MIRA
INFORM REPORT
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Report Date : |
06.07.2007 |
IDENTIFICATION DETAILS
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Name : |
KENYA TEA DEVELOPMENT AGENCY LTD |
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Registered Office : |
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Country : |
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Financials (as on) : |
30.06.2006 |
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Date of Incorporation : |
1964 |
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Com. Reg. No.: |
89741 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Tea growers, manufacturers and exporters of tea. |
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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Maximum Credit Limit : |
K Shs 60,000,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
COmpany NAME
KENYA TEA DEVELOPMENT
AGENCY LTD
ADDRESS
P.O. Box :
30213
Town :
Country :
Telephone :
(254 2) 221441-4
Fax : (254 2) 210636
E-Mail : gm-sam@net2000ke.com
Formerly Known As
SENIOR COMPANY
PERSONNEL
Name Position
1. S.M. I'manyara Chairman
2. Ngetich Vice Chairman
3. L. Tiampati Managing Director
4. S.M. Kiarie Director
5. J.D. Kimura Director
6. P.T. Kanyago Director
7. G.M. Mugo Director
8. N.F. Njeru Director
9. J.M. Nyagarama Director
10. Ben Nyamweya
Matonda Director
11. J.M. Mukavale Director
12. Chege Kirudi Director
13. Joshua Koge Director
14. A.K. Rimberia Operations
Director
15. David Kimani Finance
Director
Total Employees
800
PAYMENTS
No complaints have been
heard regarding payments from local suppliers or banks.
Subject is a well
established organization within the Government of Kenya operating since 1964.
We consider it is
acceptable to deal with subject for LARGE amounts, although it is normal
accepted practice to deal on secured terms with Kenyan importers.
Opinion on maximum credit
: K Shs 60,000,000
Trade risk assessment :
PRINCIPAL BANKERS
NAME :
KENYA COMMERCIAL BANK LIMITED
Branch :
Kencom House
PO Box :
484000
Town :
Telephone : (20) 339441
Fax :
(20) 338006
FINANCIAL INFORMATION
Consolidated balance
sheet as at 30 June showed:
2006 2005
ASSETS (in K Shs)
NON-CURRENT ASSETS
Property , Plant & Equipment 1,070,667,693 701,400,712
Investment Property 671,016,797 513,856,848
Prepaid Operating Lease Rentals 54,153,715 55,347,825
Investments in Related Parties 78,925,147 266,392,054
Deferred Tax asset - 159,884
Biological Assets 118,885,993 63,923,602
Intangible Assets 3,002,048 -
Non-current Receivables 6,752,575 -
2,003,403,968 1,601,080,925
CURRENT ASSETS
Inventories 625,038,668 211,009,399
Receivables and Prepayments 1,101,938,721 809,783,056
Related Parties 810,669,955 1,278,382,325
Short-term Investments 2,577,978,011 1,448,245,090
Cash and Cash Equivalents 872,643,410 -
Taxation refunable 1,818,015 -
5,990,086,780 3,747,419,870
Total Assets 7,993,490,748 5,348,500,795
EQUITY AND LIABILITIES
Capital and reserves attributable
to the company’s equity holders
Share Capital 10,108,000 10,000,000
Reserves 4,822,303,639 3,915,728,549
4,832,411,639 3,925,728,549
Minority Interest 238,744,901 -
Total Equity 5,071,156,540 3,925,728,549
Non-Current Liabilities
Service Gratuity 38,829,484 30,513,896
Deferred Tax Liability 20 41,199,745 -
80,029,229 30,513,896
Current Liabilities
Cash and Cash Equivalents 430,217,671 29,585,881
Due to Related Partie 1,868,523,984 970,644,936
Payables and Accruals 543,563,324 375,245,761
Taxation - 16,781,772
2,842,304,979 1,392,258,350
Total Equity and Liabilities 7,993,490,748 5,348,500,795
INCOME STATEMENT
5,313,141,963 4,527,077,371
Operating Expenses 5,074,913,759 4,172,246,468
Other Expenses 7,960,809 16,728,877
TOTAL OPERATING EXPENSES 5,082,874,568 4,188,975,345
OPERATING PROFIT 230,267,396 338,102,026
Finance Income 121,251,172 100,884,390
Profitbeforeincometax 351,518,568 438,986,416
TAXATION (115,441,029) (108,699,308)
Profitbeforeminorityinterest 236,077,539 330,287,108
Minority Interest (25,874,483) -
Profit for the year 210,203,056 330,287,108
EARNINGS PER SHARE 415.91 660.57
DIVIDEND PER SHARE 197.86 150.00
THE PROFIT FOR THE YEAR COMPRISES:
KTDA Limited 78,089,205 193,436,688
Majani Insurance Brokers Limited 24,364,166 19,878,878
Chai Warehousing Limited 27,895,935 25,276,791
Chai Trading Company Limited 8,682,370 91,694,751
KETEPA Limited 71,171,380 -
210,203,056 330,287,108
Sales Turnover : K Shs
882,354,269 - 2002 - exact
: K Shs 894,638,830 - 2003
- exact
: K Shs 1,086,434,850 - 2004 - exact
: K Shs 4,527,077,960 - 2005 - exact
: K Shs 5,313,141,963 - 2006 - exact
Net Profit : K Shs (97,260,652)- 2002 - exact
: K Shs 143,611,350 - 2003
- exact
: K Shs 274,219,770 - 2004
- exact
: K Shs 438,986,416 - 2005
- exact
: K Shs 351,518,568 - 2006
- exact
Financial year ends 30
June.
LEGAL STATUS AND
HISTORY
Date Started : 1964
History : The subject was
established in
C.R. No. : 89741
Capital : not given
Limited Liability Company
with the following shareholders :
54 tea farmers.
ACTIVITIES
The Company is involved
in the following activities :
Tea growers,
manufacturers and exporters of tea. Subject manages 45 tea processing
factories.
Production capacity :
727,824,118 tones - 2006
Imports equipment from
European countries.
Exports worldwide.
FACILITIES
The Company has the following
facilities :
Administrative offices
located in the commercial area of
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 |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)