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MIRA INFORM REPORT
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Report No. : |
508698 |
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Report Date : |
15.05.2018 |
IDENTIFICATION DETAILS
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Name : |
TEXTRADE CO |
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Registered Office : |
Kattan Building, Sadat Street, Hamra, PO Box 3234, Beirut |
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Country : |
Lebanon |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
30.11.1988 |
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Com. Reg. No.: |
55143 |
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Legal Form : |
Simple Partnership |
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Line of Business : |
Subject is engaged in the wholesale and retail of textiles. |
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No. of Employees : |
8 |
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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Lebanon |
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 |
LEBANON - ECONOMIC OVERVIEW
Lebanon has a free-market economy and a strong laissez-faire commercial
tradition. The government does not restrict foreign investment; however, the
investment climate suffers from red tape, corruption, arbitrary licensing
decisions, complex customs procedures, high taxes, tariffs, and fees, archaic
legislation, and inadequate intellectual property rights protection. The
Lebanese economy is service-oriented; main growth sectors include banking and
tourism.
The 1975-90 civil war seriously damaged Lebanon's economic
infrastructure, cut national output by half, and derailed Lebanon's position as
a Middle Eastern banking hub. Following the civil war, Lebanon rebuilt much of
its war-torn physical and financial infrastructure by borrowing heavily, mostly
from domestic banks, which saddled the government with a huge debt burden.
Pledges of economic and financial reforms made at separate international donor
conferences during the 2000s have mostly gone unfulfilled, including those made
during the Paris III Donor Conference in 2007, following the July 2006 war. The
"CEDRE" investment event hosted by France in April 2018 again rallied
the international community to assist Lebanon with concessional financing and
some grants for capital infrastructure improvements, conditioned upon
long-delayed structural economic reforms in fiscal management, electricity
tariffs, and transparent public procurement, among many others.
The Syria conflict cut off one of Lebanon's major markets and a
transport corridor through the Levant. The influx of nearly one million
registered and an estimated 300,000 unregistered Syrian refugees has increased
social tensions and heightened competition for low-skill jobs and public
services. Lebanon continues to face several long-term structural weaknesses
that predate the Syria crisis, notably, weak infrastructure, poor service
delivery, institutionalized corruption, and bureaucratic over-regulation.
Chronic fiscal deficits have increased Lebanon’s debt-to-GDP ratio, the third
highest in the world; most of the debt is held internally by Lebanese banks.
These factors combined to slow economic growth to the 1-2% range in 2011-17,
after four years of averaging 8% growth. Weak economic growth limits tax revenues,
while the largest government expenditures remain debt servicing, salaries for
government workers, and transfers to the electricity sector. These limitations
constrain other government spending, limiting its ability to invest in
necessary infrastructure improvements, such as water, electricity, and
transportation. In early 2018, the Lebanese government signed long-awaited
contract agreements with an international consortium for petroleum exploration
and production as part of the country’s first offshore licensing round.
Exploration is expected to begin in 2019.
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Source
: CIA |
SUMMARY
Company Name :
TEXTRADE CO
Country of Origin :
Lebanon
Legal Form :
Simple Partnership
Registration Date :
30th November 1988
Commercial Registration Number :
55143
Partners Capital :
LP 750,000
Total Workforce :
8
Activities :
Wholesalers and retailers of textiles
Financial Condition :
Fair
Payments :
No Complaints
Operating Trend :
Steady
COMPANY
NAME
TEXTRADE CO
ADDRESS
Registered &
Physical Address
Building :
Kattan Building
Street : Sadat Street
Area : Hamra
PO Box :
3234
Town : Beirut
Country : Lebanon
Telephone : (961-1) 805954
/ 786226
Facsimile : (961-1) 786976
Mobile : (961-3)
044430
Premises
Subject operates from a small suite of offices and a showroom that are
rented and located in the Central Business Area of Beirut
KEY
PRINCIPALS
Name Position
Lotfi Tasbhaji Managing
Partner
Nael Lotfi Tasbhaji Partner
Samer Yahya Sales
Manager
LEGAL
FORM & OWNERS
Date of Establishment : 30th
November 1988
Legal Form : Simple Partnership
Commercial Reg. No. : 55143
Partners Capital : LP 750,000
Name of Partner (s)
Lotfi Tasbhaji
Nael Lotfi Tasbhaji
OPERATIONS
Activities: Engaged in the wholesale and retail of textiles.
Import Countries: Europe and the Far East
Operating Trend: Steady
Subject has a workforce of 8 employees.
FINANCIAL
DATA
Financial
highlights provided by local sources are given below:
Currency: Lebanese
Pounds (LP)
Year
Ending 31/12/16: Year Ending
31/12/17:
Total Sales LP
4,220,000,000 LP
4,285,000,000
Local sources consider subject’s financial condition to be Fair.
The above financial figures are based on estimations by our local
sources.
BANKERS
ABN AMRO Bank
PO Box: 1135162
Beirut
Tel: (961-1) 410351
Fax: (961-1) 404490
PAYMENT
HISTORY
No complaints regarding subject’s payments have been reported.
GENERAL
COMMENTS
The subject and its shareholders/owners have been searched in the
following databases; Office of Foreign Assets Control (OFAC), United Nations
Security Council Sanctions, Australian Sanctions List, US Consolidated
Sanctions List, EU Financial Sanctions List and UK Financial Sanctions List and
nothing adverse could be found on the exact names listed within the report.
Local sources report that the subject’s operating history is clear with
payment obligations met in a generally timely manner. The financial position is
satisfactory and the business is deemed a fair trade risk.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 67.32 |
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1 |
INR 91.25 |
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Euro |
1 |
INR 80.50 |
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LBP |
1 |
INR 0.045 |
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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DIV |
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Report Prepared
by : |
TPT |
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.