MIRA INFORM REPORT

 

 

Report Date :

09.06.2007

 

IDENTIFICATION DETAILS

 

Name :

PNP INDUSTRIES LTD

 

 

Registered Office :

Plot 32/2, Mikocheni Light Industrial Area, Anepi, P. O. Box 3030, Dar-Es-Salaam, 3030

 

 

Country :

Tanzania

 

 

Date of Incorporation :

10 August 1977

 

 

Com. Reg. No.:

5881

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Distributors of steel billets.

 

 

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 17,500,000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

COmpany NAME

 

PNP INDUSTRIES LTD (Correct)

 

PNP INDUSTRIES LIMITED (Requested)

 

 

ADDRESS

 

Area                             :  Plot 32/2, Mikocheni Light Industrial Area, Anepi

P.O. Box           :  3030

Town                 :  Dar-Es-Salaam

Post Code         :  3030

Country             :  Tanzania

Telephone         :  (255 22) 2138 040 / 2139 158

Fax                   :  (255 22) 211 7963

 

 

Shortform Name

 

PNP

 

 

SENIOR COMPANY PERSONNEL

 

    Name                                    Position

 

1. Subhash M. Patel                  Managing Director

 

2. R.M. Motibhai Patel                Director

 

3. J.A. Patel                              General Manager

 

4. Ashish Sulchla                       Chief Accountant

 

 

Total Employees

 

48

 

 

PAYMENTS

 

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

 

Subject incurred a loss in 2005 but returned to profitability in 2006.

 

We consider it is acceptable to deal with subject for SMALL amounts, however in view of past loss situation we recommend international suppliers exercise a degree of caution for the time being.

 

Opinion on maximum credit : TAN Shs 17,500,000

 

Trade risk assessment : Normal (see above comments)

 

Opinion on the credit figure of US DLRS 10,000 :

 

We consider the above figure to be within the company's financial capabilities.

 

It is normal accepted practice for international suppliers to deal on secured terms with Tanzanian importers.

 

 

PRINCIPAL BANKERS

 

NAME               : KENYA COMMERCIAL BANK LTD

Branch              : mAIN

P.O. Box           : 804

Town                 : dAR eS sALAAM

 

 

AUDITORS

 

P.S. Patel & Co

 

 

FINANCIAL INFORMATION

 

Balance sheets as at 30 June 2006 shows :

 

FIXED ASSETS             : TAN Shs   473,380,435 - 2005 - exact

                                    : TAN Shs   648,530,776 - 2006 - exact

 

INVESTMENTS             : TAN Shs        15,000 - 2005 - exact

                                    : TAN Shs        15,000 - 2006 - exact

 

CURRENT ASSETS     

Cash in hand                 : TAN Shs    15,301,979 - 2005 - exact

                                    : TAN Shs       870,333 - 2006 - exact

 

Cash at bank                 : TAN Shs    11,385,643 - 2005 - exact

                                    : TAN SHS       214,429 - 2006 - exact

 

Stock in trade                : TAN Shs   380,757,500 - 2005 - exact

(Raw Materials)              : TAN Shs   405,150,900 - 2006 - exact

 

Stock in Trade               : TAN Shs   101,351,500 - 2005 - exact

(Finished Goods)           : TAN Shs   143,758,000 - 2006 - exact

 

Deposits &                    : TAN Shs     1,698,591 - 2005 - exact

Prepayments                 : TAN Shs     1,698,591 - 2006 - exact

 

Staff Loans &                 : TAN Shs       479,647 - 2005 - exact

Advances                      : TAN Shs       191,466 - 2006 - exact

 

Total                             : TAN Shs   510,974,860 - 2005 - exact

                                    : TAN Shs   551,883,719 - 2006 - exact

 

LESS : CURRENT LIABILITIES :

Accrued Charges           : TAN Shs    17,971,010 - 2005 - exact

                                    : TAN Shs    11,215,412 - 2006 - exact

 

Creditors                                   : TAN Shs   238,675,903 - 2005 - exact

                                    : TAN Shs   454,691,623 - 2006 - exact

 

Provision for                   : TAN Shs    (5,250,000)- 2005 - exact

Taxation                       : TAN Shs    (9,750,000)- 2006 - exact

 

Total                             : TAN Shs   251,396,913 - 2005 - exact

                                    : TAN Shs   456,157,035 - 2006 - exact

 

NET CURRENT ASSETS  : TAN Shs   259,577,947 - 2005 - exact

/LIABILITIES                   : TAN Shs    95,726,684 - 2006 - exact

 

TOTAL                          : TAN Shs   732,973,382 - 2005 - exact

                                    : TAN Shs   744,272,460 - 2006 - exact

 

REPRESENTED BY:

 

SHARE CAPITAL:

 

Authorized : 10,000

Shares of TAN SHS       : TAN Shs    10,000,000 - 2005 - exact

100 Each                      : TAN Shs 1,000,000,000 - 2006 - exact

 

Paid up : 8,100,000

shares of TAN SHS        : TAN Shs    10,000,000 - 2005 - exact

100 each                       : TAN Shs   810,000,000 - 2006 - exact

 

PROFIT & LOSS            : TAN Shs   (77,026,618)- 2005 - exact

APPROPRIATION A/C  : TAN Shs   (65,727,539)- 2006 - exact

 

Total                             : TAN Shs   732,973,382 - 2005 - exact

                                    : TAN Shs   744,272,460 - 2006 - exact

 

Profit & Loss Account as at 30 June 2006

 

Sales                            : TAN Shs 1,708,667,500 - 2005 - exact

                                    : TAN Shs 1,803,975,232 - 2006 - exact

 

COST OF PRODUCTION:

 

Opening Stock               : TAN Shs   347,991,511 - 2005 - exact

                                    : TAN Shs   380,757,500 - 2006 - exact

 

Purchases                     : TAN Shs 1,268,673,905 - 2005 - exact

                                    : TAN Shs 1,232,850,078 - 2006 - exact

 

Total                             : TAN Shs 1,616,665,416 - 2005 - exact

                                    : TAN Shs 1,613,607,578 - 2006 - exact

 

Less : Closing               : TAN Shs   380,757,500 - 2005 - exact

       Stock                     : TAN Shs   405,150,900 - 2006 - exact

 

Total                             : TAN Shs 1,235,907,916 - 2005 - exact

                                    : TAN Shs 1,208,456,678 - 2006 - exact

 

PRODUCTION OVERHEADS

Transport                       : TAN Shs             - - 2005 - exact

                                    : TAN Shs       600,000 - 2006 - exact

 

Machinery Repairs &      : TAN Shs    17,365,811 - 2005 - exact

Maintenance                  : TAN Shs    19,107,576 - 2006 - exact

 

Building Repairing          : TAN Shs             - - 2005 - exact

                                    : TAN Shs     6,570,047 - 2006 - exact

 

Cleaning Charges           : TAN Shs     2,125,999 - 2005 - exact

                                    : TAN Shs     2,683,968 - 2006 - exact

 

Electricity & Water         : TAN Shs   432,442,361 - 2005 - exact

                                    : TAN Shs   412,302,592 - 2006 - exact

 

Loading and                   : TAN Shs    12,525,700 - 2005 - exact

Offloading Charges         : TAN Shs    10,745,800 - 2006 - exact

 

Production Labour          : TAN Shs    10,755,300 - 2005 - exact

Charges                        : TAN Shs    11,546,400 - 2006 - exact

 

Packing Materials          : TAN Shs     2,678,211 - 2005 - exact

                                    : TAN Shs     2,929,917 - 2006 - exact

 

Depreciation: Plant         : TAN Shs    35,230,056 - 2005 - exact

& Machinery                  : TAN Shs    40,847,201 - 2006 - exact

 

Inspection Unit               : TAN Shs       240,000 - 2005 - exact

                                    : TAN Shs             -   2006 -

 

Total                             : TAN Shs   513,363,438 - 2005 - exact

                                    : TAN Shs   507,333,501 - 2006 - exact

 

FINISHED GOODS:

Openng Stock               : TAN Shs    12,075,414 - 2005 - exact

                                    : TAN Shs   101,351,500 - 2006 - exact

 

Less : Closing Stock      : TAN Shs   101,351,500 - 2005 - exact

                                    : TAN Shs   143,758,000 - 2006 - exact

 

Total                             : TAN Shs   (89,276,086)- 2005 - exact

                                    : TAN Shs   (42,406,500)- 2006 - exact

 

Total                             : TAN Shs 1,659,995,268 - 2005 - exact

                                    : TAN Shs 1,673,383,679 - 2006 - exact

 

GROSS PROFIT            : TAN Shs    48,672,232 - 2005 - exact

                                    : TAN Shs   130,591,553 - 2006 - exact

 

TOTAL GROSS PROFIT  : TAN Shs    48,672,232 - 2005 - exact

                                    : TAN Shs   130,591,553 - 2006 - exact

 

LESS : ADMINISTRATIVE

AND SELLING EXPENSES:

Salaries                                    : TAN Shs    13,474,885 - 2005 - exact

                                    : TAN Shs    13,222,448 - 2006 - exact

 

Rent                             : TAN Shs     4,200,000 - 2005 - exact

                                    : TAN Shs     5,400,000 - 2006 - exact

 

Postage & Parcels         : TAN Shs        25,450 - 2005 - exact

                                    : TAN Shs        29,800 - 2006 - exact

 

Telephone                     : TAN Shs       119,389 - 2005 - exact

                                    : TAN Shs       171,083 - 2006 - exact

 

N.S.S.F.                                   : TAN Shs     1,088,748 - 2005 - exact

Contributions                 : TAN Shs     1,547,146 - 2006 - exact

 

Bank Charges                : TAN Shs       140,000 - 2005 - exact

                                    : TAN Shs       200,000 - 2006 - exact

 

City Service Levy           : TAN Shs     5,133,037 - 2005 - exact

                                    : TAN Shs     5,404,890 - 2006 - exact

 

Vehicle Running

Expenses (Lorry            : TAN Shs    16,692,300 - 2005 - exact

Running Exp.)                : TAN Shs    17,018,056 - 2006 - exact

 

Printing &                                  : TAN Shs     7,212,628 - 2005 - exact

Stationery                                 : TAN Shs     8,137,408 - 2006 - exact

 

Medical                                     : TAN Shs       484,100 - 2005 - exact

                                    : TAN Shs       660,475 - 2006 - exact

 

Repairs &                      : TAN Shs    10,140,483 - 2005 - exact

Maintenance                  : TAN Shs    16,425,139 - 2006 - exact

 

Staff Canteen &             : TAN Shs     3,328,283 - 2005 - exact

Refreshment                  : TAN Shs     2,278,000 - 2006 - exact

 

Skills Development         : TAN Shs       789,990 - 2005 - exact

Levy                              : TAN Shs       856,725 - 2006 - exact

 

Staff Union                    : TAN Shs     4,634,350 - 2005 - exact

                                    : TAN Shs     5,850,350 - 2006 - exact

 

Property Tax                  : TAN Shs       277,445 - 2005 - exact

                                    : TAN Shs       175,000 - 2006 - exact

 

General Expenses         : TAN Shs       352,599 - 2005 - exact

                                    : TAN Shs     2,098,401 - 2006 - exact

 

Accountancy Fees         : TAN Shs       400,000 - 2005 - exact

                                    : TAN Shs       400,000 - 2006 - exact

 

Depreciation                  : TAN Shs    31,943,706 - 2005 - exact

                                    : TAN Shs    29,961,651 - 2006 - exact

 

Total                             : TAN Shs   100,337,393 - 2005 - exact

                                    : TAN Shs   109,836,572 - 2006 - exact

 

 

NET PROFIT/(LOSS)

BEFORE TAXATION     : TAN Shs   (51,665,161)- 2005 - exact

                                    : TAN Shs    20,754,981 - 2006 - exact

 

TOTAL PROFIT/(LOSS) : TAN Shs   (51,665,161)- 2005 - exact

                                    : TAN Shs    20,754,981 - 2006 - exact

 

 

LEGAL STATUS AND HISTORY

 

Date Started      : 10 August 1977

 

History              : The company was incorporated in Tanzania on 10 August 1977

 

C.R. No.            : 5881 (February 1979)

 

Authorised Capital : TAN Shs 1,000,000,000

 

Paid up Capital : TAN Shs 810,000,000

 

Limited Liability Company with the following shareholders :

 

1. Subhash M. Patel                     60%

 

2. R.M. Motibhai Patel                  40%

 

Affiliated companies of Pnp Industries Ltd :

 

Subsidiaries

 

1. M.M. Integrated Steel Mills Ltd

   Tel No : (255 22) 2771 309 / 2773 425

   Fax No : (255 22) 277 5426

 

2. White Sands Hotel Ltd

   Tel No : (255 22) 264 7621 / 264 7624

   Fax No : (255 22) 2511 3678

 

3. M.M. Industries Ltd

   Tel No : (255 22) 277 2076 / 85 / 277 2068

 

4. I.C.I. Bolus Paing Ltd

   Tel No : (255 22) 277 4062

   Fax No : (255 22) 277 2082

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Distributors of steel billets.

 

Buys locally from scrap merchants.

 

Trade suppliers include M.M. Integrated Steel Mills Ltd.

 

 

FACILITIES

 

The Company has the following facilities :

 

Owned premises comprising 34,760 sq ft located at heading address.

 

 

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