MIRA INFORM REPORT

 

 

Report No. :

315274

Report Date :

07.04.2015

 

IDENTIFICATION DETAILS

 

Name :

CHEMI COTEX INDUSTRIES LTD

 

 

Registered Office :

Plot No.88/89/90 New Bagamoyo Road, Mbezi Industrial Area, P. o. Box 347, Dar Es Salaam

 

 

Country :

Tanzania

 

 

Date of Incorporation :

01.10.2000

 

 

Com. Reg. No.:

39390

 

 

Legal Form :

Limited Corporation

 

 

Line of Business :

Subject operate manufacture and distribution of FMCG, cosmetics and Industrial, household chemicals, plastics, packaging Materials and allied items

 

 

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 :

Good

Payment Behaviour :

Regular

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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:

CHEMI COTEX INDUSTRIES LTD

Requested Name:

CHEMI COTEX INDUSTRIES LTD

Other Names:

None

 

ADDRESS AND TELECOMMUNICATION

 

Physical Address:

Plot No.88/89/90 New Bagamoyo Road, Mbezi Industrial Area,

Postal Address:

P. o. Box 347

 

Dar Es Salaam,

Country:

Tanzania

Phone:

255-22-2628014/2628017/2627637

Fax:

255-22-2627637

Email:

sect@cciltz.com/sect@cotex.icstz.com

Website:

www.cciltz.com

 

CREDIT OPINION

 

 

Financial Index as of December 2014 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:

01-Oct-2000

Reg. Number:

39390

Tax number:

25130072

Nominal Capital

TZS. 5,000,000,000 divided into Shares 5,000,000 each Value: TZS. 1000

Subscribed Capital

TZS. 3,892,050,000

Subscribed Capital is Subscribed in the following form:

 

Position

Shares

Mr. Yogesh Maganlal Manek

Chairman

1.00%

Mr. Abhijit Sanyal

CEO

 

Mr. Santosh Desai

MD

 

Mr. Pradip M. Manek

Director

 

Mr. Vinod K. Dhall

Director

 

Mr. N. L. Chohan

Director

 

Mr. Ashwin Patel

Manager

 

MAC Group Ltd

Shareholder

47.90%

Cumberland Ltd

Shareholder

45.62%

 

RELATED COMPANIES

 

None

Parent company.

None

Subsidiary company.

Listed Below

Affiliated companies.

None

Shareholder of subject firm.

Dar Es Salaam , Mwanza and Arusha in Tanzania

Branches of the firm

 

OPERATIONS

 

Registered to operate manufacture and distribution of FMCG, cosmetics and Industrial, household chemicals, plastics, packaging Materials and allied items

Imports:

Asia

Exports:

East African Countries

Brands:

White Dent, Bannister’s, Sweet heart, Soft Touch, Siri, Simba Chef, Chemi-cola, Body Line, Swan, U & me and Zawadi Zanzibar

Terms of sale:

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

 

 

Main Customers:

Local agencies, distributors, firms and organizations  

Employees:

1200 employees.

Vehicles:

Several motor vehicles.

Territory of sales:

Tanzania

Location:

Owned premises, 500,000 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 = 1851.47 Tanzanian Shillings

Fiscal Year End:

December 31, 2014

Inflation:

According to information given by independent sources, the inflation at December 31st, 2014 was of 13%.

 

Financial Information not Submitted

 

 

 

Profit and Loss (expressed in TZS.)

 

2013

2014

Sales

35,100,000,000

42,000,000

 

BANK

 

 

Bank Name:

STANBIC BANK (T) LTD

Branch:

Sukari House, Box 72647, Dar Es Salaam, Tanzania

Comments:

Other Banks

 

BARCLAYS BANK (T) LTD

 

 

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.

 

 

AFFILIATED COMPANIES

 

AFRICAN MOSFLY INDUSTRIES LIMITED

ALLIANCE INSURANCE CORPORATION LIMITED

ANIFF (K) LTD

ARUSHA HOTEL

SUPA BRITE LIMITED KENYA

CHEMIPACK  (U) LTD, UGANDA

EAST USAMBARA TEA COMPANY LTD

EXIM BANK (T) LIMITED

GREAT LAKES MINING CORP LTD

INCAR (T) LTD

INTERNATIONAL COOLING SYSTEMS & ENGINEERING LIMITED

MAC GROUP LTD

MANEK TRADING CO., LTD

NUFAIKA DISTRIBUTORS (U) LTD, UGANDA

NYANZA MINES (T) LIMITED

PURE DRINKS LTD

THE HERITAGE AII INSURANCE

VAKAM CORPORATION INC USA 

CHEMICOTEX (RWANDA) LTD.

HEXAGON INTERNATIONAL COMMODITY TRADERS (PTY) LTD

GOUROCK ROPES AND CANVAS LTD

TRADEXPRESS , LDA

SOCIETE AYUL

MERZIM DISTRIBUTORS


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.15

UK Pound

1

Rs.92.74

Euro

1

Rs.68.23

 

 

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%)

 

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.