MIRA INFORM REPORT

Report No. :	345361
Report Date :	17.10.2015

IDENTIFICATION DETAILS

Name :	MEDISEL (KENYA) LIMITED
Registered Office :	Plot No 4953/1626 Factory Street, Industrial Area, Thika, P. O. Box 540-01000, Thika
Country :	Kenya
Date of Incorporation :	28.07.1994
Com. Reg. No.:	60288
Legal Form :	Limited Corporation
Line of Business :	Subject operate import and distribution of generic and branded pharmaceuticals and also dealers in hospital furniture and equipment such as Lab diagnostics, emergency trollies, examining tables.
No. of Employees :	120

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 :	No Complaints
Litigation :	Clear

NOTES:

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ECGC Country Risk Classification List – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
Kenya	B1	B1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

KENYA - ECONOMIC OVERVIEW

Kenya is the economic and transport hub of East Africa. Kenya’s real GDP growth has averaged around 5% for the past several years. According to recently rebased national statistics, Kenya’s GDP for 2013 was $55.3 billion, placing Kenya among the low middle income countries with per capita income of $1,300. Agriculture remains the backbone of the Kenyan economy, contributing 25% of GDP. About 80% of Kenya’s population of roughly 42 million work at least part-time in the agricultural sector, including livestock and pastoral activities. Over 75% of agricultural output is from small-scale, rain-fed farming or livestock production. While Kenya has a growing entrepreneurial middle class, faster growth and poverty reduction is hampered by corruption and by reliance upon several primary goods whose prices have remained low. Inadequate infrastructure threatens Kenya's long-term position as the largest East African economy, although the KENYATTA administration has prioritized infrastructure development. International financial lenders and donors remain important to Kenya's economic growth and development, but Kenya has also successfully raised capital in the global bond market. Kenya issued its first sovereign bond offering in mid-2014, generating $2 billion at 6% interest; the funds are slated to be used for infrastructure projects. Nairobi has contracted with a Chinese company to begin construction of a new standard gauge railway, but the project allegedly has been beset by corruption and fraud. Unemployment is high at around 40%. The country has chronic budget deficits and is in the process of devolving some state revenues and responsibilities to the counties. Inflationary pressures and sharp currency depreciation peaked in early 2012 but have since abated following low global food and fuel prices and monetary interventions by the Central Bank. Recent terrorism in Kenya and the surrounding region threatens Kenya's important tourism industry.

Source : CIA

Company Name
Registered Name:	MEDISEL (KENYA) LIMITED
Requested Name:	MEDISEL (KENYA) LIMITED
Trade Names:	MEDISEL (K) LIMITED
Former Names:	MEDICAL ESSENTIALS LIMITED
ADDRESS AND TELECOMMUNICATION
Physical Address:	Plot No 4953/1626 Factory Street,Industrial Area, Thika
Postal Address:	P. o. Box 540-01000
	Thika
Country:	Kenya
Phone:	254-67-22074/30378/9/-20-3569900/8033221
Fax:	254-67-22230/-20-2321699
Email:	medisel@africaonline.co.ke/ accounts@mediselkenya.com/ info@mediselkenya.com/ enq@mediselkenya.com
Website:	www.mediselkenya.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:		28-July-1994
Reg. Number:		60288
Nominal Capital		KES. 5,000,000 being shares 50,000 each Value KES. 100
Subscribed Capital		KES. 5,000,000
Subscribed Capital is Subscribed in the following form:
		Position	Shares
Mr. Ajaykumar Shanabhai Patel		MD	50%
Dr. Rajendra Kumar Mohindra		Director	50%
RELATED COMPANIES
None		Parent company.
MEDISEL MOMBASA LIMITED, MEDISEL NAIROBI LIMITED.		Subsidiary companies.
DAWA LIMITED, UNICORN PHARMA (KENYA) LIMITED, THIKA CHEMIST (KENYA) LIMITED, FOREST ROAD DEVELOPMENT LIMITED, KEL CHEMICALS LIMITED.		Affiliated companies.
Mr. Ajaykumar Shanabhai Patel Dr. Rajendra Kumar Mohindra		Shareholder of subject firm.
In Nairobi and Mombasa Kenya International offices in India and China		Branches of the firm
OPERATIONS
Registered to operate import and distribution of generic and branded pharmaceuticals and also dealers in hospital furniture and equipment such as Lab diagnostics, emergency trollies, examining tables.
Imports:		Asia, Europe
Exports:		Africa
Trademarks:		None
Terms of sale:		Cash (30%) and 25-90 days (70%), invoices.
Main Customers:		Local agencies, medical stores, outlets, firms and organizations
Employees:		120 employees.
Vehicles:		Several motor vehicles.
Territory of sales:		Kenya
Location:		Owned premises, 6,500 square feet,
AUDITORS AND INSURANCE
Auditors:		SUNIL DAVDA & COMPANY
Insurance Brokers:		Information not available.
FINANCE
Currency Reported:		Kenya Shillings (KES.)
Approx. Ex. Rate:		1 US Dollar = 102.76 Kenya 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 KES.)
		2013	2014
Sales		1,250,000,000	2,240,000,000
BANK
Bank Name:		STANDARD CHARTERED BANK (KENYA) LIMITED
Branch:		P.o. Box 300-01000 Thika Branch, Kenya
Comments:		Other Banks
		FINA BANK (KENYA) LIMITED
		KENYA COMMERCIAL BANK (KENYA) LIMITED
		BANK OF BARODA (KENYA) LIMITED
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. Subject is part of Dawa Group.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.64.97
UK Pound	1	Rs.100.55
Euro	1	Rs.73.99

INFORMATION DETAILS

Analysis Done by :	DIV
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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