MIRA INFORM REPORT

 

 

Report Date :

24.01.2014

 

IDENTIFICATION DETAILS

 

Name :

VARICHEM PHARMACEUTICALS

 

 

Registered Office :

194 Gleneagles Road Willowvale, Harare

 

 

Country :

Zimbabwe

 

 

Date of Incorporation :

10.10.1986

 

 

Legal Form :

Limited Corporation 

 

 

Line of Business :

Manufacturer and Supplier of generic pharmaceuticals and related products

 

 

No of Employees :

1200

 

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

Zimbabwe

D

D

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

ZIMBABWE - ECONOMIC OVERVIEW

 

Zimbabwe's economy is growing despite continuing political uncertainty. Following a decade of contraction from 1998 to 2008, Zimbabwe's economy recorded real growth of more than 9% per year in 2010-11, before slowing to 5% in 2012, due in part to a poor harvest and low diamond revenues. However, the government of Zimbabwe still faces a number of difficult economic problems, including infrastructure and regulatory deficiencies, ongoing indigenization pressure, policy uncertainty, a large external debt burden, and insufficient formal employment. Zimbabwe's 1998-2002 involvement in the war in the Democratic Republic of the Congo drained hundreds of millions of dollars from the economy. The government's subsequent land reform program, characterized by chaos and violence, badly damaged the commercial farming sector, the traditional source of exports and foreign exchange and the provider of 400,000 jobs, turning Zimbabwe into a net importer of food products. Until early 2009, the Reserve Bank of Zimbabwe routinely printed money to fund the budget deficit, causing hyperinflation. Dollarization in early 2009 - which allowed currencies such as the Botswana pula, the South Africa rand, and the US dollar to be used locally - ended hyperinflation and reduced inflation to about 10%, but exposed structural weaknesses that continue to inhibit broad-based growth.

 

Source : CIA

 

 

COMPANY NAME

 

SUBJECT'S NAME

 

Registered Name:

VARICHEM PHARMACEUTICALS

Requested Name:

VARICHEM PHARMACEUTICALS

Other Names:

None

 

 

ADDRESS AND TELECOMMUNICATION

 

Physical Address:

194 Gleneagles Road Willowvale, Harare

Postal Address:

P. o. Box ST611Southerton,

 

Harare

Country:

Zimbabwe

Phone:

263-4-620181/6/7/-772423078

Cell:

263-912423915

Fax:

263-4-620180

Email:

choguyad@varipharm.co.zw/marketing@varipharm.co.zw/ chatikobos@varipharm.co.zw

Website:

www.varichem.co.zw

 

 

CREDIT OPINION

 

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

 

Legal Form:

Limited Corporation 

Date Incorporated:

10-Oct-1986

Reg. Number:

Zimbabwe

Nominal Capital

ZWD. 1,000,000

Subscribed Capital

ZWD. 1,000,000

Subscribed Capital is Subscribed in the following form:

 

Position

Shares

Mr. Alois Muchabaiwa

MD

 

Mr. Celestine Gadzikwa

Finance Director

 

Mrs. Eve Gadzikwa

Director

 

Mr. Archibald Chimuka

Director

 

 

RELATED COMPANIES

 

None

Parent company.

None

Subsidiary company.

None

Affiliated company.

None

Shareholder of subject firm.

44 George Silundika Avenue

Branches of the firm

 

 

OPERATIONS

 

Registered to operate manufacture and supply of generic pharmaceuticals and related products

Imports:

Asia, Europe

Exports:

Malawi, Botswana, South Africa, Namibia, Lesotho and Swaziland

Trademarks:

None

Terms of sale:

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

 

 

Main Customers:

Governmental firms, Hospitals, Medical Stores, outlets, distributors, firms and organizations  

Employees:

1200 employees.

Vehicles:

Several motor vehicles.

Territory of sales:

Zimbabwe

Location:

Owned premises, 100,000 square feet,

 

 

AUDITORS AND INSURANCE

 

Auditors:

Information not available.

Insurance Brokers:

Information not available.

 

 

FINANCE

 

Currency Reported:

Zimbabwe Dollar (ZWD.)

Approx. Ex. Rate:

1 US Dollar = 350 Zimbabwe Dollar

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 ZWD.)

 

 

2013

Sales

 

2,850,000,000

 

 

BANK

 

Bank Name:

First Merchant Bank

Branch:

Zimbabwe

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. 61.98

UK Pound

1

Rs. 102.67

Euro

1

Rs. 83.97

 

 

INFORMATION DETAILS

 

Report Prepared by :

DPT

 

 

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.