MIRA
INFORM REPORT
|
Report Date : |
10.03.2007 |
IDENTIFICATION
DETAILS
|
Name : |
MUFINDI PAPER MILLS LTD |
|
|
|
|
Registered Office : |
Mufindi District, P. O. Box 1 Mgololo, Mgololo, Iringa |
|
|
|
|
Country : |
Tanzania |
|
|
|
|
Date of Incorporation : |
14 February 2004 |
|
|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
Manufacturers of kraft industrial packaging paper. |
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 400,000,000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
COmpany NAME
MUFINDI PAPER MILLS LTD
ADDRESS
Area : Mufindi District
P.O. Box :
1 Mgololo
Town : Mgololo
Province :
Iringa
Country : Tanzania
Telephone :
(255 26) 270 0325 / (22) 286 3570 (Sales Office) / (74) 568 3125 / (74)
568 3109 (mobile) / 755
683
109 (mobile)
Fax : (255 26) 270 0372
E-Mail : svs@mufindipapermills.com
SENIOR COMPANY
PERSONNEL
Name Position
1. Jaiswant Singh
Rai Managing Director
2. Satbir Singh Rai Director
3. Y.V. Chaudhary General Manager
4. Satya Narayana Financial Manager
5. B. Swanijee Purchasing Manager
Total Employees
600 (plus 1,500 casuals)
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 Tanzanian
importers.
Opinion on maximum credit
: TAN Shs 400,000,000
Trade risk assessment : Normal
Opinion on the credit
figure of US DLRS 150,000 / 60 days:
We consider the above
figure to be within the company's financial capabilities.
PRINCIPAL BANKERS
NAME :
BARCLAYS BANK TANZANIA LIMITED
Branch :
TDFL Building
P.O. Box : 5137
Town :
Dar es Salaam
Telephone : (255 22) 212 9381
Fax :
(255 22) 212 9759
Subject also has an
account with:
1. East African
Development Bank
NSSF Waterfront House, 7th Floor
PO Box 9401
Dar es Salaam
Telephone :
(255 22) 211 3195 / 211 6981
Fax
: (255 22) 211 3197
2. Eastern & Southern
African Trade & Development Bank (PTA Bank)
NSSF Building, 22nd floor
Bishops Rd
P.O. 48596
00100 Nairobi
3. PBSS
South Africa
FINANCIAL INFORMATION
Balance sheets are not
available. However, the subject interviewed offered the following information :
Sales Turnover : US DLRS
5,000,000 - 2005 - exact *
: US DLRS 29,000,000 - 2006 - exact
Net Profit : not given
Total Invested Capital:
US DLRS 15,000,000 - 2006 - exact
* First 9 months in operations
(April-December).
Financial year ends 31
December.
LEGAL STATUS AND
HISTORY
Date Started : 14 February 2004
History : Subject was incorporated on 14
February 2004 on the basis of the state owned company
Southern
Paper Mills Company Ltd which was established in 1979 and began operations in
May
1985. Subject commenced its production in April 2005.
Authorised Capital : US
DLRS 50,000,000 (increased from US DLRS
25,000,000)
Paid up Capital : US DLRS
10,000,000 (increased from US DLRS 8,000,000)
Limited Liability Company
with the following shareholders :
1. Jaiswant Singh
Rai
2. Satbir Singh Rai
Affiliated companies of
Mufindi Paper Mills Ltd :
Associates
Angle Hurst Holdings Ltd
UK
ACTIVITIES
The Company is involved
in the following activities :
Manufacturers of kraft
industrial packaging paper.
Current Production
Capacity : 70,000 metric tonnes of kraft paper *
* Average price of one
metric tonne of kraft paper is US$ 500.
Imports from UK, India
and Germany.
Exports to Kenya, Uganda
and Ethiopia.
FACILITIES
The Company has the
following facilities :
Paper mill with
integrated offices and storage facilities located in Mgololo and Sales Office
at 28 Saza Road, Changombe Industrial Area, Dar es Salaam, Telefax : (22) 286
3570 / (74) 466 1871 (mobile).
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%)