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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

507902

Report Date :

10.05.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

NILE BASE METALS LTD

 

 

Registered Office :

Kagwa Road, Kampala, P. O. Box 5780, Kampala

 

 

Country :

Uganda

 

 

Financials (as on) :

2017 (Summarized)

 

 

Date of Incorporation :

05.07.2016

 

 

Legal Form :

Limited Corporation

 

 

Line of Business :

Subject operates as dealers in metal base products.

 

 

No. of Employees :

8

 

 

RATING & COMMENTS

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

 

MIRA’s Rating :

C

 

Credit Rating

Explanation

 

Rating Comments

C

Medium High Risk

Business dealings permissible preferably on secured basis

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow 

 

 

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)

Uganda

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

 

 

 

UGANDA - ECONOMIC OVERVIEW

 

Uganda has substantial natural resources, including fertile soils, regular rainfall, significant reserves of recoverable oil, and small deposits of copper, gold, and other minerals. Agriculture is one of the most important sectors of the economy, employing 72% of the work force. The country’s export market, which suffered a major slump following the outbreak of conflict in South Sudan, has now recovered, largely due to record coffee harvests and increasing gold exports. Uganda has a small industrial sector that is dependent on imported inputs such as refined oil and heavy equipment. Productivity is hampered by several supply-side constraints, including insufficient infrastructure, underinvestment in agriculture, rudimentary technology, and corruption.

Uganda’s economic growth has slowed since 2016, with the growth rate dropping from 5.7% in 2015 to 4.4% in 2017. In FY 2016/17, revenue collections dropped by 4%, as public debt increased from 33.3% of GDP in 2015 to 40% in 2017. Uganda relies on foreign donor support to finance long-term drivers of growth, such as agriculture, health, and education.

Oil revenues and taxes will become a larger source of government funding in the near future when oil production begins in the next three to 10 years. Foreign investors are planning to invest $9 billion in production facilities projects, $4 billion in an export pipeline, and $2-3 billion in a refinery to produce petroleum products for the domestic and East African Community markets. Furthermore, the government is looking to build several hundred million dollars’ worth of highways to connect the oil region to the rest of the country.

Uganda faces many economic challenges. Instability in South Sudan has led to a sharp increase in Sudanese refugees and is disrupting Uganda's main export market. Uganda has one of the lowest electrification rates in Africa - only 22% of Ugandans have access to electricity at the national level, and this figure drops to 10% in rural areas. Additional problems include poor economic management, endemic corruption, and a failure to invest adequately in health, education, and economic opportunities for a burgeoning young population.

 

Source : CIA

 

 

 

SUBJECT'S NAME

 

Registered Name:

NILE BASE METALS LTD

Requested Name:

NILE BASE METALS LTD

Other Names:

None

 

 

ADDRESS AND TELECOMMUNICATION

 

Physical Address:

Kagwa Road, Kampala,

Postal Address:

P. o. Box 5780

 

Kampala,

Country:

Uganda

Phone:

256-777164020

Fax:

256-777164020

Email:

None

Website:

None

 

 

CREDIT OPINION

 

Financial Index as of December 2017 shows subject firm with a medium risk of credit. We recommend Secured Credit.

 

 

LEGAL

 

Legal Form:

Limited Corporation

Date Incorporated:

05-July-2016

Reg. Number:

Uganda

Nominal Capital

UGS. 1,000,000

Subscribed Capital

UGS. 1,000,000

Subscribed Capital is Subscribed in the following form:

 

Position

Shares

Mr. M. Patel

GM

 

 

 

RELATED COMPANIES

 

None

Parent company.

None

Subsidiary company.

None

Affiliated company.

None

Shareholder of subject firm.

None

Branches of the firm

 

 

OPERATIONS

 

Registered to operate as dealers in metal base products

Imports:

Asia

Exports:

None

Trademarks:

None

Terms of sale:

Cash

 

 

Main Customers:

firms and organizations  

Employees:

8 employees.

Vehicles:

Several motor vehicles.

Territory of sales:

Uganda

Location:

Rented premises, 2,000 square feet,

 

 

AUDITORS AND INSURANCE

 

Auditors:

Information not available.

Insurance Brokers:

Information not available.

 

 

FINANCE

 

Currency Reported:

Ugandan Shillings (UGS.)

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 UGS.)

 

 

2017

Sales

 

20,000,000

 

 

BANK

 

Bank Name:

ECOBANK

Branch:

Uganda

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

INR 67.38

UK Pound

1

INR 91.09

Euro

1

INR 79.75

UGS

1

INR 0.018

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

NIS

 

 

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.