MIRA INFORM REPORT

 

 

Report Date :

28.02.2008

 

 

IDENTIFICATION DETAILS

 

Name :

DECO INDUSTRIES (1990) LIMITED

 

 

Registered Office :

P.O. Box 170, Temple/Mt Gay Junction, St Georges

 

 

Country :

Grenada

 

 

Date of Incorporation :

1978

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacture/Distribute/Export/Services.

 

 

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

 

Maximum Credit Limit :

EUR 200,000

 

 

Status :

Clear

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 


GEOPOLITICS

 

 

POLITICAL DATA

 

 

ECONOMIC DATA

FORM OF GOVERNMENT

 

ECONOMIC RISK

Parliamentary Monarchy

 


None

 

CURRENCY

 

 

BRANCH SITUATION

 

East Caribbean Dollars (XCD)

100.00 XCD = 37.73 USD

 

Stable

 


IDENTIFICATION

 

 

Company Name:

 

DECO INDUSTRIES (1990) LIMITED

 

Address:

 

 

P.O. Box 170, Temple/Mt Gay Junction, St Georges, Grenada

 

Phone:

Facsimile:

 

ID:

 

State:

 

Managers:

1-473-440-3009

1-473-440-4137

 

N.A.

 

Grenada

 

Mr. Edwin De Caul – Managing Director

Date founded:

 

1978

 

Limited Liability Company

 

 

Unlimited Ordinary Shares

 

N/A

 

120 permanent employees

Legal form:

Stock:

 

Value:

 

Staff:

Business: 

Manufacture/Distribute/Export/Services.

 

 

BANKS

 

First Caribbean International Bank Limited

P.O. Box 37

Church Street,

St. Georges

Telephone number: 1-473-440-3232

Contact: Valentine Frazer

 

Scotia Bank Grenada Limited

St Georges

Grenada

Tel: 1-473-435-2296

Contact: Joslyn Noel

 

 

BUSINESS

 

Manufacture: The subject manufactures T-Shirts, Polo Shirts, Ladies Resort Dresses and other men, children and ladies clothing including handbags at their establishment.  Their clothing lines are called “Champ” and “Island Fever”

 

Import:  All raw materials for manufacture as well as machinery for manufacturing and printing are imported from the U.S.A. and Pakistan.

 

Printing:  The subject provides printing service for other Companies locally and in the Caribbean, in addition to printing their own T-Shirts and clothing.

 

Distribution: The subject distributes their clothing to all the other Caribbean Islands except Trinidad & Tobago and Jamaica.

 

Services:  The Company also owns and operates the Chevron Gas Station (Texaco) in Grenada where gas, oil, etc are sold, as well as a convenience store in the Gas Station.

 

Rental: The subject owns a large compound at Mt. Gay Junction, St Georges in Grenada where part of their business operations are conducted.  In addition other Companies like the Venezuelan Institute occupy part of the building at a rental fee.

 

 

Operations:

 

At P.O. Box 170, St Georges, Grenada you can find the Company’s large Deco Compound where their various activities take place.  The administrative office is located there in addition to the factory and warehouse. 

 

Registered Office:

 

Temple Street, St Georges, Grenada

 

Mailing Address:

 

P.O. Box 170, St Georges, Grenada

 

Present Operating Address: Same

 

Legal Status: Private Company, Limited by shares incorporated under the Companies Ordinance and duly continued under the Companies Act of the Laws of the Grenada.

 

Date of Commencement:  1978 (approx. thirty (30) years in operation)

 

Dated of Incorporation: 1990 (Restructured and Registered in 1990 hence the name (1990) Limited)

Operated as “Deco Industries” prior to registration in 1990

 

Staff: Based on information received from the subject, their staff totals one hundred and twenty persons.

 

 

LOCAL / FOREIGN SUPPLIERS

 

LOCAL

 

Jonas Brown & Hobbards Grenada Limited

St Georges, Grenada

Tel: 1 473-440-2087

 

Reports reveal dealings with the subject for many years.  Their average purchase is XCD 200,000.00 net 30 days and payments are always on time with no delays or defaults.

 

FOREIGN

 

National Textile - U.S.A. (ceased operations last year 2007)

 

Al Abbas Fabrics P V D Limited

Pakistan

 

 

SHAREHOLDERS – SUBSIDIARIES – MANAGERS

 

THIS IS A FAMILY OWNED BUSINESS

 

DIRECTORS

 

ASSOCIATED COMPANIES

 

·         Grenada Handbags

·         Chevron Gas Station

·         Deco Service Centre and Convenience Store

 

 

FINANCIALS – COMMERCIAL TRENDS AND FORECAST

 

The Subject Company is registered as a Private Limited Liability Company and is therefore exempt from filing and/or publishing Annual Audited Accounts at the Registrar of Companies, under Grenada Law.

 

In addition, due to the laws of privacy governing disclosure of BANKING INFORMATION, we are unable to demand a copy of the subject’s Latest FINANCIAL STATEMENTS.

 

However, through further investigation we were able to obtain the following data:

 

 

Fiscal Year

 

2007

Turnover in XCD

20 M

 

Net Results in XCD

1.4 M

 

Current Debt/Liability

Nil

 

 

 

 

 

Debentures/Mortgages/Charges:

 

The subject Company has shown no of any Mortgages or Debentures registered in its name or that of its Directors.

 

Other Relevant Data:

 

With reference to your request received February 19th 2008 for a Business Credit Report on the above Subject, we hereby advise that according to the Credit Bureau files there are no reports of any Credit Delinquencies registered in the name of the subject Company in the Island of Grenada.

 

In addition, there are no records of any High Court or Petty Civil Court Judgments entered against the Company in any civil suit and/or litigation matter in Grenada during the period of our Judgment searches.

 

Further investigation into the MBS files of Grenada, revealed no reports of any Mortgage Bill of Sale registered in the name of the subject Company or its Directors.

 

 

RATING

 

            Local Credit Bureau gave a good credit rate.

 

The company’s cash flow is good.

 

The company’s payments are done regularly on a 60 days basis.

 

           INTERVIEW:

 

Name & Position of Interviewed Person:

 

Mr. Edwin De Caul – Managing Director

 

Mr. De Caul, with whom we spoke, supplied all of the information necessary for this report; however he did not submit a copy of the Financial Statement of the company considering this information to be confidential.

 

           

Our final opinion

 

The subject company has been in business for the past 30 years and currently employs 120 workers. It has shown positive developments with a good expansion and diversification of the business leading to good profits. There are no negative records incriminating it or its directors in the data basis of Grenada’s legal system and the company deals with well known banks in the region. Furthermore, the supplier that we have contacted has provided positive comments in regards to the subject. For these reasons we suggest a credit line of EUR 200,000.

 

 

 

 

SUMMARY

 

 

 

FINANCIAL SUMMARY

 

 

DEBT COLLECTIONS AND PAYMENTS

PROFITABILITY

 

INDEBTNESS

 

CASH

 

Good

 

Nil

 

Good

 

PUBLIC RECORDS

 

PAYMENTS

 

 

No

 

Regular

 

 

 

ADVISED CREDIT

 

 

EUR 200,000

 

 

 

 

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.

 

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