MIRA INFORM REPORT

 

 

Report Date :

25th November, 2006

 

IDENTIFICATION DETAILS

 

Name :

MGS INTERNATIONAL (U) LTD.

 

 

Registered Office :

Nile Avenue No. 40, P.O. Box: 19, Kampala, Uganda

 

 

Country :

Uganda

 

 

Date of Incorporation :

1985

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Importers and wholesalers of petroleum products, lubricants and white petrole.

 

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

 

Maximum Credit Limit :

UGA Shs 250,000,000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Company NAME

 

MGS INTERNATIONAL (U) LTD

 

 

ADDRESS

 

Street                           :  Nile Avenue No. 40

P.O. Box           :  19

Town                 :  Kampala

Country             :  Uganda

Telephone         :  (256 41) 341701 / 348966 / (256) 7579 3742 (mobile) / 7720 0857 (mobile)

Fax                   :  (256 41) 341706 / 341701

E-Mail               :  mutyabaa@mgs-castrol.com

 

 

SENIOR COMPANY PERSONNEL

 

Name                                        Position

 

1. Geoffrey Rogozora                  Chief Executive Officer

 

2. Abas Mutyabaa                      General Manager

 

3. Thomas Opio                         Financial Manager

 

 

Total Employees            : 40

 

 

PAYMENTS

 

No complaints have been heard regarding payments from local suppliers or banks.

 

We consider it is acceptable to deal with subject for MEDIUM amounts. although it is normal accepted practice for international suppliers to deal on secured terms with Ugandan importers.

 

Opinion on maximum credit        : UGA Shs 250,000,000

 

Trade risk assessment               : Normal

 

 

PRINCIPAL BANKERS

 

NAME               : STANBIC BANK (U) LTD

Branch              : Kampala Road 45

PO Box             : 9131

Town                 : Kampala

Telephone         : (41) 231116

 

The company also has an account with the following bank :

 

Standard Chattered Bank (U) LTD

Speke Road 5

P.O.Box : 7111

Kampala

Telephone         : (41) 231473

 

 

FINANCIAL INFORMATION

 

Balance sheets are not available. However, the subject interviewed offered the following information :

 

Sales Turnover               : UGA Shs  5,000,000,000 - 2001 - exact

: UGA Shs  6,670,000,000 - 2002 - exact

: UGA Shs 13,000,000,000 - 2003 - exact*

: UGA Shs 14,700,000,000 - 2004 - exact

: UGA Shs 34,200,000,000 - 2005 - exact**

: UGA Shs 40,000,000,000 - 2006 - projected

 

Net Profit                       : UGA Shs    514,000,000 - 2001 - exact

: UGA Shs    550,000,000 - 2002 - approx

: UGA Shs    998,000,000 - 2003 - exact

: not given              - 2004

: UGA Shs    656,259,336 - 2005 - exact

 

 

Financial year ends 31 December.

 

* Subject stated that increase of sales turnover was due to a diversification of the company's activities.

 

**Sharp increase of turnover attributed to increased volume of business.

 

 

LEGAL STATUS AND HISTORY

 

Date Started                  : 1985

 

Paid up Capital              : UGA Shs 873,000,000

 

 

Limited Liability Company with the following shareholders :

 

Percentage

 

1. Geoffrey Rogozora                  51 %

 

2. Karamba Sizi                         49 %

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Importers and wholesalers of petroleum products, lubricants and white petrole.

 

Imports from South Africa, Tanzania, the Netherlands and the Middle East.

 

Overseas suppliers include:

 

1. Castro, South Africa

 

2. BP, Tanzania

 

 

FACILITIES

 

The Company has the following facilities :

 

Office premises, wholesale outlet and storage facilities located at the heading address.

 

Subject also has a depot at Ginger Road, Kampala as well as 10 wholesale outlets and 16 petrol stations throughout the country.

 

Subject also has two branches locateed in Tanzania and Kenya.

 

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

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

 

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