MIRA INFORM REPORT

 

 

Report No. :

318131

Report Date :

25.04.2015

 

IDENTIFICATION DETAILS

 

Name :

LA SOCIETE CONTONNIERE DU TCHAD SOCIETE NOUVELLE

 

 

Registered Office :

Siege Social N Djamena Rue Du Capitaine D'abzac, BP 1116 N'djamena

 

 

Country :

Chad

 

 

Date of Incorporation :

30.12.2011

 

 

Legal Form :

Parastatal

 

 

Line of Business :

Subject operate purchase and export of cotton

 

 

No. of Employees :

3000 Employees

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Chad

C1

C1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

CHAD - ECONOMIC OVERVIEW

 

Chad’s landlocked location results in high transportation costs for imported goods and dependence on neighboring countries. Oil and agriculture are mainstays of Chad’s economy. At least 80% of Chad's population live on less than $2 a day and rely on subsistence farming and livestock raising for their livelihood. Oil provides about 60% of export revenues, while cotton, cattle, and gum arabic provide the bulk of Chad's non-oil export earnings. Remittances have also been an important source of income and Chad relies on foreign assistance and foreign capital for most public and private sector investment. The services sector contributes about one-third of GDP and has attracted foreign investment mostly through telecommunications and banking. Chad’s fiscal position is encumbered by declining oil prices and drought, though high oil prices and strong local harvests supported the economy in recent years. Nearly all of Chad’s fuel is provided by one refinery, and unanticipated shut-downs frequently result in shortages. The country regulates the price of domestic fuel, providing an incentive for black market sales. Chad's investment climate remains challenging due to limited infrastructure, a lack of trained workers, extensive government bureaucracy, and corruption. Chad obtained a three-year extended credit facility from the IMF in 2014, and seeks to obtain debt relief under the Heavily Indebted Poor Countries Initiative.

 

Source : CIA

 

SUBJECT'S NAME

           

Registered Name:

LA SOCIETE CONTONNIERE DU TCHAD SOCIETE NOUVELLE

Requested Name:

LA SOCIETE CONTONNIERE DU TCHAD SOCIETE NOUVELLE

Other Names:

COTONTCHAD SN

 

 

ADDRESS AND TELECOMMUNICATION

 

Physical Address:

Siege Social N Djamena Rue Du Capitaine D'abzac

Postal Address:

BP 1116

 

N'djamena

Country:

Chad

Phone:

235-22691555/516679

Fax:

235-22691332/523171

Email:

secret.dg@cotontchad.com/adoum@cotontchad.com/ adoumabba11@hotmail.com

Website:

None

 

 

LEGAL

 

Legal Form:

Parastatal

Date Incorporated:

30-Dec-2011

Reg. Number:

Tchad

Registered Capital

USD. 10,020,000

Subscribed Capital is Subscribed in the following form:

 

Position

Shares

Mr. Mahamat Adoum Ismael

MD

 

Mr. Djongali Yerolbe

Director

 

Mr. Monhasbeye Monhodjingar

Manager

 

Mr. Djinguebaye Fidele

Manager

 

French Development Agency

Shareholder

3%

Banks Consortium

Shareholder

6%

Compagnie Française pour le Développement des Textiles

Shareholder

16%

Government of Tchad

Holding Co.

75%

 

 

RELATED COMPANIES

 

Government of Tchad

Parent company.

None

Subsidiary company.

None

Affiliated company.

None

Shareholder of subject firm.

BP. 151 Moundou, Tchad

Branches of the firm

 

 

OPERATIONS

 

Registered to operate purchase and export of cotton

Imports:

Asia, Middle East

Exports:

Worldwide

Trademarks:

None

Terms of sale:

100% tenders

 

 

Main Customers:

Local agencies, distributors, stores, firms and organizations  

Employees:

3000 employees.

Vehicles:

Several motor vehicles.

Territory of sales:

Tchad

Location:

Owned premises, 200,000 square feet,

 

 

AUDITORS AND INSURANCE

 

Auditors:

Information not available.

Insurance Brokers:

Information not available.

 

 

FINANCE

 

Currency Reported:

West African Franc (CFA.)

Approx. Ex. Rate:

1 US Dollar = 608.95 West African Franc

Fiscal Year End:

December 31, 2014

Inflation:

According to information given by independent sources, the inflation at December 31st, 2014 was of 13%.

 

Financial Information not Submitted

 

 

 

Profit and Loss (expressed in USD.)

 

 

2014

Income

 

20,000,000

 

 

BANK

 

Bank Name:

Commercial Bank of Tchad (CBT)

Branch:

Tchad

Comments:

None

                                                                    

 

COMMENTS/ ADDITIONAL INFORMATION

 

This information was obtained from outside sources other than the subject company itself and confirmed the above subject.

 

COTONTCHAD was formed in 197 by the Government of Tchad.

 

A succession of different crises that interfered with COTONTCHAD led the Government, as principal shareholder, to undertake, for the purpose of revitalizing cotton production, a major restructuring of the company, in which the old company was dissolved and a new one was created, COTONTCHAD Société Nouvelle (COTONTCHAD SN),

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.40

UK Pound

1

Rs.95.42

Euro

1

Rs.68.49

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

               

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.