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Report Date : |
20.09.2013 |
IDENTIFICATION DETAILS
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Name : |
DASCO ENGINEERING INDUSTRIES NIG. LIMITED |
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Registered Office : |
3, Okoya Street, Lagos Island, Lagos State |
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Country : |
Nigeria |
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Date of Incorporation : |
25.01.1986 |
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Com. Reg. No.: |
85644 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject is engages in engineering services such as Metal Fabrication and Repairs of Hydraulic Piston, Metal and Brass Planting, Zinc Metallization and Electrolyses Metal Planting and others. |
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No. of Employees : |
20 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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Nigeria |
B1 |
B1 |
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Risk Category |
ECGC
Classification |
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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
The company engages in engineering services such as Metal Fabrication and Repairs of Hydraulic Piston, Metal and Brass Planting, Zinc Metallization and Electrolyses Metal Planting and others.
The company is located at 3, Akanni Doherty Street, behind Dunlop/Guinness, off Oba-Akran Avenue, Ikeja, Lagos State, Nigeria
Credit Risk
ASSESSMENT: Apparently healthy, with adequate working capital to meet normal Commitments
CREDIT LINE AMOUNT: Normal
CREDIT LINE OPINION: Subject appears to be a credit worthy organization
COMPANY NAME: DASCO ENGINEERING INDUSTRIES NIG. LIMITED
REGISTERED NAME: DASCO ENGINEERING INDUSTRIES NIG. LIMITED
REGISTERED ADDRESS: 3, Okoya Street, Lagos Island, Lagos State, Nigeria
HEAD OFFICE ADDRESS: 3, Akanni Doherty Street, behind Dunlop/Guinness, off Oba
Akran Avenue, Ikeja, Lagos State, Nigeria
TELEPHONE: 234-1-7765464, 7753343
E-MAIL: disco@dascochrome.com
WEBSITE: www.dasconigeria.com
PRIMARY CONTACT: Eraben Mane (General Manager)
Tel: 234-706-150-7478
Currency: All monetary quoted in this report are in Nigerian
Naira, the local currency or unless otherwise stated. The exchange rate is N160 to 1 US $.
NATURE OF PREMISES: Owned office space occupying approximately 1,300 square metres.
DATE INCORPORATED: 25th June, 1986
YEAR BEGAN OPERATION: 1986
LEGAL FORM: Limited Liability Company
REGISTRATION NO: RC: 85644
SHARE CAPITAL: 25,000,000.00
ALLOTTED SHARE CAPITAL: 500,000.00
PAID-UP CAPITAL 500,000.00
STAFF STRENGHT: Over 20
John Olatunji
3, Okoya Street, Lagos Island, Lagos State, Nigeria
Daswani Jaikishin
Plot 2, Block D, Isolo Expressway, Isolo, Lagos State, Nigeria
Lakhani Kishin
Plot 2, Block D, Isolo Expressway, Isolo, Lagos State, Nigeria
Chandru Daswani
Plot 2, Block D, Isolo Expressway, Isolo, Lagos State, Nigeria
Ram Hathiranmani
Plot 2, Block D, Isolo Expressway, Isolo, Lagos State, Nigeria
John Olatunji
Daswani Jaikishin
Lakhani Kishin
Chandru Daswani
Ram Hathiranmani
Dasco Engineering Industries Nigeria Limited (DEINL) was incorporated on 25th June, 1986 with Registration Number (RC. 85644). The corporate head office is located at 3, Akanni Doherty Street, behind Dunlop/Guinness, off Oba-Akran Avenue, Ikeja, Lagos State, Nigeria. Ther company is located at the left side of Akanni Doherty Street, opposite Guinness warehouse while Dasco is boldly written on the wall. The Company occupies a large premises which comprises administrative block and factory for production of their products, the whole firm is fenced with a big gate painted green while the company administrative block is painted white.
Based on the information from our secondary sources, the company engages in engineering services such as Metal Fabrication and Repairs of Hydraulic Piston, Metal and Brass Planting, Zinc Metallization and Electrolyses Metal Planting and others. The company’s aim is highly committed to executing Nigerian engineering projects with high efficiency and recognizes that majority of all such work must be executed in Nigeria.
Dasco Engineering Industries Nigeria Limited started as a small scale bucket handle manufacturing unit when founded in 1986. The company was born from this initial project of bucket handle manufacturing to the pioneers of engineering and plating services. It immediately ventured into the production of zinc brass nails, plating and hard chrome services, tool room services and mould manufacturing respectively and also masterminded Rotogravure Cylinder manufacturing in Nigeria.
Most of the equipment supplied and maintained by the company is protective and preventive in nature, as the company believes in transparency, total commitment, integrity and solidity. The company and its partners are composed of highly experienced and skilled personnels with a wide range of experience in engineering sector. With a sound resources base at its disposal, it has acquired the necessary technical capability, which has enabled it to undertake major installation within the country.
The Company consists of a professionally qualified, well experienced, well-informed management team and staff who carry on the core values upon which Dasco was founded and are dedicated in providing its customers with high quality products and services that are both efficient and cost effective. It also has highly motivated group of factory trained engineers who are ready to answer any questions, offer advice and give quotes. Dasco believes in unity and honesty in all aspects of business, prominent customer service and welfare of its employees.
During our visit to the company on 16th September, 2013, we met some of the company’s staff who declined to provide any information on the company and claimed that they cannot do so without prior authorization and approval by the management. According to them, the person who is in best position to provide information about the company was not available. All efforts to persuade them in order to see any top management of the company proved abortive as they claimed that visitors without prior appointment are not allowed to meet the principal officers. We later called the company’s telephone number (34-1-7753343)) obtained from secondary sources but the respondent refused to disclose any information but provided an email address (disco@dasconigeria.com). We also spoke with Eraben Mane (General Manager – 234-7061507478) who confirmed the company’s line of business and promised to get back to us as soon as possible.
We sighted several
motor cars parked in the premises and some white men were also seen in the
promises during our visit.
Conclusion: Based on our physical visit and available information, we are of the opinion that the company is into legitimate business. As such, any business relationship with the company should be mutually beneficial.
Zenith Bank Plc
Dasco Engineering offers the following range of wire products of unsurpassed quality and reliability:
Bucket Handles
Barbed Wire
Razor Blade Wire
Zinc Brass Nails
General Public,
Group of Companies
Government Agencies
Private Companies
Foreign Companies etc.
* Quality of Management: GOOD
* Ethics & Integrity: GOOD
* Ownership Structure: GOOD
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 $70 Million (Seventy Million Dollars). This figure is given in our own opinion because of the volume of services they render and the industry they belong.
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FGSL RISK RATING ASSESSMENT: |
B (40-49) GOOD Apparently healthy, with adequate working capital to meet normal Commitments |
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CREDIT LINE AMOUNT: |
Normal |
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CREDIT LINE OPINION: |
Subject appears to be a credit worthy organization |
Subject is operating in an industry with very great potentials. The engineering 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 requirement 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)
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.
FGSL’s OFFICIAL REMARKS
Having carried out all necessary verifications on the company, our investigations revealed that Dasco Engineering Industries Nigeria Limited is duly registered in Nigeria with a registered address is located at 3, Okoya Street, Lagos Island, Lagos State, Nigeria, while its operational address is located at 3, Akanni Doherty Street, behind Dunlop/Guinness, off Oba-Akran Avenue, Ikeja, Lagos State, Nigeria
The company is into genuine business transactions. It is an on-going concern.
Information contained in the report is mostly from secondary sources.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.75 |
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1 |
Rs.99.56 |
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Euro |
1 |
Rs.83.55 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
RATING EXPLANATIONS
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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 |
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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 |
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NB |
New Business |
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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.