MIRA INFORM REPORT

 

 

Report No. :

317650

Report Date :

18.04.2015

 

IDENTIFICATION DETAILS

 

Name :

SUNFLAG (TANZANIA) LIMITED

 

 

Registered Office :

Plot No. 33, Themi Industrial Area, Njiro Hill, P. o. Box 3123, Arusha,

 

 

Country :

Tanzania

 

 

Date of Incorporation :

11.02.1974

 

 

Com. Reg. No.:

3750

 

 

Legal Form :

Limited Corporation 

 

 

Line of Business :

Manufacturers of cotton, nylon and polyester knitted fabrics and garments made thereof. 

 

 

No. of Employees :

3000 Employees

 

 

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, but has achieved high growth rates based on gold production and tourism. GDP growth in 2009-14 was an impressive 6-7% per year. Tanzania has largely completed its transition to a 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 infrastructure, including rail and port, that provide 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. In 2013, Tanzania completed 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. In late 2014 a highly publicized scandal in the energy sector involving senior Tanzanian officials resulted in international donors freezing nearly $500 million in direct budget support to the government.

 

Source : CIA

Company name and address

 

SUBJECT'S NAME

 

Registered Name:

SUNFLAG (TANZANIA) LIMITED

Requested Name:

SUNFLAG (TANZANIA) LIMITED

Other Names:

SUNFLAG TANZANIA LIMITED

 

 

ADDRESS AND TELECOMMUNICATION

Physical Address:

Plot No. 33, Themi Industrial Area, Njiro Hill, Arusha

Postal Address:

P. o. Box 3123

 

Arusha,

Country:

Tanzania

Phone:

255 -27-2549268/9270/9335/9497/9267/9536/9274/

9250/2507281

Fax:

255-27-2549335

Email:

info@sunflag-tz.com/sunflag@habari.co.tz;/ suntan@habari.co.tz

Website:

www.sunflag-tz.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:

11-Feb-1974

Reg. Number:

3750

Nominal Capital

TZS. 3,000,000,000 Divided into Shares 150,000,000 each TZS. 120

Subscribed Capital

TZS. 1,827,829,600 being 91,391,480

Subscribed Capital is Subscribed in the following form:

 

Position

Shares

Mr. Satiyadev Basakhiram Bhardwaj

CEO

336,600

Mr. Vijay Bhushan Basakhiram Bhardwaj

Director

39,600

Mr. Ravi Bhushan Basakhiram Bhardwaj

Director

 

Mr. Viswanath Prasad Singh

Director

 

Mr. Ajay Shah

GM

 

Mr. Vijay Dhavale

Deputy GM

 

Mrs. Priya Bhushan Satyadev Bhardwaj

Shareholders

36,900

Pravilla Holding Ltd, UK

Holding Co.

90,978,380

 

 

RELATED COMPANIES

 

Pravilla Holding Ltd, UK

Parent company.

None

Subsidiary company.

None

Affiliated company.

Mr. Satiyadev Basakhiram Bhardwaj

Mr. Vijay Bhushan Basakhiram Bhardwaj

Mrs. Priya Bhushan Satyadev Bhardwaj

Shareholders of subject firm.

None

Branches of the firm

 

 

OPERATIONS

 

Registered to operate manufacturers of cotton, nylon and polyester knitted fabrics and garments made thereof.  Subject is one of the largest textile mills

Imports:

Machinery and raw materials from Europe, India, Nigeria, Kenya, EU and South Africa

Exports:

Africa, Europe

Trademarks:

None

Terms of sale:

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

 

 

Main Customers:

Distributors, firms and organizations  

Employees:

3000 employees.

Vehicles:

Several motor vehicles.

Territory of sales:

Tanzania

Location:

Owned premises, 150,000 square feet,

 

 

AUDITORS AND INSURANCE

 

Auditors:

Information not available.

Insurance Brokers:

Information not available.

 

 

FINANCE

 

Currency Reported:

Tanzania Shillings (TZS.)

Approx. Ex. Rate:

1 US Dollar = 1625.48 Tanzania 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

20,000,000,000

25,000,000,000

 

 

BANK

 

Bank Name:

STANBIC BANK TANZANIA LIMITED

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.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.37

UK Pound

1

Rs.93.10

Euro

1

Rs.67.13

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

VNT

 

               

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.