MIRA INFORM REPORT

Report No. :	351418
Report Date :	30.11.2015

IDENTIFICATION DETAILS

Name :	LODHIA STEEL INDUSTRIES LTD.
Formerly Known As :	M/S TRISHALA ROLLING MILLS LIMITED
Registered Office :	Plot No. 27, Themi Industrial Area, Mianzini, Arusha, P. O. Box 12167, Arusha
Country :	Tanzania
Financials (as on) :	31.12.2013
Date of Incorporation :	18.02.2003
Com. Reg. No.:	45383
Legal Form :	Limited Corporation
Line of Business :	Subject operate as a steel mill company, dealing with production and Distribution of round bars, deformed bars, twisted bars, square bars, flat bars, zed bars, tee sections, angle bars, hollow sections, black pipes, furniture pipes and hr plates.
No. of Employees :	150 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	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 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 measures and easier monetary policies to lessen 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 STEEL INDUSTRIES LTD.
Requested Name:	LODHIA STEEL INDUSTRIES LTD.
Former Names:	M/S TRISHALA ROLLING MILLS LIMITED
ADDRESS AND TELECOMMUNICATION
Physical Address:	Plot No. 27, Themi Industrial Area, Mianzini, Arusha,
Postal Address:	P. o. Box 12167
	Arusha,
Country:	Tanzania
Phone:	255-27-2548504/2548520
Cell:	255-754095350
Fax:	255-27-2548748
Email:	info@lodhiagroup.com, sales@lodhiagroup.com, marketing@lodhiagroup.com/trishala@bol.co.tz cfo@trishalagroup.com
Website:	www.lodhiagroup.com
LEGAL
Legal Form:		Limited Corporation
Date Incorporated:		18-Feb-2003
Reg. Number:		45383
Nominal Capital		TZS. 1,000,000,000
Subscribed Capital		TZS. 1,000,000,000
Subscribed Capital is Subscribed in the following form:
		Position	Shares
Mr. Arun Vithaldas Lodhia		Director
Mrs. Divya A. Lodhia		Director
Mr. Emmanuel Trinitas		Accounts
Lodhia Group Of Companies Limited		Holding Co.	100%
RELATED COMPANIES
Lodhia Group Of Companies Limited		Parent company.
None		Subsidiary company.
None		Affiliated company.
LODHIA GYPSUM INDUSTRIES LTD, LODHIA TRADING COMPANY LTD, STEEL CENTRE LTD, LODHIA PLASTIC INDUSTRIES LTD, LODHIA GASES LTD, SIGNATURE GEMS, THEMI SUITES.		Shareholder of subject firm.
3 branches in Tanzania		Branches of the firm
OPERATIONS
Registered to operate as a steel mill company, dealing with production and Distribution of round bars, deformed bars, twisted bars, square bars, flat bars, zed bars, tee sections, angle bars, hollow sections, black pipes, furniture pipes and hr plates.
Imports:		Asia
Exports:		None
Trademarks:		None
Terms of sale:		Cash (50%) and 25-90 days (50%), invoices.
Main Customers:		firms and organizations
Employees:		150 employees.
Vehicles:		Several motor vehicles.
Territory of sales:		Tanzania
Location:		Owned premises, 20,000 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 = 2170 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 Submitted Below
BANK
Bank Name:		CRBD
Branch:		Tanzania
Comments:		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.66.75
UK Pound	1	Rs.100.68
Euro	1	Rs.70.88
TZS	1	Rs.0.031

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	KAS
Report Prepared by :	NIT

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.