MIRA INFORM REPORT

 

 

Report Date :

02.07.2013

 

IDENTIFICATION DETAILS

 

Name :

AIMAN AND ABDULLAH OLABI CO

 

 

Formerly Known As :

OLABI TEA

 

 

Registered Office :

National Syrian Bank Building,  Khan Al Hariri Street, Al Liramon Area, PO Box: 9542, Aleppo

 

 

Country :

Syria

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

11.02.1991

 

 

Com. Reg. No.:

9040

 

 

Legal Form :

General Partnership

 

 

Line of Business :

Distributors of general foodstuff products.

 

 

No. of Employees :

22

 

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 – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Syria

C1

C1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

SYRIA - ECONOMIC OVERVIEW

 

Despite modest economic growth and reform prior to the outbreak of unrest, Syria's economy continues to suffer the effects of the ongoing conflict that began in 2011. The economy further contracted in 2012 because of international sanctions and reduced domestic consumption and production, and inflation has risen sharply. The government has struggled to address the effects of economic decline, which include dwindling foreign exchange reserves, rising budget and trade deficits, and the decreasing value of the Syrian pound. Prior to the unrest, Damascus began liberalizing economic policies, including cutting lending interest rates, opening private banks, consolidating multiple exchange rates, raising prices on some subsidized items, and establishing the Damascus Stock Exchange. The economy remains highly regulated by the government. Long-run economic constraints include foreign trade barriers, declining oil production, high unemployment, rising budget deficits, and increasing pressure on water supplies caused by heavy use in agriculture, rapid population growth, industrial expansion, and water pollution.

Source : CIA

 


SUMMARY

 

Company Name                                    : AIMAN AND ABDULLAH OLABI CO

Also Known As                                     : OLABI TEA

Country of Origin                                   : Syria

Legal Form                                           : General Partnership

Registration Date                                  : 11th February 1991

Commercial Registration Number           : 9040, Aleppo

Chamber Membership Number               : 520

Partners Capital                                     : SY Pnds 3,800,000

Total Workforce                                     : 22

Activities                                               : Distributors of general foodstuff products.

Financial Condition                                : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

 


COMPANY NAME

 

AIMAN AND ABDULLAH OLABI CO

 

 

ALSO KNOWN AS

 

OLABI TEA

 

 

ADDRESS

 

Registered & Physical Address

 

Building            : National Syrian Bank Building

Street               : Khan Al Hariri Street

Area                 : Al Liramon Area

PO Box            : 9542

Town                : Aleppo

Country             : Syria

 

Telephone         : (963-21) 3623010 / 3315074 / 3335030

Facsimile          : (963-21) 3023155 / 3623155

Email                : info@olabitea.com / olabitea@mail.sy

 

Premises

 

Subject operates from a medium sized suite of offices that are rented and located in the Central Business Area of Aleppo.

 

 

KEY PRINCIPALS

 

Name                                                                                       Position

 

Aiman Mahmoud Olabi                                                              Managing Partner

 

Abdullah Mahmoud Olabi                                                           Partner

 

Abdul Qader Hafyan                                                                  Finance Manager

 

Malik Al Shami                                                                          Public Relations Manager

 

Ahmed Olabi                                                                             Commercial Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 11th February 1991

 

Legal Form                  : General Partnership

 

Commercial Reg. No.   : 9040, Aleppo

 

Chamber Member No.  : 520

 

Partners Capital           : SY Pnds 3,800,000

 

Name of Partner (s)                                          Percentage

 

Aiman Mahmoud Olabi                                           50%

 

Abdullah Mahmoud Olabi                                        50%

 

 

AFFILIATED COMPANIES

 

Olabi Industry & Trade

Aleppo

Tel: (963-21) 2657772

 

 

OPERATIONS

 

Activities:                     Engaged in the import and distribution of general foodstuff products, including tea, coffee, sugar, nuts, rice, spices and edible oils.

 

Import Countries:         Sri Lanka, India and Guatemala

 

Brand Names:              OLABI & VENICE.

 

Operating Trend:          Steady

 

Subject has a workforce of 22 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Syrian Pounds (SY Pnds)

 

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

 

Total Sales                                SY Pnds 88,000,000                  SY Pnds 83,000,000

 

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

 

The above financial figures are based on estimations by our local sources.

 

 

BANKERS

 

Commercial Bank of Syria

Kastel Hajjarin Street

Aleppo

            Tel: (963-21) 4239601

 

Bank of Syria and Overseas

Main Branch

Aleppo

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Established in 1991, subject is owned and managed by Mr Aiman Mahmoud Olabi and his brother, Mr Abdullah Mahmoud Olabi who are both well respected in the local business community.

 

Please note that we were unable to contact the subject directly during our investigation.

 

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 business is considered to be a fair trade risk.

 

 

SYRIAN UNREST

 

Protests in Syria started on 26th January 2011 and were influenced by other protests in the region. Protesters have been calling for political reforms and the reinstatement of civil rights, as well as an end to the state of emergency which has been in place since 1963.

Since March 2011 demonstrations have taken place in many cities across Syria. Thousands of protestors gathered in Al Hasakah, Aleppo, Damascus, Daraa, Deir Ez Zor and Hama. After the first day of the protests there were reports of approximately 3,000 arrests.

In Damascus, security forces broke into the Omayyad Mosque and violently attacked protesters. Several people were injured, and several others were arrested. In the southern city of Daraa, people chanted against Rami Makhlouf, the cousin of the Syrian president. The regime replied by sending helicopters and water cannons to confront the protesters. At least three people were killed by security forces.

As a result of the protests, the Governor of Daraa was fired, but this did not satisfy the protesters. Demonstrations increased and on 24th March 2011, it was reported that more than a hundred had been killed.

The entire Syrian cabinet was asked to resign by the president. Adel Safar was named the new prime minister and his new cabinet was sworn into office on 14th April 2011.

The cities of Baniyas and Homs have also fallen under siege by government forces. Army tanks have begun heavy shelling of residential areas.

On 18th May 2011, the United States imposed sanctions on Syrian President Bashar al-Assad and six other senior Syrian officials as a response to Syria's bloody crackdown on political protests.

In June 2011 Syrian troops and Gunmen loyal to President Bashar al-Assad arrested 70 people and set houses on fire after tanks entered a town near the Turkish border. 19 people were shot dead in the assault.

After almost two years of unrest, the conflict between the regime and the opposition has escalated to a full-scale civil war. Army defectors formed armed groups that wage a guerrilla war on government forces. By mid-2012 the fighting had reached capital Damascus and commercial hub Aleppo, with growing numbers of senior army officers deserting Assad.

On 2 January 2013, the United Nations stated that the war's death toll had exceeded 60,000. According to various opposition activist groups, between 46,070 and 59,215 people have been killed, of which about half were civilians, but also including 24,220–26,010 armed combatants consisting of both the Syrian Army and rebel forces, up to 2,390 opposition protesters and 1,000 government officials.



FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.15

UK Pound

1

Rs.90.05

Euro

1

Rs.77.06

 

INFORMATION DETAILS

 

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.