MIRA INFORM REPORT

 

 

Report No. :

309352

Report Date :

09.03.2015

 

IDENTIFICATION DETAILS

 

Name :

DANGOTE FERTILIZER LIMITED

 

 

Registered Office :

Union Marble House 1 Alfred Rewane Road Falomo Jkoy Lagos, PMB 40032, Falomo Ikoyi, Lagos

 

 

Country :

Nigeria

 

 

Date of Incorporation :

10.05.2011

 

 

Com. Reg. No.:

1219255

 

 

Legal Form :

Limited Corporation 

 

 

Line of Business :

Engaged as dealers in fertilizers and Related Products

 

 

No of Employees :

50

 

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)

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

 

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

 

 

SUBJECT'S NAME   

 

Registered Name:                                   DANGOTE FERTILIZER LIMITED

Requested Name:                                   DANGOTE FERTILIZER LIMITED

Other Names:                                          None

 

 

ADDRESS AND TELECOMMUNICATION

 

Physical Address:                                   Union Marble House 1 Alfred Rewane Road Falomo Jkoy Lagos

Postal Address:                                      PMB 40032,

                                                              Falomo Ikoyi, Lagos

Country:                                                 Nigeria

Phone:                                                   234-1-4702240/2695108/2695109/4480815/2695009/

                                                              2695108/2695110

Fax:                                                       234-1-2695009/269531/681472/2695316

Email:                                                     knutu@dagonte-group.com/dangote@dangote-

                                                              group.com/corporate.communications@dangote.com

Website:                                                 www.dangote-group.com

 

 

CREDIT OPINION

 

Financial Index as of December 2014 shows subject firm with a medium risk of credit.

 

 

LEGAL

 

Legal Form:                                                     Limited Corporation 

Date Incorporated:                                           10-May-2011

Reg. Number:                                                  1219255

Nominal Capital                                                NGN. 10,000,000

Subscribed Capital                                           NGN. 10,000,000

 

Subscribed Capital is Subscribed in the following form:

                                                                       Position                          Shares

Alhaji Aliko Dangote                                         Chairman                        

Sani Dangote                                                   Vice President                 

Olakunle Alake                                                 COO                               

Kuzhyil Ravindran                                             CFO                               

Abdu Dantata                                                  Director                          

Knut Ulvmoen                                                  Director                          

M. Sada Ladan Baki                                         Director                          

Devakumar V. G. Edwin                                    Director                          

Alhaji Tajudeen Sijuade                                     Director                          

Joseph Makoju,                                               Director                          

Usen Udoh                                                      Director                          

Dangote Group                                                Holding Co.                     100%

RELATED COMPANIES  

 

Dangote Group                                                Parent company.

None                                                               Subsidiary company.

Submitted Below                                              Affiliated companies.

None                                                               Shareholder of subject firm.

None                                                               Branches of the firm

 

 

OPERATIONS

 

Registered to operate as dealers in fertilizers and related products

 

Imports:                                                           Asia

Exports:                                                          None

Trademarks:                                                     None

Terms of sale:                                                  Cash (40%) and 25-90 days (60%), invoices.

                                                                      

Main Customers:                                              firms and organizations  

Employees:                                                     50 employees.

Vehicles:                                                         Several motor vehicles.

Territory of sales:                                             Nigeria

Location:                                                         Owned premises, 20,000 square feet,

 

 

AUDITORS AND INSURANCE   

 

Auditors:                                                         Information not available.

Insurance Brokers:                                            Information not available.

                                                                      

 

FINANCE 

 

Currency Reported:                                          Nigerian Naira (NGN.)

Approx. Ex. Rate:                                            1 US Dollar = 199.55 Nigerian Naira

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 NGN.)

                                                                             2014

Sales                                                                     450,000,000

 

BANK 

 

Bank Name:                                                     ACCESS BANK PLC

Branch:                                                            Nigeria

Comments:                                                      None

                                                                      

 

TRADE REFERENCES    

 

Experiences:                                                    Good

                                                                      

 

NOTARIAL BONDS   

 

None

 

 

COMMENTS / ADDITIONAL INFORMATION    

 

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

 

AFFILIATED COMPANIES

ALCO INTERNATIONAL LIMITED

DANGOTE NIGERIA LIMITED

DANGOTE TRANSPORT LIMITED

DANGOTE CEMENT PLC.

NATIONAL SALT COMPANY OF NIGERIA PLC.

DANGOTE FLOUR MILLS PLC.

DANGOTE SUGAR REFINERY PLC.

DANGOTE OIL & GAS INDUSTRIES INTERNATIONAL

DANGOTE TEXTILES LIMITED

DANGOTE HOLDINGS LIMITED

BLUE STAR LIMITED

DANSA FOODS LIMITED

DANSA FOOD PROCESSING LIMITED

DANCOM TECHNOLOGIES

GREENVIEW INTERNATIONAL COMPANY LIMITED

SEPHAKU CEMENT LIMITED

ALHERI ENGINEERING LIMITED

KURA HOLDINGS LIMITED

DANGOTE INDUSTRIES LIMITED

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.20

UK Pound

1

Rs.94.71

Euro

1

Rs.68.60

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

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.