MIRA INFORM REPORT

Report No. :	333513
Report Date :	31.07.2015

IDENTIFICATION DETAILS

Name :	AJAY PIPES PLC
Registered Office :	Sub City Bole Kebele 03/05 House No. 2440, Addis Ababa
Country :	Ethiopia
Date of Incorporation :	10.06.1980
Legal Form :	Limited Corporation
Line of Business :	Subject operate as dealers in pipes and piping products
No. of Employees :	30

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:

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ECGC Country Risk Classification List – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
Ethiopia	B2	B2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

ETHIOPIA - ECONOMIC OVERVIEW

Ethiopia's economy is based on agriculture, but the government is pushing to diversify into manufacturing, textiles, and energy generation. Coffee is a major export crop. The agricultural sector suffers from poor cultivation practices and frequent drought, but recent joint efforts by the Government of Ethiopia and donors have strengthened Ethiopia's agricultural resilience, contributing to a reduction in the number of Ethiopians threatened with starvation. The banking, insurance, telecommunications, and micro-credit industries are restricted to domestic investors, but Ethiopia has attracted significant foreign investment in textiles, leather, commercial agriculture and manufacturing. Under Ethiopia's constitution, the state owns all land and provides long-term leases to the tenants; land use certificates are now being issued in some areas so that tenants have more recognizable rights to continued occupancy and hence make more concerted efforts to improve their leaseholds. While GDP growth has remained high, per capita income is among the lowest in the world. Ethiopia's economy continues on its state-led Growth and Transformation Plan and is scheduled to issue another development plan in 2015. Ethiopia has achieved high single-digit growth rates through government-led infrastructure expansion and commercial agriculture development. Ethiopia in late 2014 issued its first sovereign bond, generating $1 billion in revenue for a 10 year note.

Source : CIA

Company Name
Registered Name:	AJAY PIPES PLC
Requested Name:	AJAY PIPES PLC
Other Names:	AJAY PIPES PRIVATE LIMITED COMPANY
ADDRESS AND TELECOMMUNICATION
Physical Address:	Sub City Bole Kebele 03/05 House No. 2440,
	Addis Ababa
Country:	Ethiopia
Phone:	251-11-6639615
Fax:	251-11-6639615
Email:	ajaypump@ajaycorp.com
Website:	www.ajayind.in
CREDIT OPINION
Financial Index as of December 2014 shows subject firm with a medium risk of credit.
LEGAL
Legal Form:		Limited Corporation
Date Incorporated:		10-June-1980
Reg. Number:		Ethiopia
Nominal Capital		ETB. 1,000,000
Subscribed Capital		ETB. 1,000,000
Subscribed Capital is Subscribed in the following form:
		Position		Shares
Mr. Devendra C. Jain		Director
Mr. Sharat C. Jain		Director
Mr. Ajay Kumar Jain		Director
Mr. Rajeev Jain		Director
Mr. Akhil Jain		Director
Ajay Industrial Corporation Ltd. India		Holding Co.		100%
RELATED COMPANIES
Ajay Industrial Corporation Ltd. India		Parent company.
None		Subsidiary company.
Ajay Industrial Corporation (Z) Limited		Affiliated company.
None		Shareholder of subject firm.
None		Branches of the firm
OPERATIONS
Registered to operate as dealers in pipes and piping products
Imports:		Asia
Exports:		None
Trademarks:		None
Terms of sale:		Cash (40%) and 25-90 days (60%), invoices.
Main Customers:		Industries, firms and organizations
Employees:		30 employees.
Vehicles:		Several motor vehicles.
Territory of sales:		Ethiopia
Location:		Leased premises, 10,000 square feet,
AUDITORS AND INSURANCE
Auditors:		Information not available.
Insurance Brokers:		Information not available.
FINANCE
Currency Reported:		Ethiopian Birr (ETB.)
Approx. Ex. Rate:		1 US Dollar = 20.75 Ethiopian Birr
Fiscal Year End:		December 31, 2014
Inflation:		According to information given by independent sources, the inflation at December 31st, 2014 was of 13%.
Financial Information not Submitted
Profit and Loss (expressed in ETB.)
			2014
Sales			45,200,000
BANK
Bank Name:		Bank of Abyssinia
Branch:		Ethiopia
Comments:		None
TRADE REFERENCES
Experiences:		Good
NOTARIAL BONDS None
COMMENTS/ADDITIONAL INFORMATION
This information was obtained from outside sources other than the subject company itself and confirmed the above subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.64.00
UK Pound	1	Rs.99.83
Euro	1	Rs.70.07

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	TPT

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.