MIRA INFORM REPORT

 

 

Report Date :

21.09.2012

 

 

 

IDENTIFICATION DETAILS

 

Name :

OLAM MOCAMBIQUE LDA

 

 

Registered Office :

1º floor  Avenue Paulo Samuel Kankhomba  Nº 1063, Maputo

 

 

Country :

Mozambique

 

 

Date of Incorporation :

11.01.1999

 

 

Com. Reg. No.:

2213/11/01/GR/2007Mozambique  

 

 

Legal Form :

Limited Corporation 

 

 

Line of Business :

dealers in agricultural products

 

 

No. of Employees :

220 employees

 

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 :

USD 150,000

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 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Mozambique

C1

C1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

mozambique - ECONOMIC OVERVIEW

 

At independence in 1975, Mozambique was one of the world's poorest countries. Socialist mismanagement and a brutal civil war from 1977-92 exacerbated the situation. In 1987, the government embarked on a series of macroeconomic reforms designed to stabilize the economy. These steps, combined with donor assistance and with political stability since the multi-party elections in 1994, have led to dramatic improvements in the country's growth rate. Fiscal reforms, including the introduction of a value-added tax and reform of the customs service, have improved the government's revenue collection abilities. Inspite of these gains, Mozambique remains dependent upon foreign assistance for more than half of its annual budget, and in 2008 54% of the population remained below the poverty line. Subsistence agriculture continues to employ the vast majority of the country's work force and smallholder agricultural productivity and productivity growth is weak. A substantial trade imbalance persists although the opening of the Mozal aluminum smelter, the country's largest foreign investment project to date, has increased export earnings. At the end of 2007, and after years of negotiations, the government took over Portugal's majority share of the Cahora Bassa Hydroelectricity Company (HCB), a dam that was not transferred to Mozambique at independence because of the ensuing civil war and unpaid debts. More electrical power capacity is needed for additional investment projects in titanium extraction and processing and garment manufacturing that could further close the import/export gap. Mozambique's once substantial foreign debt has been reduced through forgiveness and rescheduling under the IMF's Heavily Indebted Poor Countries (HIPC) and Enhanced HIPC initiatives, and is now at a manageable level. In July 2007 the Millennium Challenge Corporation (MCC) signed a compact with Mozambique; the compact entered into force in September 2008 and will continue for five years. Compact projects will focus on improving sanitation, roads, agriculture, and the business regulation environment in an effort to spur economic growth in the four northern provinces of the country. Mozambique grew at an average annual rate of 9% in the decade up to 2007, one of Africa's strongest performances. However, heavy reliance on aluminum, which accounts for about one-third of exports, subjects the economy to volatile international prices. The sharp decline in aluminum prices during the global economic crisis lowered GDP growth by several percentage points. Despite 6.8% GDP growth in 2010, the increasing cost of living prompted citizens to riot in September 2010, after fuel, water, electricity, and bread price increases were announced. In an attempt to contain the cost of living, the government implemented subsidies, decreased taxes and tariffs, and instituted other fiscal measures. Real growth of 7.2% was achieved in 2011.

 

 

Source : CIA

 

 

 

 

SUBJECT'S NAME   

 

Registered Name:                                   OLAM MOCAMBIQUE LDA

Requested Name:                                   OLAM MOCAMBIQUE LDA

Other Names:                                          None

 

 

ADDRESS AND TELECOMMUNICATION

 

Physical Address:                                   1º floor  Avenue Paulo Samuel Kankhomba  Nº 1063, Maputo

Postal Address:                                      C.P. 82

                                                              Maputo

Country:                                                 Mozambique

Phone:                                                   258-823035927/-21315471/ 26213798/526201   

Fax:                                                       258-21315470/ 26213806/566220

Email:                                                     ujjwal@olamnet.com / olamnpl@teledata.co.mz

Website:                                                 www.olamonline.com

 

 

CREDIT OPINION

 

Financial Index as of December 2011 shows subject firm with a medium risk of credit. However, bank and credit information obtained reveal a history of prompt payments. We recommend Credit of USD 150,000 on 90 days.

 

 

LEGAL

 

Legal Form:                                                     Limited Corporation 

Date Incorporated:                                           11-Jan-1999

Reg. Number:                                                  2213/11/01/GR/2007Mozambique  

Nominal Capital                                                MZN. 14,017,258

Subscribed Capital                                           MZN. 14,017,258

 

Subscribed Capital is Subscribed in the following form:

                                                                       Position                          Shares

Mr. Damodaran Ramesh Moochical                   Chairman                        

Mr. Ujjwal Senapati                                           MD                                 

Mr. Guru Nath                                                  CFO                               

Mr. Shlam Kumar                                             Director                          

Mr. Sunny George Vaerghese                           Director                          

Mr. Abhishek Lal                                              Manager                         

Mr. Marcelino Antonio                                      Accounts                        

Mr. A. Shekhar                                                 Shareholder                    

Olam international, Singapore                           Holding Co                     

 

RELATED COMPANIES  

 

Olam international, Singapore                           Parent company.

None                                                               Subsidiary company.

None                                                               Affiliated company.

None                                                               Shareholder of subject firm.

5 in Mozambique                                              Branches of the firm

 

 

OPERATIONS

 

Registered to operate as dealers in agricultural products

 

Imports:                                                           Asia, Middle East

Exports:                                                          None

Trademarks:                                                     None

Terms of sale:                                                  Cash (40%) and 25-90 days (60%), invoices.

                                                                      

Main Customers:                                              firms and organizations  

Employees:                                                     220 employees.

Vehicles:                                                         Several motor vehicles.

Territory of sales:                                             Mozambique

Location:                                                         Leased premises, 5,000 square feet,

 

 

AUDITORS AND INSURANCE   

 

Auditors:                                                         Information not available.

Insurance Brokers:                                            Information not available.

                                                                      

 

FINANCE 

 

Currency Reported:                                          Mozambique Metical (MZN.)

Approx. Ex. Rate:                                            1 US Dollar = 28.95 Mozambique Metical

Fiscal Year End:                                              December 31, 2011

Inflation:                                                          According to information given by independent sources, the

                                                                       inflation at December 31st, 2011 was of 13%.

 

Financial Information not Submitted              

                                                                      

Profit and Loss (expressed in MZN.)

                                                                       2010                        2011

Sales                                                               550,120,000             605,132,000

 

BANK 

 

Bank Name:                                                     BCM Bank

Branch:                                                            Mozambique

Comments:                                                      None

                                                                      

 

TRADE REFERENCES    

 

Experiences:                                                    Good

                                                                      

 

NOTARIAL BONDS   

 

None

 

 

COMMENTS / ADDITIONAL INFORMATION    

 

This information was obtained from outside sources other than the subject company itself and confirmed the above subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.34

UK Pound

1

Rs.87.91

Euro

1

Rs.70.57

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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%)

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.