MIRA INFORM REPORT

 

 

Report Date :

31.10.2013

 

IDENTIFICATION DETAILS

 

Name :

ADMIC SAL

 

 

Registered Office :

City Mall, 14 Dora Boulevard Nahr El Mote, Dora Area PO Box 166901 Beirut

 

 

Country :

Lebanon

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

25.04.1996

 

 

Com. Reg. No.:

57630, Baabda

 

 

Legal Form :

Lebanese Joint Stock Company

 

 

Line of Business :

Subject is engaged in a department store and a chain of supermarkets, specialising in the wholesale and retail of household appliances, furniture, jewellery, clothing, toys, ironmongery, stationery, sporting equipment and

general foodstuff products.

 

 

No. of Employees :

720

 

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

 

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Lebanon

B2

B2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

LEBANON - ECONOMIC OVERVIEW

 

Lebanon has a free-market economy and a strong laissez-faire commercial tradition. The government does not restrict foreign investment; however, the investment climate suffers from red tape, corruption, arbitrary licensing decisions, complex customs procedures, high taxes, tariffs, and fees, archaic legislation, and weak intellectual property rights. The Lebanese economy is service-oriented; main growth sectors include banking and tourism. The 1975-90 civil war seriously damaged Lebanon's economic infrastructure, cut national output by half, and derailed Lebanon's position as a Middle Eastern entrepot and banking hub. Following the civil war, Lebanon rebuilt much of its war-torn physical and financial infrastructure by borrowing heavily - mostly from domestic banks - saddling the government with a huge debt burden. Pledges of economic and financial reforms made at separate international donor conferences during the 2000s have mostly gone unfulfilled, including those made during the Paris III Donor Conference in 2007 following the July 2006 war. The collapse of the government in early 2011 over its backing of the Special Tribunal for Lebanon and unrest in neighboring Syria slowed economic growth to the 1-2% range in 2011-12, after four years of 8% average growth. In September 2011 the Cabinet endorsed a bill that would provide $1.2 billion in funding to improve Lebanon''s downtrodden electricity sector, but fiscal limitations will test the government''s ability to invest in other areas, such as water

Source : CIA


 

SUMMARY

 

Company Name                                     : ADMIC SAL

Country of Origin                                    : Lebanon

Legal Form                                            : Lebanese Joint Stock Company

Registration Date                                   : 25th April 1996

Commercial Registration Number            : 57630, Baabda

Issued Capital                                        : LP 33,750,000,000

Paid up Capital                                      : LP 33,750,000,000

Total Workforce                                     : 720

Activities                                               : Operators of department stores and supermarkets.

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

 

 


 

COMPANY NAME

 

ADMIC SAL

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : City Mall, 14 Dora Boulevard

Area                 : Nahr El Mote, Dora Area

PO Box             : 166901

Town                 : Beirut

Country             : Lebanon

 

Telephone         : (961-1) 905000 / 889602

Facsimile          : (961-1) 905040 / 889605

Mobile               : (961-3) 474747

Email                : info@admic.com.lb / admic@dm.net.lb

 

Please note that subject’s previous address was, BHV Complex, Adnane Hakim Street, Jnah Area, Beirut.

 

Premises

 

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

 

Branch Office (s)

 

     Location                                                                                           Description

 

·       Ashrafieh                                                                                          Rented supermarket premises

Beirut

Tel: (961-5) 955200

Fax: (961-5) 955202

Email: joycekouyoumjian@admic.com.lb

 

·       Dbayyeh                                                                                           Rented supermarket premises

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Michel G Abchee                                                                              Managing Director

 

·       Gabriel G Abchee                                                                              Director

 

·       Patrick A Abchee                                                                              Director

 

·       Pascal G Abchee                                                                              Director

 

·       Ghana Daouk                                                                                    Director

 

·       Bachir H Malass                                                                               Director

 

·       Marwan M Jaroudi                                                                             Director

 

·       Tarek A Saleh                                                                                   Director

 

·       Charbile Issa                                                                         Finance Manager

 

·       Michael Noujaim                                                                               Marketing Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 25th April 1996

 

Legal Form                  : Lebanese Joint Stock Company

 

Commercial Reg. No.  : 57630, Baabda

 

Issued Capital              : LP 33,750,000,000

 

Paid up Capital            : LP 33,750,000,000

 

Name of Shareholder (s)

 

·       Michel G Abchee

 

·       Gabriel G Abchee

 

·       Patrick A Abchee

 

·       Pascal G Abchee

 

·       Ghana Daouk

 

·       Bachir H Malass

 

·       Marwan M Jaroudi

 

·       Tarek A Saleh

 

·       AMG Sal

 

·       AMI Sal

 

·       Fattal Holding Sal

 

·       Guard Investments Holding Sal

 

·       Canary Holding Sal

 

 

AFFILIATED COMPANIES

 

·       Ghana Holding Sal

Weavers Center, 13th Floor

Clemenceau Street

Beirut

     Tel: (961-1) 374084

     Fax: (961-1) 374085

 

·       AMI Sal

BHV Complex

Adnane Hakim Street

Jnah Area, Opposite Cite Sportive Camille Chamoun

PO Box: 166901

Beirut

Tel: (961-1) 858590

Fax: (961-1) 474700

 

·       Lebanon Invest Sal

Gefinor Center, 11th Floor

Clemenceau Street

PO Box: 1136633

Beirut

Tel: (961-1) 340812

Fax: (961-1) 340813

 

·       Societe Assurex Sal

Fattal Building

Ecochard Street

PO Box: 117358

Beirut

Tel: (961-1) 492049

Fax: (961-1) 494232

 


 

OPERATIONS

 

Activities: Operators of a department store and a chain of supermarkets, specialising in the wholesale and retail of household appliances, furniture, jewellery, clothing, toys, ironmongery, stationery, sporting equipment and

general foodstuff products. Subject also operates a restaurant.

 

Import Countries : Italy, France, Spain and Germany.

 

Brand Names : BHV, MONOPRIX and HIPPOPOTAMUS

 

Operating Trend: Steady

 

Subject has a workforce of approximately 720 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Lebanese Pounds (LP)

 

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

 

Total Sales                                LP 18,420,000,000                     LP 18,950,000,000

 

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

 

 

BANKERS

 

·       Banque de la Mediterranee Sal

PO Box: 11348

Beirut

Tel: (961-1) 866925

Fax: (961-1) 866925

 

·       Banque Audi Sal

Ashrafieh Branch

PO Box: 112560

Beirut

Tel: (961-1) 200250 / 200251

Fax: (961-1) 200955

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Admic Sal owns and operates a department store and supermarket chain that specialise in the wholesale and retail of household appliances, furniture, jewellery, clothing, toys, ironmongery, stationery, sporting equipment and general foodstuff products.

 

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.

 


DIAMOND INDUSTRY – INDIA

 

-            From time immemorial, India is well known in the world as the birthplace for diamonds.  It is difficult to trace the origin of diamonds but history says that in the remote past, diamonds were mined only in India. Diamond production in India can be traced back to almost 8th Century B.C.  India, in fact, remained undisputed leader till 18th Century when Brazilian fields were discovered in 1725 followed by emergence of S. Africa, Russia and Australia.

-            The achievement of the Indian diamond industry was possible only due to combination of the manufacturing skills of the Indian workforce and the untiring and unflagging efforts of the Indian diamantaires, supported by progressive Government policies.

-            The area of study of family owned diamond businesses derives its importance from the huge conglomerate of family run organizations which operate in the diamond industry since many generations.

-            Some of the basic traits of family run business enterprises include spirit of entrepreneurship, mutual trust lowers transaction costs, small, nimble and quick to react, information as a source of advantage and philanthropy.

-            Family owned diamond businesses need to improve on many fronts including higher standard of corporate governance, long-term performance – focused strategies, modern management and technology.

-            Utmost caution is to be exercised while dealing with some medium and large diamond traders which are usually engaged in fictitious import – export, inter-company transactions, financially assisted by banks. In the process, several public sector banks lost several hundred million rupees. They mostly diverted borrowed money for diamond business into real estate and capital markets.

-            Excerpts from Times of India dated 30th October 2010 is as under –

 

-            Gem & Jewellery Export Promotion Council in its statistical data has shown the export of polished diamonds to have increase by 28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012, India exported $ 1.84 billion worth of polished diamonds in February 2013. A senior executive of GJEPC said, “Export of cut and polished diamonds started falling month-wise after the imposition of 2 % of import duty on the polished diamonds. But February, 2013 has given a new ray of hope to the industry as the export of polished diamonds has actually increased by 28 %. It means the industry  is on the track of recovery and round tripping of diamonds has stopped completely.” Demand has started coming from the US, the UK, Japan and China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.

 

-            The banking sector has started exercising restraint while following prudent risk management norms when lending money to gems and jewellery sector. This follows the implementation of Basel III accord – a global voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.49

UK Pound

1

Rs.98.71

Euro

1

Rs.84.49

 

 

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%)

 

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.