|
|
|
MIRA INFORM REPORT
|
Report No. : |
499952 |
|
Report Date : |
28.03.2018 |
IDENTIFICATION DETAILS
|
Name : |
OMAN CABLES INDUSTRY SAOG |
|
|
|
|
Registered Office : |
Plot No. 6, Building No. 206 Road No. 2 Rusayl Industrial Estate
PO Box 25 Rusayl 124 |
|
|
|
|
Country : |
Oman |
|
|
|
|
Financials (as on) : |
31.12.2017 |
|
|
|
|
Date of Incorporation : |
21.03.1984 |
|
|
|
|
Com. Reg. No.: |
1/8675/2 |
|
|
|
|
Legal Form : |
Omani Public Joint Stock Company |
|
|
|
|
Line of Business : |
Subject is engaged in the manufacture of low, medium and
high voltage power cables, conductors and building wires. |
|
|
|
|
No. of Employees : |
700 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January
2017)
|
MIRA’s Rating : |
A |
|
Credit Rating |
Explanation |
Rating Comments |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
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
|
Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
|
Oman |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
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.
|
Source
: CIA |
SUMMARY
Company Name : OMAN CABLES INDUSTRY SAOG
Country of Origin : Oman
Legal Form : Omani Public Joint Stock Company
Registration Date : 21st March 1984
Commercial Registration Number : 1/8675/2
Authorised Capital : RO 12,000,000
Issued Capital : RO 8,970,000
Paid up Capital : RO 8,970,000
Total Workforce : 700
Activities : Manufacturers of low, medium and high voltage power cables,
conductors and building wires
Financial Condition : Good
Payments : Regular
COMPANY
NAME
OMAN CABLES INDUSTRY SAOG
ADDRESS
Registered &
Physical Address
Building :
Plot No. 6, Building No. 206
Street : Road
No. 2
Area :
Rusayl Industrial Estate
PO Box :
25
Town :
Rusayl 124
Country : Oman
Telephone :
(968) 24446464 / 24445464 / 24443100
Facsimile :
(968) 24446096
Email : omancabl@omantel.net.om
/ management@omancables.com
Premises
Subject operates from a large suite of offices and a factory
that are owned and located in the Industrial Area of Muscat.
Branch Office (s)
Location Description
· PO
Box: 24410 Office
premises
Salwa
Road
Doha
Qatar
Tel:
(974) 44688384
Fax:
(974) 44687663
· PO
Box: 25864 Office
premises
Sharjah
United
Arab Emirates
Tel:
(971-6) 5743558
Fax:
(971-6) 5731039
· 5th
Floor, Sahara Complex Office
premises
Ibn
Khaldoon Street
Hawalli
Kuwait
KEY
PRINCIPALS
Name Position
· Fabio
Ignazio Romeo Chairman
· Lara
Caroline Mahmoud Hansen Vice
Chairman
· Hamad
Mohammad Al Wahaibi Director
· Christian
Raskin Director
· Fabrizio
Rutschmann Director
· Michele
Binda Director
· Mohamed
Bin Mustafa Al Lawati Director
· Ali Saeed Al Habaj Chief Executive Officer
· Jad
Atallah Company
Secretary
LEGAL
FORM & OWNERS
Date
of Establishment : 21st
March 1984
Legal
Form : Sharikat
Al Mousahama Al Omania (Societe Anonyme Omani
General - SAOG) (Omani Public Joint Stock Company)
Commercial
Reg. No. :
1/8675/2
Authorised
Capital : RO
12,000,000
Issued Capital : RO
8,970,000
Paid up Capital :
RO 8,970,000
Name of Shareholder (s) Percentage
· Draka
Holding NV 51.17%
Netherlands
·
Mustafa Mukhtar
Ali Al Lawati 12.54%
· Omani
businessmen & private investors 36.29%
AFFILIATED
COMPANIES
Name Percentage Held
· Oman Aluminium Processing Industries LLC (OAPIL) 51%
Muscat
· Associated Cables Pvt Ltd (ACPL) 100%
India
OPERATIONS
Activities: Engaged in the manufacture of low,
medium and high voltage power cables, conductors and building
wires.
Import Countries: Europe and the United States of
America.
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 31/12/17 31/12/16 31/12/15
ASSETS
Non current assets
Property, plant and equipment 23,104,993 24,720,997 25,431,153
Investment in a subsidiary 3,187,547 2,226,660 2,226,660
Investment in an associate - 553,063 553,063
Investments available for sale 162,889 230,017 119,067
Held to maturity investments
1,000,000 1,000,000 -
Total non-current assets 27,455,429 28,745,364 28,329,943
Current assets
Held to maturity investment
- - 1,251,204
Inventories 23,199,458 25,271,518 34,266,331
Trade and other receivables 60,364,173 59,953,916 64,510,379
Due from related parties 4,314,555 174,140 396,898
Cash and bank balances 5,352,656 6,231,852 2,193,260
Total current assets 93,230,842 91,631,426 102,618,072
Total assets 120,686,271 120,376,790 130,948,015
EQUITY AND LIABILITIES
Capital & reserves
Share capital 8,970,000 8,970,000 8,970,000
Share premium 977,500 977,500 977,500
Legal reserve 2,990,000 2,990,000 2,990,000
General reserve 11,807,588 10,992,357 9,452,910
Retained earnings 68,109,184 68,396,603 62,614,579
Cumulative changes in fair values 680,260 1,132,053 (1,331,125)
Total equity 93,534,532 93,458,513 83,673,864
Liabilities
Non- current liabilities
Deferred tax liability 878,634 711,645 710,338
Employee’s end of service
benefits 1,290,443 1,316,441 1,456,252
Total non- current liabilities 2,169,077 2,028,086
2,166,590
Current liabilities
Trade and other payables 23,004,397 18,597,754 12,958,847
Due to related parties 454,353 813,373 848,797
Bank borrowings 10,288 3,500,000 29,096,668
Taxation 1,513,624 1,979,064 2,203,249
Total current liabilities 24,982,662 24,890,191 45,107,561
Total liabilities 27,151,739 26,918,277 47,274,151
Total equity and liabilities 120,686,271 120,376,790 130,948,015
Profit
& Loss Account
Sales 199,469,406 200,270,813 231,486,089
Cost of sales (180,858,926) (174,802,266) (205,253,138)
Gross profit 18,610,480 25,468,547 26,232,951
Other income 55,857 730,016 2,625,234
Administrative expenses (5,085,977) (4,890,475) (4,817,559)
Selling and distribution expenses (3,071,892) (3,443,010) (3,005,734)
Depreciation (112,678) (157,866) (153,233)
Operating profit 10,395,790 17,707,212
20,881,659
Finance costs (330,751) (407,592) (710,320)
Finance income 57,464 34,564 101,766
Share of results of an associate 9,790
29,556 688
Profit before income tax 9,843,011 17,363,740 20,273,793
Income tax expense (1,690,699) (1,969,269) (2,122,948)
Profit for the year 8,152,312 15,394,471 18,150,845
Local sources consider subject’s financial condition to be
Good.
BANKERS
· Commercial Bank of Oman SAOG
Muttrah Business District
PO Box: 1696, Ruwi 112
Muscat
Tel: (968) 24793225 / 24793226 / 24793228
Fax: (968) 24793229
·
National Bank of Oman Limited (SAOG)
Muttrah Business District
PO Box: 751, Ruwi 112
Muscat
Tel: (968) 24708894 / 24708630 /
24708684
Fax: (968) 24707781 / 24703972
·
Bank of Muscat
Al
Burj Street
Greater
Muttrah
PO
Box: 6326, Ruwi 112
Muscat
Tel:
(968) 24701769
Fax:
(968) 24796488
PAYMENT
HISTORY
Regular
GENERAL
COMMENTS
Established in 1984, subject is involved in the manufacture
of low, medium and high voltage power cables, conductors and building wires.
The cable industry in Oman mainly
comprises of multiple local or regional players. Fierce competition among the
players is witnessed and targeting economies of scale are an important factor
for success.
Opportunity for the cable
industry is arising from the increasing demand for electricity, which in turn
is based on economic growth. Most regional economies are capitalizing on the
oil revenues to increase investments in job creation and social programs. Also
major initiatives for infrastructure development are scheduled that fuel the
electrical cable demand. Oman Cables is located in the growth area and its
strategy of backward integration, product diversification, modern machinery,
world class quality manufacturing and testing, is well positioned to capitalize
on opportunities in Oman, the MENA region and selected world markets.
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 64.80 |
|
|
1 |
INR 92.26 |
|
Euro |
1 |
INR 80.76 |
|
OMR |
1 |
INR 169.21 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
NIS |
|
|
|
|
Report Prepared
by : |
TRU |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
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
·
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.