MIRA INFORM REPORT

 

 

Report No. :

344986

Report Date :

16.10.2015

 

IDENTIFICATION DETAILS

 

Name :

OMAN FIBRE OPTIC CO SAOG (OFO)

 

 

Registered Office :

Road No. 4, Rusayl Industrial Estate, PO Box No.: 5, Rusayl 124

 

 

Country :

Oman

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

30.06.1996

 

 

Com. Reg. No.:

1/54308/3

 

 

Legal Form :

Omani Public Joint Stock Company

 

 

Line of Business :

The Company designs, develops and manufactures optical fibres including multi-mode fibres in 50/125 &  62.5/125 core diameters, G.655 complaint non-zero dispersion shifted fibres, G.653 complaint dispersion shifted fibres, G.652C low OH peak fibres & G.652D low OH peak low PMD fibres. Optical fibre cables are also provided in a range of cables including single and double steel armoured, dielectric, metallic, ADSS aerial, figure-8, FRP-armoured, indoor cables and indoor/outdoor cables. Company also provides cable accessories and end-to-end cabling solutions.

 

 

No. of Employees :

270

 


 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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                                    : OMAN FIBRE OPTIC CO SAOG (OFO)

Country of Origin                                   : Oman

Legal Form                                           : Limited Liability Company – LLC

Registration Date                                  : 30th June 1996

Commercial Registration Number           : 1/54308/3

Issued Capital                                       : RO 6,274,016

Paid up Capital                                     : RO 6,274,016

Total Workforce                         : 270

Activities                                               : Manufacturers of optical fibres.

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

 

COMPANY NAME

 

OMAN FIBRE OPTIC CO SAOG (OFO)

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Road No. 4

Area                 : Rusayl Industrial Estate

 

PO Box            : 5

 

Town                : Rusayl 124

Country : Sultanate of Oman

 

Telephone         : (968) 24446991 / 24446992 / 24448444

Facsimile          : (968) 24446996 / 24446886 / 24448448

Email                : ofoco@omantel.net.om / gopinath@omanfiber.com

 

Premises

 

Subject operates from a suite of offices and a factory covering an area of 5,000 square metres that are owned and located in the Industrial Area of Rusayl.

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Samy Ahmed Al Ghassany                                                                Chairman

 

·       Hilal Al Hassni                                                                                  Vice Chairman

 

·       Rajiv Dhar                                                                                        Director

 

·       Abdullah Saif Al Hosni                                                                      Director

 

·       Awadh Mohamed Ba Mukhalif                                                           Director

 

·       Mohammed Harith Al Barashdy                                                         General Manager

 

·       Bhartendu Chobisa                                                                            Production Manager

 

·       Sami Habib Ali                                                                                                              Administration Manager

 

·       Mohammed Khamis Al Sinaidy                                                          Company Secretary

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 30th June 1996

 

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

 

Commercial Reg. No.   : 1/54308/3

 

Issued Capital              : RO 6,274,016

 

Paid up Capital            : RO 6,274,016

 

Name of Shareholder (s)                                                         Percentage

 

·       Oman Telecommunications Co                                                          26.00%

 

·       Gulf Investment Corp                                                                        25.00%

 

·       Omar A Al Zawawi                                                                            21.50%

 

·       Oman & Emirates Investment Holding Co                                           15.60%

 

·       Local businessmen and private investors                                           11.90%

 

 

AFFILIATED COMPANIES

 

     Name                                                                                               Stake Held

 

·       Omania E-Commerce LLC                                                                      20%

 

 

OPERATIONS

 

Activities: The Company designs, develops and manufactures optical fibres including multi mode fibres in 50/125

& 62.5/125 core diameters, G.655 complaint non-zero dispersion shifted fibres, G.653 complaint dispersion shifted fibres, G.652C low OH peak fibres & G.652D low OH peak low PMD fibres. Optical fibre cables are also provided in a range of cables including single and double steel armoured, dielectric, metallic, ADSS aerial, figure-8, FRP-armoured, indoor cables and indoor/outdoor cables. OFO also provides cable accessories and end-to-end cabling solutions.

 

The plant is ISO 9001:2000 certified

 

Production Capacity: 8,000 – 12,000 kilometres of cable per annum

Import Countries: Finland and the United Kingdom

 

International Suppliers:

 

·       Nextrom Oy              Finland

·       Photon Kinetics        United Kingdom

 

Operating Trend: Steady

 

Subject has a workforce of approximately 270 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

 

7,107,122

5,584,084

Investment in a subsidiary

 

21,338

21,338

Deferred tax asset

 

12,588

43,581

 

7,141,048                         5,649,003

Current assets

Inventories

 

4,751,907

3,571,811

Trade and other receivables

 

13,432,926

17,290,031

Due from related parties

 

4,407,971

2,324,580

Cash and cash equivalents

 

1,557,878

1,435,581

 

24,150,682                        24,622,003

Total assets

                            31,291,730

              30,271,006

 

EQUITY AND LIABILITIES

Capital and reserves

Share capital

 

5,455,666

4,744,057

Legal reserve

 

1,818,555

1,581,352

Retained earnings

                            10,983,824

              5,720,039

Total equity

                            18,258,045

              12,045,448

LIABILITIES

Non-current liabilities

End of service benefits

 

263,797

189,023

Long term loan

 

2,200,697

4,094,659

 

2,464,494                          4,283,682

Current liabilities

Current portion of long term loan

 

1,600,000

722,587

Bank borrowings

 

-

3,956,093

Trade and other payables

 

7,901,096

8,830,289

Due to related parties

 

33,394

26,644

Taxation

 

1,034,701

406,263

10,569,191

13,941,876

Total liabilities

                            13,033,685

              18,225,558

 

Income Statement

 

 

INCOME

Product sales

                            7,128,252

               8,509,223

Services

                            2,304,939

               2,414,682

Contract revenues

                            13,870,830

               16,026,447

Other income

                            9,962

               105,233

 

23,313,983                         27,055,585

EXPENSES

Cost of materials consumed

 

(8,301,413)

 (12,320,985)

Sub contract costs

                              (6,291,994)

               (7,560,654)

Employee costs

 

(4,048,426)

 (2,840,224)

Depreciation

 

(577,260)

 (115,868)

Other operating expenses

 

(2,476,848)

 (1,910,498)

 

(21,695,941)                      (24,748,229)

Profit from operations

                               1,618,042

                2,307,356

Insurance claim income

 

 7,376,874

  2,806,273

Finance cost - net

Interest income

 

 4,179

  -

Interest expense

 

(50,373)

  (262,305)

Exchange loss

 

(10,011)

  (6,050)

 

                            (56,205)

                (268,355)

Profit before taxation

                             8,938,711

                 4,845,274

Taxation

 

(1,065,694)

  (583,556)

Profit and total comprehensive profit for the year

                             7,873,017

                 4,261,718

 

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

 

Regular

 

 

GENERAL COMMENTS

 

Established in 1996, Oman Fibre Optic Co SAOG (OFO) is a leading manufacturer of optical fibres in Oman.

 

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.64.82

UK Pound

1

Rs.100.41

Euro

1

Rs.74.50

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

VNT

 

               

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.