MIRA INFORM REPORT

 

 

Report Date :

10.02.2014

 

IDENTIFICATION DETAILS

 

Name :

ESFAHAN STEEL COMPANY

 

 

Registered Office :

Esfahan Steel Company Building, 178, Saadi Boulevard, Isfahan Industrial Area

Esfahan

 

 

Country :

Iran

 

 

Year of Establishment :

1971

 

 

Com. Reg. No.:

25230

 

 

Legal Form :

Public Joint Stock Company

 

 

Line of Business :

Manufacturer of constructional steel products such as beams, angles, round bars, and channels; steel making pig iron; and converter sludge

 

 

No of Employees :

850

 

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

Iran

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

IRAN - ECONOMIC OVERVIEW

 

Iran's economy is marked by statist policies and an inefficient state sector, which create major distortions throughout the system, and reliance on oil, which provides a large share of government revenues. Price controls, subsidies, and other rigidities weigh down the economy, undermining the potential for private-sector-led growth. Private sector activity is typically limited to small-scale workshops, farming, some manufacturing, and services. Significant informal market activity flourishes and corruption is widespread. Tehran since the early 1990s has recognized the need to reduce these inefficiencies, and in December 2010 the Majles passed President Mahmud AHMADI-NEJAD's Targeted Subsidies Law (TSL) to reduce state subsidies on food and energy. This was the most extensive economic reform since the government implemented gasoline rationing in 2007. Over a five-year period the legislation sought to phase out subsidies that previously cost Tehran $60-$100 billion annually and mostly benefited Iran's upper and middle classes. Cash payouts of $45 per person to more than 90% of Iranian households mitigated initial widespread resistance to the TSL program. However, inflation in 2012 reached its highest level in four years, eroding the value of these cash payouts and motivating the Majles to halt planned price increases for the second half of 2012 through at least March 2013. New fiscal and monetary constraints on Tehran, following international sanctions in January against Iran's Central Bank and oil exports, significantly reduced Iran's oil revenue, forced government spending cuts, and fueled a 20% currency depreciation. Economic growth turned negative for the first time in two decades. Iran also continues to suffer from double-digit unemployment and underemployment. Underemployment among Iran's educated youth has convinced many to seek jobs overseas, resulting in a significant "brain drain."

 

Source : CIA

 


Company Details

 

Company Name:                    Esfahan Steel Company

 

Company Trade Name:          ESC, ESCO

 

 

 Address:                               Esfahan Steel Company Building,

                                              178, Saadi Boulevard, Isfahan Industrial Area

                                              Esfahan 8493111111

                                               IRAN

 

Postal Address:                     PO Box:  81756- 14461

 

Tel:                                        + 98 311 6278806, 6278809, 6278815, 334 2573333, 334 2573637

 

Fax:                                       + 98 311 3322258, 3321964

 

Website:                                www.esfahansteel.com

 

E-mail:                                   info@esfahansteel.com

                                                                         

                                                  

Company was originally started as an on 21/09/1971

 

 

 

Registration & Legal Details

 

Current Legal Form:                        Public Joint Stock Company

Registration Address:                     Esfahan Steel Company Building,

                                                        178, Saadi Boulevard, Isfahan Industrial Area

                                                        Esfahan

                                                        Iran

                                                                  

Registration Number:                      25230

 

Established Date:                            1971

Registration Date:                           1971

Registration Town:                          Esfahan

National Id:                                      10260460022

 

Capital

 

Currency:                                         Iranian Riyals

Nominal capital:                              7,868,405,600,000

 

 

Number of Shares: 7,868,405,600

Type of Shares:  None Selected

Issued Shares: -

Value per share:  1,000

 

 

Shareholders

 

Shareholders:

 

Shareholder Name

 

Share %

 

Sadre Tamein Investment Company

Iran

 

 

Tamein Ejtimaei Organization

Iran

 

Saba Tamein Investment Company

Iran

 

Tadbirgaran Atlas Investment Company

Iran

 

 

Hamoun Shomal Investment Company

Iran

 

 

Local Investors

 

 

                                     

Principals

 

Name:                                         Mr. Seyed Mohammad Reza Ayatoullahi

Position within the company:        Chairman

Country of Birth:                           Iran

Nationality:                                   Iranian

Can fluently speak:                       Farsi-English

 

 

Name:                                         Mr. Ardisher Saad Mohamadi

Position within the company:        Vice Chairman& Managing Director

Country of Birth:                           Iran

Nationality:                                   Iranian

Can fluently speak:                      Farsi- English

 

 

Name:                                            Mr. Mahmoud Islamian

Position within the company:        Member

Country of Birth:                            Iran

Nationality:                                     Iranian

Can fluently speak:                        Farsi, English

 

 

Name:                                            Mr. Mohammad Hasan Farajoullahi

Position within the company:        Member

Country of Birth:                            Iran

Nationality:                                     Iranian

Can fluently speak:                         Farsi, English

 

 

Name:                                            Mr. Mohammad Yaser Taeibneya

Position within the company:        Member

Country of Birth:                            Iran

Nationality:                                     Iranian

Can fluently speak:                        Farsi, English

 

 

Name:                                            Mr. Mansour Yazdizadeh

Position within the company:        Deputy Managing Director of Sales & Marketing

Country of Birth:                            Iran

Nationality:                                     Iranian

Can fluently speak:                        Farsi, English

 

 

Name:                                            Mr. Mohammad Por

Position within the company:        Director

Country of Birth:                            Iran

Nationality:                                     Iranian

Can fluently speak:                        Farsi, English

 

 

Name:                                            Mr. Barati

Position within the company:        Director

Country of Birth:                            Iran

Nationality:                                     Iranian

Can fluently speak:                         Farsi, English

 

Name:                                             Mr. Mahdin Sotoodeh

Position within the company:         Inspector engineer

Country of Birth:                             Iran

Nationality:                                      Iranian

Can fluently speak:                          Farsi, English

 

 

Name:                                             Mr. Majid Rezaei

Position within the company:         Public Relation Manager

Country of Birth:                             Iran

Nationality:                                      Iranian

Can fluently speak:                          Farsi, English

 

 

Name:                                            Mr. Ramezan Ghorban Ebrahimi

Position within the company:        Planing & Development Assistant

Country of Birth:                            Iran

Nationality:                                     Iranian

Can fluently speak:                         Farsi, English

 

Name:                                            Mr. Mohammad Reza Khosravi Rad

Position within the company:        Deputy of operating Manager

Country of Birth:                            Iran

Nationality:                                     Iranian

Can fluently speak:                         Farsi, English

 

 

Name:                                            Mr. Mohammad Reza Nejati

Position within the company:        Human Resources Assistant

Country of Birth:                            Iran

Nationality:                                     Iranian

Can fluently speak:                         Farsi, English

 

 

 

Name:                                            Mr. Majid Talaei

Position within the company:        Financial & Economic Assistant

Country of Birth:                            Iran

Nationality:                                     Iranian

Can fluently speak:                         Farsi, English

 

 

Name:                                           Mr. Hasan Ghaliyaei

Position within the company:       Purchasing Manager

Country of Birth:                           Iran

Nationality:                                    Iranian

Can fluently speak:                        Farsi, English

 

 

 

Name:                                            Mr. Mohammad Shahrabi-Farahani

Position within the company:        Member

Country of Birth:                            Iran

Nationality:                                    Iranian

Can fluently speak:                        Farsi, English

 

 

Name:                                            Mr. Hasan Pelarak

Position within the company:        Member

Country of Birth:                            Iran

Nationality:                                    Iranian

Can fluently speak:                       Farsi, English

 

 

Name:                                            Mr. Hasan Hasan Ghalyaei

Position within the company:        Member

Country of Birth:                            Iran

Nationality:                                     Iranian

Can fluently speak:                         Farsi, English

 

 

 

Activations

 

Manufacturer of constructional steel products such as beams, angles, round bars, and channels; steel making pig iron; and converter sludge

 

ISO 9001: 2008 and OHSAS 18001:2007

 

Local Reporters consider the investigated company to be Large in their field of concern

 

 

Operations

                

Company Employs:                850

 

 

     

 

Sales:                                      80% Nationally, 20% International

Sales to:                                  Group companies, General Public

                                                     

 

Sales Term:                              Cash, Bank Transfer, accept credit, Letter of credit

Vehicles:                                   60

 

 

HQ Premises

 

Operates Form:                      Owned: Offices, Warehouses, Refinery and Factory

                                                         

Location:                                   Central Business Area, Main Road

 

 

Branches:

No.187, Saadi Blvd, Esfahan, Iran

Tel: + 98 311 6240031-2,6242700, 6270220

Fax: + 98 311 6240033

sales&export@esfahansteel.com

 

Premised: Owned- Sale Office

 

Unite 509, Fifth Floor, Bandaranzali St, Taleghani Ave,

Tehran, Iran

Tel: 98 21 88383150-55

Fax: 98 21 88383149

 

 

Raw Materials & Enery Purchasing Manager

 

45 Km of  Zob Ahan Highway , Esfahan , Iran

Tel: +98 (0) 334257 5255

Fax: +98 (0) 334257 5249

 

 

Bankers

 

Bank Tejarat

Esfahan

Iran

 

Bank Melli

Esfahan

Iran

 

 

Financial

 

Solicitor:                                        

Auditors:                                         Auditing Corporate

 

 

Imports

 

Imports From:                                     Europe, Far East

Importing Terms:                                 Bank Transfer

Import % and type of product:            40% Raw Materials

 

 

Export

 

Export To:                                          Europe

Exporting Terms:                               Bank Transfer

Export% and type product:               20% Finished Goods

 

 

Related Companies

 

Affiliated:

Esfahan's Mobarakeh Steel Company

Mobarakeh Town

P. O. Box 84815-161

Esfahan, 11131-84881

Iran

 

Subsidiaries:

Taavouni Esfahan Steel Company

Esfahan Steel Club Company

 

 

Payment

        

Subject's payments reported to be:  NO COMPLAINTS

 

 

Interview & Reporter Comments

 

Reporter Comment Date:                 07/02/2014

 

Name/Title:                                       Mr. Ardisher Saad Mohamadi- Managing Director

 

Subject has confirmed the general details provided in the report.

 

Note:

Trade name of the subject is ESC, ESCO.

 

 

Reporter Comment:

 

In the interview conducted with Mr. Ardisher Saad Mohamadi- Managing Director ., he declined bank account numbers and financial details citing the grounds of company confidentiality.

 

 

 

Conclusions

 

Local Reputation:

The company being investigated is considered by local reporters to be a Normal Trade Risk

 

Local informants consider granting of credit to be a fair trade risk

Owner/Shareholders Comments:       Some of the owners / shareholders have an active participation in the running of the business.

 

 

Age of Business: Old business

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 62.31

UK Pound

1

Rs. 101.77

Euro

1

Rs. 84.68

 

 

INFORMATION DETAILS

 

Report Prepared by :

DPT

 

 

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.