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MIRA INFORM REPORT
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Report No. : |
494368 |
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Report Date : |
05.03.2018 |
IDENTIFICATION DETAILS
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Name : |
DEGOLO COMMERCIAL PRIVATE LTD COMPANY |
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Registered Office : |
Arada
Sub City Kebele 09 Woreda 04 House No. 601, P. o. Box 182691 Addis Ababa |
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Country : |
Ethiopia |
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Date of Incorporation : |
11.09.2009 |
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Com. Reg. No.: |
MT/AA/2/00054221/2009 |
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Legal Form : |
Private Limited
Corporation |
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Line of Business : |
Subject operate as exporters
of pulses, oilseeds, spices and other related products and also import and
distribution of hardware, electricals |
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No. of Employees : |
120 employees. |
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 : |
Slow but Correct |
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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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Ethiopia |
B2 |
B2 |
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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 |
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.
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Source
: CIA |
SUBJECT'S
NAME
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Registered Name: |
DEGOLO
COMMERCIAL PRIVATE LTD COMPANY |
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Requested Name: |
DEGOLO COMMERCIAL PLC |
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Other Names: |
DEGOLO COMMERCIAL PLC |
ADDRESS AND
TELECOMMUNICATION
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Physical Address: |
Arada Sub City Kebele 09 Woreda 04 House No. 601, |
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Postal Address: |
P. o. Box 182691 |
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Addis Ababa, |
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Country: |
Ethiopia |
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Phone: |
251-11-1578729 |
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Cell: |
251-911224049 |
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Fax: |
251-11-1551511 |
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Email: |
zeratemp@ethionet.et/ zerihunatnaf@yahoo.com |
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Website: |
www.degolocommercial.com |
CREDIT
OPINION
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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
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Legal Form: |
Private Limited
Corporation |
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Date Incorporated: |
11-Sept-2009 |
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Reg. Number: |
MT/AA/2/00054221/2009 |
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Nominal Capital |
ETB. 20,000,000 |
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Subscribed Capital |
ETB. 20,000,000 |
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Subscribed Capital is Subscribed in
the following form: |
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Position |
Shares |
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Gulabchand K. Sheth |
MD |
50% |
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Kamal G. Sheth |
Director |
50% |
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Zerihun Atnaf |
GM |
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Dagnachew Assefa |
Manager |
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G.Hailu |
Manager |
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Joefrelin Ines |
Manager |
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RELATED
COMPANIES
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None |
Parent company. |
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None |
Subsidiary company. |
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None |
Affiliated
company. |
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Gulabchand K.
Sheth Kamal G. Sheth |
Shareholders of
subject firm. |
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None |
Branches of the
firm |
OPERATIONS
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Registered to
operate as exporters of pulses, oilseeds, spices and other related products and
also import and distribution of hardware, electricals |
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Imports: |
Asia |
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Exports: |
Europe, Asia |
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Trademarks: |
None |
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Terms of sale: |
Cash (60%) and 25-90 days (40%), invoices. |
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Main Customers: |
Distributors, firms and organizations |
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Employees: |
120 employees. |
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Vehicles: |
Several motor vehicles. |
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Territory of sales: |
Ethiopia |
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Location: |
Leased premises, 20,000 square feet, |
AUDITORS AND INSURANCE
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Auditors: |
Information not
available. |
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Insurance Brokers: |
Information not
available. |
FINANCE
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Currency Reported: |
Ethiopian Birr (ETB.) |
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Fiscal Year End: |
December 31, 2017 |
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Inflation: |
According to information given by independent
sources, the inflation at December 31st, 2017 was of 13%. |
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Financial
Information not Submitted |
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Profit and Loss
(expressed in ETB.) |
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2017 |
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Sales |
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155,000,000 |
BANK
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Bank Name: |
Bank of Abyssinia |
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Branch: |
Ethiopia |
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Comments: |
Other Banks |
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COMMERCIAL BANK OF
ETHIOPIA |
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DASHEN BANK |
TRADE REFERENCES
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Experiences: |
Good |
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NOTARIAL BONDS |
None |
COMMENTS /
ADDITIONAL INFORMATION
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This information
was obtained from outside sources other than the subject company itself and confirmed
the above subject. |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.22 |
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1 |
INR 89.71 |
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Euro |
1 |
INR 79.50 |
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ETB |
1 |
INR 2.37 |
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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PRI |
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Report Prepared
by : |
SDA |
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.