MIRA INFORM REPORT

 

 

Report No. :

333205

Report Date :

24.07.2015

 

IDENTIFICATION DETAILS

 

Name :

BAB SANA FOR IMPORT AND TRADING

 

 

Registered Office :

Swaid Building, Zubairy Street, P O Box: 1119, Sana’a

 

 

Country :

Yemen

 

 

Date of Incorporation :

12.05.2010

 

 

Legal Form :

Sole Proprietorship

 

 

Line of Business :

Import and Distribution of Readymade Garments and Textiles.

 

 

No. of Employees :

8

 

 

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 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Yemen

C2

C2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

YEMEN - ECONOMIC OVERVIEW

 

Yemen is a low income country that is highly dependent on declining oil resources for revenue. Oil and gas revenues account for roughly 25% of GDP and 65% of government revenue. Yemen has tried to counter the effects of its declining oil resources and continuing attacks on its oil pipelines by diversifying its economy through an economic reform program initiated in 2006 that is designed to bolster non-oil sectors of the economy and foreign investment. In October 2009, Yemen exported its first liquefied natural gas as part of this diversification effort. In January 2010, the international community established the Friends of Yemen group that aims to support Yemen's efforts toward economic and political reform. In 2012, the Friends of Yemen pledged nearly $7 billion in assistance to Yemen. The Yemeni Government also endorsed a Mutual Accountability Framework to facilitate the efficient implementation of donor aid. The unrest that began in early 2011 caused GDP to plunge almost 11% in that year. Availability of basic services, including electricity, water, and fuel, has improved since the transition, but progress toward achieving more sustainable economic stability has been slow and uneven. Yemen continues to face difficult long-term challenges, including declining water resources, high unemployment, severe food scarcity, and a high population growth rate. The Yemeni Government regularly faces annual budget shortfalls. In July 2014, the government eliminated some fuel subsidies that accounted for approximately 25% of government spending in 2013; and in August 2014, the IMF approved a three-year, $570 million Extended Credit Facility for Yemen. Declining security continues to hinder economic growth and the provision of government services.

 

Source : CIA

 

 

SUMMARY

 

Company Name                                    : BAB SANA FOR IMPORT AND TRADING

Country of Origin                                   : Yemen

Legal Form                                           : Sole Proprietorship

Registration Date                                  : 12th May 2010

Invested Capital                                    : YR 50,000

Total Workforce                                    : 8

Activities                                               : Distributors of readymade garments and textiles.

Financial Condition                                : Undetermined

Payments                                             : Nothing detrimental uncovered

Person Interviewed                                : Mohamed Lotfy Swaid, Proprietor & General Manager

 

 


COMPANY NAME

 

BAB SANA FOR IMPORT AND TRADING

 

 

ADDRESS

 

Registered & Physical Address

 

Building            : Swaid Building

Street               : Zubairy Street

 

PO Box            : 1119

 

Town                : Sana’a

Country             : Yemen

 

Telephone         : (967-1) 214155 / 214153 / 537676 / 537474

Facsimile          : (967-1) 537575

Mobile              : (967-777) 465900 / 911784 / (967-735) 112222

Email                : babsana@gmail.com / omar.swaid@swaidexchange.com

 

Premises

 

Subject operates from a small suite of offices that are owned and located in the Central Business Area of Sana’a.

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Mohamed Lotfy Swaid                                                                      Proprietor & General Manager

·       Omar Lotfy Swaid                                                                             Assistant General Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 12th May 2010

 

Legal Form                  : Sole Proprietorship

 

Invested Capital           : YR 50,000

 

Mr Mohamed Lotfy Swaid is the sole proprietor of the business.

 

 

AFFILIATED COMPANIES

 

·       Swaid and Sons Exchange Co

Zubairy Street

Sana’a

Tel: (967-1) 214255

 

 

OPERATIONS

 

Activities: Engaged in the import and distribution of readymade garments and textiles.

 

Import Countries: Europe and the Far East.

 

Subject has a workforce of 8 employees.

 

 

FINANCIAL DATA

 

Companies registered in Yemen are not legally required to make their accounts public and no financial information was released by the company or submitted by outside sources.

 

 

BANKERS

 

·       International Bank of Yemen (IBY)

Zubairy Street

     PO Box: 4444

     Sana’a

     Tel: (967-1) 407154

       Fax: (967-1) 407155

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

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.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.71

UK Pound

1

Rs.99.57

Euro

1

Rs.69.63

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

NIT

 

 

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.