MIRA INFORM REPORT

 

 

Report Date :

18.01.2013

 

IDENTIFICATION DETAILS

 

Name :

KENANA SUGAR COMPANY LTD

 

 

Registered Office :

Obaid Khatim Street, Plot No. 22, Block 846, Taif, PO Box  2632, Khartoum

 

 

Country :

Sudan

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

March, 1975

 

 

Com. Reg. No.:

G/1151

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Producers, processors and distributors of sugar.

 

 

No. of Employees :

8,500

 

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 :

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Sudan

C1

C1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

ECONOMIC OVERVIEW

 

sudan is an extremely poor country that has had to deal with social conflict, civil war, and the July 2011 secession of South Sudan - the region of the country that had been responsible for about three-fourths of the former Sudan's total oil production. The oil sector had driven much of Sudan's GDP growth since it began exporting oil in 1999. For nearly a decade, the economy boomed on the back of increases in oil production, high oil prices, and significant inflows of foreign direct investment. Following South Sudan's secession, Sudan has struggled to maintain economic stability, because oil earnings now provide a far lower share of the country's need for hard currency and for budget revenues. Sudan is attempting to generate new sources of revenues, such as from gold mining, while carrying out an austerity program to reduce expenditures. Services and utilities have played an increasingly important role in the economy. Agricultural production continues to employ 80% of the work force and contributes a third of GDP. Sudan introduced a new currency, still called the Sudanese pound, following South Sudan's secession, but the value of the currency has fallen since its introduction and shortages of foreign exchange continue. Sudan also faces rising inflation, which has led to a number of small scale protests in Khartoum in recent months. Ongoing conflicts in Southern Kordofan, Darfur, and the Blue Nile states, lack of basic infrastructure in large areas, and reliance by much of the population on subsistence agriculture ensure that much of the population will remain at or below the poverty line for years to come.

Source : CIA

 


SUMMARY

 

Company Name                                     : KENANA SUGAR COMPANY LTD

Country of Origin                                    : Sudan

Legal Form                                            : Limited Liability Company

Registration Date                                   : March 1975

Commercial Registration Number            : G/1151

Issued Capital                                        : SD 560,545

Paid up Capital                                      : SD 560,545

Total Workforce                                     : 8,500

Activities                                               : Producers, processors and distributors of sugar.

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Person Interviewed                                 : Fareed Omar Madan, Executive Manager

 

 

 


COMPANY NAME

 

KENANA SUGAR COMPANY LTD

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Obaid Khatim Street, Plot No. 22, Block 846

Area                 : Taif

PO Box             : 2632

Town                 : Khartoum

Country             : Sudan

 

Telephone         : (249-183) 224703 / 224704 / (249-187) 152000

Facsimile          : (249-183) 220563

Mobile               : (249-912) 397224

Email                : info@kenana.com

 

Premises

 

Subject operates from a large suite of offices that are owned and located in the Central Business Area of Khartoum.

 

Branch Office (s)

 

            Location                                                                                              Description

 

Kenana City                                                                                          Processing & production facilities

 

Plot No. 6                                                                                              Processing & production facilities

Block VII

PO Box 477

Port Sudan

Tel: (249-311) 824837

Fax: (249-311) 824729

 

 

KEY PRINCIPALS

 

            Name                                                                                       Position

 

Al Zubair Ahmed El Hassan                                                                    Chairman

 

Mohamed Al Mardi Al Tegani                                                                  Managing Director

 

Ibrahim Ali Mussalam                                                                             Director

 

Abdo El Said Taha                                                                                 Finance Manager

 

Abdullah Abu Al Qassim                                                                         Planning Manager

 

Hassan Hashem Arwq                                                                            Marketing Manager

 

Fareed Omar Madan                                                                              Executive Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : March 1975

 

Legal Form                  : Limited Liability Company

 

Commercial Reg. No.  : G/1151

 

Authorised Capital       : SD 590,000

 

Issued Capital              : SD 560,545

 

Paid up Capital            : SD 560,545

 

Name of Shareholder (s)                                                          Percentage

 

Government of Sudan                                                                  35.33%

 

Kuwait Real Estate Investment Consortium                                     30.64%

 

Government of Saudi Arabia                                                           10.97%

 

Arab Investment Company                                                               6.99%

 

Sudan Development Corporation                                           5.69%

 

Arab Authority for Agricultural Investment & Development       5.59%

 

Consortium of Sudanese local banks                                                4.47%

 

Soujiz Corporation                                                                           0.16%

Japan

 

Gulf Fisheries Co WLL                                                                    0.16%

 

 

AFFILIATED COMPANIES

 

Mahaseel Agricultural Investment Fund

 

White Nile Sugar Company (WNSC)

 

Kenana Engineering and Technical Services (KETS)

 

Kenana Integrated Agricultural Solutions (KIAS)

 

Kenana Friesland Dairy (KFD)

 

 

OPERATIONS

 

Activities:                     Engaged in the production, processing, distribution and export of sugar, including silver cane sugar and green cane sugar.

 

The plantation area has been expanded to over 100,000 feddans of sugar cane fields. Two more pumping stations have been recently added to the existing four at a total inward investment of around US$ 270 million.

 

Along with Sudanese Sugar Co Ltd the subject produces 100% of the sugar cane grown in Sudan.

 

Production Capacity:   400,000 metric tonnes of sugar per annum

 

Import Countries:         Europe and the Far East

 

Export Countries:         Africa, Middle East and India

 

Subject has a workforce of approximately 8,500 permanent employees with a further 8,000 seasonal workers for the duration of the crop.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Sudanese Dinars (SD)

 

                                                                        Year Ending 31/12/11:

 

Total Sales                                                        SD 65,519,000

 

Local sources consider subject’s financial condition to be Fair.

 

The above figures were provided by Mr Fareed Omar Madan, Executive Manager

 

 

BANKERS

 

Bank of Khartoum

Intersection of Al Gamhouria St. with Al Qasr Street

PO Box: 1008

Khartoum

Tel: (249-183) 770170 / 775955 / 777521

Fax: (249-183) 781120

Email: bok@sudanmail.net

 

Sudanese French Bank

Branch No. 2

PO Box: 6640

Khartoum

Tel: (249-183) 461107 / 471628

Fax: (249-183) 471627

Email: info@sfbank.net

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                                 March 2005

Credit amount                                        10,000

Amount overdue                         0

Payment terms                                      30 days

Payment Method                                   Letters of Credit

Paying record                                        No Complaints

Currency                                               Pounds Sterling

 

 

GENERAL COMMENTS

 

Kenana Sugar Company Ltd is the largest single integrated producer of white sugar in the world operating a plantation area of over 100,000 feddans of sugar cane fields.

 

The company is run in a professional manner and enjoys the full support of its shareholders, which include the Sudanese and Saudi Arabian governments.

 

Local sources report that the subject’s operating history is clear with payment obligations met in a generally timely manner. The financial position is satisfactory and the company is deemed a fair trade risk.

 

 

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.64

UK Pound

1

Rs.87.45

Euro

1

Rs.72.65

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.