities: Engaged in the processing of poultry, meat, fish and related products.

 

Import Countries: India and Europe.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 700 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Riyal Omani (RO)

 

Balance Sheet                                                  31/12/14            31/12/13            31/12/14            31/12/13

                                                                             Subject’s figures                        Group figures

                       

ASSETS

Non-current assets

Property, plant and equipment                           17,829,659        19,033,508        22,712,984        24,136,691

Intangible assets                                               457,931             -                       457,931             -

Investments in subsidiaries                                2,950,000          1,350,000          -                       -

Available-for-sale financial assets                      100,000             50,000              100,000             50,000

Term deposits                                                   3,000,000          -                       3,000,000          -

Total non-current assets                                     24,337,590        20,433,508        26,270,915        24,186,691

Current assets

Inventories                                                        3,519,530          2,868,647          4,706,859          3,358,329

Biological assets                                               1,376,405          1,345,707          1,376,405          1,345,707

Trade and other receivables                               7,813,264          5,776,189          7,563,006          5,711,918

Cash and cash equivalents                                3,044,976          5,083,712          4,645,596          5,085,014

Term deposits                                                   2,004,385          2,007,138          2,004,385          2,007,138

Total current assets                                           17,758,560        17,081,393        20,296,251        17,508,106

Total assets                                                      42,096,150        37,514,901        46,567,166        41,694,797

EQUITY AND LIABILITIES

EQUITY

Shareholders’ equity

Share capital                                                     12,000,000        11,576,250        12,000,000        11,576,250

Legal reserve                                                    3,351,427          2,707,543          3,351,837          2,707,543

Retained earnings                                              17,894,814        14,415,164        17,836,637        14,353,296

Total equity                                                       33,246,241        28,698,957        33,188,474        28,637,089

LIABILITIES

Non-current liabilities

Borrowings                                                       1,864,877          3,463,740          1,864,877          6,321,527

Deferred government grant                                392,378             530,400             392,378             530,400

Finance lease liabilities                          -                       -                       3,300,837          -

End of service benefits                                     375,234             301,164             382,074             303,853

Deferred taxation                                              585,423             -                       585,423             -

Total non-current liabilities                                  3,217,912          4,295,304          6,525,589          7,155,780

Current liabilities

Borrowings                                                       2,259,617          2,111,708          2,518,359          3,059,565

Finance lease liabilities                          -                       1,359                513,790             1,359

Trade and other payables                                  3,372,380          2,407,573          3,820,954          2,841,004

Total current liabilities                                        5,631,997          4,520,640          6,853,103          5,901,928

Total liabilities                                                   8,849,909          8,815,944          13,378,692        13,057,708

Total equity and liabilities                                   42,096,150        37,514,901        46,567,166        41,694,797

 

Statement of Income

 

Revenue                                                           30,453,438        28,537,045        30,234,741        28,537,045

Cost of sales                                                    (17,363,487)      (16,566,827)      (16,764,023)    (16,536,133)

Gross profit                                                      13,089,951        11,970,218        13,470,718        12,000,912

Selling and distribution expenses                       (3,689,378)        (3,155,798)        (3,689,378)        (3,155,798)

General and administrative expenses                  (1,595,976)        (1,421,230)        (1,788,207)        (1,459,038)

Other operating income                                     12,903              47,433              14,703              47,433

Operating profit                                                 7,817,500          7,440,623          8,007,836          7,433,509

Finance cost - net                                              (89,335)            (220,944)           (275,570)           (256,550)

Profit and total comprehensive income for

the year before tax                                            7,728,165          7,219,679          7,732,266          7,176,959

Taxation -

- Current tax                                                      (703,899)           -                       (703,899)           -

- Deferred tax                                                    (585,423)           -                       (585,423)           -

(1,289,322)        -                       (1,289,322)        -

Profit and total comprehensive income for

the year                                                            6,438,843          7,219,679          6,442,944          7,176,959

 

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

 

 

BANKERS

 

·       National Bank of Oman Limited (SAOG)

Mutrah Business District

PO Box: 751, Ruwi 112

Muscat

Tel: (968) 24708894 / 24708630 / 24708684

Fax: (968) 24707781 / 24703972

 

 

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. 63.94

UK Pound

1

Rs. 98.63

Euro

1

Rs. 69.85

 

INFORMATION DETAILS

 

Analysis Done by :

SAN

 

 

Report Prepared by :

DPT

 

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%)

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