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MIRA INFORM REPORT
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Report No. : |
492226 |
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Report Date : |
17.02.2018 |
IDENTIFICATION DETAILS
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Name : |
A SAFFA FOODS
SAOG |
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Registered Office : |
Ghala Roundabout,
Ruwi, P O Box: 3436, Muscat 112, Sultanate of Oman |
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Country : |
Oman |
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Financials (as on) : |
31.12.2016 |
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Date of Incorporation : |
30.12.2001 |
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Com. Reg. No.: |
2/16733/6 |
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Legal Form : |
Omani Public Joint
Stock Company |
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Line of Business : |
Subject is
engaged in the processing of poultry, meat, fish and related products. |
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No. of Employees : |
870 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January
2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
OMAN - ECONOMIC OVERVIEW
Oman is heavily dependent on its dwindling oil resources, which generate 84% of government revenue. In 2016, low global oil prices drove Oman’s budget deficit to $11.5 billion, or approximately 19% of GDP, but the budget deficit was reduced to 13% of GDP in 2017 as Oman reduced government subsidies. Oman has limited foreign assets and is issuing debt to cover its deficit.
Oman is using enhanced oil recovery techniques to boost production, but has simultaneously 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% at present to 9% by 2020 in accordance with Oman’s ninth five-year development plan. Tourism and gas-based industries are key components of the government's diversification strategy.
Muscat also has notably focused on creating more Omani jobs to employ the rising number of nationals entering the workforce. However, high social welfare benefits — that had increased in the wake of the 2011 Arab Spring — have challenged the government's ability to effectively balance its budget in light of low export oil prices. In response, Omani officials imposed austerity measures to its gasoline and diesel subsidies in 2016, with further subsidy cuts planned for electricity and liquid petroleum gas. The spending cuts have faced some public opposition, which in 2017 prompted the Omani Government to announce a cap on fuel prices and a plan to provide 25,000 public-sector jobs for Omanis.
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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 :
870
Activities :
Processing of poultry, meat, fish and related products
Financial Condition : Good
Payments :
Regular
Operating Trend : Steady
COMPANY
NAME
A SAFFA FOODS SAOG
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
·
Rashid Saif
Mohamed Al Saadi Chairman
· Ali Hilal Ali
Al Kuwari Vice
Chairman
·
Suleiman
Bin Nasser Bin Suleiman Al Lamki Director
·
Ahmed
Rashid Mohamed Al Mamari Director
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Abdul
Aziz Mohamed Nasser Al Nadabi Director
· Fahad Mohamed
Al Abdul Kader Director
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Majid
Salim Said Al Fannah Al Araimi Director
·
Mohammed
Khalifa Al Jalahma Director
· Abdulla Mohamed
Al Ansari 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%
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National
United Engineering & Contracting Co LLC 10.00%
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Internal
Security Service Pension Fund 10.00%
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Omani
businessmen & private investors 13.50%
AFFILIATED
COMPANIES
Name Percentage Held
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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 870 employees.
FINANCIAL
DATA
Financial
highlights provided by local sources are given below:
Currency: Riyal
Omani (RO)
Balance Sheet 31/12/16 31/12/15 31/12/16 31/12/15
Subject’s figures
Group figures
ASSETS
Non-current assets
Property, plant
and equipment 17,904,512
18,032,124 26,765,727
25,132,607
Intangible assets
285,682 377,997
285,682 377,997
Investments in
subsidiaries 2,950,000 2,950,000
- -
Available-for-sale
financial assets 56,076 100,000
56,076 100,000
Investment in
associates 916,694 64,647
916,694 64,647
Term deposits 5,000,000 5,000,000
5,000,000 5,000,000
Total non-current assets 27,112,964
26,524,768 33,024,179 30,675,251
Current assets
Inventories 4,069,766 3,487,902
4,686,248 4,116,658
Biological assets
1,236,668 1,256,215
1,236,668 1,256,215
Trade and other
receivables 8,350,503 7,371,810
7,818,960 7,299,495
Cash and bank
balances 240,099 255,267
296,945 810,240
Term deposits 6,500,000 6,000,000
6,500,000 6,000,000
Total current assets 20,397,036
18,371,194 20,538,821 19,482,608
TOTAL ASSETS 47,510,000
44,895,962 53,563,000 50,157,859
EQUITY AND LIABILITIES
Equity
Share capital 12,000,000 12,000,000
12,000,000 12,000,000
Legal reserves 4,000,000 3,930,987
4,000,000 3,949,729
Retained earnings
23,175,868 20,950,856 23,422,065
21,057,663
Total equity 39,175,868
36,881,843 39,422,065 37,007,392
LIABILITIES
Non-current liabilities
Borrowings 779,476 1,178,106
3,059,476 2,347,771
Deferred
government grant 170,524 271,894
170,524 271,894
Finance lease
liabilities - -
1,996,792 2,725,489
End of service
benefits 506,564 435,835
5 526,550
447,903
Deferred taxation
563,432 572,048
601,341 572,048
Total non-current liabilities 2,019,996 2,457,883 6,354,683
6,365,105
Current liabilities
Borrowings 1,209,284 1,339,746
1,329,284 1,339,746
Finance lease
liabilities - -
819,051 776,400
Trade and other
payables 5,104,852 4,216,490 5,637,917
4,669,216
Total Current liabilities 6,314,136
5,556,236 7,786,252 6,785,362
TOTAL LIABILITIES 8,334,132
8,014,119 14,140,935 13,150,467
TOTAL EQUITY AND LIABILITIES 47,510,000 44,895,962 53,563,000 50,157,859
Statement of Income
Revenue 30,556,601
31,863,225 30,670,270 31,953,211
Cost of sales (19,363,018) (19,055,291)
(18,925,778) (18,622,637)
Gross profit 11,193,583 12,807,934
11,744,492 13,330,574
Selling and
distribution expenses (4,491,996) (4,318,410)
(4,412,318) (4,318,410)
General and
administrative (1,853,727) (1,819,389)
(2,122,166) (2,012,481)
Other operating
income 188,213 34,586
194,036 36,086
Operating profit 5,036,073
6,704,721 5,404,044 7,035,769
Finance cost –
net 142,298 (13,976)
(67,116) (161,708)
Impairment of
available for sale financial assets (43,924) -
(43,924) -
Share of loss
from associates (63,957) (139,353)
(63,957) (139,353)
Profit and total comprehensive
income for the year before tax 5,070,490
6,551,392 5,229,047 6,734,708
Taxation
- Current tax (625,081) (769,165)
(625,081) (769,165)
- Deferred tax 8,616 13,375
(29,293) 13,375
(616,465) (755,790) (654,374) (755,790)
Profit and total comprehensive income for the
Yea 4,454,025 5,795,602 4,574,673
5,978,918
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
Subject’s payments
have been reported to be regular
GENERAL
COMMENTS
The subject and its
shareholders/owners have been searched in the following databases; Office of
Foreign Assets Control (OFAC), United Nations Security Council Sanctions,
Australian Sanctions List, US Consolidated Sanctions List, EU Financial
Sanctions List and UK Financial Sanctions List and nothing adverse could be
found on the exact names listed within the report.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 63.91 |
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1 |
INR 90.31 |
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Euro |
1 |
INR 80.17 |
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OMR |
1 |
INR 167.30 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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VIV |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
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Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.