MIRA INFORM REPORT

 

 

Report No. :

499283

Report Date :

29.03.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

CENTRAL ELECTRICALS INTERNATIONAL LTD.

 

 

Registered Office :

Plot No.22, Ada Estate, Kinondoni District, P. O. Box 5698, Dar Es Salaam

 

 

Country :

Tanzania

 

 

Date of Incorporation :

16.11.1994

 

 

Com. Reg. No.:

26490

 

 

Legal Form :

Limited Corporation 

 

 

Line of Business :

Subject operates import and wholesale of electrical, electronic goods and also electrical engineering services.

 

 

No. of Employees :

180

 

 

RATING & COMMENTS

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

 

MIRA’s Rating :

A

 

Credit Rating

Explanation

 

Rating Comments

A

Acceptable Risk

Business dealings permissible with moderate risk of default

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

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)

Tanzania

B2

B2

 

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

 

 

 

TANZANIA - ECONOMIC OVERVIEW

 

Tanzania has achieved high growth rates based on its vast natural resource wealth and tourism with GDP growth in 2009-17 averaging 6%-7% per year. Dar es Salaam used fiscal stimulus measures and easier monetary policies to lessen the impact of the global recession and in general, benefited from low oil prices. 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 slightly less than one-quarter of GDP and employs about 65% of the work force, although gold production in recent years has increased to about 35% of exports. 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.

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. Banking reforms have helped increase private-sector growth and investment.

The World Bank, the IMF, and bilateral donors have provided funds to rehabilitate Tanzania's aging infrastructure, including rail and port, which provide important trade links for inland countries. In 2013, Tanzania completed the world's largest Millennium Challenge Compact (MCC) grant, worth $698 million, but in late 2015, the MCC Board of Directors deferred a decision to renew Tanzania’s eligibility because of irregularities in voting in Zanzibar and concerns over the governments use of a controversial cybercrime bill.

Under the new government elected in 2015, Tanzania has developed an ambitious development agenda focused on creating a better business environment through improved infrastructure, access to financing, and education progress, but implementing budgets remains challenging for the government. Recent policy moves by President MAGUFULI are aimed at protecting domestic industry and have caused concern among foreign investors.

 

Source : CIA

 

 

 

SUBJECT'S NAME

 

Registered Name:

CENTRAL ELECTRICALS INTERNATIONAL LTD.

Requested Name:

CENTRAL ELECTRICALS INTERNATIONAL LTD.

Initials:

CEIL

 

 

ADDRESS AND TELECOMMUNICATION

 

Physical Address:

Plot No.22, Ada Estate, Kinondoni District,

Postal Address:

P. o. Box 5698

 

Dar Es Salaam,

Country:

Tanzania

Phone:

255-22-2668387/2666294/2667747/74129973

Cell:

255-784786660/222555

Fax:

255-22-2667590/6657

Email:

info@centralelectricals.com/zul@centralelectrical.com /hussein@centralelectricals.com/akbar@centralelectricals.com

Website:

www.centralelectricals.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:

16-Nov-1994

Reg. Number:

26490

Nominal Capital

TZS. 1,000,000

Subscribed Capital

TZS. 1,000,000

Subscribed Capital is Subscribed in the following form:

 

Position

Shares

Mr. Zulfikarali Alimohamed

MD

 

Mr. Akber Meghji

Director

50%

Mr. Karim Meghji

Director

50%

 

 

RELATED COMPANIES

 

None

Parent company.

None

Subsidiary company.

In Kenya, Uganda, Rwanda and Sudan

Affiliated company.

Mr. Akber Meghji

Mr. Karim Meghji

Shareholders of subject firm.

None

Branches of the firm

 

 

OPERATIONS

 

Registered to operate import and wholesale of electrical, electronic goods and also electrical engineering services.

Imports:

England, Turkey, India, China, UAE, Poland and Europe

Exports:

Neighboring countries

Trademarks:

None

Terms of sale:

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

 

 

Main Customers:

firms and organizations  

Employees:

180 employees.

Vehicles:

Several motor vehicles.

Territory of sales:

Tanzania

Location:

Leased premises, 15,000 square feet,

 

 

AUDITORS AND INSURANCE

 

Auditors:

M/S ASSAD ASSOCIATES

Insurance Brokers:

Information not available.

 

 

FINANCE

 

Currency Reported:

Tanzanian Shillings (TZS.)

Approx. Ex. Rate:

1 US Dollar = 2250 Tanzanian Shillings

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 TZS.)

 

 

2017

Sales

 

7,900,000,000

 

 

BANK

 

Bank Name:

EXIM BANK (T) LIMITED

Branch:

Tanzania

Comments:

Other Banks

 

DIAMOND TRUST BANK (T) 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.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 65.04

UK Pound

1

INR 92.28

Euro

1

INR 80.62

TZS

1

INR 0.029

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIT

 

 

 

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.