MIRA INFORM REPORT

 

 

Report No. :

340283

Report Date :

11.09.2015

 

IDENTIFICATION DETAILS

 

Name :

AREEJ VEGETABLE OILS AND DERIVATIVES SAOG

 

 

Registered Office :

Old Nizwa Road,  Rusayl Industrial Area, PO Box: 22 Rusayl 124

 

 

Country :

Oman

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

27.08.1980

 

 

Com. Reg. No.:

1/10231/1

 

 

Legal Form :

Omani Joint Stock Company

 

 

Line of Business :

Subject is engaged in the manufacture, bottling and packaging of vegetable oils and related products.

 

 

No. of Employee :

620

 

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 :

Good

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 – 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                                    : AREEJ VEGETABLE OILS AND DERIVATIVES SAOG

Country of Origin                                   : Oman

Legal Form                                           : Omani Joint Stock Company

Registration Date                                  : 27th August 1980

Commercial Registration Number           : 1/10231/1

Issued Capital                                       : RO 4,600,000

Paid up Capital                                     : RO 4,600,000

Total Workforce                                     : 620

Activities                                               : Manufacture, bottling and packaging of vegetable oils and related products.

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

 


COMPANY NAME

 

AREEJ VEGETABLE OILS AND DERIVATIVES SAOG

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Old Nizwa Road

Location           : Rusayl Industrial Area

PO Box            : 22

Town                : Rusayl 124

Country             : Sultanate of Oman

 

Telephone         : (968) 24448000 / 24446270 / 24446458 / 24446459 / 24446460

Facsimile          : (968) 24448099 / 24446207 / 24446457

Email                : mail@avod.com.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

 

Nasser Bin Muhammed Bin Nasser Al Hadhramy                         Chairman

 

Nasser Bin Khalifa Al Kilbani                                                      Vice Chairman

 

Salem bin Nasser Sultan Al Bortmany                                         Director

 

H P Kothary                                                                              Director

 

Gamal Mohammed Ahmad                                                         Director

 

Prem Maker                                                                               Director

 

E M Ashraf                                                                               Director

 

Mohammed Bin Suleiman Al Ismaily                                           General Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 27th August 1980

 

Legal Form                  : Omani Joint Stock Company

 

Commercial Reg. No.   : 1/10231/1

 

Issued Capital              : RO 4,600,000

 

Paid up Capital            : RO 4,600,000

 

Name of Shareholder (s)                                                        Percentage

 

Mohsin Haider Darwish LLC                                                       30.50%

 

Dr Omar Bin Abdul Muniem Al Zawawi                                        24.98%

 

Omani businessmen and private investors                                  44.52%

 

 

AFFILIATED COMPANIES

 

Name                                                                           % Holding

 

Areej Vegetable Oils & Derivatives SAOG LLC                    100%

(Previously known as Premium Trading LLC)

United Arab Emirates

 

Advertising International Company LLC                                 15%

Oman

 

 

OPERATIONS

 

Activities: Engaged in the manufacture, bottling and packaging of vegetable oils and related products.

 

Import Countries : Europe and the Far East.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 620 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Riyal Omani (RO)

 

Balance Sheet                                                                                      31/12/2014                    31/12/2013

 

Assets

Non-current assets

Property, plant and equipment                                                               25,189,396                    19,691,313

Investment in a subsidiary                                                                             31,500                          31,500

                                                                                                            25,220,896                    19,722,813

 

Current assets

Stock                                                                                                    12,902,813                    14,457,797

Debtors and prepayments                                                                     10,452,794                    11,792,531

Cash                                                                                                            12,759                          10,679

                                                                                                            23,368,366                    26,261,007

 

Total Assets                                                                                         48,589,262                    45,983,820

 

Equity And Liabilities

Equity

Share Capital                                                                                          4,600,000                      4,600,000

Share premium                                                                                             76,841                          76,841

Legal Reserve                                                                                         1,533,333                      1,533,333

Distributable reserve                                                                                   575,976                         575,976

Retained earnings                                                                                    5,705,702                      4,479,419

                                                                                                            12,491,852                    11,265,569

 

Liabilities

Non-current liabilities

Long Term loans                                                                                     8,543,828                      4,414,402

Deferred taxation                                                                                       396,970                         410,513

Employees' end of service benefits                                                         1,613,111                      1,456,265

                                                                                                            10,553,909                      6,281,180

 

Current liabilities

Bank overdrafts                                                                                            27,889                          35,406

Short term loans                                                                                      7,202,500                      9,704,000

Current portion of long term loans                                                            1,647,073                      1,258,699

Trade and other payables                                                                      16,269,685                    17,095,625

Due to a subsidiary                                                                                      31,500                          31,500

Taxation                                                                                                     364,854                         311,841

                                                                                                            25,543,501        28,437,071

 

Total liabilities                                                                                     36,097,410                    34,718,251

 

Total Equity & Liabilities                                                                      48,589,262                    45,983,820

 

Statement of Comprehensive Income                                                   31/12/2014                    31/12/2013

 

Sales                                                                                                    92,461,287                   92,100,407

Cost of goods sold                                                                               (83,411,620)                  (83,095,225)

Gross profit                                                                                             9,049,667                      9,005,182

Distribution expenses                                                                              (2,787,765)                    (3,104,733)

Sales and administration expenses                                                          (3,085,907)                    (2,820,313)

Other operating income                                                                                 76,123                          37,243

Operating profit                                                                                       3,252,118                      3,117,379

Interest expense                                                                                         (264,274)                       (319,405)

Remuneration to Chairman & Directors' sitting fees                                        (30,250)                        (30,000)

Profit for the Year before Taxation                                                           2,957,594                      2,767,974

Taxation                                                                                                     (351,311)                       (328,557)

Net Profit                                                                                                 2,606,283                      2,439,417

 

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

 

 

BANKERS

 

Bank Dhofar Al Omani Al Fransi

Muttrah Business District

PO Box: 1507, Ruwi 112

Muscat

Tel: (968) 24790466

Fax: (968) 24797246

 

Oman International Bank SAOG

Al Khuwair

PO Box: 1727, Seeb 111

Muscat

Tel: (968) 24682500

Fax: (968) 24682800

 

National Bank of Oman

Muttrah 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.66.29

UK Pound

1

Rs.101.89

Euro

1

Rs.73.98

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

SDA

 

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.