MIRA
INFORM REPORT
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Report Date : |
17th
June 2006 |
IDENTIFICATION
DETAILS
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Name : |
KNITWEAR
INDUSTRIES LIMITED |
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Registered Office : |
Kideny
Cresent, Plot 128 355,
Blantyre, Malawi |
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Country : |
Malawi |
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Date of Incorporation : |
1981 |
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Com. Reg. No.: |
2234 |
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Legal Form : |
Limited
Liability Company |
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Line of Business : |
Manufacturers
of textile products and garments. Subject also engages in commission dyeing
and printing of knitted and woven textile piece goods. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
CO. NAME
KNITWEAR
INDUSTRIES LIMITED
ADDRESS
Street : Kideny Cresent, Plot 128
P.O.
Box : 355
Town : Blantyre
Country : Malawi
Telephone :
(265 1) 671153 / 670247 / (88) 42374 mobile
Fax : (265 1) 671380
E-Mail : desco@malawi.net
SENIOR COMPANY PERSONNEL
Name Position
1.
Kantilal K.Desai Chairman
2.
Bharatkumar K.Desai Managing Director
3.
Jayantilal K.Desai Production Director.
Total
Employees : 300
PAYMENTS
No
complaints have been heard regarding payments from local suppliers or banks.
Subject
is a well established family owned company, operating since 1981.
In
2001 subject incurred an undisclosed loss, which company attributed to currency
fluctuation. In 2002 and in 2003 the company broke even. In 2004 subject
returned to profitability, however again broke even in 2005.
We
consider it is acceptable to deal with subject for SMALL amounts, however in
view of the above comment, we recommend international suppliers exercise a
degree of caution.
Opinion
on maximum credit : KWACHA 1,000,000
Trade
risk assessment : Normal
It
is normal accepted practice for international suppliers to deal on secured
terms with Malawi importers.
PRINCIPAL BANKERS
NAME : INVESTMENT & DEVELOPMENT BANK OF MALAWI
LTD. (INDEBANK)
Branch : 6/F Delamere House, Victoria Avenue
P.O.
Box : 358
Town : Blantyre
Telephone:
(265 1) 220 055
Contact
person : Timothy Maknadawire
Subject
also has an account with the First Merchant Bank.
FINANCIAL INFORMATION
Balance
sheets are not available. However, the subject interviewed offered the
following information :
Sales
Turnover : US DLRS 500,000 - 2001 -
exact
: US DLRS 500,000 - 2002 - exact
: US DLRS 500,000 - 2003 - exact
: US DLRS 550,000 - 2004 - exact
: US DLRS 550,000 - 2005 - exact
Loss : not given - 2001
Profit
/ Loss : break even - 2002
Profit
/ Loss : break even - 2003
Net
Profit : US DLRS 27,000 - 2004 -
exact
Profit
/ Loss : break even - 2005
Financial
year ends 31 December.
LEGAL STATUS AND HISTORY
Date
Started : 1981
C.R.
No. : 2234
Paid
up Capital : US DLRS 20,000
Limited
Liability Company with the following shareholders :
Percentage
1.
Kantilal K.Desai 33.34%
2.
Bharatkumar K.Desai 33.33%
(brother of the above)
3.
Jayantilal K.Desai 33.33%
(brother of the above)
ACTIVITIES
The
Company is involved in the following activities :
Manufacturers
of textile products and garments. Subject also engages in commission dyeing and
printing of knitted and woven textile piece goods.
Imports
from South Africa, UK, China, Hong Kong, Pakistan and India.
Exports
to South Africa and USA.
FACILITIES
The
Company has the following facilities :
Owned
35,000 sq premises comprising administrative offices, factory and storage
facilities located at the heading address.
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 |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
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 |