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MIRA INFORM REPORT
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Report No. : |
491775 |
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Report Date : |
20.02.2018 |
IDENTIFICATION DETAILS
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Name : |
REMAN PHARMA TRADING |
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Registered Office : |
Royal Pharma Building Bagdad Street (Cross Alsteen Street)
PO Box 22345 Sana’a |
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Country : |
Yemen |
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Date of Incorporation : |
2016 |
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Com. Reg. No.: |
20120/2016 |
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Legal Form : |
General Partnership |
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Line of Business : |
Subject is engaged in the import and distribution of pharmaceuticals and medicines. |
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No. of Employees : |
12 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
B |
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Credit Rating |
Explanation |
Rating Comments |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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Status : |
Moderate |
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Payment Behaviour : |
No Complaints |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Yemen |
C2 |
C2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
YEMEN - ECONOMIC
OVERVIEW
Yemen is a low-income country that faces difficult long-term challenges to stabilizing and growing its economy, and the current conflict has only exacerbated those issues. The ongoing war has halted Yemen’s exports, pressured the currency’s exchange rate, accelerated inflation, severely limited food and fuel imports, and caused widespread damage to infrastructure. The conflict has also created a severe humanitarian crisis - the world’s largest cholera outbreak currently at nearly 1 million cases, more than 7 million people at risk of famine, and more than 80% of the population in need of humanitarian assistance.
Prior to the start of the conflict in 2014, Yemen was highly dependent on declining oil and gas resources for revenue. Oil and gas earnings accounted for roughly 25% of GDP and 65% of government revenue. The Yemeni Government regularly faced annual budget shortfalls and tried to diversify the Yemeni economy through a reform program designed to bolster non-oil sectors of the economy and foreign investment. In July 2014, the government continued reform efforts by eliminating some fuel subsidies and in August 2014, the IMF approved a three-year, $570 million Extended Credit Facility for Yemen.
However, the conflict that began in 2014 stalled these reform efforts and ongoing fighting continues to accelerate the country’s economic decline. In September 2016, President HADI announced the move of the main branch of Central Bank of Yemen from Sanaa to Aden where his government could exert greater control over the central bank’s dwindling resources. Regardless of which group controls the main branch, the central bank system is struggling to function. Yemen’s Central Bank’s foreign reserves, which stood at roughly $5.2 billion prior to the conflict, have declined to negligible amounts. The Central Bank can no longer fully support imports of critical goods or the country’s exchange rate. The country also is facing a growing liquidity crisis and rising inflation. The private sector is hemorrhaging, with almost all businesses making substantial layoffs. Access to food and other critical commodities such as medical equipment is limited across the country due to security issues on the ground. The Social Welfare Fund, a cash transfer program for Yemen’s neediest, is no longer operational and has not made any disbursements since late 2014.
Yemen will require significant international assistance during and after the protracted conflict to stabilize its economy. Long-term challenges include a high population growth rate, high unemployment, declining water resources, and severe food scarcity.
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Source
: CIA |
SUMMARY
Company Name : REMAN PHARMA TRADING
Country of Origin : Yemen
Legal Form : General Partnership
Registration Date : 2016
Commercial Registration Number : 20120/2016, Sana’a
Partners Capital : YR 20,000,000
Total Workforce : 12
Activities : Distributors of pharmaceuticals and medicines
Financial Condition : Undetermined
Payments : Nothing detrimental uncovered
Person Interviewed : Farooq Al Amir, Financial Controller
COMPANY
NAME
REMAN PHARMA TRADING
ADDRESS
Registered &
Physical Address
Building :
Royal Pharma Building
Street : Bagdad
Street (cross Alsteen Street)
PO Box :
22345
Town :
Sana’a
Country : Yemen
Telephone :
(967-1) 454999
Facsimile :
(967-1) 454997
Mobile :
(967-77) 7101733 / 1030989
Email : import@remantrading.com
Premises
Subject operates from a small suite of offices that are
rented and located in the Central Business Area of Sana’a.
KEY
PRINCIPALS
Name Position
·
Dr Talal Ahmed Nasser Al Sabari Managing
Partner
·
Abu Baker Ahmed Nasser Al Sabari Partner
· Farooq Al Amir Financial
Controller
· Ijlal Mohamed Administration
Executive
LEGAL
FORM & OWNERS
Date
of Establishment : 2016
Legal
Form : Sharikat
Tadhamun (General Partnership)
Commercial
Reg. No. : 20120/2016, Sana’a
Partners
Capital : YR 20,000,000
Name of Partners
·
Dr Talal Ahmed Nasser Al Sabari
· Abu Baker Ahmed Nasser Al
Sabari
OPERATIONS
Activities: Engaged in the import and distribution
of pharmaceuticals and medicines.
Import Countries: Europe and the Far East
Subject has a workforce of 12 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
· Central
Bank of Yemen
Sana’a Street
PO Box 3580
Hodeidah
Tel: (967-3) 200120
Fax: (967-3) 200114
PAYMENT
HISTORY
No complaints regarding subject’s payments have been
reported.
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GENERAL
COMMENTS
During the course of this investigation the following
sources were consulted:
- Internal database
- Journals,
directories, media & web searches
- Local Registry
office
- Interview with Farooq Al Amir, Financial Controller
Please note that the correct name of the subject is “Reman
Pharma Trading” and not “Reman Pharma”.
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.
COUNTRY
OUTLOOK
The
country’s economic and social fabric is crippling after one year of conflict. The economy has contracted sharply. Official reporting
suggests that the GDP contracted in 2015 by approximately 28 %. The escalating
conflict since March 2015 has led to widespread disruptions of economic
activities and infrastructure destruction. Since the second quarter of 2015,
oil and gas exports have come to a halt. Imports have also contracted, except
for critical food and energy products. Annual inflation reached around 30 % in
2015, and is expected to increase further as the fiscal performance is
continuously weakening.
Public
finances are under severe stress. The fiscal
deficit widened to 11.4 % of GDP in 2015 from about 5 % of GDP in 2014. Foreign
financing of the budget has largely come to a halt, as many development
partners suspended their engagement. Where possible, partners moved to emergency
and relief operations. Non-hydrocarbon tax collection declined by about 25 %
compared to 2014. The government had to delay or suspend many public
expenditure obligations while servicing wage and interest payment obligations.
All premiums on wages were cut. Public investment has come to a complete stop.
The
escalated conflict has complicated the management of monetary and exchange rate
policy. The 2015 loss in foreign financing
and especially in oil and gas exports led to increased pressures on Central
Bank of Yemen (CBY) foreign exchange reserves, limiting gradually its space to
finance imports while maintaining a stable exchange rate. International
reserves declined to less than $2 billion in late 2015 (2 months of imports).
Consequently, the CBY stopped in February 2016 supporting imports at the
official exchange rate except for wheat and rice. Meanwhile, the government’s
reliance on central bank financing of the fiscal deficit has increased domestic
debt stock by about 18 % of GDP, to an estimated 53 % of GDP.
Social
indicators were already poor before the 2015 crisis. Yemen has the highest poverty
incidence in the Middle East, with about 37.3 % of the population living below
the poverty line of $2 (2005 PPP) a day per person, and poverty is more widespread
and persistent in rural areas. Yemen also has one of the highest malnutrition
rates in the world, with almost 60 % of children under the age of five having
chronic malnutrition, 35 % underweight, and 13 % having acute malnutrition in
2012.
An alarming
humanitarian crisis is unfolding in the face of conflict and war. The civilian death toll is estimated to have
exceeded 6000, with about 28,500 wounded. As of end 2015, 2.5 million people
were estimated to be internally displaced in Yemen. As in any conflict, the
poor are suffering the most: 21.2 million Yemenis or roughly 82 % of the
population are in need of emergency humanitarian assistance; 14.4 million
Yemenis are facing chronic food insecurity, which has increased by 35 % since
the conflict began; and 19.3 million Yemenis are without safe drinking water or
sanitation. According to UN-OCHA, this has led to a sharp increase in
malnutrition and disease burden as forced reliance on water from unprotected
sources make people, particularly the young, vulnerable to diarrhea and
cholera.
Economic
and social prospects in 2016 and beyond will depend critically on rapid
improvements on the political and security fronts to be able to rebuild the
economy. Providing relief and basic
humanitarian assistance is needed to the many suffering from the conflict in
the short-term. Even in a post-conflict period, the country will depend more
than ever on foreign assistance and donor support to recover from this conflict
and rebuild confidence, including in its institutions. Restoring peace and
political stability is critical for beginning reconstruction and addressing the
country’s deep-rooted governance, institutional, economic, social, and
environmental challenges.
The conflict in Yemen has caused a dramatic deterioration of
the economic and social conditions in the country. Output contracted sharply,
driving household incomes downward. Important institutions like the Central
Bank became dysfunctional in late 2016. Yemenis are facing a catastrophic
humanitarian situation, massive displacement, and destruction of vital
infrastructure. The UN recently launched a humanitarian appeal (US$2.1 billion)
for helping the 8 million Yemenis suffering from rising food insecurity.
Official statistical reporting on
Yemen is no longer available. However, the data gathered suggests that Yemen’s
GDP contracted since 2015 by about 40%, cumulatively. Economic
and social prospects in 2017 and beyond will depend critically on rapid
improvements on the political and security fronts, and ultimately whether an
end to the on-going conflict will allow for re-building the economy, the
productive sphere, and Yemen’s social fabric. If peace is restored by mid-2017,
the fiscal deficit is estimated to be halved, to 6% of GDP. Foreign financing
can resume in the second half of the year (with emergency assistance estimated
to reach 4% of GDP). At the same time, tax collection can pick up with the
resumption of hydrocarbon production, with hydrocarbon tax revenues recovering
to about 6% of GDP, of which two-thirds would be due to increased domestic
energy consumption. Non-hydrocarbon tax revenues are estimated to reach about
8% of GDP in such a scenario.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 63.91 |
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1 |
INR 90.31 |
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Euro |
1 |
INR 80.17 |
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YER |
1 |
INR 0.26 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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NIS |
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Report Prepared
by : |
TRU |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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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)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.