MIRA INFORM REPORT

 

 

Report Date :

8th March, 2007

                                                         

IDENTIFICATION DETAILS

 

Name :

SAMLO – KOYENCO STEEL CO. LTD (SKS)

 

 

Registered Office :

41, Queen Street, Port Louis

 

 

Country :

Mauritius

 

 

Financials (as on) :

30.06.2005

 

 

Date of Incorporation :

09.03.2000

 

 

Com. Reg. No.:

24041

 

 

Legal Form :

Private

 

 

Line of Business :

Manufacturer and distributor of steel bars for construction.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

NAME OF COMPANY

 

SAMLO – KOYENCO STEEL CO. LTD (SKS)

                            

 

ADDRESS                            

 

41, QUEEN STREET, PORT LOUIS

 

TEL      :  (230) 242-8586

FAX      : (230) 242-3516

Email    : samlosteel@intnet.mu

 

 

INCORPORATED

 

09.03.00

 

 

STATUS

 

Private

 

 

CO. NO.

 

24041

 

 

DIRECTORS

 

Mr. Rajah GOWRESSOO

Mr. Appanah GOWRESSOO

 

 

SHAREHOLDERS                   SHARES

 

Mr. Mahendra GOWRESSOO                                                     225,450

Mr. Rajah GOWRESSOO                                                           175,350

Mr. Appanah GOWRESSOO                                                            250

 

 

ISSUED CAPITAL

 

RS 40,105,000

 

 

ACTIVITES

 

Manufacturer and distributor of steel bars for construction.

 

 

SIZE

 

Company’s offices and factory are based at La Pipe, Midlands.

 

 

IMPORTS

 

India and South Africa.

 

 

EMPLOYMENT

 

75 – 100

 

 

FINANCE

 

 (2005)

2006 Accounts have not yet been filed with the ROC.

Turnover:           MUR 139.5m

Profit:                MUR 9.3m

EPS:                MUR 18,796

 

 

BUSINESS ANTECEDANT

 

SKS was set up in 2000 to supply the local construction industry. Company specialises in the manufacturing of steel bars, rods etc. Subject buys scrap metals locally, which are being converted into iron bars in its foundry at La Pipe. Subject has recently invested MUR 80m in new equipment which will help to raise the monthly production of 1,000 tons to 3,000 tons of iron bars.

 

 

RELEATED CONCERNS

 

 

 

BRAND NAME

 

 

PROSPECTS

 

The company holds around 20% of market share. Consumption amounts to approximately 55 000 tons annually. The retail price of iron bars is subject to Government control. The last price increase occurred in December last year. The construction sector is expected to grow in 2007 with the implementation of large scale projects such as the Integrated Resort Scheme (IRS).

 

 

OBSERVATION

 

The company has been performing quite satisfactorily during the period ending 30th June 2005. Turnover increased by 170% to reach MUR 139.5m and profit before tax reached MUR 10.1m as compared to a deficit of MUR 0.63m in 2004.

 

 

CREDITWORTHINESS

 

Buyer is trustworthy for normal business engagement.

 

 

BANKERS

 

State Bank of Mauritius Ltd

The Mauritius Commercial Bank Ltd

The Mauritius Post & Co-Operative Bank Ltd

 

INCOME STATEMENT

 

FOR THE YEAR ENDED 30 JUNE 2005

 

 

RS

Turnover

139,515,669

Cost of sales

(118,420,362)

 

----------------------------

Gross Profit

21,095,307

Administrative expenses

(6,839,412)

 

----------------------------

Profit from operations

14,255,895

Preliminary expenses written off

-

Net finance costs

(4,089,573)

Other operating income

-

 

----------------------------

Profit/ (Loss) before taxation

10,166,322

Taxation

(768,343)

 

-----------------------------

Profit/ (Loss) after taxation

9,397,979

 

==============

Earnings/ (Loss) per share

18,796

 

==============

 

 

BALANCE SHEET

 

AS AT 30 JUNE 2005

 

 

RS

ASSETS

 

NON CURRENT ASSETS

 

Property, plant and equipment

71,749,516

Deferred taxation

-

 

----------------------------

 

71,749,516

 

----------------------------

CURRENT ASSETS

 

Inventories

21,950,795

Trade and other receivables

849,577

Cash and bank balances

2,911

 

----------------------------

 

22,803,283

 

----------------------------

Total Assets

94,552,799

 

==============

EQUITY AND LIABILITIES

 

Capital & Reserves

 

Share Capital

40,105,000

Revenue reserves

(15,084,278)

 

----------------------------

Shareholders' interests

25,020,722

 

----------------------------

NON CURRENT LIABILITIES

 

Obligation under finance lease agreements

6,196,772

Shareholders loan

7,010,410

Deferred taxation

1,149,926

Retirement benefit obligation

467,497

Bank Loan

13,058,325

 

----------------------------

 

27,882,930

 

----------------------------

CURRENT LIABILITIES

 

Trade and other payables

35,031,052

Bank overdraft

668,358

Obligation under finance lease agreements

3,083,158

Bank loan

2,691,197

Current tax liabilities

175,382

 

----------------------------

 

41,649,147

 

----------------------------

Total equity and liabilities

94,552,799

 

==============

 

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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

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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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 and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions