MIRA INFORM REPORT

 

Report Date :

26th February, 2007

                                                         

IDENTIFICATION DETAILS

 

Name :

MTIBWA SUGAR ESTATES LTD

 

 

Registered Office :

42 , Mtibwa, Tanzania.

 

 

Country :

Tanzania

 

 

Date of Incorporation :

22.12.1961

 

 

Legal Form :

Public Limited Liability Company

 

 

Line of Business :

Operators of a sugar cane plantation, processors of sugar.

 

 

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 :

TAN Shs 420,000,000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

 

COMPANY NAME

 

MTIBWA SUGAR ESTATES LTD

 

 

ADDRESS

 

P.O. Box                       :  42

Town                             :  Mtibwa

Country                         :  Tanzania

Telephone                     :  (255 23) 262 0094 / 023 262 0091 (mobile)

Fax                               :  (255 22) 286 2667

E-Mail                          :  mse@mtibwa-sugar.co.tz

Shortform Name :  MSE

 

 

SENIOR COMPANY PERSONNEL

 

    Name                        Position

 

1. Ismal Sahib               General Manager (Mtibwa Branch)

 

2. S. Moza (Mrs)           Financial Manager

 

 

Total Employees : 10,000 (Group)

 

 

PAYMENTS

 

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

 

Mtibwa Sugar Estates is wholly owned subsidiary of Sugar Industries Ltd, Tanzania.

 

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 Tanzanian importers.

 

Opinion on maximum credit        : TAN Shs 420,000,000

 

Trade risk assessment               : Normal

 

 

PRINCIPAL BANKERS

 

NAME               : CITIBANK (T) LTD

Branch              : Main Branch

PO Box             : 71625

Town                 : Dar es Salaam

Telephone         : (255 22) 211 7601

Fax                   : (255 22) 211 3910

 

The company also has account with the following bank :

 

Barclays Bank

TDFL Building

Ohio Street

P.O. Box 5137

Dar es Salaam

Tel        : (255 22) 212 9381

Fax       : (255 22) 212 9757

 

 

FINANCIAL INFORMATION

 

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

 

Sales Turnover               : TAN Shs  3,500,000,000 - 1992 - exact

                                    : not given              - 1993 - 1998

                                    : TAN Shs  6,500,000,000 - 1999 - approx

                                    : TAN Shs 11,000,000,000 - 2000 - exact

                                    : TAN Shs 14,000,000,000 - 2001 - exact

                                    : TAN Shs 16,000,000,000 - 2002 - exact

                                    : TAN Shs 18,000,000,000 - 2003 - approx

                                    : TAN Shs 18,000,000,000 - 2004 - exact

                                    : TAN Shs 20,000,000,000 - 2005 - exact

                                    : TAN Shs 21,000,000,000 - 2006 - exact

 

Net Profit                       : not given, but stated to be profitable

 

Invested Capital             : US DLRS 100,000,000 - 2010 - projected

 

Financial year ends 30 June.

 

 

LEGAL STATUS AND HISTORY

 

Date Started : 22 December 1961

 

History : Sugar production began in 1958 and the company was

 established as a private limited liability company on 22 December 1961. The ownership passed through many hands, including the Ugandan Madivani Group, until it was acquired in 1973 when a new factory was built. In  1998 subject was privatized and acquired by Tanzania Sugar Industry Ltd.

 

Authorised Capital          : TAN Shs 150,000,000

 

Paid up Capital              : TAN Shs 132,798,200

 

 

Public Limited Liability Company with the following sole shareholder :

 

Tanzania Sugar Industry Ltd            100 %

Pagu Road

P.O. Box 16541

Dar Es Salaam

Tel        : (255 22) 286 0930

Fax       : (255 22) 286 5412 / 286 5413

 

Affiliated companies of Mtibwa Sugar Estates Ltd :

 

Associates

 

1. General Motors Investment Ltd (GMI)

   14 Vingunguti, Nyerere Road

   PO Box 16541

   Dar-es-Salaam

   Tel     : (255 22) 286 2661

   Fax    : (255 22) 286 2667

 

2. Kagera Sugar Limited

   P. O. Box 815

   Bukoba

   Tanzania

   Tel.    : (255 28) 222 0709

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Operators of a sugar cane plantation, processors of sugar.

 

The cane is weeded and harvested manually and is processed into white and brown sugar.

 

Annual Production Capacity : 87,400 tons of sugar in 2006.

 

Imports from  UK, USA, Germany, India and the Scandinavian countries.

 

Overseas suppliers include:

 

- Fletcher/Smith (UK)

- Hangeco (Germany)

- Cameco & HVA (The Netherlands)

- Peter Brotherhood

 

 

FACILITIES

 

The Company has the following facilities :

 

Administrative offices located at the heading address.

 

The company also has a sugar cane plantation, factory and warehouse covering 5,500 hectares in Mtibwa area, approximately 150 km from Morogoro, Tel: (255 23) 262 0096, Faz: (255 23) 262 0004.

 

Subject plans to build a distillery in 2006 / 2007.

 

 

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

 

 

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