MIRA INFORM REPORT

Report Date :

10.01.2014

IDENTIFICATION DETAILS

Name :	IGARA GROWERS TEA FACTORY LTD

Registered Office :	Butare, Kyamuhunga, Bushenyi District 12 Km Ishaka-Kasese Highway P. o. Box 110, Bushenyi,

Country :	Uganda

Date of Incorporation :	1969

Legal Form :	Limited Corporation

Line of Business :	Subject operate production, processing and export of tea

No. of Employees :	1000

RATING & COMMENTS

MIRA’s Rating :

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 – September 30, 2013

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

Uganda

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
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. Uganda has received about $2 billion in multilateral and bilateral debt relief. In 2007 Uganda received $10 million for a Millennium Challenge Account Threshold Program. 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. Rising food and fuel prices in 2011 led to protests. 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

Source : CIA

company name and address

SUBJECT'S NAME
Registered Name:	IGARA GROWERS TEA FACTORY LTD
Requested Name:	IGARA GROWERS TEA FACTORY LTD
Other Names:	None

ADDRESS AND TELECOMMUNICATION

Physical Address:	Butare, Kyamuhunga, Bushenyi District 12 Km Ishaka-Kasese Highway
Postal Address:	P. o. Box 110,
	Bushenyi,
Country:	Uganda
Phone:	256-772700797/-414-343633/-312-266116
Fax:	256-414-343633
Email:	igara@ugatea.com/ igara@iwayafrica.com
Website:	www.ugatea.com

LEGAL

Legal Form:	Limited Corporation
Date Incorporated:	1969
Reg. Number:	Uganda
Nominal Capital	UGS. 10,000,000
Subscribed Capital	UGS. 10,000,000
Subscribed Capital is Subscribed in the following form:
	Position	Shares
Mr. Arthur Babu Muguzi	Chairman
Mrs. Harriet Muhebwa	Director
Mr. Muhwezi Asaph Bamusiime	Director
Mr. Naboth Mbagirenta	Director
Mr. Eldard Muhangisa	Director
Mr. Daniel Nareeba	Director
Mr. Edson Musiime Batuna	Director
Rev.Fr.Vicent Birungi	Director
Eng.Gershom Rwakasanga	Director

RELATED COMPANIES

None	Parent company.
Uganda Tea Development Limited (UTDAL)	Subsidiary company.
KAYONZA GROWERS TEA FACTORY LIMITED, BUHWEJU TEA FACTORY LIMITED.	Associate companies.
None	Shareholder of subject firm.
None	Branches of the firm

OPERATIONS

Registered to operate production, processing and export of tea
Imports:	Asia
Exports:	Worldwide
Trademarks:	None
Terms of sale:	Cash (40%) and 25-90 days (60%), invoices.

Main Customers:	Local agencies, sdistributors, stores, outlets, firms and organizations
Employees:	1000 employees.
Vehicles:	Several motor vehicles.
Territory of sales:	Uganda
Location:	Owned premises, 100,000 acres,

AUDITORS AND INSURANCE

Auditors:	Information not available.
Insurance Brokers:	Information not available.

FINANCE

Currency Reported:	Ugandan Shillings (UGS.)
Approx. Ex. Rate:	1 US Dollar = 2515.01 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 USD.)
		2013
Sales		15,000,000

BANK

Bank Name:	Barclays Bank
Branch:	Uganda
Comments:	None

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.62.18
UK Pound	1	Rs.102.31
Euro	1	Rs.84.50

INFORMATION DETAILS

Report Prepared by :

NIS

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%)

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