MIRA INFORM REPORT

Report Date :

25.09.2014

IDENTIFICATION DETAILS

Name :	AFRITEX LIMITED
Registered Office :	Gofu Chini Industrial Area, Tanga, P. O. Box 835, Tanga
Country :	Tanzania
Date of Incorporation :	10.06.1980
Legal Form :	Limited Corporation
LINE OF BUSINESS :	SUBJECT OPERATE AS A TEXTILE MANUFACTURING COMPANY
No of Employees :	100

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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Tanzania	B2	B2

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 2009-13 was a respectable 6-7% per year due to high gold prices and increased production.

Source : CIA

Company Name
Registered Name:	AFRITEX LIMITED
Requested Name:	AFRITEX LIMITED
Other Names:	None
ADDRESS AND TELECOMMUNICATION
Physical Address:	Gofu Chini Industrial Area, Tanga
Postal Address:	P. o. Box 835
	Tanga
Country:	Tanzania
Phone:	255-272646421/ 2
Cell:	255-713310830
Fax:	255-272646422
Email:	afritex@habari.co.tz/ afritex@raha.com
Website:	www.metl.net
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-Jun-1980
Reg. Number:		Dar Es Salaam , Tanzania
Nominal Capital		TZS. 50,000,000
Subscribed Capital		TZS. 50,000,000
Subscribed Capital is Subscribed in the following form:
		Position		Shares
Mr. Gulamabbas Hassanali Fazal Dewji		MD
Mr. Mohammed G. Dewji		Director
Mr. Sudesh Maheshwari		Director
Mr. Mohammed G. Dewji		Director
Mr. Gulamabbas H. Dewji		Director
Mohammad Enterprises Tanzania Ltd		Holding Co.		100%
RELATED COMPANIES
Mohammad Enterprises Tanzania Ltd		Parent company.
None		Subsidiary company.
Listed Below		Affiliated company.
None		Shareholder of subject firm.
None		Branches of the firm
OPERATIONS
Registered to operate as a textile manufacturing company
Imports:		Asia and South Africa
Exports:		South Africa, Europe, Asia
Trademarks:		None
Terms of sale:		Cash (40%) and 30 days (60%), invoices.
Main Customers:		firms and organizations
Employees:		100 employees.
Vehicles:		Several motor vehicles.
Territory of sales:		Tanzania
Location:		Rented premises, 10,000 square feet,
AUDITORS AND INSURANCE
Auditors:		Information not available.
Insurance Brokers:		Information not available.
FINANCE
Currency Reported:		Tanzanian Shillings (TZS.)
Approx. Ex. Rate:		1 US Dollar = 1673.52 Tanzanian 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 TZS.)
			2013
Sales			50,000,000,000
BANK
Bank Name:		CRDB BANK
Branch:		Tanzania
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. he subject company was acquired by Mohammad Enterprises Tanzania Ltd in 2000

Affiliated Companies

21ST CENTURY FOOD AND PACKAGING LTD

21ST CENTURY HOLDINGS LTD

21ST CENTURY TEXTILES LTD

ROYAL SOAP AND DETERGENT INDUSTRIES LTD

AGRO PROCESSING & ALLIED PRODUCTS LTD

A-ONE PRODUCTS NAD BOTTLERS LTD (APBL)

EAST COAST CONTAINER DEPOT LTD (ECCD)

EAST COAST LIQUID STORAGE LTD

EAST COAST OILS AND FATS LTD (ECOFL)

GLENRICH TRANSPORTATION LTD (GTL)

METL SAWMILL LTD (MS)

MO CASHEWS LTD

MUSOMA TEXTILES LTD (MTL)

NATIONAL BICYCLES COMPANY LTD

NEW TRADECO INDUSTRIES [2000] LTD

NOVATEXMOQUE LDA (NTL)

STAR OILS LTD (SOL)

TANZANIA COMMODITIES TRADING COMPANY LTD

TPM (1998) LTD

TRADECO SOAP INDUSTRIES LTD

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.03
UK Pound	1	Rs.99.99
Euro	1	Rs.78.37

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	TPT

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.