MIRA INFORM REPORT

 

 

Report No. :

495067

Report Date :

07.03.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

KEN KNIT (KENYA) LTD

 

 

Registered Office :

Plot no 87/8/9 Eldoret Kapsoya Road, Eldoret, P.o Box No. 142-30100, Eldoret

 

 

Country :

Kenya

 

 

Date of Incorporation :

07.12.1966

 

 

Com. Reg. No.:

6976

 

 

Legal Form :

Limited Corporation 

 

 

Line of Business :

Manufacturers & retailers of various knitted wears, hosiery yarns, hand knitting yarns, blanket yarns etc

 

 

No. of Employees :

1250

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

B

 

Credit Rating

Explanation

Rating Comments

B

Medium Risk

Business dealings permissible on a regular monitoring basis

 

Status :

Moderate

 

 

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

 

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

Kenya

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

KENYA - ECONOMIC OVERVIEW

 

Kenya is the economic, financial, and transport hub of East Africa. Kenya’s real GDP growth has averaged over 5% for the last eight years. Since 2014, Kenya has been ranked as a lower middle income country because its per capita GDP crossed a World Bank threshold. While Kenya has a growing entrepreneurial middle class and steady growth, its economic and development trajectory could be impaired by weak governance and corruption. Although reliable numbers are hard to find, unemployment and under-employment are extremely high, and could be near 40% of the population.

Agriculture remains the backbone of the Kenyan economy, contributing one-third of GDP. About 75% of Kenya’s population of roughly 44.2 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.

Inadequate infrastructure continues to hamper Kenya’s efforts to improve its annual growth to the 8%-10% range so that it can meaningfully address poverty and unemployment. The KENYATTA administration has been successful in courting external investment for infrastructure development. International financial institutions 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. Nairobi has contracted with a Chinese company to construct a new standard gauge railway connecting Mombasa and Nairobi, with completion expected in June 2017. In 2013, the country adopted a devolved system of government with the creation of 47 counties, and is in the process of devolving 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. Drought-like conditions in parts of the country have pushed 2017 inflation above 8%. Chronic budget deficits, including a shortage of funds in mid-2015, hampered the government’s ability to implement proposed development programs, but the economy is back in balance with many indicators, including foreign exchange reserves, interest rates, and FDI moving in the right direction. Underlying weaknesses were exposed in the banking sector in 2016 when the government was forced to take over three small and undercapitalized banks. In 2016, the government enacted legislation that limits interest rates banks can charge on loans and set a rate that banks must pay their depositors. This measure led to a sharp shrinkage of credit in the economy.

 

Source : CIA

 

 

COMPANY NAME

 

Registered Name:

KEN KNIT (KENYA) LTD

Requested Name:

KEN KNIT KENYA LTD

Other Names:

None

 

 

ADDRESS AND TELECOMMUNICATION

 

Physical Address:

Plot no 87/8/9 Eldoret Kapsoya Road, Eldoret

Postal Address:

P.o Box No. 142-30100,

 

Eldoret,

Country:

Kenya

Phone:

254-53-2032644

Cell:

254-732800001

Fax:

254-53-2062916

Email:

factory@kenknit.com

Website:

www.kenknit.com

 

 

CREDIT OPINION

 

 

Financial Index as of December 2017 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:

7-Dec-1966

Reg. Number:

6976

Nominal Capital

KES. 100,000,000 Divided into Shares of 10,000,000 each KES. 10

Subscribed Capital

KES. 90,000,000

Subscribed Capital is Subscribed in the following form:

 

Position

Shares

Mr. Somchand Zaverchand Shah 

CEO

1,521,000

Mr. Amratlal Zaverchand Shah

Director

1,485,000

Mr. Bhaichand Zaverchand Shah

Director

1,476,000

Mr. Satish Somchand Shah

Director

643,500

Mr. Probodh Keshavlal Shah 

Director

575,400

Mr. Ajay Somchand Shah

Director

397,500

Mr. G. Zaverchand Shah

Shareholder

1,431,000

Mr. K. Zaverchand Shah

Shareholder

981,000

Mr. Neel Amritlal Shah

Shareholder

195,600

Mr. Ravi Amritlal Shah

Shareholder

195,600

Mr. Rajesh Somchand Shah

Shareholder

98,400

 

 

RELATED COMPANIES

 

None

Parent company.

None

Subsidiary company.

Simbii Ginners Ltd,

Rupa Cotton Mills (EPZ) Ltd.

Affiliated company.

None

Shareholder of subject firm.

Nairobi in Kenya

Branches of the firm

 

 

OPERATIONS

 

Registered to operate manufacturers & Retailers of various knitted wears, hosiery yarns, hand knitting yarns, blanket yarns etc

Imports:

Asia and South Africa

Exports:

Europe and America

Trademarks:

None

Terms of sale:

Cash (40%) and 30 days (60%), invoices.

 

 

Main Customers:

firms and organizations  

Employees:

1250 employees.

Vehicles:

Several motor vehicles.

Territory of sales:

Kenya

Location:

Owned premises, 10,000 square feet,

 

 

AUDITORS AND INSURANCE

 

Auditors:

Nyaundi Tuiyott & Co. advocates

Insurance Brokers:

Tausi Assurance

 

 

 

 

 

FINANCE

 

 

Currency Reported:

Kenya Shillings (KES.)

Fiscal Year End:

December 31, 2017

Inflation:

According to information given by independent sources, the inflation at December 31st, 2017 was of 13%.

 

Financial Information not Submitted

 

 

 

 

 

Profit and Loss (expressed in KES.)

 

 

2009

Sales

 

750,000,000 

 

 

 

 

BANK

 

 

Bank Name:

Standard Chartered Bank (Kenya) Ltd

Branch:

Nairobi

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

INR 64.99

UK Pound

1

INR 89.91

Euro

1

INR 80.21

KES

1

INR 0.64

 

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

NIS

 

 

Report Prepared by :

KET

                                                


 

RATING EXPLANATIONS

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

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 are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

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.