MIRA INFORM REPORT

 

 

Report Date :

04.06.2013

 

IDENTIFICATION DETAILS

 

Name :

EASTERN METALS LIMITED

 

 

Registered Office :

10, Oba-Adetona, Off Sura Mogaji Street, Ilupeju, Lagos

 

 

Country :

Nigeria

 

 

Date of Incorporation :

20.08.2008

 

 

Com. Reg. No.:

RC: 767001

 

 

Legal Form :

Private Limited Liability

 

 

Line of Business :

Subject is engaged in the recycling scrap metals and producing construction grade steel Sales and Distribution of Aluminium Products.

 

 

No. of Employees :

Not Available

 

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 – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Nigeria

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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

 


OPERATIONS

 

According to our secondary sources information, the company is engaged in the recycling scrap metals and producing construction grade steel Sales and Distribution of Aluminium Products.

 

COMPANY LOCATION

 

Subject is COULD NOT BE located at Plot 4, Block D, Badejo Kalesanwo Street, Mattori Industrial Area , Mushin, Lagos ,Nigeria

 

 

IDENTIFICATION

 

ENQUIRY NAME:                      METAFRIQUE GROUP

COMPANY NAME:                    EASTERN METALS LIMITED

REGISTERED NAME:               EASTERN METALS LIMITED

REGISTERED ADDRESS:         10, Oba-Adetona, Off Sura Mogaji Street, Ilupeju, Lagos. Nigeria

HEAD OFFICE ADDRESS:        Plot 4, Block D, Badejo Kalesanwo Street, Matori Industrial Area , Mushin, Lagos ,Nigeria

 

MOBILE:                                  234-8057291589

EMAIL:                                     eml@metafrique.net

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 $.

 

 

SUMMARY

 

NATURE OF PREMISES:                      UNDETERMINED

DATE INCORPORATED                        20th August, 2008

LEGAL FORM:                                      Private Limited Liability

REGISTRATION NO:                             RC: 767001

SHARE CAPITAL:                                 10,000,000.00

ISSUED CAPITAL:                                10,000,000.00

PAID-UP CAPITAL:                               10,000,000.00

STAFF STRENGTH:                              UNDETERMINED

 

OWNERSHIP/SHAREHOLDING STRUCTURE

 

Name                                                                                                           % Held

Shalani Bhat Goswami                                                                                       0.5%

6208-Hamiltn Court, DLF IV Guragon-Haryana, India

 

Metafrique Limited                                                                                             99.5

Level 2, Max City Building, Port-Louis, India

 

Arun Goswami                                                                                                   0%

Level 2, Max City Building, Port-Louis, India

 

 

DIRECTORS

                                                                                                           

Shalani Bhat Goswami

Arun Goswami

 

 

BACKGROUND

 

Metafrique Group could not be located at the address provided. Meanwhile, during our visit to the address no commercial activity is ongoing in the premises. The security personnel in the premises confirmed that Eastern Metals Limited was the only known principal company in the address before they relocated to an undisclosed address. They added that Metafrique Group and its personnel are not known in the address supplied. All efforts to reach the company through the contact phone number provided (234 805-729-1589) proved abortive even up till the time of compiling this report as it was switched off.

 

The address provided Plot number 4, Block D, Badejo Kalesanwo Street, Matori Industrial Area, Mushin, Lagos State Nigeria is a spacious premises. It consists an unpainted one storey building, well fenced and its security gate is painted with ash colour.

 

Meanwhile, our secondary sources revealed that Eastern Metals Limited (EML) is a private limited company in Nigeria; it is one of the new venture of the group company to scale up the capacity.  It owns steel furnace, steel rolling mills and lead Smelting plant. Metafrique Group is using Eastern Metals Limited’s address and the company is headed by Pankaj Gupta (an Indian) Country Head

 – Nigeria while Segun Ishola is the Country Sales Head – Nigeria. The sources further revealed that the company is in business of recycling scrap metals and producing construction grade steel from it. It also recycles other non ferrous metals to produce alloys which are used for battery, autoparts and cable manufacturing (i.e. collection, logistics, processing, melting, export of steel scrap, steel billets and Re-bars). It manufactures Hot Rolled Construction grade steel re-bars in its three plants in Nigeria and Cameroon.

 

Our secondary sources information further revealed that Metafrique Group is a USD 120 million, first generation young and dynamic multinational corporate organization having its branches in India, Nigeria, Cameroon, Congo, Chad, Gabon and UAE with a goal to become the leader in trading and recycling of ferrous and non ferrous scrap in African continent.  Metafrique also manufactures ERW pipes, nails, Binding wires. It also recycles auto batteries in to Lead Alloys, and Aluminum scrap in to ADC12 grade Aluminium Alloy. On the trading side, company sources scrap from various countries and supplies to steel mills in India, Thailand, Taiwan and Vietnam. Finished and Semi finished steel products like wire rods, Hot rolled and Cold rolled coils, wire rods are sourced from Ukraine, China, Russia, Turkey and India are distributed through its subsidiaries in West Africa. In its 14 years of existence, the company has attained a turnover of approx 120 mill Dollars and employs more than 600 people.

 

Conclusion:  Based on our visit, intensive discussion held with the security personnel in the supplied and visited address, available information and premises sighted, we are of the opinion that METAFRIQUE GROUP is a first generation young and dynamic multinational corporate organization who owns EASTERN METALS LIMITED in Nigeria and has relocated to an unknown address due to an ongoing reconstruction in the premises. As such, any business relationship with the company should be mutually beneficial but we advise that it should be done on cash and carry basis until the company provides its current address for verification and confirmation.

 

 

RANGE OF PRODUCTS

 

Steel Bars—TMT

Steel Ingots

Lead Ingots

Heavy Melting Steel Scrap

Low Melting Steel Scrap

Battery Scrap

OTHER PRODUCTS

Steel Billets,

Bars,

Angles,

Channels,

Pipes,

Wires and Nails.

Aluminium,

Lead and Copper Alloys

 

 

LOCATIONS (According to secondary source information)

 

Metafrique PTE LTD

09-03 High Street Center, 1, North Bridge Road

Singapore

+65-97119508         sin@metafrique.net

Metafrique Cameroon SARL

B. P. 15509, Zone Industrial Magzi

Bassa, Douala, Cameroon

+237-79535121         cam@metafrique.net

Eastern Metals Limited

K.M-16 Asaba-Benin Expressway, Issele-Azagba

Delta State ,Nigeria

+234-8057291250              eml@metafrique.net

Eastern Metals Limited

Plot 4, Block D, Badejo Kalesanwo Street, Matori Industrial Area, Mushin, Lagos ,Nigeria

+234-8057291589        eml@metafrique.net

Metafrique Gabon

B. P. 13519, Bas De Gue Gue/Owendo, Librevile, Gabon

+241-04173614          gabon@metafrique.net

Metafrique Ghana Limited

P.O. Box PMB 79, Community 1, Tema, Ghana

+233-3548193453       ghana@metafrique.net

Metafrique PNR

85, Avenue Constant, Zakari, PB-137

Point-e-Noirre, Republic of Congo

+242-066744581         pnr@metafrique.net

BON SPEC SARL

Tevragh – Zeina C 334A, Nouakchott, B.P. 2363

Nouakchott, Mauritania,

+222-7191159        mrt@metafrique.net

Metafrique DMCC

P.O. Box 476203-Dubai, Unit No. 1408, 1 Lake PlazaJumeirah Lake Towers, Dubai, UAE

+97-1552201143,         dubai@metafrique.net

Metafrique Benin SARL

Adeola Yard, Near CAP FM, Akpapa

Cotonou, Benin

+229-97769212               benin@metafrique.net

 

TYPES OF CUSTOMERS

 

General Public,

Private Organisations

Corporate Organisations etc

 

PHYSICAL VISIT

 

Company Premises 

Corporate Affairs Commission

 

 

FINANCES

 

RATING ASSESSMENT:

GOOD Apparently healthy, with adequate working capital to meet normal Commitments

 

 

Subject Audited Accounts was not available as at the time of compiling this report. However, The Company’s estimated turnover could be put at $50 Million (Fifty Million Dollars). This opinion is as a result of the company’s information obtained from our secondary sources

 

 

INDUSTRIAL OVERVIEW/ OPERATING ENVIRONMENT

 

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 as at the time of compiling this report.

 

 

OFFICIAL REMARKS

 

Having carried out all necessary verifications on subject, our investigations revealed that, the Company, METAFRIQUE GROUP uses EASTERN METALS LIMITED  with registered at 10, Oba-Adetona, Off Sura-Mogaji Street, Ilupeju, Lagos but its current address could not be determined as it has relocated to an unknown destination.

 

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

 

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

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.56.57

UK Pound

1

Rs.86.15

Euro

1

Rs.73.64

 

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.