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MIRA INFORM REPORT
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Report No. : |
494506 |
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Report Date : |
03.03.2018 |
IDENTIFICATION DETAILS
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Name : |
SHELL FISHERIES COMPANY WLL |
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Registered Office : |
Building No. 815, Road No. 228, Block No. 702, Salmabad, PO Box: 32006
& 10519, Issa Town |
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Country : |
Bahrain |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
03.12.2001 |
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Com. Reg. No.: |
47922-1 |
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Legal Form : |
With Limited Liability - WLL |
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Line of Business : |
Subject is engaged in the import, process, packaging and distribution
of sea food products |
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No. of Employees : |
75 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Satisfactory |
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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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Bahrain |
A2 |
A2 |
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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 |
BAHRAIN - ECONOMIC OVERVIEW
Low oil prices have generated a budget deficit of at least a $4 billion deficit in 2016, nearly 14% of GDP. Bahrain has few options for covering this deficit, with meager foreign assets and fewer oil resources compared to its GCC neighbors. In 2016 the three major US credit agencies downgraded Bahrain’s sovereign debt rating to “junk” status, citing persistently low oil prices and the government’s inability to more effectively cut spending. Nevertheless, Bahrain in 2017 was able to raise about $3 billion by issuing international debt.
Oil comprises 86% of Bahraini budget revenues, despite past efforts to diversify its economy and to build communication and transport facilities for multinational firms with business in the Gulf. As part of its diversification plans, Bahrain implemented a Free Trade Agreement (FTA) with the US in August 2006, the first FTA between the US and a Gulf state.
Other major economic activities are production of aluminum - Bahrain's second biggest export after oil - finance, and construction. Bahrain continues to seek new natural gas supplies as feedstock to support its expanding petrochemical and aluminum industries.
In 2011, Bahrain experienced economic setbacks as a result
of domestic unrest driven by the majority Shia population; however, the economy
recovered in 2012-15, partly as a result of improved tourism. In addition to
addressing its current fiscal woes, Bahraini authorities face the long-term
challenge of boosting Bahrain’s regional competitiveness — especially regarding
industry, finance, and tourism — and reconciling revenue constraints with
popular pressure to maintain generous state subsidies and a large public
sector. Since 2015, the government lifted subsidies on meat, diesel, kerosene, and
gasoline and announced new higher prices for electricity and water, although it
plans to roll these increases out more gradually than previous subsidy cuts.
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Source
: CIA |
SUMMARY
Company Name : SHELL FISHERIES COMPANY WLL
Country of Origin : Bahrain
Legal Form : With Limited Liability - WLL
Registration Date : 3rd December 2001
Commercial Registration Number : 47922-1
Chamber Membership Number : 10184
Issued Capital : BD 100,000
Paid up Capital : BD 100,000
Total Workforce : 75
Activities : Process, packaging and distribution of sea food products
Financial Condition : Fair
Payments : No Complaints
Operating Trend : Steady
Person Interviewed : Shaji Johnson, Commercial Manager
COMPANY
NAME
SHELL FISHERIES COMPANY WLL
ADDRESS
Registered & Physical
Address
Building : Building No.
815
Street : Road No.
228, Block No. 702
Area : Salmabad
PO Box :
32006 & 10519
Town : Issa Town
Country : Bahrain
Telephone : (973-17) 786110
Facsimile : (973-17)
786840
Email : info@shell-fisheries.com
/ sales@shell-fisheries.com
Premises
Subject operates from a medium sized suite of offices and a warehouse
and a factory that are rented and located in the Industrial Area of Issa Town.
KEY
PRINCIPALS
Name Nationality Position
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Sami Abdulrahman Mohamed Al Saif Bahraini Managing Director
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Mai Ibrahim
Mohamed Al Shukri Bahraini Director
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Sataya Nesan - General
Manager
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Ragu Nathan - Sales
Manager
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Mohamed Arif -
Financial Controller
·
Shaji Johnson - Commercial
Manager
LEGAL
FORM & OWNERS
Date of
Establishment : 3rd
December 2001
Legal Form : With Limited
Liability - WLL
Commercial Reg.
No. : 47922-1
Chamber Member No. : 10184
Issued Capital : BD 100,000
Paid up Capital : BD 100,000
Name of Shareholder (s) Percentage
·
Sami Abdulrahman Mohamed Al Saif 95%
·
Mai Ibrahim
Mohamed Al Shukri 5%
Notes to the legal Form
Under the Bahraini Commercial Companies Law a WLL may be formed by a minimum
of 2 and a maximum of 50 natural or legal persons, whose liability is limited
to their shares in the company’s capital. The WLL is the most common form of
company where 100 percent foreign ownership is permitted. The minimum amount of
paid-up capital required is BD 20,000. With Limited Liability (WLL) companies cannot issue public shares, negotiable warrants, or debentures. Banking
and insurance activities are also not allowed.
AFFILIATED COMPANIES
·
Shell Trading Co Ltd
Dammam
Saudi Arabia
OPERATIONS
Activities: Engaged in the import, process, packaging and distribution of sea food
products.
Import Countries: Europe, Vietnam, Taiwan and Myanmar
International
Suppliers:
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Namvet Corporation Vietnam
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Gallant Ocean Taiwan
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Cuu-Long Vietnam
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Emdess Myanmar
Export Countries: United States of
America, Japan, South Korea, China and Malaysia
Operating Trend: Steady
Subject has a workforce of 75 employees.
FINANCIAL
DATA
Financial highlights provided by local sources are given below:
Currency: Bahraini Dinar (BD)
Year Sales
Year Ending 31/12/16: BD
3,175,000
Year Ending 31/12/17: BD
3,330,000
Local sources consider subject’s financial condition to be Fair.
Note:
According to Bahraini Commercial Law, only Bahraini Shareholding
Companies BSC (Listed on the Bahraini Stock Market) are required to publish
their financial information. Financial information on other legal forms can
only be obtained from the companies / businesses directly
BANKERS
·
Habib Bank
Government Avenue
PO Box: 566
Manama
Tel: (973-17)
254889 / 273285
Fax: (973-17)
276685
PAYMENT
HISTORY
No complaints regarding subject’s payments have been reported.
SANCTION
LIST CHECKS
The subject and its shareholders have been checked in the following
sanctions list databases:
Sanctions list Results
United Nations Sanctions No
matches
Australian Sanctions No
matches
Bureau of Industry and Security (US) No
matches
EU Financial Sanctions No
matches
Office of the Superintendent of Financial
Institutions (Canada) No
matches
OFAC - Specially Designated Nationals (SDN) No
matches
UK Financial Sanctions (HMT) No
matches
US Consolidated Sanctions No matches
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 Shaji Johnson, Commercial Manager
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 company is considered to be a fair trade risk.
COUNTRY
OUTLOOK
Recent Developments
Cheap oil continues to test Bahrain’s
economic resilience. Bahrain maintained an expansionary fiscal stance since
2009 resulting in general government deficits. The situation worsened in 2015
with a decline in oil revenues by about 10 percent of GDP and a general fiscal
deficit estimated at 12.8 percent of GDP (from 3.4 percent in 2014). The
deficit spending helped maintain economic growth at 2.9 percent, but brought
reserves down to a low level at 2.6 months of imports and increased public debt
to 62 percent of GDP. Bahrain has introduced some initiatives for fiscal
consolidation. Revenue enhancing measures such as higher tobacco and alcohol
taxes and government services
fees were introduced over the past year. A
cost-cutting program entailed the raising of petrol prices by up to 60 percent
in January 2016(likely to create savings worth US$148.4 million), the gradual
phasing-in of price increases for electricity, water, diesel, and kerosene by
2019, an increase and unification of natural gas prices for industrial users,
and the removal of meat subsidies. Inflation has gradually picked up in 2016
mainly as a result of the subsidy reform: the headline CPI rose by 3 percent,
but it will remain subdued in 2017 as one-off measures affect the current year
only. 2016 outcomes demonstrate, however,
that the authorities’ emphasis on growth comes at the expense of fiscal
deterioration.
The Bahraini economy grew by an estimated 3.4
percent in 2016. While the hydrocarbon sector grew by an estimated 2 percent,
the non-hydrocarbon sectors grew by an average estimated rate of 3.7 percent, a
figure that reflects the continued emphasis on public investments, some of
which were funded by the GCC. The downside of this approach, however, has been
manifested in persistently high fiscal deficits, estimated at 12.6 percent of
GDP in 2016. A large portion of the 2016 deficit was covered by debt issuances,
despite the sovereign downgrade reflecting increasing pressures on government
finances. Bahrain issued a US$600 million bond just before the downgrade and
the authorities raised the public debt ceiling to BD 10 billion (around 80
percent of GDP) to enable additional borrowing. Bahrain’s external position
faces growing vulnerabilities. The current account surplus of the past 12 years
turned into a deficit in 2015, following the drop in oil prices and further
deteriorated in 2016 to 4.6 percent of GDP. Reserve adjustments reflect the
growing external imbalances. The exchange rate peg has come under significant
pressure: external imbalances were reflected in a decline in reserves to 2.6
months of imports in the same time
frame. The real effective exchange rate has
also appreciated by 17 percent since mid-2014, complicating adjustments to the
adverse terms of trade shock that Bahrain is facing.
Little comprehensive welfare analysis is
available due to restricted access to household survey data, limited capacity,
and the sensitivities involved. Among Bahraini nationals’, labour force
participation is low, and people work predominantly in the public sector, where
wages are high and productivity low. Immigrant workers constitute about a half
of the resident population and command much lower incomes. Key elements of the
social contract - public employment and subsidies - are becoming less
affordable in the context of subdued oil prices. Bahrain aims to gain from
upgrading its capacity for welfare measurement that would support the design of
policies aimed at mitigating the impact of the necessary adjustment. Results
from a new household survey in 2015 have not yet been published.
Outlook
Economic growth is expected to decline in the
forecast period. Real GDP growth projections have been revised downwards to 1.9
percent in 2017 and 2018, as continuing low oil prices depress private and
government consumption. Some infrastructure investments are also likely to be
put on hold. In the absence of significant upfront
fiscal adjustments, Bahrain will remain
vulnerable to fiscal risks. Average inflation is expected to decrease to 2.1
percent in 2017 reflecting the cooling off in economic activity and phasing out
of temporary price-boosting effects of subsidy reforms. The current account
deficit will partially narrow to 3.8 percent of GDP in 2017 and remain about
there for the years to come, with the exception of small adjustments.
International reserves are expected to follow a declining trend, and reach 1.5
months of imports in 2018. Public debt is projected to exceed 90 percent of GDP
in 2017, and reach about 100 percent in 2018.
Risks and Challenges
Ensuring fiscal sustainability while
preserving a healthy growth rate has become an important challenge in Bahrain.
Real GDP growth is expected to slow and fiscal and external balances are
expected to remain under pressure in 2017 due to oil prices remaining well
below fiscal break-even levels. Despite efforts to diversify and boost non-oil
fiscal revenues, hydrocarbons account for about 80 percent of government
revenues in Bahrain. In addition, subsidies still absorb more than 20 percent
of the fiscal budget. The fiscal break-even price for Bahrain was estimated at
US$110 per barrel in 2016, the highest amongst the GCC. Thus, Bahrain is
expected to continue to run significant general fiscal deficits in the forecast
period - 9.8 percent of GDP in 2017. Delays in implementing fiscal
consolidation or a
further decline in oil prices could trigger
additional sovereign rating downgrades making access to external financing
harder, and intensifying pressure on reserves and the peg. Fiscal solvency and
liquidity risks are high, and outcomes remain vulnerable to shocks to growth,
commodity prices, and interest rates.
Key Economic Indicators 2014 2015 2016* 2017* 2018* 2019*
Real GDP Growth (%)
4.4 2.9 3.4
1.9 1.9 2.3
Inflation Rate (%)
2.7 1.8 3.0
2.1 2.0 2.0
Current Account Balance (% of GDP)
4.6
-2.4 -4.6 -3.8 -3.5
3.5
Fiscal Balance (% of GDP) -3.4 -12.8 -12.6 -9.8 -8.9 -7.6
* forecast
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.23 |
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1 |
INR 89.71 |
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Euro |
1 |
INR 79.50 |
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BHD |
1 |
INR 172.96 |
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 : |
SYL |
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.