MIRA
INFORM REPORT
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Report Date : |
18.11.2008 |
IDENTIFICATION
DETAILS
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Name : |
TANZANIA CIGARETTE COMPANY |
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Registered Office : |
20 Nyerere Road, Dar Es Salaam |
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Country : |
Tanzania |
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Date of Incorporation : |
16.01.1961 |
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Com. Reg. No.: |
3542 |
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Legal Form : |
Limited Corporation |
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Line of Business : |
Manufacturers,
Wholesalers and Distributors Cigarettes |
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 : |
USD 2,000,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
SUBJECT'S NAME
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Registered Name: |
TANZANIA
CIGARETTE COMPANY |
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Requested Name: |
TANZANIA CIGARETTE COMPANY |
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Other Names: |
None found. |
ADDRESS AND TELECOMMUNICATION
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Physical Address: |
20 Nyerere Road, Dar Es Salaam |
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Postal Address: |
P.o
Box 40114 |
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Dar Es Salaam |
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Country: |
Tanzania |
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Phone: |
255-22-2860150/ 860150/9 /2863382 |
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Fax: |
255-22-2865210 |
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Email: |
None |
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Website: |
None |
CREDIT OPINION & RISK RATING ASSESSMENT
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Financial Index as of
December 2007 shows subject firm with a medium risk of credit. We recommend
Credit of USD 2,000,000 on 60 days. |
LEGAL
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Legal Form: |
Limited Corporation |
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Date Incorporated: |
16-Jan-1961 |
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Reg. Number: |
3542 |
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Nominal Capital |
TES.
2,500,000,000 |
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Subscribed Capital |
TES.
2,000,000,000 |
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Paid Up Capital |
TES.
2,000,000,000 |
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Subscribed Capital is Subscribed in the following form: |
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Position |
Shares |
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Mr.
Natwar
Gotecha |
MD/
CEO |
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Mr. David Thorn |
Director |
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Mr.
Gray
Mgonja |
Director |
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Mr. Naftal Nsemwa |
Director |
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Mr.
Juergen
Rademacher |
Director |
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Mr. James Riordan |
Director |
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Japan Tobacco International |
Holding
Company |
75.00% |
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Tanzanian Institutions and Public |
Shareholders |
19.50% |
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Employee Share Option Trust |
Shareholders |
3.00% |
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Government of Tanzania |
Shareholders |
2.50% |
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_______________________________________________________________________ |
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RELATED COMPANIES
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Japan Tobacco International |
Parent company. |
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None |
Subsidiary company. |
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None |
Affiliated company. |
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None |
Shareholder of subject
firm. |
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19 branches in Tanzania |
Branches of the firm |
OPERATIONS
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Registered to operate as
manufacturers, wholesalers and distributors Cigarettes
well-known brands namely: Aspen, Club, Winston, sportsman, Sweet menthol and
Crescent and Star |
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Imports: |
Asia and Europe (equipment) |
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Exports: |
Malawi (10%) |
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Trademarks: |
Aspen, Club, Winston etc |
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Terms of sale: |
Cash (80%) and 30 days (20%), invoices. |
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Main Customers: |
Distribution firms, retailers and
wholesale outlets. |
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Employees: |
1000 employees. |
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Vehicles: |
Several motor vehicles. |
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Territory of sales: |
Tanzania |
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Location: |
Owned premises, 50.000 square feet, |
AUDITORS AND INSURANCE
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Auditors: |
Deloitte and Touché |
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Insurance Brokers: |
Alexander Forbes Assurance
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Stock Listing: |
On the DAR:TCC Stock Exchange |
FINANCE
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Currency Reported: |
Tanzanian Shillings (TES.) |
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Approx. Ex. Rate: |
1 US Dollar = 1258
Tanzanian Shillings |
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Fiscal Year End: |
December 31, 2007 |
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Inflation: |
According to information given by independent sources, the inflation
at December 31st, 2007 was of 13%. |
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Financial Information Not
Submitted |
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Profit and Loss
(expressed in TES.) |
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2007 |
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Sales |
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349,000,000,000 |
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Net Profit (Loss) |
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65,000,000,000 |
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_______________________________________________________________________ |
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BANK
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Bankers Name: |
NATIONAL
BANK OF COMMERCE |
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CITIBANK
(T) LTD |
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STANDARD
CHARTERED BANK |
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Branch: |
Dar Es Salam, Tanzania |
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Enquiry Amount: |
400,000
(each bank) |
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Terms: |
30
days |
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Bank Code: |
Code -C which means good for normal Business Engagements |
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Comments: |
Overdraft None,
Promissory notes- None |
TRADE
REFERENCES
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Experiences: |
Good |
NOTARIAL
BONDS
None
CHECK
INSOLVENCIES
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The
checks have been made on: |
The company and managers |
PROTESTS
AND NEGATIVE ELEMENTS
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The company and the following officers Mr. Natwar Gotecha, and Mr. David Thorn , have been checked at the
Registries of companies and with the judicial local facilities. |
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PROTESTS
RECORDED |
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No protests in the name
of the company and its officers, No protests on the associated concerns, No protests
on shareholders/partners, Check on Prejudicial Events as per Commercial Court
office |
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NEGATIVE
ELEMENTS |
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Researches effected
concerning possible prejudicial events
in the name of the company
revealed: No negative elements since 01/01/2000 Date of the check on
protests and prejudicial events: 11/11/2008 |
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COMMENTS / ADDITIONAL INFORMATION
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This information was obtained
from outside sources other than the subject company itself and confirmed the
above subject. |
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.49.68 |
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UK Pound |
1 |
Rs.74.64 |
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Euro |
1 |
Rs.62.58 |
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. |
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%)