MIRA INFORM REPORT

Report Date :

28.01.2014

IDENTIFICATION DETAILS

Name :	KARIBU TEXTILE MILLS LTD

Registered Office :	Morogoro Rd Dar Es Salaam Tanzania P.o Box 6035 Dar Es Salaam

Country :	Tanzania

Financials (as on) :	31.12.2011

Date of Incorporation :	27.05.1998

Com. Reg. No.:	30780

Legal Form :	Limited Corporation

Line of Business :	Subject operate as a textile processing mill manufacturing, designing, bleaching, mercerizing, dying, coloring, printing, finishing and packaging

No. of Employees :	620

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 :	Slow but correct
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)

Tanzania

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 expanded 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:	KARIBU TEXTILE MILLS LTD
Requested Name:	KARIBU TEXTILE MILLS LTD
Other Names:	KTM

ADDRESS AND TELECOMMUNICATION

Physical Address:	Morogoro Rd Dar Es Salaam Tanzania
Postal Address:	P.o Box 6035
	Dar Es Salaam
Country:	Tanzania
Phone:	255-22-2856458/9/255-22-2856468
Fax:	255-22-2856468
Email:	ktm@africaonline.co.tz/ karibu@kaributextile.com
Website:	www.kaributextile.com

LEGAL

Legal Form:	Limited Corporation
Date Incorporated:	27-May-1998
Reg. Number:	30780
Trade License:	516491
Licensed:	6-April-1996
Nominal Capital	TZS. 35,000,000,000 Divided into Shares 35,000 each TZS.1,000,000
Subscribed Capital	TZS. 15,000,000,000 being 15,000
Subscribed Capital is Subscribed in the following form:
	Position	Shares
Mr. Nadeem Al Nassir Jetha	MD/ CEO	5,000
Mr. Hussein Al Nasir Jetha	Director	5,000
Mr. Adil Al Nasir Jetha	Director	5,000
Mr. Karim Pradhan	Manager
Mr. S. Pradhan	Manager
Mr. Barkat Ally	Manager
_______________________________________________________________________

RELATED COMPANIES

None	Parent company.
None	Subsidiary company.
None	Affiliated company.
None	Shareholder of subject firm.
Morogoro Rd and Kilwa Rd	Branches of the firm
___________________________________________________________________________

OPERATIONS

Registered to operate as a textile processing mill manufacturing, designing, bleaching, mercerizing, dying, coloring, printing, finishing and packaging.
Imports:	Asia
Exports:	None
Trademarks:	None
Terms of sale:	Cash (40%) and 30 days (60%), invoices.

Main Customers:	Local Department stores, stores and outlets
Employees:	620 employees.
Vehicles:	Several motor vehicles.
Territory of sales:	Tanzania
Location:	Owned premises, 50,000 square feet,

AUDITORS AND INSURANCE

Auditors:	TANNA SREE KUMAR
Insurance Brokers:	Information not available.

FINANCE

Currency Reported:	Tanzania Shillings (TZS.)
Approx. Ex. Rate:	1 US Dollar = 1617.49 Tanzania 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:	CRDB Bank
Branch:	Dar Es Salaam
Comments:	Other Banks
	EXIM BANK (T) 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.62.71
UK Pound	1	Rs.103.50
Euro	1	Rs.85.82

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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