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Report Date : |
27.04.2013 |
IDENTIFICATION DETAILS
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Name : |
AFRICAN AGRO LIMITED |
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Registered Office : |
Shamantaka House, Plots 138-140, Maganda Road, Bompai, Kano State |
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Country : |
Nigeria |
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Date of Incorporation : |
27.09.2001 |
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Com. Reg. No.: |
RC: 429550 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
The company engages in Importation and Distribution of Agro Chemicals |
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No. of Employees : |
Over 20 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
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 : |
No Complaints |
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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, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Nigeria |
B1 |
B1 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
NIGERIA - ECONOMIC OVERVIEW
Oil-rich Nigeria has been hobbled by political instability,
corruption, inadequate infrastructure, and poor macroeconomic management, but in
2008 began pursuing economic reforms. Nigeria's former military rulers failed
to diversify the economy away from its overdependence on the capital-intensive
oil sector, which provides 95% of foreign exchange earnings and about 80% of
budgetary revenues. Following the signing of an IMF stand-by agreement in
August 2000, Nigeria received a debt-restructuring deal from the Paris Club and
a $1 billion credit from the IMF, both contingent on economic reforms. Nigeria
pulled out of its IMF program in April 2002, after failing to meet spending and
exchange rate targets, making it ineligible for additional debt forgiveness
from the Paris Club. In November 2005, Abuja won Paris Club approval for a
debt-relief deal that eliminated $18 billion of debt in exchange for $12
billion in payments - a total package worth $30 billion of Nigeria's total $37
billion external debt. Since 2008 the government has begun to show the
political will to implement the market-oriented reforms urged by the IMF, such
as modernizing the banking system, removing subsidies, and resolving regional
disputes over the distribution of earnings from the oil industry. GDP rose
strongly in 2007-12 because of growth in non-oil sectors and robust global
crude oil prices. President JONATHAN has established an economic team that
includes experienced and reputable members and has announced plans to increase
transparency, diversify economic growth, and improve fiscal management. Lack of
infrastructure and slow implementation of reforms are key impediments to
growth. The government is working toward developing stronger public-private
partnerships for roads, agriculture, and power. Nigeria's financial sector was
hurt by the global financial and economic crises, but the Central Bank governor
has taken measures to restructure and strengthen the sector to include imposing
mandatory higher minimum capital requirements.
Source
: CIA
AFRICAN AGRO
LIMITED
The company engages in Importation and Distribution of Agro Chemicals
The company is
located at Shamantaka House, Plots 138-140, Maganda Road, Bompai, Kano State,
Nigeria.
ENQUIRY NAME: AFRICAN AGRO LIMITED
COMPANY NAME: AFRICAN
AGRO LIMITED
REGISTERED NAME: AFRICAN
AGRO COMMODITIES LIMITED
REGISTERED ADDRESS: Shamantaka
House, Plots 138-140, Maganda Road, Bompai,
Kano
State, Nigeria
HEAD OFFICE ADDRESS: Shamantaka
House, Plots 138-140, Maganda Road, Bompai,
Kano
State, Nigeria
EMAIL: info@africanagro.com
WEBSITE: www.africanagro.com
Currency:
All monetary quoted in this report are in Nigerian Naira, the local currency or
unless otherwise stated. The exchange rate is N155 to 1 US $.
NATURE OF PREMISES: Leased
office space approximately 500 square meters
DATE INCORPORATED: 27th
September, 2001
YEAR BEGAN OPERATIONS: 2001
LEGAL FORM: Private
Limited Company
REGISTRATION NO: RC:
429550
SHARE CAPITAL: 100,000,000.00
STAFF STRENGHT: Over
20
138-140,
Maganda Road, Bompai, Kano State, Nigeria
37,
Niger Street, Kano, Kano State, Nigeria
2,
Abdu Obayomi Street, Ojodu, Lagos State, Nigeria
138-140,
Maganda Road, Bompai, Kano State, Nigeria
143,
11 Main, 111, Cross Btm Layout, Bangalore
African Agro Limited was incorporated on 27th September,
2001 with Registration Number (RC: 429550) with N100,000,000.00 Share Capital.
The company’s address is located at Shamantaka House, Plots 138-140, Maganda
Road, Bompai, Kano State, Nigeria.
African Agro Limited is one of the leaders in crop protection
chemicals and sprayers in Nigeria. The main activities of the company include
importing and distributing agro chemicals through their branches and
distributors nationwide. They provide crop base solutions and work closely with
farmers to provide crop protection and training on modern farming techniques.
They are committed
to provide best quality product at affordable price to Nigerian farmers.
Therefore they carefully select and source their products directly from the
best manufacturers who have global presence and decades of experience, endorsed
by international quality certificates like ISO: 9000 and ISO:14001. All their
products are endorsed by NAFDAC & complied with SONCAP regulation.
African Agro Limited exclusively focused on marketing
crop protection chemicals and sprayers based in Kano, Nigeria. They are serving
the farmers nation-wide through their various branches and distributors. They
have a wide range of products for different crops and for different season for
weed control, pest control, fungal spread control and for effective storage of
grains.
They company’s chemicals
are tested by conducting field trials for various crops on various pest and
disease situations by some Agricultural Research Institute in Nigeria such as :Cocoa Research Institute of Nigeria ,
Nigerian Stored Products Research Institute, National horticulture Research
Institute, National Cereal Research Institute, Institute for Agricultural
Research and Training
They work with various
farmers associations on different crops and conduct training in order to know
how to maximize the yield. They worked on Tomatoes, Pepper, Cowpea, Rice,
Watermelon, and Potato etc
During our visit on 24th
April, 2013, we were denied access into the premises by the security officers
at the gate on hearing our mission and also refused to disclose their names.
According to them, they have been instructed not to allow any visitor without
prior appointment or clearance into the premises due to security situation in
the state and the country in particular. They declined to provide information
about the company as they claimed that they are not in best person to give us
detailed information about the company. All efforts to speak with any other
officers of the company proved abortive. Meanwhile, business activities were
ongoing during our visit.
Note:
The registration detail of the company shows African Agro Commodities
Limited. Also, the Company increased its
Share Capital from 1,000,000.00 to 100,000,000.00 on 24th June, 2008 and also
changed their registered address to Plots 138-140, Maganda Road, Bompai, Kano
State, Nigeria on 29th January, 2008.
Conclusion: Based on our
visit, business activities witnessed and available information on the company, we
are of the opinion that the company is a legal entity and engages in business.
As such, any business relationship with the company should be mutually
beneficial.
·
KISSAN 76 SPRAYERS
·
EASY SPRAY
·
JATCO SPRAYER
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MILZEB
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GLYCEL
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GLYSATE
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PREMIUM
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KING D-RON
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XtrAZINE
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BUTASTAR
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PENDILLIN
·
PROPERCARE
·
SUPER AMINE
·
General Public
·
Group of Companies
* Quality of
Management: GOOD
* Ethics &
Integrity: GOOD
* Ownership Structure: GOOD
The company’s Audited Accounts was not available as at the time of
compiling this report. However, we advise that the maximum credit limit to be accorded
to the company could be put at 600million US dollars ($600m USD). This opinion
is as a result of the sector the company belongs and services rendered.
Subject is operating in an industry with very great potentials. This
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 in this sector,
foreign investors are inevitable.
This sector of the economy has great potentials for intending investors.
CMT REPORT (Corruption, Money Laundering
& Terrorism)
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 subject from the above agencies.
Having carried out all
necessary verifications on the company, our investigations revealed that African Agro Limited is duly registered
in Nigeria with a registered address located at Shamantaka House, Plots
138-140, Maganda Road, Bompai, Kano State, Nigeria, while its operational
address is located at the same address.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.29 |
|
|
1 |
Rs.83.88 |
|
Euro |
1 |
Rs.70.67 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
|
RATING |
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 |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
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 |
|
-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.