MIRA INFORM REPORT

 

 

Report Date :

06.05.2013

 

IDENTIFICATION DETAILS

 

Name :

MTIBWA SUGAR ESTATES LIMITED

 

 

Registered Office :

Plot No 14, Nyerere Road, Dar Es Salaam

 

 

Country :

Tanzania

 

 

Financials (as on) :

30.06.2012

 

 

Date of Incorporation :

10.04.1979

 

 

Com. Reg. No.:

2842

 

 

Legal Form :

Limited Corporation 

 

 

Line of Business :

Operate sugar cane cultivation and milling, sugar plantations, manufacturing of sugar, and sugar beet farming

 

 

No. of Employees :

450

 

 

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

 

Status :

Satisfactory

Payment Behaviour :

No complaints

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Tanzania

B2

B2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

TANZANIA - ECONOMIC OVERVIEW

 

Tanzania is one of the world's poorest economies in terms of per capita income, however, it has achieved high overall growth rates based on gold production and tourism. Tanzania has largely completed its transition to a liberalized market economy, though the government retains a presence in sectors such as telecommunications, banking, energy, and mining. The economy depends on agriculture, which accounts for more than one-quarter of GDP, provides 85% of exports, and employs about 80% of the work force. The World Bank, the IMF, and bilateral donors have provided funds to rehabilitate Tanzania's aging economic infrastructure, including rail and port infrastructure that are important trade links for inland countries. Recent banking reforms have helped increase private-sector growth and investment, and the government has increased spending on agriculture to 7% of its budget. The financial sector in Tanzania has expandewd in recent years and foreign-owned banks account for about 48% of the banking industry's total assets. Competition among foreign commercial banks has resulted in significant improvements in the efficiency and quality of financial services, though interest rates are still relatively high, reflecting high fraud risk. All land in Tanzania is owned by the government, which can lease land for up to 99 years. Proposed reforms to allow for land ownership, particularly foreign land ownership, remain unpopular. Continued donor assistance and solid macroeconomic policies supported a positive growth rate, despite the world recession. In 2008, Tanzania received the world's largest Millennium Challenge Compact grant, worth $698 million, and in December 2012 the Millennium Challenge Corporation selected Tanzania for a second Compact. Dar es Salaam used fiscal stimulus and loosened monetary policy to ease the impact of the global recession. GDP growth in 2009-12 was a respectable 6% per year due to high gold prices and increased production

Source : CIA


SUBJECT'S NAME

 

Registered Name:

MTIBWA SUGAR ESTATES LIMITED

Requested Name:

MTIBWA SUGAR ESTATES LIMITED

Other Names:

None

 

 

ADDRESS AND TELECOMMUNICATION

 

Physical Address:

Plot No 14, Nyerere Road, Dar Es Salaam

Postal Address:

P. o. Box 16541

 

Dar Es Salaam

Country:

Tanzania

Phone:

255-23-2620019/2620091/2620097/2860930/863205

Fax:

255-22-2865412/2865413

Email:

mse@mtibwa-sugar.co.tz  / stm@superdoll-tz.com

Website:

www.mtibwa-sugar.co.tz

 

 

LEGAL

                                                                    

Legal Form:

Limited Corporation 

Date Incorporated:

10-April-1979

Reg. Number:

2842

Nominal Capital

TZS. 30,000,000,000

Subscribed Capital

TZS. 11,853 ,968,000

Subscribed Capital is Subscribed in the following form:

 

Position

Shares

Mr. Nassir Ally Seif

MD/ CEO

 

Mr. Saif Ally Seif

Director

 

Mr. Hamad Yahya

Director

 

Hon. S. Saddiq

Director

 

 

 

RELATED COMPANIES

                                                                    

None

Parent company.

None

Subsidiary company.

SUPER STAR FORWARDERS CO., LTD.,

SUPER SERVICE CENTRE CO., LTD.,[SUPCO],

SUPER RETREAD TYRE LTD,

KAGERA SUGAR LTD,

GENERAL MOTORS INVESTMENT LTD.,[GMI],

SUPER DOLL TRAILER MANUFACTURE COMPANY (TANZANIA) LIMITED.

Affiliated company.

None

Shareholder of subject firm.

Dodoma & Morogoro in Tanzania

Branches of the firm

 

 

OPERATIONS

 

Registered to operate sugar cane cultivation and milling, sugar plantations, manufacturing of sugar, and sugar beet farming

Imports:

Asia,, Europe

Exports:

None

Trademarks:

None

Terms of sale:

Cash (40%) and 25-90 days (60%), invoices.

 

 

Main Customers:

Local agencies, stores, outlets etc  

Employees:

450 employees.

Vehicles:

Several motor vehicles.

Territory of sales:

Tanzania

Location:

Owned premises, 100,000 square feet,

 

 

AUDITORS AND INSURANCE

                                                                    

Auditors:

BDO East Africa

Insurance Brokers:

Information not available.

 

                                                                    

FINANCE

                                                                    

Currency Reported:

Tanzanian Shillings (TZS.)

Approx. Ex. Rate:

1 US Dollar = 1615.50 Tanzanian Shillings

Fiscal Year End:

December 31, 2012

Inflation:

According to information given by independent sources, the inflation at December 31st, 2012 was of 13%.

 

Financial Information Submitted Below

 

                                                                    

 

BANK

                                                                    

Bank Name:

BANK OF AFRICA

Branch:

airport branch, Box 3054 Dar-Es-Salaam, Tanzania

Comments:

Other Banks

 

CRDB BANK PLC.

 

NATIONAL MICROFINANCE BANK PLC.

                                                                    

 

TRADE REFERENCES    

 

Experiences:                                                  Good

 

NOTARIAL BONDS                                        None

 

 

COMMENTS / ADDITIONAL INFORMATION    

 

This information was obtained from outside sources other than the subject company itself and confirmed the above subject.

 

Mtibwa Sugar Estates Limited

 

 

Statement of Financial Position for the year ended 30 June 2012

 

 

 

2012

2011

 

TSh 000

TSh 000

Assets

 

 

Non-Current Assets

 

 

Property, plant and equipment

101,714,626

106,928,644

Capital woi k in progress

13,542,866

4,924,590

Bearer biological assets

3,122,282

2,809,603

investment tn financial assets

240

240

 

118,380,014

114,663,077

Current Assets

 

 

Inventories

3,460,128

5,217,716

Consumable biological assets

14,692,269

13,831,232

Trade and other receivables

2,870,313

2,'j04./45

Cash and cash equivalents

190,871

56,290

 

21,213,581

21,609,983

Total Assets

139,593,595

136,273,060

Equity and Liabilities

 

 

Fquity

 

 

Share capital

11,853,968

11,853,968

Reserves

74,907,190

74,907,190

Retained earnings

13,668,471

10,101,242

 

100,429,629

96,862,400

Liabilities

 

 

Current Liabilities

 

 

Trade and other payables

11,167,564

9,453,717

Amount payable to related party

11,840,273

11,341,786

Tanzania sugar industries limited

4,114,892

4,114,891

Borrowings

3,000,000

10,632,010

Bank overdraft

9,041,237

3,868,256

 

39,163,966

39,410,660

Total Equity and Liabilities

139,593,595

136,273,060

 

Mtibwa Sugar Estates Limited

 

 

Statement of Comprehensive Income for the year ended 30 June 2012

 

 

 

2012

2011

 

TSh 000

TSh 000

Sales

43,824,692

40,531,801

Cost of sales

(30,827,460)

(27,082,255)

Gross profit

12,997,232

13,449,546

Other operating income

1,046,428

977,217

Administration expenses

i8,768,958)

19.640,120)

Operating profit/ (loss)

5,274,702

4,736,643

Finance costs

(1,707,473)

11,346,784)

Profit/ (loss) before taxation

3,567,229

3,439,859

Taxation

 

 

Profit/(loss) for the year

3,567,229

3,439,859

Total comprehensive income/(loss)

3,567,229

3,419,859

 

Mtibwa Sugar Estates Limited

 

 

Statement of Cash Flows for the year ended 30 June 2012

2012

2011

 

TSh 000

TSh 000

Cash flows from operating activities

 

 

Cash from operations

16,821,964

10,445,619

Finance costs

(1.707,473)

(1,346,784)

Net cash from operating activities

15,114,491

9,098,835

Cash flows used in investing activities

 

 

Purchase of property, plant and equipment

(2,400,340)

(6,849,216)

Sale of property, plant and equipment

 

90,277

Additions to capital work in progress

(8,599,282)

(4,921,708)

Additions to bearer biological assets

(1,158,710)

(1,452,541)

Increase in fair value of consumable biological assets

(861,037)

(6,408,201)

Net cash used in investing activities

(13,019,369)

(19,541,389)

Cash flows (used in)/from financing activities

 

 

Movement in borrowings

(7,632,010)

1,397,004

Related party movement

498,488

8,773,659

Net cash (used in)/from financing activities

(7,133,522)

10,170,663

Total casii movement for the year

(5,038,400)

(271,891)

Cash at the beginning of the year

(3,811,966)

(3,540,076)

Total cash at end of the year

(8,850,366)

(3,811,967)

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.95

UK Pound

1

Rs.83.80

Euro

1

Rs.70.49

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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

Capability to overcome financial difficulties seems comparatively below average.

 

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

--

NB

                                       New Business

 

--

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.