MIRA INFORM REPORT

 

 

Report Date :

20.12.2014

 

IDENTIFICATION DETAILS

 

Name :

KINGSWAY TYRES LTD

 

 

Registered Office :

Kingsway House, University Way, Nairobi, P. o. Box 11324-00400 Nairobi

 

 

Country :

Kenya

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

12.05.1977

 

 

Com. Reg. No.:

15745

 

 

Legal Form :

Limited Corporation 

 

 

Line of Business :

Importers, Wholesalers and Retailers of tyres (including Passenger, 4x4 & Lt, Truck & Bus, Earthmover, Forklift, Industrial & Agriculture), Rims, Batteries, Tech, Teco, Recamic & Auto Accessories

 

 

No of Employees :

300

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

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.

 

 

Kenya ECONOMIC OVERVIEW

 

Kenya has been hampered by corruption and by reliance upon several primary goods whose prices have remained low. Low infrastructure investment threatens Kenya's long-term position as the largest East African economy, although the Kenyatta administration has prioritized infrastructure development. International financial lenders and donors remain important to Kenya's economic growth and development. Unemployment is high at around 40%. The country has chronic budget deficits. Inflationary pressures and sharp currency depreciation peaked in early 2012 but have since abated following low global food and fuel prices and monetary interventions by the Central Bank. Recent terrorism in Kenya and the surrounding region threatens Kenya's important tourism industry. Kenya, in conjunction with neighboring Ethiopia and South Sudan, intends to begin construction on a transport corridor and oil pipeline into the port of Lamu in 2014.

 

Source : CIA

 

SUBJECT'S NAME   

 

Registered Name:                                   KINGSWAY TYRES LTD

Requested Name:                                   KINGSWAY TYRES LTD

Other Names:                                          None

 

ADDRESS AND TELECOMMUNICATION

 

Physical Address:                                   Kingsway House, University Way, Nairobi,

Postal Address:                                      P. o. Box 11324-00400

                                                              Nairobi,

Country:                                                 Kenya

Phone:                                                   254-20-2220996/ 217648/ 217649/ 243243 /533991

Cell:                                                       254-722227719

Fax:                                                       254-20-333981/ 217665

Email:                                                     ho@kingswaytyres.com

Website:                                                 www.kingswaytyres.com 

 

 

CREDIT OPINION

 

Financial Index as of December 2013 shows subject firm with a medium risk of credit.

 

 

LEGAL

 

Legal Form:                                                     Limited Corporation 

Date Incorporated:                                           12-May-1977

Reg. Number:                                                  15745

Nominal Capital                                                KES. 2,000,000 Divided into Shares 100,000 each Value KES. 20

Subscribed Capital                                           KES. 2,000,000

 

Subscribed Capital is Subscribed in the following form:

                                                                       Position                          Shares

Mr. Manoj Ramniklal Shah                                 MD/CEO                          50,000

Mr. Nitin Mamsukhlal Shah                                Director                           25,000

Mr. Kamal Ramesh Shah                                  Director                           25,000

Mr. Manish Ramniklal Shah                               Director                          

Mr. Sushi Ramesh Shah                                   Director                          

Mr. Sanjay Ramesh Shah                                  Director                          

Mr. Vikas Kantilal Shah                                     Director                          

Mr. Nishit Ramesh Shah                                   Director                          

Mr. Ashwin Panachand Shah                             Director                          

Mr. Sudip Patel                                                Director                          

RELATED COMPANIES  

 

None                                                               Parent company.

None                                                               Subsidiary company.

AFRICA LAND COMPUTERS LTD,

ALPHA MEDICAL SUPPLIES LTD,

CHARTER HOUSE BANK LTD,

DRIVE IN TYRE CENTRE LTD,

ELDO TYRE CENTRE LTD,

GENERAL TYRES SALES LTD,

KAMAL PROPERTIES LTD,

KINGSWAY MOTORS LTD,

KINGSWAY TYRES & AUTO MART LTD,

KINGSWAY TYRES & AUTO MART LTD,

KINGSWAY TYRES LTD,

KISUMU TYRE CENTRE LTD,

SIR ENTERPRISES LIMITED,

STROBE SYSTEMS LTD.                                 Affiliated companies.

None                                                               Shareholder of subject firm.

14 in Kenya                                                      Branches of the firm

 

OPERATIONS

 

Registered to operate as Importers, Wholesalers and Retailers of tyres (including Passenger, 4x4 & Lt, Truck & Bus, Earthmover, Forklift, Industrial & Agriculture), Rims, Batteries, Tech, Teco, Recamic & Auto Accessories

 

Imports:                                                           Europe, UAE, Asia and South Africa

Exports:                                                          East Africa

Trademarks:                                                     None

Terms of sale:                                                  Cash (40%) and 30 days (60%), invoices.

                                                                      

Main Customers:                                              Automotive companies, public etc

Employees:                                                     300 employees.

Vehicles:                                                         Several motor vehicles.

Territory of sales:                                             Kenya

Location:                                                         Owned premises, 100,000 square feet,

 

 

AUDITORS AND INSURANCE   

 

Auditors:                                                         SUNIL DAVDA & CO

Insurance Brokers:                                            Information not available.

                                                                      

 

FINANCE 

 

Currency Reported:                                          Kenya Shillings (KES.)

Approx. Ex. Rate:                                            1 US Dollar = 90.50 Kenya 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 Submitted below             

                                                                      

 

BANK 

 

Bank Name:                                                     BARCLAYS BANK OF KENYA LIMITED

Branch:                                                            Kenya

Comments:                                                      Other Banks

                                                                       AFRICAN BANKING CORPORATION

                                                                       ORIENTAL COMMERCIAL BANK LIMITED

                                                                       CREDIT BANK LIMITED

                                                                      

 

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.

                                                                      

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.07

UK Pound

1

Rs.98.73

Euro

1

Rs.77.46

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

MNL

 

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.