|
Report Date : |
27.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
KANO ELECTRICITY
DISTRIBUTION COMPANY |
|
|
|
|
Registered Office : |
No 1 Niger Street / Post
Office Road |
|
|
|
|
Country : |
Nigeria |
|
|
|
|
Date of Incorporation : |
07.11.2005 |
|
|
|
|
Legal Form : |
Limited Corporation |
|
|
|
|
Line of Business : |
Engaged in marketing and distribution of electricity |
|
|
|
|
No of Employees : |
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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Nigeria |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
D |
NIGERIA - ECONOMIC OVERVIEW
Following an April 2014
statistical "rebasing" exercise, Nigeria has emerged as Africa's
largest economy, with 2013 GDP estimated at US$ 502 billion. Oil has been a dominant
source of government revenues since the 1970s. Regulatory constraints and
security risks have limited new investment in oil and natural gas, and
Nigeria's oil production contracted in 2012 and 2013. Nevertheless, the
Nigerian economy has continued to grow at a rapid 6-8% per annum
(pre-rebasing), driven by growth in agriculture, telecommunications, and
services, and the medium-term outlook for Nigeria is good, assuming oil output
stabilizes and oil prices remain strong. Fiscal authorities pursued countercyclical
policies in 2011-2013, significantly reducing the budget deficit. Monetary
policy has also been responsive and effective. Following the 2008-9 global
financial crises, the banking sector was effectively recapitalized and
regulation enhanced. Despite its strong fundamentals, oil-rich Nigeria has been
hobbled by inadequate power supply, lack of infrastructure, delays in the
passage of legislative reforms, an inefficient property registration system,
restrictive trade policies, an inconsistent regulatory environment, a slow and
ineffective judicial system, unreliable dispute resolution mechanisms,
insecurity, and pervasive corruption. Economic diversification and strong
growth have not translated into a significant decline in poverty levels - over
62% of Nigeria's 170 million people live in extreme poverty. President JONATHAN
has established an economic team that includes experienced and reputable
members and has announced plans to increase transparency, continue to diversify
production, and further improve fiscal management. The government is working to
develop stronger public-private partnerships for roads, agriculture, and power.
|
Source
: CIA |
Registered Name: KANO ELECTRICITY DISTRIBUTION COMPANY
Requested Name: KANO
ELECTRICITY DISTRIBUTION COMPANY
Other Names: KANO
DISCO
Initials: KEDCO
Physical Address: No 1 Niger Street / Post office
Road,
Postal Address: P.M.B. 3089, Kano
Kano,
Country: Nigeria
Phone: 234-8022910135/64645329
Fax: 234-64645329
Email: None
Website: None
Financial Index as of December 2013 shows subject firm with a medium
risk of credit.
Legal Form: Limited Corporation
Date Incorporated: 7-Nov-2005
Reg. Number: Nigeria
Nominal Capital NGN. 1,000,000
Subscribed Capital NGN. 1,000,000
Subscribed Capital is Subscribed in the following form:
Position Shares
Alhaji Tajudeen
Aminu Dantata Chairman
Dr. Jamil Isyaku
Gwamna MD
Mr. Baffa Usman Director
Power Holding Company
of Nigeria (PHCN) Holding Co. 100%
None Parent company.
None Subsidiary company.
None Affiliated company.
None Shareholder of subject firm.
Katsina and Jigawa Branches of the firm
Registered to operate marketing and distribution of electricity
Imports: Asia
Exports: None
Trademarks: None
Terms of sale: Cash
(60%) and 25-90 days (40%), invoices.
Main Customers: General
Public
Employees: 500
employees.
Vehicles: Several
motor vehicles.
Territory of
sales: Nigeria
Location: Owned
premises, 20,000 square feet,
Auditors: Information not available.
Insurance
Brokers: Information not available.
Currency Reported: Nigerian Naira (NGN.)
Approx. Ex. Rate: 1 US Dollar = 162.35 Nigerian Naira
Fiscal Year End: December
31, 2013
Inflation: According to
information given by independent sources, the
inflation
at December 31st, 2013 was of 13%.
Financial
Information not Submitted
Profit and Loss (expressed in NGN.)
2013
Sales 20,000,000,000
Bank Name: First Bank of Nigeria
Branch: Nigeria
Comments: None
Experiences: Good
None
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.58.58 |
|
|
1 |
Rs.98.66 |
|
Euro |
1 |
Rs.79.81 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.