MIRA INFORM REPORT

Report No. :	329051
Report Date :	06.07.2015

IDENTIFICATION DETAILS

Name :	LODHIA PLASTIC INDUSTRIES LTD
Registered Office :	Plot 26 Themi Industrial Area, Njiro, Arusha
Country :	Tanzania
Date of Incorporation :	19.11.2009
Com. Reg. No.:	73732
Legal Form :	Limited Corporation
Line of Business :	Manufacture of plastic products specializing in types of pipes - PVC (bore well, drainage, conduit), HDPE, PPR and water tanks
No. of Employees :	200 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 :	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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
Tanzania	B2	B2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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 its vast natural resource wealth 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 2014 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

SUBJECT'S NAME
Registered Name:	LODHIA PLASTIC INDUSTRIES LTD
Requested Name:	LODHIA PLASTIC INDUSTRIES LTD
Former Names:	TRISHALA PLASTICS LIMITED
_______________________________________________________________________
ADDRESS AND TELECOMMUNICATION
Physical Address:	Plot 26 Themi Industrial Area, Njiro, Arusha
Postal Address:	P. o. Box 12167,
	Arusha,
Country:	Tanzania
Phone:	255-22-2548504/-27-2548504/20
Cell:	255-717626262/754095350
Fax:	255-22-2548748/-27-2548748
Email:	info@lodhiagroup.com/sales@lodhiagroup.com/ marketing@lodhiagroup.com
Website:	www.lodhiagroup.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:		19-Nov-2009
Reg. Number:		73732
Nominal Capital		TZS. 1,000,000,000
Subscribed Capital		TZS. 10,000,000
Subscribed Capital is Subscribed in the following form:
		Position		Shares
Mr. Arun Vithaldas Lodhia		MD
Mrs. Divya Arun Lodhia		Director
Lodhia Group of Companies		Holding Co.		100%
_______________________________________________________________________
RELATED COMPANIES
Lodhia Group of Companies		Parent company.
None		Subsidiary company.
LODHIA TRADING COMPANY LTD, STEEL CENTRE LTD, LODHIA STEEL INDUSTRIES LIMITED, LODHIA GYPSUM INDUSTRIES LTD, LODHIA GASES LTD, SIGNATURE GEMS, THEMI SUITES.		Affiliated company.
None		Shareholder of subject firm.
None		Branches of the firm
___________________________________________________________________________
OPERATIONS
Registered to operate manufacture of plastic products specializing in types of pipes - PVC (bore well, drainage, conduit, etc.), HDPE, PPR and water tanks
Imports:		Asia
Exports:		Neighboring countries
Trademarks:		None
Terms of sale:		Cash (40%) and 25-90 days (60%), invoices.
Main Customers:		Industries, firms and organizations
Employees:		200 employees.
Vehicles:		Several motor vehicles.
Territory of sales:		Tanzania
Location:		Owned premises, 200,000 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 = 2165.16Tanzanian 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		7,820,000,000	10,650,000,000
_______________________________________________________________________
BANK
Bank Name:		EXIM 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. 63.39
UK Pound	1	Rs. 98.94
Euro	1	Rs. 70.33

INFORMATION DETAILS

Analysis Done by :	DIV
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%)

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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.