MIRA INFORM REPORT

 

 

Report Date :

28.10.2013

 

IDENTIFICATION DETAILS

 

Name :

AL AKHYAR GROUP CO, LTD

 

 

Registered Office :

14 July Street Near Al‑Abaychi Mosque, Basra

 

 

Country :

Iraq

 

 

Date of Incorporation :

1992

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is involved in general trading, agencies, and construction

 

 

No. of Employees :

Not Available

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Unknown

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)

Iraq

C1

C1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

IRAQ - ECONOMIC OVERVIEW

 

An improving security environment and foreign investment are helping to spur economic activity, particularly in the energy, construction, and retail sectors. Broader economic development, long-term fiscal health, and sustained improvements in the overall standard of living still depend on the central government passing major policy reforms. Iraq's largely state-run economy is dominated by the oil sector, which provides more than 90% of government revenue and 80% of foreign exchange earnings. Iraq in 2012 boosted oil exports to a 30-year high of 2.6 million barrels per day, a significant increase from Iraq's average of 2.2 million in 2011. Government revenues increased as global oil prices remained persistently high for much of 2012. Iraq's contracts with major oil companies have the potential to further expand oil exports and revenues, but Iraq will need to make significant upgrades to its oil processing, pipeline, and export infrastructure to enable these deals to reach their economic potential. The Iraqi Kurdistan Region's (IKR) autonomous Kurdistan Regional Government (KRG) passed its own oil law in 2007, and has directly signed about 50 contracts to develop IKR energy reserves. The federal government has disputed the legal authority of the KRG to conclude most of these contracts, some of which are also in areas with unresolved administrative boundaries in dispute between the federal and regional government. Iraq is making slow progress enacting laws and developing the institutions needed to implement economic policy, and political reforms are still needed to assuage investors' concerns regarding the uncertain business climate, which may have been harmed by the November 2012 standoff between Baghdad and Erbil and the removal of the Central Bank Governor in October 2012. The government of Iraq is eager to attract additional foreign direct investment, but it faces a number of obstacles including a tenuous political system and concerns about security and societal stability. Rampant corruption, outdated infrastructure, insufficient essential services, skilled labor shortages, and antiquated commercial laws stifle investment and continue to constrain growth of private, nonoil sectors. Iraq is considering a package of laws to establish a modern legal framework for the oil sector and a mechanism to equitably divide oil revenues within the nation, although these reforms are still under contentious and sporadic negotiation. Under the Iraqi Constitution, some competencies relevant to the overall investment climate are either shared by the federal government and the regions or are devolved entirely to the regions. Investment in the IKR operates within the framework of the Kurdistan Region Investment Law (Law 4 of 2006) and the Kurdistan Board of Investment, which is designed to provide incentives to help economic development in areas under the authority of the KRG. Inflation has remained under control since 2006 as security improved. However, Iraqi leaders remain hard pressed to translate macroeconomic gains into an improved standard of living for the Iraqi populace. Unemployment remains a problem throughout the country despite a bloated public sector. Encouraging private enterprise through deregulation would make it easier for Iraqi citizens and foreign investors to start new businesses. Rooting out corruption and implementing reforms - such as restructuring banks and developing the private sector - would be important steps in this direction.

 

Source : CIA


Company name

 

AL AKHYAR GROUP CO, LTD

 

 

Rating Briefing

 

Definition:        INSUFFICIENT DATA

 

There is insufficient information for an adequate credit assessment.

 

Current Recommended Credit:

 

Payment Record:          UNDETERMINED

 

This rating is based on available data. In the event of additional information a

possibility for a different rating applies.

 

 

Registration Briefing

 

Registration Number:   N/A

 

Registration Date:         N/A

 

Legal Form:                 LIMITED LIABILITY COMPANY

 

Latest Financials:         N/A

 

 

Financial Briefing

 

Nominal Capital:          N/A

 

Issued Capital:             N/A

 

Turnover:                     N/A

 

Net Profit:                     N/A

 

 


 

Original Investigation Details

 

Investigation Number:                201651

Rime Reference:                        0

Company Name:                       AL AKHYAR GROUP CO

Country:                                    IQ

Street Name:                             14 JULT ST NER AL ABAYCHI MOSQUE BASRAH

City Code:

 

 

Company Details

 

Rime Reference:            10770410

Company Name:           AL AKHYAR GROUP CO, LTD

Headquarter Address:    KARRADA,

AL‑KHADIRI MOSQUE ROAD,

Baghdad,

Iraq

 

Telephone:                    +9641 7780385

Fax:                              +9644 7781351

 

E‑Mail:                          akhyarbaghdad@alakhyargroup.com

Web Site:                      wwww.alakhyargroup.com

 

 

Company was originally started on 1992

 

 

Registration & Legal Details

 

Current Legal Form:                               LIMITED LIABILITY COMPANY

Year/Date Company Established:           1992

 

 

Shareholders / Owners

 

Information on Shareholders is not available/applicable

 


 

Principals

 

Name:                           Eng. Adel Al Salehi

Additional Information:  Owner

Nationality:                    Iraqi

Can fluently speak:        English & Arabic

Education:                    Graduate University

 

 

Company Activities

 

NACE Codes:   4221     Construction of utility projects for fluids

 

Subject is involved in General Trading, Agencies, and Construction

 

The company supplies all industrial materials including Oil, Chemical, Electrical Industries and Water treatment projects. It

has the full experience to implement all turn key projects.

 

Projects conducted by subject company:

Construct & implement the project of (Ibn Majid) corporation

Implement of listed rooms for the Marine Institute with implement of the smart

board rooms & the work of training courses for students of the institute

Implement of maritime safety labs & training of specialist stuff

Establish & implement of water network for (Al‑Jamhuriyah) district for the

benefit of water authority

Implement & install of lighting project in (Um‑Qassir)

Water treatment plant for iron & steel company

Construct of fuel station for the Naval Academy

Implement of scientific library project with supplying scientific books for (I.M.O)

international organization

Basrah water treatment plant

Al‑Ghadeer water treatment plant

Water Treatment station for screw pipes plant

Some water treatment plants for civil & private sector

Supply & setup laboratory motor breakers for Naval Academy

Training & qualifying of Navy staff in Indonesia

Maintenance & development of Al‑Sader hospital

Study designs to treat heavy water of basrah hospital for Ministry of Health

(Qibla) district lighting project

Maintenance & construct of schools

 


 

Operations

 

HQ Premises    Operates from:  Office

Location:          Central Business Area, Main Road

 

Branches          BASRAH OFFICE,

14 JULY STREET NEAR AL‑ABAYCHI MOSQUE,

Basra,

Iraq

Description of branch: Office

 

DIWANIYA OFFICE,

DIWANIYA NEXT TO DIWANIYA CHAMBER OF COMMERCE,

DIWANIYA,

Iraq

Description of branch: Office

 

Imports

 

Imports Finished Goods

Imports From:   USA, China, Egypt, India

 

Agencies:

WINTARA INC.                                      USA     Oil & Gas Refinery Service – Power

Generation and Turnkey Services

Tianjin Metals & Mineral Group Co          China    Tianjin Metals & Mineral Group Co

Xing Xing Ductile Pipes                         China    ductile iron pipes & fittings

Egyptian Iron & Steel                             Egypt   steel

El Naser Steel Pipes & Fittings Co.        Egypt   welded steel pipes,steel sections,cast

iron pipes. lighting poles

Delta Steel Mill Co.                                Egypt   cold drawing, welding wire mesh, cast iron

casting , steel casting

El Naser Co. For Coke & Chmeicals       Egypt   metallurigical  coke, crude benzol, pure

ammonium, Co2 gas

Egyptian Ferro Alloys Co                       Egypt   ferro silicon alloy

General Metals Co.                                Egypt   aluminium products,copper ,lead

products,precious metals

The General Egpytion Co. For Rail         Egypt   freight wagons,flat trucks,hopper

Way      wagons,container wagons

El Naser Mining Co.                               Egypt   phosphate,quartz,magnesite,clays,granit

e,gypsum

Alexandria Co. For Refractories             Egypt   all refractories which produced in shaped

or unshaped)

Beni Impex India                                    India

Global Engineering Turkey                     Turkey

 

 

Trading & Selling

 

Territory:                       100% Nationally

Terms of Sales:             special agreements

Type of Customer:        Government Bodies, Local Authorities, oil and gas

companies, contracting & industrial companies

 

Related Companies

 

Subsidiaries

Affiliates

Deema Trading & Construction

Co

Egypt

Operates as: Real Estate Investment & Construction

 

Aya Commercial Agencies Est

Jordan

Operates as: Import and Export

 

 

Bankers

 

Information on Bankers is not available/applicable

 

 

Payments

 

Subject's payments reported to be:        UNDETERMINED

 

 

Interview & Reporter Comments

 

Date:                24/10/2013

Comment:         We have been unable to contact a company official.

 

 

Reporter Comment Date:           24/10/2013

Reporter Comment:       Registration/ legal and financial information is not publicly available. Thus all data stated in the report was obtained from other publicly available information. Therefore it should be used as a

point of reference as it is not possible to verify such data with official sources.

 

We tried to contact subject company several times, but we are getting no answer.

 

We sent them email with the request information, but we didn't receive any reply until today.

 

All information shown in report was obtained from subject's website and internet business

directories.

 

The supplied address is branch address

 

 

Conclusions

 

Accounts Comments:    Full Financial Statements were unavailable to local analysts so a complete and

accurate picture of the financial strength of the company could not be ascertained.

Our assessment and ratings are therefore based on non‑financial data.

 

Local Reputation:          Local informants have not adequate information to assess the Subject's local

reputation.

 

General Conclusion:      Subject not legally obliged to produce or publish accounts

 

Age of Business:          The company is long established in the local market.

 

 

 

Country Intelligence Information

 

Country:           Iraq

Date:                20/08/2013  00:00:00

Source:            "Economist Intelligence Unit" ‑ The Economist

 

 

Risk:    Last Updated: 24/07/2013

 

Sovereign risk

 

Iraq continues to honour its debt commitments, and the Paris Club, Russia and China have agreed to

substantial debt write‑offs. The sovereign risk rating is undermined, however, by the slow progress on

debt relief with Arab creditors and a high–risk political environment.

 

Currency risk

 

Strong levels of foreign‑exchange reserves and high current‑account surpluses will provide ample

support to Iraq's currency. The Central Bank of Iraq will continue to peg the Iraqi dinar to the US dollar

 

Banking sector risk

 

Iraq does not have a developed banking sector, and in general banks suffer from poor asset quality

and inadequate capitalisation, although ongoing efforts to increase banks' minimum capital

requirements seek to remedy this.

 

Political risk

 

Iraq's political scene will remain unstable. Fissures between the central government and the

Kurdistan Regional Government and between Sunni groups and the (Shia‑dominated) central

government will undermine stability.

 

Economic structure risk

 

Oil revenue accounts for around 99% of export earnings and over 90% of budget revenue. Disputes

between the central government and the Kurdish authorities will, to a degree, hamper development of

the oil and gas sector.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.63

UK Pound

1

Rs.99.94

Euro

1

Rs.85.14

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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%)

 

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