MIRA INFORM REPORT

 

 

Report No. :

504803

Report Date :

26.04.2018

 

 

IDENTIFICATION DETAILS

 

Name :

ZABLON TRADING PLC

 

 

Registered Office :

Bole Road Olympia, Getu Commercial centre. 7th Floor Office # 705-710, P. O. Box 3284, Nazareth

 

 

Country :

Ethiopia

 

 

Date of Incorporation :

15.02.2004

 

 

Com. Reg. No.:

285461

 

 

Legal Form :

Private Limited Corporation 

 

 

Line of Business :

Exporters of niger seeds, pulses, oilseeds, spices and other related food products, gemstones and import of automotives, trucks, pharmaceutical products and medicinal drugs.

 

 

No. of Employees :

110

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A

 

Credit Rating

Explanation

 

Rating Comments

A

Acceptable Risk

Business dealings permissible with moderate risk of default

 

 

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

 

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

Ethiopia

B2

B2

 

Risk Category

ECGC

Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

 

 

ETHIOPIA - ECONOMIC OVERVIEW

 

Ethiopia - the second most populous country in Africa - is a one-party state with a planned economy. For more than a decade before 2016, Ethiopia grew at a rate between 8% and 11% annually – one of the fastest growing states among the 188 IMF member countries. This growth was driven by government investment in infrastructure, as well as sustained progress in the agricultural and service sectors. More than 70% of Ethiopia’s population is still employed in the agricultural sector, but services have surpassed agriculture as the principal source of GDP.

Ethiopia has the lowest level of income-inequality in Africa and one of the lowest in the world, with a Gini coefficient comparable to that of the Scandinavian countries. Yet despite progress toward eliminating extreme poverty, Ethiopia remains one of the poorest countries in the world, due both to rapid population growth and a low starting base. Changes in rainfall associated with world-wide weather patterns resulted in the worst drought in 30 years in 2015-16, creating food insecurity for millions of Ethiopians.

The state is heavily engaged in the economy. Ongoing infrastructure projects include power production and distribution, roads, rails, airports and industrial parks. Key sectors are state-owned, including telecommunications, banking and insurance, and power distribution. Under Ethiopia's constitution, the state owns all land and provides long-term leases to tenants. Title rights in urban areas, particularly Addis Ababa, are poorly regulated, and subject to corruption.

Ethiopia’s foreign exchange earnings are led by the services sector - primarily the state-run Ethiopian Airlines - followed by exports of several commodities. While coffee remains the largest foreign exchange earner, Ethiopia is diversifying exports, and commodities such as gold, sesame, khat, livestock and horticulture products are becoming increasingly important. Manufacturing represented less than 8% of total exports in 2016, but manufacturing exports should increase in future years due to a growing international presence.

The banking, insurance, telecommunications, and micro-credit industries are restricted to domestic investors, but Ethiopia has attracted roughly $8.5 billion in foreign direct investment, mostly from China, Turkey, India and the EU; US FDI is $567 million. Investment has been primarily in infrastructure, construction, agriculture/horticulture, agricultural processing, textiles, leather and leather products.

In the fall of 2015, the government finalized and published the current 2016-20 five-year plan, known as the Growth and Transformation Plan II, which emphasizes developing manufacturing in sectors where Ethiopia has a comparative advantage, such as textiles and garments, leather goods, and processed agricultural products. To support industrialization, Ethiopia plans to increase installed power generation capacity by 8,320 MW, up from a capacity of 2,000 MW, by building three more major dams and expanding to other sources of renewable energy. In 2017, the government devalued the birr by 15% to increase exports and alleviate a chronic foreign currency shortage in the country.

 

Source : CIA

 

 

 

SUBJECT'S NAME

 

Registered Name:

ZABLON TRADING PLC

Requested Name:

ZABLON TRADING PLC

Other Names:

None

 

 

ADDRESS AND TELECOMMUNICATION

 

Physical Address:

Bole Road Olympia, Getu Commercial centre. 7th Floor Office # 705-710,

Factory Address:

House No. 1935 Kebele 05, Nazareth Industrial Zone Tractor Factory Road, Nazareth,

Postal Address:

P. o. Box 3284

 

Nazareth

Country:

Ethiopia

Phone:

251-221124040/86696528/-11-4167797/5585843/8

Cell:

251-911205793/911253781

Fax:

251-221100229/86696528/-11-4669965/5585849/

5585894

Email:

info@zablontrading.com/biniam.zablon@gmail.com

Website:

www.zablontrading.com

 

 

CREDIT OPINION

 

Financial Index as of December 2017 shows subject firm with a medium risk of credit. However, bank and credit information obtained reveal a history of prompt payments.

 

 

LEGAL

 

Legal Form:

Private Limited Corporation 

Date Incorporated:

15-Feb-2004

Reg. Number:

285461

Nominal Capital

ETB. 100,000

Subscribed Capital

ETB. 100,000

Subscribed Capital is Subscribed in the following form:

 

Position

Shares

Mr.  Biniam Bedewi

CEO

100%

Mr. M. Mohammed

Director

 

Ms. Selamawit Mekonen

Manager

 

 

 

RELATED COMPANIES

 

None

Parent company.

None

Subsidiary company.

None

Affiliated company.

Mr.  Biniam Bedewi

Shareholder of subject firm.

Debrezait Road, Garad Mall, 7th Floor Roam No. 603, Addis Ababa

Branches of the firm

 

 

OPERATIONS

 

Registered to operate as exporters of niger seeds, pulses, oilseeds, spices and other related food products, gemstones and import of automotives, trucks, pharmaceutical products and medicinal drugs

Imports:

Asia, Europe

Exports:

Europe, USA, China, Middle East

Trademarks:

None

Terms of sale:

Cash (60%) and 30 days (40%), invoices.

 

 

Main Customers:

Distributors, firms and organizations  

Employees:

110 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.)

Fiscal Year End:

December 31, 2017

Inflation:

According to information given by independent sources, the inflation at December 31st, 2017 was of 13%.

 

Financial Information not Submitted

 

 

 

Profit and Loss (expressed in ETB.)

 

 

2014

Sales

 

125,000,000

 

 

BANK

 

Bank Name:

Dashen Bank

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.

 

Subject underwent a capital increase.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 66.70

UK Pound

1

INR 93.14

Euro

1

INR 81.43

ETB

1

INR 2.42

Note: Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIT

 

 

 

RATING EXPLANATIONS

 

Credit Rating

 

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

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 are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

 

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.