MIRA INFORM REPORT

 

 

Report Date :

27.02.2007

 

IDENTIFICATION DETAILS

 

Name :

SHELYS PHARMACEUTICALS LIMITED

 

 

Registered Office :

New Bagamoyo Road, Plot 696, Block 32, Mwenge, P. O. Box 3016, Dar Es Salaam

 

 

Country :

Tanzania

 

 

Date of Incorporation :

05.10.1977

 

 

Com. Reg. No.:

5914

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacturers and distributors of pharmaceutical products including antibiotics.

 

 

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 300,000,000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

COmpany NAME

 

SHELYS PHARMACEUTICALS LIMITED

 

 

ADDRESS

 

Street                           :  New Bagamoyo Road, plot 696, block 32

Area                             :  Mwenge

P.O. Box           :  3016

Town                 :  Dar Es Salaam

Country             :  Tanzania

Telephone         :  (255 22) 277 1715/6/7

Fax                   :  (255 22) 284 3382

E-Mail               :  shelys@sumariagroup.com

 

 

Shortform Name

 

Shelys

 

 

Formerly Known As

 

Shelys Ltd Manufacturing Chemists

 

 

SENIOR COMPANY PERSONNEL

 

    Name                                                Position

 

1. Jayesh G. Shah                     Managing Director

 

2. Dipen M. Shah                       Executive Director

 

3. S.P. Shah                             Executive Director

 

4. A.S. Shah                             Director

 

5. G.P. Shah                             Director

 

6. Jay Shah                               Marketing Director

 

7. L.K. Sundar Raman                Financial Controller

 

8. Mr Preamod                           Financial Director

 

 

Total Employees

 

600

 

PAYMENTS

 

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

 

Subject is one of the largest and fastest growing pharmaceuticals company in East and Central Africa. Subject is part of the Sumaria Group of Companies, which comprises 13 companies located in East Africa.

 

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 300,000,000

 

Trade risk assessment               : Normal

 

 

TRADE REFERENCES

 

NAME               : ALCAPHARM B.V.

Street               : Dorpstraat 101

P.O Box            : 11,2740

Town                 : Waddinxveen

Country             : The Netherlands

 

NAME               : ASSOCIATES CAPSULES LTD

Street               : Kandivli West

Town                 : Mumbai

Country             : India

 

NAME               : BIOCHEMIE GMBH

Street               : A-6250

Town                 : Kundl

Country             : Austria

 

NAME               : CPL FLAVOURS

Street               : Quarry Road, Brixworth NN69 UB

Town                 : Northampton

Country             : UK

 

NAME               : HELLMUCH C'ARROUX GMBH & CO.

P. O. Box          : 301022

Town                 : Hamburg

Country             : Germany

 

 

PRINCIPAL BANKERS

 

NAME               : STANDARD CHARTERED BANK (TANZANIA) LTD

Branch              : International House, 1st floor      

Street                           : Shaaban Robert Street, Garden Avenue

P.O. Box           : 49011

Town                 : Dar Es Salaam

 

Telephone         : (22) 212 2160 / 211 3788

Fax                   : (22) 211 7348 / 211 3383

Account No.      : 8704002

 

The company also has an account with the following bank :

 

Cooperative and Rural Development Bank (CRDB) Azikiwe St.

P. O. Box 268

Dar Es Salaam

 

 

FINANCIAL INFORMATION

 

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

 

Sales Turnover  : TAN Shs  1,285,000,000 - 1994 - exact

                        : TAN Shs  2,215,000,000 - 1995 - exact

                        : TAN Shs  3,500,000,000 - 1996 - exact

                        : TAN Shs  3,800,000,000 - 1997 - exact

                        : TAN Shs  4,800,000,000 - 1998 - exact

                        : TAN Shs  4,744,133,887 - 1999 - exact

                        : TAN Shs  7,000,000,000 - 2000 - exact

                        : TAN Shs 10,200,000,000 - 2001 - exact

                        : TAN Shs 12,000,000,000 - 2002 - exact

                        : TAN Shs 16,200,000,000 - 2003 - exact

                        : TAN Shs 20,000,000,000 - 2004 - exact

                        : TAN Shs 25,000,000,000 - 2005 - exact

                        : TAN Shs 20,000,000,000 - 2006 - exact *

                

Net Profit           : TAN Shs    450,270,178 - 1998 - exact

                        : TAN Shs    153,357,982 - 1999 - exact

                        : TAN Shs    450,000,000 - 2000 - exact

                        : TAN Shs    790,000,000 - 2001 - exact

                        : TAN Shs    800,000,000 - 2002 - exact

                        : TAN Shs  1,000,000,000 - 2003 - exact

                        : not given              - 2004 - 2005

Loss                 : TAN Shs (1,700,000,000)- 2006 - exact *

 

In 2006 financial year end changed from 31 December to 30 June.

 

* applies to the calendar year (12 months). Due to the change of year end financial results will be for 18 month period (1 January 2006- 30 June 2007). Loss attributed to the relocation of the premises.

 

 

LEGAL STATUS AND HISTORY

 

Date Started      : 5 October 1977

 

History              : The company was established in 1977 and acquired by Shah family interests in 1984. The

                          present style was adopted in 1995.

         

               Subject's shareholders were Sumaria Holdings Limited 95.75% and P.K. Investment Den

              Holdings UK 4.25% in 2005 the shareholders changed to the present.

 

C.R. No.            : 5914

 

Authorized Capital : TAN Shs 5,000,000,000

 

Paid up Capital     : TAN Shs 1,754,386,000 (increased from TAN Shs 396,000,000 in 2003)

 

Limited Liability Company with the following shareholders :

 

                                                                Percentage

 

1. Sumaria Holdings Limited                           94.50 %

   Kiswanja Street

   P.O. Box 3016

   Dar Es Salaam

   Tel : (255 22) 211 9265-67

   Fax : (255 22) 211 3113

   Email : info@sumariagroup.com

 

 

2. P.K. Investment Den Holdings             )          

   UK                                                     )        5.50

                                                                        )

3. Aureos                                              )

 

Affiliated companies of Shelys Pharmaceuticals Limited :

 

Associates

 

Subject is a member of the Sumaria Group of companies, which also comprises the following companies :

 

1. Sabuni Detergents Ltd

   Jamhuri Street

   Mwanzange Industrial Area

   P.O. Box : 483

   Tanga

   Telephone  : (255 53) 286 3651

   Fax            : (255 53) 286 4926

 

2. Simba Plastics Co Ltd

   Migeyo Road

   P.O. Box 2459

   Dar Es Salaam

   Tel : (255 22) 863941

  

3. Nyanza Bottling Co Ltd

   PO Box 2086

   Mwanza

   Tel : (255 68) 571 447

   Fax : (255 68) 570 459

   (manufactures Coca Cola under licence)

 

4. Royal Dairy Products Limited

   PO Box 3016

   Dar es Salaam

   Tel : (255 22) 245 1152 / 245 1156

   Fax : (255 22) 245 1177

   Email Address : royaldairy@sumariagroup.com

 

5. G S Holdings Limitada

   C. P. 346, Industrial Zona 1

   Nacala Porto

   Nacala

   Mozambique

   Tel : (258 26) 526 334

   Fax : (258 26) 526 335

   Email : gsholdings@teledata.mz

 

6. SDL Limited

   PO Box 483

   Tanga

   Tel : (255 53) 47686 / 42185 /47309

   Fax : (255 53) 47696

 

7. DPI Simba Ltd

   PO Box 46259

   Migeyo Road

   Chang'ombe

   Dar es Salaam

   Tel : (255 22) 286 4012 / 286 4555 / 286 3651 / 286 3652

   Fax : (255 22) 286 4926 

   Email : dsl@sumariagroup.com

 

8. D&C Ginning Company Limited

   P.O. Box 3016

   Dar es Salaam

   Tel : (255 22) 211 9265-7

   Fax : (255 22) 211 3113

   Email:  scgcl@africaonline.co.tz

 

9. Sumagro Llimited

   P.O. Box 9

   Kimamba

   Tel : (255 22) 211 9265/66/67

   Fax : (255 22) 211 3113

   Email Address : sumagro@sumariagroup.com

 

10. Socidade Saboeira Nacala Limitada

     Mozambique

 

11. Ipan Limitada

    Mozambique

 

12. Farinal de Nacala Limitada

     Mozambique

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Manufacturers and distributors of pharmaceutical products including antibiotics. Subject manufactures 80 different products.

 

Brand names : Koflyn, Coldril, Sheladol, Action and Mara Moja.

 

Imports from France, Austria, Switzerland, Germany, UK, India, USA, Canada, Thailand and China.

 

Exports to Malawi, Congo, Rwanda, Kenya and Zambia.

 

FACILITIES

 

The Company has the following facilities :

 

Owned manufacturing plant with integrated storage facilities and administrative offices located on a 15 hectare plot of land at the heading address and Marketing Office and Town Depot at Meqemere Rd., Kisutu area, Tel : (51) 119240 / 120565, Fax : (51) 120530.

 

Until 2006 subject operated from Pugu Road 129/130, Kipawa.

 

 

REGISTERED OFFICE

 

Nyerere Road Plot 129/130

Kipawa

Dar Es Salaam

Tanzania

 

 

SPECIAL NOTE

 

The address which you provided Pugu Road 129/130, Kipawa applies to subject's previous address. Please note the current address is as per heading.

 

 

 

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