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MIRA
INFORM REPORT
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Report No. : |
506569 |
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Report Date : |
03.05.2018 |
IDENTIFICATION DETAILS
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Name : |
FERRO ALLOYS CORPORATION LIMITED |
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Registered Office : |
Plot No. 19477 Near New Railway Work Shop, Mine Area, Kabwe, P. o. Box 80931, Kabwe |
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Country : |
Zambia |
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Financials (as on) : |
2017 [Summarized] |
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Date of Incorporation : |
02.08.2009 |
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Com. Reg. No.: |
7338 |
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Legal Form : |
Limited Corporation |
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Line of Business : |
Registered to operate as
manganese exploration and production plant |
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No. of Employees : |
150 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with moderate
risk of default |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Zambia |
B1 |
B1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
ZAMBIA - ECONOMIC OVERVIEW
Zambia had one of the world’s fastest growing economies for the ten years up to 2014, with real GDP growth averaging roughly 6.7% per annum, though growth slowed during the period 2015 to 2017, due to falling copper prices, reduced power generation, and depreciation of the kwacha. Zambia’s lack of economic diversification and dependency on copper as its sole major export makes it vulnerable to fluctuations in the world commodities market and prices turned downward in 2015 due to declining demand from China; Zambia was overtaken by the Democratic Republic of Congo as Africa’s largest copper producer. GDP growth picked up in 2017 as mineral prices rose.
Despite recent strong economic growth and its status as a lower middle-income country, widespread and extreme rural poverty and high unemployment levels remain significant problems, made worse by a high birth rate, a relatively high HIV/AIDS burden, and by market-distorting agricultural and energy policies. Zambia has raised $7 billion from international investors by issuing separate sovereign bonds in 2012, 2014, and 2015, significantly increasing the country’s public debt burden to more than 50% of GDP; the government has considered refinancing $2.8 billion worth of Eurobonds to cut debt servicing costs.
Poor management of water resources has also contributed to a
power generation shortage, which has hampered industrial productivity and
contributed to an increase in year-on-year inflation to more than 20% in 2016.
Zambia’s currency, the kwacha, also depreciated sharply against the
dollar through 2016, leading the central bank to restrict lending. Rampant
spending in recent years has increased the fiscal deficit to over 8% in 2017
and may encourage the government to seek external financing from the IMF to
fund the shortfall if they can agree to austerity measures.
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Source
: CIA |
SUBJECT'S NAME |
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Registered Name: |
FERRO ALLOYS
CORPORATION LIMITED |
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Requested Name: |
FERRO ALLOYS CORPORATION LIMITED |
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Other Names: |
FACL |
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ADDRESS AND TELECOMMUNICATION |
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Physical Address: |
Plot
No. 19477 Near New Railway Work Shop, Mine Area, Kabwe, |
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Postal Address: |
P.
o. Box 80931 |
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Kabwe, |
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Country: |
Zambia |
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Phone: |
260-96795007/967905287/969789156/ 965275766 |
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Fax: |
260-96790528 |
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Email: |
info@metexmining.com/ metexmining@gmail.com/info@faclzambia.com |
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Website: |
www.faclzambia.com |
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CREDIT OPINION |
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Financial Index as of
December 2017 shows subject firm with a medium risk of credit. However, bank
and credit information obtained reveal a history of prompt payments. |
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LEGAL |
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Legal Form: |
Limited Corporation |
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Date Incorporated: |
2-Aug-2009 |
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Reg. Number: |
7338 |
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Nominal Capital |
ZMW.
100,000 |
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Subscribed Capital |
ZMW.
100,000 |
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Subscribed Capital is Subscribed in the following form: |
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Position |
Shares |
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Vivek Agarwal |
Director |
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Rajnish Gupta |
Director |
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Jammu Lal |
GM |
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RELATED COMPANIES |
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None |
Parent company. |
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None |
Subsidiary company. |
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None |
Affiliated company. |
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None |
Shareholder of subject
firm. |
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None |
Branches of the firm |
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OPERATIONS |
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Registered to operate as
manganese exploration and production plant |
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Imports: |
Asia |
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Exports: |
Worlwide |
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Trademarks: |
None |
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Terms of sale: |
Cash (60%) and 25-90 days (40%), invoices. |
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Main Customers: |
firms and organizations |
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Employees: |
150 employees. |
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Vehicles: |
Several motor vehicles. |
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Territory of sales: |
Ethiopia |
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Location: |
Rented premises, 12,000 square feet, |
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AUDITORS AND INSURANCE |
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Auditors: |
Information not
available. |
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Insurance Brokers: |
Information not
available. |
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FINANCE |
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Currency Reported: |
Zambian Kwacha (ZMW.) |
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Fiscal Year End: |
December 31, 2017 |
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Inflation: |
According to information given by independent sources, the inflation
at December 31st, 2017 was of 13%. |
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Financial Information not
Submitted |
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Profit and Loss
(expressed in ZMW.) |
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2017 |
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Sales |
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48,500,000 |
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BANK |
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Bank Name: |
ZNBC |
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Branch: |
Kabwe |
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Comments: |
None |
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TRADE
REFERENCES
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Experiences: |
Good |
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NOTARIAL BONDS |
None |
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COMMENTS / ADDITIONAL INFORMATION |
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This information was
obtained from outside sources other than the subject company itself and
confirmed the above subject. |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 66.66 |
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1 |
INR 90.66 |
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Euro |
1 |
INR 80.01 |
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ZMK |
1 |
INR 6.65 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
SYL |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
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Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.