MIRA INFORM REPORT

Report Date :

10.06.2011

IDENTIFICATION DETAILS

Name :	DE UNITED FOODS INDUSTRIES LIMITED

Registered Office :	47/52, Martins Street, Lagos Island, Lagos State-Nigeria

Country :	Nigeria

Date of Incorporation :	16.09.1993

Com. Reg. No.:	RC: 229723

Legal Form :	Private Limited Company

Line of Business :	Produces and markets food products

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

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 – March 31^st, 2011

Country Name

Previous Rating

(31.12.2010)

Current Rating

(31.03.2011)

Nigeria

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

OPERATIONS

De-United Foods Industries Limited, a joint venture, produces and markets food products. The company offers noodles under the Indomie brand name in Nigeria.

COMPANY LOCATION

The company’s factory/Head Office is located at 44, Eric Moore Road, Surulere, Lagos

Credit Risk

CREDIT LINE AMOUNT: Normal

IDENTIFICATION

COMPANY NAME: DE UNITED FOODS INDUSTRIES LIMITED

REGISTERED NAME: DE UNITED FOODS INDUSTRIES LIMITED

REGISTERED ADDRESS: `47/52, Martins Street, Lagos Island, Lagos State-Nigeria

FACTORY/HEAD OFFICE ADD.: 44, Eric Moore Road, Surulere, Lagos

TELEPHONE: `234-1-7742063

FAX: 234-1- 2830316

MOBILE: 234-(0) 8056402213, 8077009000

E-MAIL: info@dufil.com

WEBSITE: www.dufil.com

CONTACT PERSON: RAJESH GAGGAR (PROCUREMENT & LOGISTICS)

Currency: All monetary quoted in this report are in Nigerian Naira, the local currency or unless otherwise stated. The exchange rate is N148 to 1 US $.

SUMMARY

NATURE OF PREMISES: Owned office/factory space as head office occupying 6,500 metres square

DATE INCORPORATED 16th September, 1993

START OF OPERATIONS: 1993

LEGAL FORM: Private Limited Company

REGISTRATION NO: RC: 229723

SHARE CAPITAL: N5, Million

PAID UP CAPITAL: N5, Million

STAFF STRENGTH: Over 700

SHAREHOLDERS/DIRECTORS

Vishamkar Adnani
Harkishin Aswani
Vishamkar Aswani
Harkishin Aswani
Natapradja Birawa
Benetta Enterprises Inc.
Asean Interests Limited
Dufil Prima Foods Limited
Vaswani Mohan

10 Darmawi Patrick

11 Aswani Sajen

BACKGROUND

De United Foods Industries Limited was incorporated in 16th September, 1993 with registration number (RC: 229723). The Company’s Corporate/Head Office is located at 10, Amodu Ojikutu Street, Victoria Island, Lagos State, Nigeria. The Company is located at 44, Eric Moore Road, Surulere, Lagos

De-United Foods Industries Limited, a joint venture, produces and markets food products. The company offers noodles under the Indomie brand name. The company operates as a subsidiary of Tolaram Corporation Pte. Ltd. and Salim Group. Africa's largest instant noodle manufacturer. Parent company-Indofoods Indonesia is the largest noodle manufacturer in the world.

De-United Foods Industries Limited - Maker of Indomie Noodles:
De-United Foods is owned and operated by Chinese entrepreneurs. They manufacture the internationally popular chinese noodles under the brand name 'Indomie'. The company has operated its factory in Ota, Ogun State for more than 10 years. A new factory was completed in Port Harcourt, capital of Rivers State in 2004.

De-United employs over 700 people in two factories. The company has 300 distributors, 100,000 retailers throughout Nigeria servicing over 38 million consumers in the country. De United Foods Industries Limited currently boasts of world-class, state of the art technology; with the best manufacturing machine. This is known to currently be the largest capacity noodle machine line in the world and was first purchased and used by De United Foods Industries.

The company deploys professionals to deliver excellent and cost effective solutions to industry problems with a policy of involving the best and tested hands and rigorous supervision which provides safe working environment without compromising on quality.

In mid 2004 a rumored death after consumption of the Indomie noodles caused a health scare in the country. The Nigerian National Agency for Food and Drug Administration and Control (NAFDAC) closed down the Ota factory as it carried out tests on the noodles. At the time, De-United CEO, Roger Yeo, expressed confidence that his company would be found not responsible for the one death. Eventually, the rumor was found to be false and sales picked up again and have continued to climb up.

During our visit on 7th June, 2011, we met the receptionist who informed us that visitors are not allowed to enter any of their offices except by appointment. All efforts to speak with the Managing Director of the company proved abortive as some interviewed declined information. The Company paid its Statutory Annual Returns till 2010.

Conclusion: Based on our physical visit to the company and available information, it is our opinion that the company is engaged in legitimate business as such, any relationship with the company should be mutually beneficial.

PARENT COMPANY

Tolaram Group

RELATED COMPANIES

· Salim Group

· Dufil Prima

· Insignia Print Technology

· Tolaram Corporation Pte. Ltd

MANUFACTURING ADDRESSES

1. De United Foods Industries Limited, KM 4, Idiroko Road, Sango Ota, Ogun State, Nigeria
Phone : +234 39 722264-6 Fax : +234 39 722265

2. Dufil-Prima Foods Limited,
Uniport Road, Choba, Port Harcourt, River State, Nigeria
Phone : +234 84 480098

PAYMENT REFERENCES

Subject has both local and international references

TYPES OF CUSTOMERS

· General Public

· Group of Companies

· Corporate Organisations

· State and Federal Authorities etc.

PERFORMANCE RANKING

* Quality of Management: GOOD

* Ethics & Integrity: GOOD

* Ownership Structure: GOOD

PHYSICAL VISIT

Company Premises
Corporate Affairs Commission

FINANCES

Subject’s Audited Accounts was not available as at the time of compiling this report.

However, The Company’s estimated turnover could be put at $100 Million (Hundred Million Dollars).

INDUSTRIAL OVERVIEW/ OPERATING ENVIRONMENT

Subject is operating in an industry with very great potentials. The Manufacturing sector in Nigeria has a lot to explore when it comes to the need for expansion, improvement of product quality, work force development and general technical expertise. Mainly, private individuals dominate this sector. Despite the huge capital required for setting up this investment, it has grown in its leaps and bounds over the decades in the nation, although, the efforts of the Federal Government cannot be ruled out. The government has put in place different policies that support private individuals to secure loans/ mortgages from banks and other financial institutions. However, to record a groundbreaking record in this sector, foreign investors are inevitable. They facilitate the importation of high-tech equipment, which will boost quality services.

There are many opportunities in this sector of the economy. These could be largely achieved through foreign companies joint ventures with Nigerian companies, with adequate Training/Technical Assistance - Provision of training facilities for a large work force indirectly engaged in the sub-sector of the economy. This sector of the economy has great potentials for intending investors

CMT REPORT (Corruption, Money Laundering & Terrorism)

In mid 2004 a rumored death after consumption of the Indomie noodles caused a health scare in the country. The Nigerian National Agency for Food and Drug Administration and Control (NAFDAC) closed down the Ota factory as it carried out tests on the noodles. At the time, De-United CEO, Roger Yeo, expressed confidence that his company would be found not responsible for the one death. Eventually, the rumor was found to be false and sales picked up again and have continued to rise.

Public Notice from various sources including but not limited to: The Courts, Nigerian Prison Service, Economic & Financial Crimes Commission (EFCC), National Drug Law Enforcement Agency (NDLEA), National Agency for Food & Drugs Administration and Control (NAFDAC), Independent Corrupt Practices and other related offences Commission (ICPC) Etc.

No negative information on the subject from the above agencies.

OFFICIAL REMARKS

Having carried out all necessary verifications on the subject, our investigations revealed that De United Foods Industries Limited is duly registered in Nigeria with a registered address at 47/52, Martins Street, Lagos Island, Lagos State-Nigeria while its head office is located at 44, Eric Moore Road, Surulere, Lagos State.

Subject is into genuine business transactions. Subject is an on-going concern.

All information contained in the report is mostly from secondary sources.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.72
UK Pound	1	Rs.73.47
Euro	1	Rs.65.38

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	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
--	NB	New Business	--

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%)

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