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Report Date : |
23.04.2014 |
IDENTIFICATION DETAILS
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Name : |
RECO INDUSTRIES LIMITED |
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Formerly Known as : |
RWENZORI ELECTRIC COMPANY LTD |
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Registered Office : |
Plot 25 Nkrumah Road, Reco
House 1st Floor, Kampala |
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Country : |
Uganda |
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Date of Incorporation : |
24.09.1979 |
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Com. Reg. No.: |
7662 |
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Legal Form : |
Limited Corporation |
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Line of Business : |
Manufacturer of Papain used in foods, drinks and cosmetics industries and also grows Pineapples, Bananas, Passion Fruits and vegetables for the production of fresh fruit juices, concentrates, jams, marmalade and chilli, carries out sourcing from local farmers, and also manufacturer of foam products such as mattresses, cushions, pillows as well as dealers in plastic products |
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No. of Employees : |
100 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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With Financials |
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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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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 31, 2014
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Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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Uganda |
B2 |
B2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Uganda ECONOMIC OVERVIEW
Uganda has substantial
natural resources, including fertile soils, regular rainfall, small deposits of
copper, gold, and other minerals, and recently discovered oil. Uganda has never
conducted a national minerals survey. Agriculture is the most important sector
of the economy, employing over 80% of the work force. Coffee accounts for the
bulk of export revenues. Since 1986, the government - with the support of
foreign countries and international agencies - has acted to rehabilitate and
stabilize the economy by undertaking currency reform, raising producer prices
on export crops, increasing prices of petroleum products, and improving civil
service wages. The policy changes are especially aimed at dampening inflation
and boosting production and export earnings. Since 1990 economic reforms
ushered in an era of solid economic growth based on continued investment in
infrastructure, improved incentives for production and exports, lower
inflation, better domestic security, and the return of exiled Indian-Ugandan
entrepreneurs. The global economic downturn hurt Uganda's exports; however,
Uganda's GDP growth has largely recovered due to past reforms and sound
management of the downturn. Oil revenues and taxes will become a larger source of
government funding as oil comes on line in the next few years. Instability in
South Sudan is a risk for the Ugandan economy because Uganda's main export
partner is Sudan, and Uganda is a key destination for Sudanese refugees.
Unreliable power, high energy costs, inadequate transportation infrastructure,
and corruption inhibit economic development and investor confidence.
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Source
: CIA |
Registered Name: RECO INDUSTRIES LIMITED
Requested Name: RECO
INDUSTRIES LIMITED
Former Names: RWENZORI ELECTRIC COMPANY LTD
Physical Address: Plot 25 Nkrumah Road, Reco
House 1st Floor, Kampala
Postal Address: P. o. Box 257,
Kampala,
Country: Uganda
Phone: 256-414-232183/344291/257206/-31-2262676
Cell: 256-712194007
Fax: 256-414-231327
Email: reco@africaonline.co.ug/ brian@reco-industries.com/
Website: www.reco-industries.com
Financial
Index as of December 2013 shows subject firm with a medium risk of credit.
However, bank and credit information obtained reveal a history of prompt
payments.
Legal Form: Limited Corporation
Date Incorporated: 24-Sept-1979
Reg. Number: 7662
Nominal Capital UGS. 600,000,000 being Shares 6,000 each value UGS. 100,000
Subscribed Capital UGS. 600,000,000
Subscribed Capital is Subscribed in the following form:
Position Shares
Mr. Phillip Tubaijukia Rwabwogo CEO 86.96%
Mr. Brian Rwabwogo GM 6.52%
Mr. Dalson Rwabwogo Director 6.52%
None Parent company.
None Subsidiary company.
None Affiliated company.
None Shareholder of subject firm.
Factory 18/24, 2nd
street, P.o.Box 215 Kasese,
Uganda Branches of the firm
Registered to operate manufacture of Papain used in foods, drinks and cosmetics industries and also grows Pineapples, Bananas, Passion Fruits and vegetables for the production of fresh fruit juices, concentrates, jams, marmalade and chilli, carries out sourcing from local farmers, and also manufacturer of foam products such as mattresses, cushions, pillows as well as dealers in plastic products
Imports: Europe
and South Africa
Exports: None
Trade Divisions
-RECO FOOD AND NUTRITION
-RECO FOAM AND
PLASTIC
Terms of sale: Cash
(40%) and 25-90 days (60%), invoices.
Main Customers: Local
agencies, stores, outlets, firms and organizations
Employees: 100
employees.
Vehicles: Several
motor vehicles.
Territory of
sales: Uganda
Location: Owned
premises, 20,000 square feet,
Auditors: Information not available.
Insurance
Brokers: Information not available.
Currency Reported: Ugandan Shillings (UGS.)
Approx. Ex. Rate: 1 US Dollar = 2509.99 Ugandan Shillings
Fiscal
Year End: December 31, 2013
Inflation: According to information
given by independent sources, the
inflation
at December 31st, 2013 was of 13%.
Financial
Information not Submitted
Profit and Loss (expressed in UGS.)
2013
Sales 5,520,000,000
Bank Name: CENTENARY BANK LIMITED
Branch: Plot 7, Entebbe Road, Kampala, Uganda
Comments: Other Banks
STANBIC BANK
(UGANDA) LIMITED
Experiences: Good
None
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.60.71 |
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1 |
Rs.102.04 |
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Euro |
1 |
Rs.83.77 |
INFORMATION DETAILS
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Analysis Done by
: |
sub |
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Report Prepared
by : |
MNL |
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 |
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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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.