MIRA INFORM REPORT

 

 

Report No. :

339190

Report Date :

08.09.2015

 

IDENTIFICATION DETAILS

 

Name :

GENERAL INDUSTRIES LTD

 

 

Registered Office :

LY 209 / 9727 Fembe Street Industrial Area Nairobi, P. o. Box 41682-00100

Nairobi

 

 

Country :

Kenya

 

 

Date of Incorporation :

16.10.1970

 

 

Com. Reg. No.:

13040

 

 

Legal Form :

Limited Corporation 

 

 

Line of Business :

Manufacture and supply of plastic products such as UPVC pipes, PPR pipes, HDPE pipes, waste pipes, conduit pipes and also paper cores.

 

 

No. of Employees :

600 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)

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:

GENERAL INDUSTRIES LTD

Requested Name:

GENERAL INDUSTRIES LTD

Other Names:

None

 

 

ADDRESS AND TELECOMMUNICATION

 

Physical Address:

LY 209/9727 Fembe Street Industrial Area Nairobi

Postal Address:

P. o. Box 41682-00100

 

Nairobi

Country:

Kenya

Phone:

254-20-556112/556390/558536

Cell:

254-722706126/737400277

Fax:

254-20-558533

Email:

info@gil.co.ke/sales@gil.co.ke

Website:

www.gilkenya.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:

16-Oct-1970

Reg. Number:

13040

Nominal Capital

KES. 3,000,000

Subscribed Capital

KES. 3,000,000

Subscribed Capital is Subscribed in the following form:

 

Position

Shares

Mr. Vinodhai Mulchand Dodhia

CEO

55.50%

Mrs. Kusum Vinobhai Dodhia

Director

44.50%

Mr. Kantilal M. Dodhia

Director

 

 

 

RELATED COMPANIES

 

None

Parent company.

None

Subsidiary company.

PETTY PACKS LTD

Affiliated company.

Mr. Vinodhai Mulchand Dodhia,

Mrs. Kusum Vinobhai Dodhia.

Shareholders of subject firm.

None

Branches of the firm

 

 

OPERATIONS

 

Registered to operate as manufacture and supply of plastic products such as UPVC pipes, PPR pipes, HDPE pipes, waste pipes, conduit pipes and also paper cores

Imports:

Asia

Exports:

Asia

Trademarks:

Neighboring countries

Terms of sale:

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

 

 

Main Customers:

Textile and packaging industries, firms and organizations

Employees:

600 employees.

Vehicles:

Several motor vehicles.

Territory of sales:

Kenya

Location:

Leased premises, 20,000 square feet,

 

 

AUDITORS AND INSURANCE

 

Auditors:

Information not available.

Insurance Brokers:

Information not available.

 

 

FINANCE

 

Currency Reported:

Kenyan Shillings (KES.)

Approx. Ex. Rate:

1 US Dollar = 104.10 Kenyan 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.)

 

 

2014

Sales

 

1,245,000,000 

 

 

BANK

 

Bank Name:

CFC STANBIC BANK

Branch:

Kenya

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.66.74

UK Pound

1

Rs.101.36

Euro

1

Rs.74.27

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

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.