MIRA INFORM REPORT

 

 

Report Date :

11.10.2012

 

IDENTIFICATION DETAILS

 

Name :

AARTI STEELPLC BOLE SUBCITY

 

 

 

 

Registered Office :

Kebele 08/09 Hno 164/00, Addis Ababa

 

 

Country :

Ethiopia

 

 

Year of Establishment :

2008

 

 

Legal Form :

Limited Corporation 

 

 

Line of Business :

Steel Manufacturing Industry

 

 

No. of Employees :

100 employees.

 

 

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 :

Satisfactory

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Ethiopia

C1

C1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

ETHIOPIA - ECONOMIC OVERVIEW

 

Ethiopia's economy is based on agriculture, which accounts for 41% of GDP and 85% of total employment. Coffee has been a major export crop. The agricultural sector suffers from poor cultivation practices and frequent drought, but recent joint efforts by the Government of Ethiopia and donors have strengthened Ethiopia's agricultural resilience, contributing to a reduction in the number of Ethiopians threatened with starvation. The five-year Growth and Transformation Plan that Ethiopia unveiled in October 2010 presents a government-led effort to achieve the country's ambitious development goals. The banking, insurance, and micro-credit industries are restricted to domestic investors, but Ethiopia has attracted significant foreign investment in textiles, leather, commercial agriculture and manufacturing. Under Ethiopia's constitution, the state owns all land and provides long-term leases to the tenants; land use certificates are now being issued in some areas so that tenants have more recognizable rights to continued occupancy and hence make more concerted efforts to improve their leaseholds. While GDP growth has remained high, per capita income is among the lowest in the world.

Source : CIA

SUBJECT'S NAME   

 

Registered Name:                                  AARTI STEELPLC BOLE SUBCITY

Requested Name:                                  AARTI STEELPLC BOLE SUBCITY

Other Names:                                        None

 

 

ADDRESS AND TELECOMMUNICATION

 

Physical Address:                                 Kebele 08/09 Hno 164/00, Addis Ababa

Postal Address:                                    Kebele 08/09 Hno 164/00,

                                                            Addis Ababa

Country:                                                Ethiopia

Phone:                                                  251-1116181310

Fax:                                                      251-1116181310

Email:                                                   None

Website:                                               None

 

 

CREDIT OPINION

 

Financial Index as of December 2011 shows subject firm with a medium risk of credit. However, bank and credit information obtained reveal a history of prompt payments.

 

 

LEGAL

 

Legal Form:                                                    Limited Corporation 

Date Incorporated:                                          2008

Reg. Number:                                                 Ethiopia

Nominal Capital                                              ETB. 500,000

Subscribed Capital                                         ETB. 500,000

Subscribed Capital is Subscribed in the following form:

                                                                     Position                          Shares

Mr. Prashad Mittal                                          Director                          

Mr. Mahesh Mittal                                           Director                          

Mr. Kamlesh Verma                                        Manager                         

Mr. Dinesh Satti                                              Manager                         

Aarti Steel Industries                                       Holding Co                      100%

 

 

RELATED COMPANIES  

 

Aarti Steel Industries                                       Parent company.

None                                                              Subsidiary company.

Aarti Steel Benin Sarl,

Aarti Steel Nigeria.                                          Affiliated company.

None                                                              Shareholder of subject firm.

Factory in Oromia, Ethiopia                             Branches of the firm

 

 

OPERATIONS

 

Registered to operate in the steel manufacturing industry

Imports:                                                         Asia

Exports:                                                         None

Trademarks:                                                   None

Terms of sale:                                                Cash (40%) and 25-90 days (60%), invoices.

                                                                    

Main Customers:                                            firms and organizations  

Employees:                                                    100 employees.

Vehicles:                                                        Several motor vehicles.

Territory of sales:                                           Ethiopia

Location:                                                        Leased premises, 10,000 square feet,

 

AUDITORS AND INSURANCE   

 

Auditors:                                                        Information not available.

Insurance Brokers:                                          Information not available.

 

FINANCE 

 

Currency Reported:                                         Ethiopian Birr (ETB.)

Approx. Ex. Rate:                                           1 US Dollar = 18.07 Ethiopian Birr

Fiscal Year End:                                             December 31, 2011

Inflation:                                                         According to information given by independent sources, the inflation at December 31st, 2011 was of 13%.

Financial Information not Submitted                

                                                                    

Profit and Loss (expressed in ETB.)

                                                                     2010                        2011

Sales                                                             40,150,000               42,000,000

 

 

BANK 

 

Bank Name:                                                    Bank of Abyssinia

Branch:                                                          Ethiopia

Comments:                                                    None

 

TRADE REFERENCES    

 

Experiences:                                                  Good

                                                                    

 

NOTARIAL BONDS   

 

None

 

 

COMMENTS / ADDITIONAL INFORMATION    

 

This information was obtained from outside sources other than the subject company itself and confirmed the above subject.


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.53.04

UK Pound

1

Rs.84.83

Euro

1

Rs.68.21

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.