MIRA INFORM REPORT
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Report Date : |
10th May 2006 |
IDENTIFICATION DETAILS
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Name : |
GAFSONS INDUSTRIES LTD |
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Registered Office : |
Lot 1 & 2,
Area X, Plantation Houston, Georgetown, Guyana |
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Date of Incorporation : |
1973 |
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Legal Form : |
Limited Company |
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Line of Business : |
Engaged in the manufacturing of
essential building materials such as steel plates, steel rods, galvanized corrugated
sheets, galvanized wire, fencing materials, etc. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
RATING
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STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Company's Style
GAFSONS INDUSTRIES LTD
Trade Name
Same
Trading Address
Lot 1 & 2, Area X, Plantation Houston,
Town :
GEORGETOWN
Country :
GUYANA
Telephone : (592)225
6412 - 226 3666
Fax :
(592)227 8763/3703
BACKGROUND INFORMATION
& BUSINESS PROFILE
LEGAL DATA
-
Legal form : Limited Company
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Date established : 1973
CAPITAL : Registered
capital USD 100.000
Its controlling shareholder is the GAFSONS GROUP OF COMPANIES
MANAGEMENT :
President & C.E.O. Sataur GAFOOR
General Manager Mohammed ALI
TYPE OF BUSINESS : MFR.
MAIN BUSINESS LINE : BUILDING
MATERIALS
PRINCIPAL ACTIVITY : It is engaged in the manufacturing of essential
building materials such as steel plates,
steel rods, galvanized corrugated sheets, galvanized wire, fencing materials,
etc.
Its products are also exported with good success towards other Caribbean
and Central American countries.
·
Company Size : Moderate-size
·
Business trend :
Stable
·
Present situation : Operating normally
·
Outlook : Favourable
·
Organization : Average. No major problems observed.
·
Reputation : Long established and well-known company
of good reputation. An active company in its line. Good market position.
·
Management standard: The management consists of
well-known businessmen of good repute, and with years of experience is related
fields. Traditional methods of management with good forward planing, and well
defined corporate policy
SALES &
TRADING DETAILS
ü Annual Sales :
USD 12.000.000
ü Sales trend :
Stable
ü Selling
method : 100 % wholesale
ü Selling Term :
20 % cash and 80 % on a 30-day open acct.credit basis
ü Sales
Territory : National & International
ü Sales Seasonality : stable throughout the year
ü Distribution
channels & points of sale : Sales are direct to homebuilders and
developers, civil engineering, construction and contracting companies,
building-materials retailers, etc. ad it also bids for Gvernmental and
municipal contracts.
ü Sales branches : Nil
ü Overseas agencies,
branches or representative offices: no
ü Market share : It is considered to be of certain
importance within its market segment.
ü New products or
services: under study
ü Market situation : competitive
ü Advertising means : Press advertising, specialised
publications, etc.
Purchases : Domestic 10 % - Overseas : 90 %
Imports from : U.S.A., Germany, France, U.K., Italy,
Japan, P.R. China, etc.
Imports in USD : 4.000.000
Terms imports : L/C, CAD
terms, drafts over 90 to 120 days, etc.
STAFF :
240
BANKERS : Demerara Bank;
National Bank for Industry & Commerce;
Guyana Bank for Trade and Industry
ScotiaBank
INSURANCES : GTM
Insurance Company
TANGIBLE FIXED ASSETS,
INVESTMENTS, ETC.
PHYSICAL ASSET
HOLDINGS : Owner of premises at the captioned address where its offices and
plant are located
Physical inspection of premises:
·
Condition : modern
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Equipment & facilities : adequate
·
Location : subject's premises are located
in a sub-urban industrial section
·
Access ways : adequate
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Parking space : Yes
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Works under construction : No
·
Works under project : No
RELATED
COMPANIES/SHAREHOLDINGS : The Gafsons
Group of Companies includes also: - --- Barbados Steel Works Limited,
- Grenada Steel Works
Limited
- Jamaica Steel Works
Limited.
CREDIT STANDING
BANKING RECORD : Banks reported
properly managed checking accounts (local currency and USD), also foreign trade
operations, collections of bills of exchange, negotiation of LC's. and credit
lines in USD for imports until low 6 figures, with good experience reported to
date. Securities: Accts. receivable & inventories.
Good credit history information and
banker's opinion.
TRADE REFERENCES
SURVEY :
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Supplier |
Supplies |
Supplies |
Supplies |
Supplies |
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Known since |
Years |
Years |
Years |
Years |
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Latest Purchase Date |
Mar/2006 |
Mar/2006 |
Mar/2006 |
Mar/2006 |
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Latest Purchase Amount |
USD 8.320 |
USD 13.000 |
USD 15.512 |
USD 4.151 |
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Highest Purchase |
USD 10.530 |
USD 14.300 |
USD 18.115 |
USD 5.261 |
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Buying terms |
30-day O/A |
30-day O/A |
30-day O/A |
30-day O/A |
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Paying record |
PROMPT |
PROMPT |
PROMPT |
PROMPT |
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NSF checks |
NO |
NO |
NO |
NO |
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Delayed payments |
NO |
NO |
NO |
NO |
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Non-payments |
NO |
NO |
NO |
NO |
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Experience |
GOOD |
GOOD |
GOOD |
GOOD |
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Rating |
GOOD |
GOOD |
GOOD |
GOOD |
PAYMENT ANALYSIS
·
Type of suppliers : Mfrs., local trade & service
suppliers
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Payment patterns : Good bill-pay habits. Pays within
agreed terms
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Commercial morality : GOOD
- Commitments are respected
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Repayment capacity :
Moderate
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Negative facts check :
No defaults, delinquencies, legal suits, judgements, collection claims, protested
items, returned checks or other detrimental record or adverse references are
traced against the subject
FINAL OPINION
We are reporting upon a moderate-sized company which is considered to be
a successful business operation and a well organized company. It operates on a
good scale, enjoys an ample and well diversified clientele, and its products
are well accepted in the marketplace. Outside sources reported that the
financial condition of this company is considered normal. Moreover, it is also considered
to be well run by experienced staff, and its future outlook is estimated to be
favourable.
Same sources add that the company has been meeting its engagements
regularly, so no detrimental record is traced upon subject. Therefore, business
connections with this company are suitable, and moderate credits are
recommended.
CREDIT QUALITY ANALYSIS
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Risk profile :
Standard (Normal)-risk buyer
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Credit soundness :
Creditworthy
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Credit appraisal :
Recommended
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Potential credit limit :
USD 100.000
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Assessment :
This amount may be considered as an initial credit limit.
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Credit surveillance :
Subject to regular review & supervision
RATING EXPLANATIONS
RATING
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STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely
sound financial base with the strongest capability for timely payment of
interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate
working capital. No caution needed for credit transaction. It has above
average (strong) capability for payment of interest and principal sums |
Large |
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56-70 |
A |
Financial &
operational base are regarded healthy. General unfavourable factors will not
cause fatal effect. Satisfactory capability for payment of interest and
principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable &
favourable factors carry similar weight in credit consideration. Capability
to overcome financial difficulties seems comparatively below average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are
apparent. Repayment of interest and principal sums in default or expected to
be in default upon maturity |
Limited with full
security |
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<10 |
C |
Absolute credit risk
exists. Caution needed to be exercised |
Credit not recommended |