MIRA INFORM REPORT

 

 

Report Date :           

05.04.2012

 

IDENTIFICATION DETAILS

 

Name :

ARAB IRON & STEEL CORPORATION (AISCO)

 

 

Registered Office :

 Mamea Al Khooly Building, 5th Floor, Office No. 1, Al Zubairy Street, P O Box 15028, Sana’a

 

 

Country :

Yemen

 

 

Financials (as on) :

31.12.2011

 

 

Year of Establishment :

2004

 

 

Com. Reg. No.:

3251-141, Sana’a

 

 

Legal Form :

Yemen Shareholding Company Closed

 

 

Line of Business :

Producers of natural gas, iron and steel.

 

 

No. of Employees :

380

 

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

 

Maximum Credit Limit :

US$ 1,500,000

 

 

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 – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

Yemen

c1

c1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

SUMMARY

 

Company Name                                     : ARAB IRON & STEEL CORPORATION (AISCO)

Country of Origin                                    : Yemen

Legal Form                                            : Yemen Shareholding Company Closed

Registration Date                                   : 2004

Commercial Registration Number            : 3251-141, Sana’a

Issued Capital                                        : US$ 36,250,000

Paid up Capital                                      : US$ 36,250,000

Total Workforce                                     : 380

Activities                                               : Producers of natural gas, iron and steel.

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Recommended Credit Limit                     : US$ 1,500,000

Person Interviewed                                 : Mohamed Akasha, Finance Manager

 

COMPANY NAME

 

ARAB IRON & STEEL CORPORATION (AISCO)

 

 

company ADDRESS

 

Registered & Physical Address

Building             : Mamea Al Khooly Building, 5th Floor, Office No. 1

Street               : Al Zubairy Street

PO Box             : 15028

Town                 : Sana’a

Country             : Yemen

Telephone         : (967-1) 212227 / 212228 / 440054

Facsimile          : (967-1) 471548 / 445359

Mobile               : (967-711) 101900 / 613218

Email                : info@aisco-yemen.com / mgr_finance@aisco-yemen.com

 

Premises

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

 

Branch Office (s)

 

     Location                                                                                          Description

 

·       Heavy Industrial Area                                                             Factory premises

Aden Free Zone

PO Box: 374

Aden

Tel: (967-2) 820375 / 363696 /98

Fax: (967-2) 363696 / 363700

 

 

KEY PRINCIPALS

 

     Name                                                                                              Position

 

·       Ahmed Abu Bakr Omar Bazara                                                          Chairman

·       Abu Bakr Omar Ahmed Bazara                                                          Managing Director

·       Aidross Abu Bakr Omar Bazara                                                          Director

·       Abdul Nasser Abu Bakr Omar Bazara                                     Director

·       Mohamed Salem Ba Hobaishi                                                            Director

·       Salem Saleh Ba Azim                                                                       Director

·       Salem Ba Bakr                                                                                 Director

·       Omar Saleh Ba Bakr                                                                         Director

·       Abdul Salam Galib                                                                            Director

·       Sinan Abo Lehoum                                                                            Director

·       Sugavanam Rajaram                                                              General Manager

·       Mohammed Ali Swedan                                                                     Sales Manager

·       Mohamed Akasha                                                                             Finance Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 2004, however subject’s production began in November 2005

 

Legal Form                  : Yemen Shareholding Company Closed

 

Commercial Reg. No.  : 3251-141, Sana’a

 

Issued Capital              : US$ 36,250,000

 

Paid up Capital            : US$ 36,250,000

 

Name of Shareholder (s)

 

·       Ahmed Abu Bakr Omar Bazara

 

·       Abu Bakr Omar Ahmed Bazara

 

·       Aidross Abu Bakr Omar Bazara

 

·       Abdul Nasser Abu Bakr Omar Bazara

 

·       Mohamed Salem Ba Hobaishi

 

·       Salem Saleh Ba Azim

 

·       Salem Ba Bakr

 

·       Omar Saleh Ba Bakr

 

·       Abdul Salam Galib

 

·       Sinan Abo Lehoum

 

·       Shamil Bank of Yemen & Bahrain

 

·       Automotive & Machinery Trading Center

 

 

AFFILIATED COMPANIES

 

·       Aisco Gases Limited (AGL

·       Aisco Energy Management Limited (AEML

·       Aisco Wings Limited (AWL)

·       Aisco Infrastructure Co Ltd (AICL)

 

 

OPERATIONS

 

Activities: Engaged in the production of natural gas, iron and steel.

 

Subject plans to spend US$ 1.6bn to turn a plant, which started in 2005 and now sells 100,000 tonnes      domestically, into a regional exporter that makes its own power, Reuters reported in February 2011. The firm, which is based in Aden's free-trade zone, plans to increase steel output to 1.5m tonnes in the next decade.

 

Production Capacity: 100,000 tonnes of steel per annum

 

Import Countries: Europe and the United States of America

 

Brand Names: AISCO

 

Operating Trend: Steady

 

Subject has a workforce of approximately 380 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: United States Dollars (US$)

 

                                                Year Ending 31/12/10:                Year Ending 31/12/11:

 

Total Sales                                US$ 27,800,000                         US$ 30,000,000

 

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

 

The above figures were provided by Mr Mohamed Akasha, Finance Manager

 

 

BANKERS

 

·       National Bank of Yemen

PO Box: 5

Sana’a

Tel: (967-1) 253484

Fax: (967-1) 255004

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Local sources report that payment obligations are met in a generally timely manner and the operating history is clear. As such the company is deemed a fair trade risk and the above credit figure is considered to be within subject’s financial means.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.51.05

UK Pound

1

Rs.81.09

Euro

1

Rs.67.39

 

 

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.