MIRA INFORM REPORT

Report No. :	499030
Report Date :	29.03.2018

IDENTIFICATION DETAILS

Name :	SHEBA LEATHER INDUSTRY PLC
Registered Office :	Wukro, 45 Kms Makelle, Tigray Addis Ababa, P. O. Box 18313, Addis Ababa
Country :	Ethiopia
Financials (as on) :	2017
Date of Incorporation :	05.02.1993
Com. Reg. No.:	045458/93
Legal Form :	Private Limited Corporation
Line of Business :	Manufacturers of leather bags, gloves, coats and other items
No. of Employees :	40

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd 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:	SHEBA LEATHER INDUSTRY PLC
Requested Name:	SHEBA LEATHER INDUSTRY PLC
Other Names:	None
ADDRESS AND TELECOMMUNICATION
Physical Address:	Wukro, 45 Kms Makelle, Tigray Addis Ababa
Postal Address:	P. o. Box 18313
	Addis Ababa,
Country:	Ethiopia
Phone:	251-11-5513335/344415019/5051/5083/5050
Cell:	251-914301119/914313980/913116354/914313990
Fax:	251-344408423/-11-5513432
Email:	info@shebaleatherindustry.com/gm@shebaleather.com/ dgm.operation@shebaleather.com /dgm.service@shebaleather.com
Website:	www.shebaleather.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:		05-Feb-1993
Reg. Number:		045458/93
Nominal Capital		ETB. 20,000,000
Subscribed Capital		ETB. 20,000,000
Subscribed Capital is Subscribed in the following form:
		Position		Shares
Mrs. Azeb Mesfin		CEO
Mr. Yohannes Kasahun		GM
Mr. Tesfit Feshaye Ambaye		Deputy GM
Mr. G/Michael Aregawi		Manager
Mr. Rezene Alemayehu		Manager
Mr. Tesfit Fessehaye		Manager
Endowment Fund for the Rehabilitation of Tigray (EFFORT)		Shareholder		100%
RELATED COMPANIES
Endowment Fund for the Rehabilitation of Tigray (EFFORT)		Parent company.
None		Subsidiary company.
Listeb Below		Affiliated companies.
None		Shareholder of subject firm.
Addis Ababa, Ethiopia		Branches of the firm
OPERATIONS
Registered to operate as Manufacturers of leather bags, gloves, coats and other items
Imports:		Middle East
Exports:		None
Trademarks:		None
Terms of sale:		Cash (50%) and 25-90 days (50%), invoices.
Main Customers:		Distributors, firms and organizations
Employees:		40 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.)
			2017
Sales			245,500,000
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.
AFFILIATED COMPANIES
MESSEBO BUILDING MATERIALS PRODUCTION P.L.C.
GUNA TRADING HOUSE P.L.C.
WEGAGEN BANK
MESFIN INDUSTRIAL ENGINEERING (MIE)
SABA DIMENSIONAL STONES P.L.C.
EZANA MINING DEVELOPMENT P.L.C. (EMD)
AFRICA INSURANCE COMPANY
ALMEDA TEXTILE P.L.C.
TRANS ETHIOPIA P.L.C.
SUR CONSTRUCTION P.L.C
HIWOT AGRICULTURAL MECHANIZATION
ADDIS PHARMACEUTICALS FACTORY
ABERGELLE INTERNATIONAL LIVESTOCK DEVELOPMENT PLC
BERUH TESFA IRRIGATION AND WATER TECHNOLOGY PLC

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 65.04
UK Pound	1	INR 92.28
Euro	1	INR 80.62
ETB	1	INR 2.36

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

INFORMATION DETAILS

Analysis Done by :	NIS
Report Prepared by :	SYL

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)

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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.