CREDIT APPLICATION – LARGE - BUSINESS

1. CUSTOMER BACKGROUND
i. Current Application Highlights

Name DARSH INDUSTRIES LIMITED

Application Type Renewal Application No. 1640/1
Date of Incorporation 21st March 1991 Approval level 3 BCC
Application Date July 2024 Next Review July 2025
Entity Profile Medium Customer Since 2022
Business Unit Corporate Branch Arusha (004)
Risk Rating BB CRB Delinquency Not Delinquent
Credit Analyst Niram Hashim Head- Upcountry Nabeel Dharsee
Increase requested - Current Exposure TZS 13,226,666,667
Sector Trade
Business Activity Post-harvest crop activities.
Shareholders Mr. Bhadresh Nathalal Pandit, Mrs. Mala Bhadresh Pandit
Directors Mr. Bhadresh Nathalal Pandit, Mrs. Mala Bhadresh Pandit.
Guarantors Mr. Bhadresh Nathalal Pandit, Mrs. Mala Bhadresh Pandit , Nitesh Kumar Rao ,
Ranjit Vitthal Pandule , Suresh Shahaji Waghmode ,

PREAMBLE
Darsh Industries Ltd was established in Arusha in 1999 and began tomato-processing operations in 2003. Darsh
Industries Ltd. is seen upon as one of the most leading manufacturers and suppliers of vegetable and fruit products
such as Rose Flavor Syrup, Tomato Ketchup, Custard Powder, Chutney, Pure Cumin Powder, Chili Powder, etc.
Sold under the brand name, REDGOLD, their products have been gaining popularity due to their taste, quality
and affordability.

DARSH INDUSTRIES LTD.

REQUEST FOR:
1. NEW OVERDRAFT FACILITY OF USD 1,000,000/- FOR A PERIOD OF 12 MONTHS.
2. CONTINUATION OF THE FOLLOWING FACILITES.
i. Overdraft Facility of TZS 7 billion at an outstanding balance of -2,653,965,800/- valid up to January 2025.
ii. Term Loan Facility I of TZS 800,000,000/- at an outstanding balance of TZS 16,666,667/- payable up to
November 2024.
iii. Term Loan Facility II of USD 2,000,000/- at an outstanding balance of USD 1,400,000/- payable up to
September 2027.

TOTAL PROPOSED EXPOSURE AGGREGATE TO USD 2,300,000/- and TZS 7,016,666,666/- (Equivalent
to TZS 13,226,666,666/- USD@TZS 2700-.

Purpose To Finance Working Capital requirements of the Company.

Tenor OD: 12 Months (Renewable)
Interest rate OD – USD; Base rate (10%) minus 1% effective 9% p.a.
Appraisal Fee 0.55% p.a. plus VAT.
Security 1. Legal and continuous mortgage over leasehold property on Plot. No. 16 with OMV of
TZS 9.2 Billion.
2. Legal and continuous mortgage over leasehold property on Plot. No. 3 with OMV of
TZS 3.1 billion.
 3. Specific debenture over specific machineries with OMV of 8.7 billion.
4. Fixed and floating debenture over all current and future assets of the company.
5. Personal, Joint and several guarantees of the directors of the company.

iv. Exposure Details

Facility Date of Current Bal Limit R.O. I Fee (%) Repayment Overdue
disbursement as at Existing Proposed terms days
th
13 July
,2024
DARSH INDUSTRIES LIMITED
OD NEW NEW NEW USD Base rate 0.55% 12 Months. -
(New) 1,000,000 (10%) p.a. +
minus 1% VAT.
effective
9 p.a.
OD September TZS TZS TZS Base rate Up to Jan
(Cont.) 2013 -2,653,965, 7,000,000, 7,000,000, (20%) 2025
800 000 000 minus 7%
effective
13 p.a
TL I Nov TZS TZS TZS Base rate -
(Cont.) 2019 16,666,667 800,000, 16,666,667 (20%)
000 minus 6%
effective Collected Up to Nov
14% p.a. 2024

TL II Nov USD USD USD Base rate -

(Cont.) 2022 1,300,000 2,000,000 1,300,000 (10%) Up to
minus 2% November
effective 2027
8% p.a

Total in TZS 13,200,000,000 13,226,666,666

v. Exposure Limits as % of Core Capital in TZS

Core capital = TZS 213,330.99 million (As on 30.06.2024)
Single and Group Exposure Limit @ 25% of Core Capital = TZS 53,332.75 million.
CURRENT PROPOSED
Single Exposure: DARSH INDUSTRIES LIMITED 13,200,000,000 13,226,666,666
Max 25% of Core capital =TZS 53,332.75 million 6.1% 6.3%
 vi. Directors and Shareholders.

Name of Directors Age Nationality

Mr. Bhadresh Nathalal Pandit 58 Tanzanian
Mrs. Mala Bhadresh Pandit 57
*The directors are family members.
Mr. Bhadresh Nathalal Pandit is a Managing Director of Darsh Industries with a good background of 20 years
of food processing and leadership. The director has been a managing director of red gold since 1999 to present.
Under his leadership DIL has excelled from a small business to gaining numerous awards. It has also been
consecutively recognized as a top 100 Medium Size company for a decade, acknowledged in the Top 50
Tanzanian companies, attained ISO 22000:2018 certification and is a market leader in the Tomato based
products in Tanzania.

Mala Pandit, Director

Mrs. Pandit is also one of the founding directors of Darsh Industries and is an active advisor in day-to-day
activities. Mrs. Pandit specializes in looking after finance, research and development of the products, and quality
control. She also plays important role in the marketing and sales strategy of Darsh’s products. Prior to starting
Darsh Industries, Mrs. Pandit studied accounting and worked as a tax auditor at a tax consultancy firm.
vii. Sectoral Limits as at June 2024
Total Bank Exposure: TZS 1,070,721.73 Million.
Sector Existing Proposed Approved Utilization Breach?
Exposure Exposure Sector Limit Yes/No
Trade 341,458.64 344,158.64 40% 32.06% No

viii. Borrowings with other banks: NONE

ix. Cross selling Opportunities
Salary Accounts The relationship team has held several discussions with the customer in an effort to
Credit Cards explore cross selling opportunities. The customer has a sister company where they
purchase their two wheelers and three wheelers. We have discussed with the client on
the available opportunities of our Bank Products.

x. Financial Highlights
DARSH INDUSTRIES Audited Audited Management
LIMITED 31.12.2021 31.12.2022 31.12.2023
12 Months 12 Months 10 Months
Sales Revenue 27,164,146,901 38,245,041,010 57,276,066,914
Other Income 1,065,240 91,876,198 91,083,559
Total Net Income 27,165,212,141 38,336,917,208 57,367,150,473
Net Profit after Tax 1,231,273,661 1,439,320,128 1,846,408,623
Total Net worth 5,786,066,092 6,963,935,801 8,810,367,412
Notes:
➢ The Turnover of the business is mainly generated from processing fruits and vegetables such as rose
flavor Syrup, Tomato ketchup, custard powder, chutney, Pure Cumin Cumin Powder, Chili Powder
etc. The business is known to improve yearly as the company gets into increased product range year
by year.
 ➢ Along with sales movement, Net profit of the business have been increasing throughout the years
under review
➢ Total Net worth has been increasing in line with the increase in profitability of the business. As per
management accounts as at 31.12.2023 the total net worth stood at 8.8 billion.

xi. Referrals and Contacts

Name: DARSH INDUSTRIES LTD

Business Type: PRIVATE LIMITED COMPANY
PLOT 16A, NJIRO ROAD, THEMI INDUSTRIAL AREA,
Physical Address
ARUSHA
Business Mailing Address: P.O BOX 2385, ARUSHA
Contact Person: Tel: 0786211388

Date Company Directors/Shareholders Remarks

checked
CRB 04.04.2024 Darsh Mr. Badresh Nathalal Pandit No Negative status
WORLD CHECK 04.04.2024 Industries Mr. Mala Bhadresh Pandit Clean
INTERNAL 21.02.2024
CHECKLIST
LAST CUSTOMER Date Key findings of Visit
VISIT The company overall environment was safe,
04th April 2024 minimizing waste and reducing costs. Site Visit
Incorporated in the CA.
ESG ASSESMENT YES/NO Risk Category (Pick from Mitigants If
CONDUCTED & SEMS Below Key) Project s
FORM COMPLETED Category A or B
BYTHE CLIENT
YES ESG Tick as The company is on
Category appropriate progress to invest in
implementing
A sustainable practices
B ✓ in Manufacturing.
C
PREVIOUS ANNUAL 31.10.2023 NEXT January 2025 Loan Category
REVIEW DATE FOR ANNUAL (Normal, Watch etc)
ENTITY/GROUP REVIEW

PREVIOUS RISK BB CURRENT BB -

GRADE RISK
GRADE
ANY EXISTING None
COVENANTS AND
STATUS OF
COMPLIANCE
2. BRIEF BACKGROUND OF THE COMPANY & SITE VISIT
I. BRIEF BACKGROUND
Darsh Industries Ltd was established in Arusha in 1999 and began tomato-processing operations in 2003. Darsh
Industries Ltd. is seen upon as one of the most leading manufacturers and suppliers of vegetable and fruit
products such as Rose Flavor Syrup, Tomato Ketchup, Custard Powder, Chutney, Pure Cumin Powder, Chili
Powder, etc. Sold under the brand name, REDGOLD, their products have been gaining popularity due to their
taste, quality and affordability. It was the vision of their mentors to render our millions of people food products
that provide them value for money and healthy gains. Based upon this vision, our company is thriving in such
a competitive business domain. Since our emergence, the company has managed to sustain profitability.
Moreover, innovation and quality have always been their key strengths based upon which strong reputation was
built.

Backed by modern infrastructural facility and a team of 400 professionals, the company performs business
efficiently. Thus, achieving excellency in every task that performed, be it sourcing, processing, packaging,
quality-checking, storing or transporting. The company strives day and night to ensure that assortment of Chili
Powder, Tomato Ketchup and other goods meet the nutrition, safety and quality standards of the industry
operated in. the company has been certified by Tanzania Bureau of Standards (TBS), Tanzania Food & Drug
Authority (TFDA) as well as Occupational Safety and Health Authority. The annual processing capacity of the
company is 16000 MT and monthly production capacity of 7500 tons, which has been sufficing the requirements
of our customers

The supply chain network comprises of 54 dealers and 12 super dealers spread over 21 regions in Tanzania.
Apart from this, their network is connected to all the retail outlets and supermarkets where Red Gold products
are kept on shelves for sale. The company’s well-managed logistic system allows easy export and import from
other countries, as well.

The company has been importing secondary raw materials and packaging materials such as tomato concentrate
from abroad since 2003 to supplement the deficit of raw tomatoes available in Arusha. In 2005, it was able to
improve sourcing by partnering with 150 local tomato seed farmers in an innovative win-win scheme. Seed
farmers would traditionally farm tomatoes only for the seeds, and then dispose of the tomato by-product as
fertilizer and waste. Darsh saw an opportunity to create shared value. Darsh returns the seeds to the farmer so
they can sell them to seed companies and earn increased income. Darsh also returns by-products to the farmers
so they can use it for organic fertilizer. Despite the additional farmers supply, sales growth continued to test
Darsh’s tomato supply chain. To help compensate, Darsh established its own 100 acre farm in 2010 to
supplement local tomato supplies.

Sales Strategy
Darsh has both economy and premium product lines, with appropriate packaging materials and pricing to match
customer needs. Tomato and chili sauces in the 1kg – 5kg sizes are consumed primarily in small cafes and
restaurants selling fried potatoes. Several years ago, Darsh’s prices on economy products were lower than
Dabaga’s prices.

However, as consumers responded to Darsh’s higher quality product, Darsh was able to raise its price and still
gain market share. In early 2012, Dabaga responded to reduced market share by lowering its prices. Despite
Darsh now having the most expensive economy product on the market (a 9.5% premium), their sales in this
segment have continued to show strong growth.

Ketchups and premium sauces come in smaller sizes (from 250g to 500g) and use higher quality packaging.
Tomato paste is also a premium product but comes in 70g and 400g sachets. Both types of products are sold
through the Arusha and Dar sales staff and distributors in most parts of Tanzania. Premium ketchups and sauces
compete not only with Dabaga’s ketchup product, but also with Heinz and American Garden.
Darsh maintains pricing 10% less than imports in order to capture increasing market share. For tomato pastes,
the only competition is imports of Almudhish and Saafa. While Darsh and its competitors have the same
contents of tomato solids, Darsh’s sales price is 14% below its competitors. The purpose of this pricing strategy
is to increase sales volumes and

capture more market share; given that this is a premium product, Darsh is happy with the product’s margins.

Darsh’s direct customers are mainly wholesalers/distributors, who then on sell the product to end consumers.
Darsh prices its products by looking at the price of comparable products in the market, and building in 30%
gross margin; this equation sets the limits for what can be paid for raw materials. However, with premium
products, Darsh’s quality and reputation give it more latitude to charge a higher price that is cheaper or at par
with imported products.

The company has also engaged in farming due to the increase in export orders on hand and are getting more
export orders of REDG/OLD Tomato Concentrate from neighbouring countries and Middle East. In order to
execute these orders and secure the in-house consumption, the company requires proper and consistent supply
of raw tomatoes in order to utilize the Iringa Plant Capacity in full, i.e. about 200 MT of Raw Tomatoes per
day.

During the year 2018, the company could not process enough tomatoes due to inconsistent and variable quality
of tomatoes which are available from the current farmers. Due to this, the company could not execute the export
orders and lost a lot of revenue as a result. In the year 2019, the company’s management resolved to start their
own farming in Iringa and thus far has plans to extend the farming activities. Peak / harvesting season for
tomatoes - in iringa region February to April and September to Decemeber , in Arusha region August to
December. for ground Nuts - Iringa region May to September and for mangoes Arusha region December to
March. The client has an ample storage capacity in both factories arusha and iringa, and the shelf life of the
product is 2 years.. Below are the key highlights of the farming project:
➢ Started with 300 acres of land in Iringa
➢ Growing tomatoes and peanuts under expert supervision and with modern farming technology
➢ Have a special team under the supervision of experienced agronomist.
➢ Sophisticated drip irrigation system.
➢ Modern green houses.
➢ Adopt integrated pest management.
➢ Excellent quality of hybrid seed.
➢ Modern agriculture process.
➢ Tractors, hydraulic arrows, planters, boom sprayer, harvester, drip irrigation, modern trays for
seedlings.

Information about top management personnel/department heads.

➢ Mr. Bhadresh Pandit – CMD, Mrs. Mala Pandit - Finance Director, Mr. Darsh Pandit - Director sales
and marketing
➢ Ms. Mahek Pandit - Director Production and R&D
➢ Mrs. Mohini Pandit - Brand Manager
➢ Mr. Balasaheb Gavane – CEO
➢ Mr. Murali Vemula - General Manager
➢ Mr. Gasto Sylvester - Manager HR
➢ Mr. Chetan Patil - Head of Extension and Operations
II. SITE VISIT
The site visit was conducted by our Branch Manager Arusha Main, Albano Gia. The bank official
visited the premises
building where the business is run at Njiro Industrial area in Arusha. The site visit was done on 5th
April,2024. The visit was. The following were the photos taken during the visit.
1. Plot no:16, Themi Industrial area, Arusha.
3. BRIEF BACKGROUND ON FACILITIES & SITE VISIT
I. PAST DEALINGS
The client was sanctioned vide our CA dated September 2013 an overdraft facility of TZS 2 billion for a period
of 12 months to take over the company’s facility from Exim Bank and for working capital requirements and a
term loan facility of USD 3 million repayable over a period of 84 months inclusive of 18 months moratorium
to part finance construction of Tomato Processing Plant in Iringa.

Vide CA dated October 2015, the client’s Overdraft limit was enhanced to TZS 3 billion. The company required
additional cash flow as majority of tomatoes purchase is on cash basis.

Further, vide our CA dated December 2016, the Overdraft Facility was enhanced to TZS 4 Billion in order to
keep up with increasing working capital requirements brought about by the increased demand for the company’s
products.

In July 2017, the company was sanctioned a short-term loan facility of USD 61,322/- to pay for insurance
policies in favor of Alliance Insurance Corporation Limited through their brokers African Risk & Insurance
Service Limited.

Vide CA dated March 2018, the company’s overdraft limit was enhanced to TZS 5 Billion. The facility is
utilized towards meeting the increased working capital requirements of the business.

In July 2018, the company was approved of Insurance Premium Financing Facilities of TZS 14,518,720/- and
USD 47,135/- in favor of Alliance Insurance Corporate Company. The facilities are payable up to May 2019.
The IPF facility was issued.

In April 2019, the company requested for the term loan facility to be extended for a period of 34 months from
February 2021 to December 2023.

Vide CA dated July 2019, the company was sanctioned a term loan facility of TZS 800 Million. The facility
was sanctioned to be utilized towards the increased working capital requirements of the company as the
company had engaged in farming of tomatoes. To date, the entire facility has been disbursed with an outstanding
balance of TZS 16,666,666/-.

Vide memo dated May 2020, the company was approved reduction of interest rate on the OD facility of TZS 5
Billion from 14% p.a to 13% p.a. The same was approved by MCC. BCC ratification for the same was sought
via CA dated June 2020.

Vide BCC Approval in May 2022, the client was approved a TOD of USD 300,000/- and TZS 500 Million for
a period of 2 months which was utilized to cover deposit payments for the construction of the go-downs as well
 as supply Trucks. Both facilities requested to be covered via the new facilities that are requested for in this CA,
with back-up of payment via their business proceeds should the facilities not be approved

Vide CA dated August 2022, the client was approved of a new Term loan facility of USD 2,000,000/- repayable
over 60 months, a renewal cum enhancement of Overdraft facility of TZS 5 billion to TZS 7 billion and
continuation of Temporary Overdraft of TZS 500 million and USD 300,000/- up to October 2022. for the
purpose of financing increased working capital requirements of the company.

Vide CA dated October 2023, the client was approved of a renewal of the Overdraft Facility of TZS 7 Billion
valid up to January 2025. The same is to be used to finance working capital requirements of the company.
All facilities are well serviced and maintained by the company.

II. CRB REPORT

4. PRESENT REQUEST
Darsh industries Limited was established in Arusha in 1999 and began tomato processing operations in 2003.
Initial products sold were tomato ketchup, tomato sauce, chili sauce, fruit jam and juices, and tomato paste in
tins (packed in Italy under the REDGOLD brand). In 2005 Darsh started manufacturing tomato paste in tins.
Initial annual sales volumes were 800MT, produced by 15 permanent employees. Current production is more
than 12 times larger and reaches 10,300MT per year using a permanent staff of 90 employees and 50 part time
employees. In 2019, Darsh Industries Limited engaged in farming of tomatoes due to the increase in export
orders at hand and the increase in export orders of REDGOLD Tomato Concentrate from neighboring countries
and Middle East.

The promoters of the company have submitted a request of the following facilities;
➢ A New Overdraft Facility of USD 1,000,000/- for a period of 12 Months.

The company has been experiencing a surge in export orders for REDGOLD Tomato Concentrate and Tomato
Paste, particularly from neighboring countries and the Middle East region. This increased the demand presents
a significant opportunity the client to expand their market presence and establish themselves as a leading
supplier in the international market. For the company to effectively fulfill the orders and ensure seamless
operations, it is imperative for them to secure a steady supply of raw materials, packaging materials, and spare
parts for the machineries.
The same will enable the client to meet the growing demand of their customers, capitalize on the opportunities
presented by the market and maintain the client’s reputation as a reliable and competitive player in the industry.
Even upon approval, the client will use the overdraft facility responsibly and monitor their borrowing to avoid
excessive liability. This will be done through regular reviewing cash flow projections, budgeting effectively and
working closely with us so as to utilize well the facility and maximize the benefits while maintaining financial
stability.
5. SECUTITY DETAILS
EXISTING AND PROPOSED SECURITIES FOR DARSH INDUSTRIES LIMITED.

A. TANGIBLE SECURITIES
Particulars of Security
i) First legal charge (Continuous) over the following LEASEHOLD property
located at Plot no: 16, Themi industrial Area, Arusha city together with all
present and future developments thereon.

CT No.: 8863A

Full description of development/use: Industrial – This is a tomato sauce

processing plant which comprises of plant and machinery together with various TZS
buildings including a godown/factory cum administration/residential building, 13,226,666,666/-
a staff changing/ room/toilet block, materials store, packing and raw materials plus, interest and
building, a boiler plant building, transformer building and security guards other charges
buildings.

Area of Plot: 19,905 Sq. meter Built up area: 6433.85 Sq.meter

Registered owner: Darsh Industries Limited.
Tenancy: 99 years from 01.01.1982. (58 years left)
Status: Industrial purposes.

OMV: TZS 9,229,000,000/-

FSV (75% of OMV): TZS 6,921,750,000/-
Valuer: Ures and Associates Ltd
Date of Valuation: June, 2022

Cover for Plot No.16 & Plot No. 3.

Insurer: Alliance Insurance Corporation Limited
Sum Insured: USD 3,400,000/-
Valid up to: June 2024

Land rents: The same are under process, to be submitted prior to

disbursement.

Charged and to be varied for

ii) First legal charge (Continuous) over the following LEASEHOLD property
located at Plot no: 3, Block S, Ugwashanya area, Iringa District, together with
all present and future developments thereon.

CT No.: 21602
Full description of development/use: Industrial – This is an industrial TZS
compound developed with substantial industrial properties including the 13,226,666,666/-
production hall, utility building, warehousing, toilet building and two sentry plus, interest and
houses together with weighbridge block. other charges

Area of Plot: 42,596 Sq. meter Built up area: 4,643.98 Sq meters

Registered owner: Darsh Industries Limited.
Tenancy: 99 years from 01.01.2012. (58 years left)

OMV: TZS 3,142,000,000/-

FSV (75% of OMV): TZS 2,356,500,000/-
Valuer: Ures and Associates Ltd
Date of Valuation: June 2022

Cover for Plot No.16 & Plot No. 3.

Insurer: Alliance Insurance Corporation Limited
Sum Insured: USD 3,400,000/-
Valid up to: June 2024

Land rents: The same are under process, to be submitted prior to

disbursement

Charged and to be varied for

(iii) First Legal Charge (Continuous) over the following LEASEHOLD property
located at Plot no.138/139, Block W are both found at Capri-Point Area,
Mwanza City together with all present and future developments thereon.

The t
CT NO.: 16505-LR Mwanza. L.O No.238780
Full description of development/Use: Industrial purposes.

Area of plot: 32,400 sq. Meters Built up Area: 4972.16 sq. meters
Registered owner: Sandridge Properties Limited.
Tenure: 66 years w.e.f. July 1st, 2005 (47 Years remaining)
Encumbrance: Security sharing to cover for Nile Perch Fisheries Limited
Facilities with DTB.
Open Market Value: TZS 7,938,000,000/-
Forced Sale Value: TZS 5,953,500,000/- (75% of OMV)
Details of valuation: Ures & Associates – January ,2022.

Open Market Value: (96% Pari Passu): TZS 7,620,480,000/-

Forced Sale Value: TZS 5,715,360,000/- (75% of OMV)

Insurer: Jubilee General Insurance

Sum Insured: USD 600,000/-
Valid up to: August 2024

Land rent: The same is on process to be submitted prior to disbursement.

To be Charged For
Specific Debenture over the following,

Specific Debenture OMV FSV

Iringa plant & Machinery 4,795,000,000 2,397,500,000
Tomato processing Line at Iringa Factory - 3,571,005,565 1,785,502,783
March/ 2022
Mayonnaise Processing Line- 245,853,000 122,926,500
02/May/2022
Truck and Trailer part financed by DTB - 125,010,000 62,505,000
May 2022
TOTAL 8,736,868,565 4,368,434,283

Insurer: Alliance Insurance Corporation Limited

Sum Insured: USD 3,200,000/-
Valid up to: June 2024

Charged for and to be varied for

 ii) Fixed and floating debenture over all current and future assets of the company
as per the Compiled reports of the company as at 31.12.2023
TZS’
NBV FSV
Other Fixed assets 105,239,316 52,619,658
Receivables 879,302,621 439,651,311
Inventory 8,284,754,657 4,142,377,329
Total Fixed and Floating Debenture 9,269,296,594 4,634,648,297
Book value: TZS 9,269,296,594/- FSV: TZS 4,636,648,297/-

Insurer: Alliance Insurance Corporation Limited

Sum Insured: USD 2,352,000/-
Valid up to: June 2024

Charged and to be varied for:

iii) Personal, Joint and Several Guarantees of Directors; **
• Bhadresh Nathalal Pandit
• Mala Bhadresh Pandit

SECURITY COVER (based on OMV): 2.74

SECURITY COVER (based on FSV): 1.26
SECURITY COVER (based on SSV): 1.39

Assets OMV FSV SSV % SSV

Property (Immovable)
Plot No.16 9,229,000,000 6,921,750,000 80% of FSV 5,537,400,000
Plot No. 3 3,142,000,000 2,356,500,000 1,885,200,000
Total Property 12,371,000,000 9,278,250,000 7,422,600,000
Total exposure 13,226,666,666 13,226,666,666 13,226,666,666
Property Cover % 94% 70% 56%
General debenture
Other Fixed Assets 105,239,316 52,619,658 50% of OMV 52,619,658
Trade Receivables 879,302,621 439,651,311 30% of OMV 263,790,786
Inventory 8,284,754,657 4,142,377,329 30% of OMV 2,485,426,397
Total Fixed and Floating Debenture 9,269,296,594 4,634,648,297 2,801,836,841
Total Exposure 13,226,666,666 13,226,666,666 13,226,666,666
General Debenture Cover % 70% 35% 21%
Specific debenture
Iringa Factory 4,795,000,000 2,397,500,000 2,397,500,000
Tomato line 3,571,005,565 1,785,502,783 1,785,502,783
50% of OMV
Mayonnaise Line 245,853,000 122,926,500 122,926,500
Eicher Truck 125,010,000 62,505,000 62,505,000
Total Specific Debenture 8,736,868,565 4,368,434,283 4,368,434,283
Total Exposure 13,226,666,666 13,226,666,666 13,226,666,666
Coverage % 66% 33% 33%

Total Security 30,377,165,159 18,281,332,580 14,592,871,124

Total Exposure 13,226,666,666 13,226,666,666 13,226,666,666
Total Security Cover 2.30 1.38 1.10
6. ACCOUNT CONDUCT

Year Month No of Debit Amount No of Credit Highest Lowest Balance

Debits Credits Amount Balance
2023 July 344 3,530,299,829 99 3,509,353,667 80,711,361 -477,607,743
August 425 4,705,499,173 98 4,602,174,373 355,101,647 -531,187,688
September 337 4,000,595,832 100 4,137,939,127 512,951,579 -636,935,420
October 353 4,019,362,205 100 3,775,774,566 88,697,963 -724,936,157
November 357 3,641,060,221 112 3,255,319,762 -312,406,551 -840,550,968
December 391 5,491,396,714 96 3,643,871,291 -562,439,531 -2,688,076,391
2024 January 341 3,386,054,077 92 4,043,484,053 -1,853,787,751 -3,066,217,112
February 393 3,938,929,821 97 3,760,295,987 -1,820,119,642 -2,584,642,223
March 471 4,184,553,370 108 3,799,267,514 -1,767,966,457 -2,594,566,106
April 406 4,402,512,678 85 3,992,189,597 -2,192,579,105 -3,144,818,918
May 608 5,449,046,433 113 3,601,728,373 -3,355,631,037 -4,998,280,804
June 311 3,800,457,540 102 3,131,932,821 -4,647,886,069 -5,520,731,966
Total 4737 50,549,767,893 1,202 45,253,331,131

Year Month No of Debit No of Credit Highest Lowest

Debits Amount Credits Amount Balance Balance
2023 July 91 537,911.84 24 691,523.00 182,622.03 41,886.79
August 78 1,264,901.24 20 1,238,604.00 465,680.99 88,279.39
September 80 1,014,940.51 24 929,634.00 433,067.24 37,269.55
October 71 1,098,478.20 20 1,075,220.00 467,224.16 1,842.46
November 35 164,841.23 15 170,166.00 109,394.43 23,309.64
December 40 314,281.24 12 308,000.00 106,084.85 0
2024 January 21 120,343.02 6 88,984.25 55,011.78 0
February 26 97,581.37 10 104,658.00 65,644.38 7,030.94
March 68 452,787.24 18 556,916.00 353,351.19 13,488.57
April 17 76,505.98 4 44,058.00 137,211.53 94,202.25
May 37 250,003.64 13 199,996.00 170,718.64 44,194.61
June 24 221,387.71 16 411,958.00 277,295.22 37,816.73
Total 588 5,613,963.22 182 5,819,717.25
Comments:
The client has operated one accounts with us through Arusha City Branch. Total turnover in the client’s account
with us for the past 12 months is USD 7.7 million and TZS 48.2 billion. 100% of their transactions are routed
through us. In September 2022, the client was granted a Temporary Overdraft hence the overdrawn amount and
repaid. The TZS has operated well within the limit thus the general conduct of account is satisfactory. The client
has been conducting his account within the approved limit.
7. FINANCIAL ANALYSIS
Auditors: Hassanali Rutakyamirwa Company -Hassanali Rutakyamirwa are certified public accountants and
auditors certified with NBAA with registration number PF 021.
Opinion: Unqualified
I. BALANCE SHEET

DARSH INDUSTRIES LIMITED 31.12.2020 31.12.2021 31.12.2022 31.12.2023

Audited Audited Audited Management
12 Months 13 Months 12 Months 12 Months
FIXED ASSETS
Land 100,577,470 100,577,470 100,577,470 100,577,470
Buildings 3,495,827,361 3,262,874,833 4,026,959,601 4,977,283,179
Plant & Machinery 1,415,116,577 1,151,407,762 2,364,498,054 3,212,962,613
Motor vehicles 152,053,749 271,024,343 640,059,917 701,223,307
Motor cycles 1,570,336 981,460 858,777 -
Furniture & fittings 32,772,932 32,977,163 29,567,005 26,796,553
Computer & Office equipments 76,113,207 74,803,772 72,653,206 77,806,410
Tools & Equipments 2,833,688 2,473,807 2,160,328 2,004,127
TOTAL FIXED ASSET 5,276,865,320 4,897,120,610 7,237,334,358 9,098,653,659
CURRENT ASSETS
Inventory 5,047,747,880 5,857,503,745 8,284,754,657 9,448,908,278
Trade receivables 1,130,791,298 1,335,648,743 879,302,621 700,512,314
Loans and advances 172,796,990 604,068,773 605,284,972 2,958,286,368
Cash & cash equivalent 149,249,167 132,998,450 304,727,004 1,020,260,742
Taxation 168,292,468 182,052,938 28,363,275 -
TOTAL CURRENT ASSETS 6,668,877,803 8,112,272,649 10,102,432,529 14,127,967,702
TOTAL ASSETS 11,945,743,123 13,009,393,259 17,339,766,887 23,226,621,361
CURRENT LIABILITIES
Trade Payables 787,374,099 989,260,703 652,717,185 6,801,715,410
Statutory Liabilities - - - 145,857,886
Overdraft facility 3,630,978,700 4,968,613,238 4,991,808,584 3,592,654,599
Total Current Liabilities 4,418,352,799 5,957,873,941 5,644,525,769 10,540,227,895
Non-Current Liabilities
Loan from banks 2,972,597,893 1,265,453,226 4,731,305,317 3,876,026,054
Total 2,972,597,893 1,265,453,226 4,731,305,317 3,876,026,054
Total Liabilities 7,390,950,692 7,223,327,167 10,375,831,086 14,416,253,949
NET CURRENT ASSETS 2,250,525,004 2,154,398,708 4,457,906,760 3,587,739,807
NET ASSETS 4,554,792,431 5,786,066,092 6,963,935,801 8,810,367,412
Financed By:
Paid up share capital 10,000,000 10,000,000 10,000,000 10,000,000
Retained Earnings 4,544,792,431 5,776,066,092 6,953,935,801 8,800,367,412
TOTAL EQUITY 4,554,792,431 5,786,066,092 6,963,935,801 8,810,367,412
TOTAL EQUITY & 11,945,743,123 13,009,393,259 17,339,766,887 23,226,621,361
LIABILITIES

COMMENTS
FIXED ASSETS:
Fixed assets of the business comprise of Motor vehicles, Motor cycles, Plant and equipment and Properties. The
fixed assets have been fluctuating throughout the business. From the year FY 2020 to FY 2021 the client’s fixed
assets decreased from TZS 5.2 billion to TZS 4.8 billion due to accumulated depreciation over the year. From
FY 2022 the client added machineries for various production lines and motor vehicles which increased the total
fixed assets from to TZS 7.2 billion. The recently acquired machineries for the production lines have been useful
to the company. It has been enhancing their production capabilities enabling them to meet growing demand for
the client’s products. The new buildings provide necessary infrastructure for the company’s expanding
workforce and production needs. As per management account as at June 2023 the company recorded a total of
fixed assets of TZS 8.7 billion. The company made Signiant investments in fixed assets, primarily in acquisition
of new buildings.
CURRENT ASSETS:
Current assets of the business comprise of Cash and cash equivalent, account receivables, director’s account,
Inventory and Tax receivables. All the components assist the client through working hand in hand towards
success of the business, The current assets for the company have been increasing throughout the years under
review. The increase is attributed by increase in Cash and Receivables and Inventory. Based on the company’s
nature of the business, the client builds up inventory during peak harvest periods to ensure consistent supply of
raw materials throughout the year. The client has been investing in enhancing production capacity and efficiency
which results in higher production volumes which increases the finished product inventory. Also, sine the
company has been introducing new product lines and variations which require higher inventory levels to meet
demand for broader range of products. As the Company anticipates sales growth through strong customer
demand, he business prompts to maintain larger inventory levels to avoid stock outs and meet customers’ orders
promptly. The Current assets of the company in FY 2020 was TZS 6.6 billion, the increased to TZS 8.1 billion
in 2021 and further increased to TZS 10.1 billion in FY 2022. As per the management accounts as at June 2023,
the current assets stood at TZS 8.3 billion.
CURRENT LIABILITIES:
Current liabilities of the business comprise of Trade payables and Bank overdraft. The trade payables have been
fluctuating overtime. The client is consistently working on maintaining the trade payables and accruals by
making sure that all the company’s dues are paid on time. The current liabilities in FY 2020 were TZS 4.4
billion which then increased to TZS 5.9 billion in FY 2021, the same was due to the increase in trade payables.
In FY 2022 current liabilities slightly decreased to TZS 5.6 billion due to decrease in trade payables. As per
Management accounts 2023 current liabilities decreased to TZS 5.4 billion.
LONGTERM LIABILITIES:
Darsh Industries Limited is currently utilizing two term loan facility with DTBT. The company availed a TL
facility of TZS 800 million at an outstanding balance of TZS 16,666,667/- which was utilize towards the
increased working capital requirements of the company.
In summary the client has the below term loan facilities with DTBT as shown below,
Facility Amount Outstanding Up to
Term Loan I TZS 800,000,000 16,666,666 November 2024
Term Loan II USD 2,000,000 1,400,000 September 2027
 II. INCOME STATEMENT

DARSH INDUSTRIES LIMITED 31.12.2020 31.12.2021 31.12.2022 31.12.2023

Audited Audited Audited Management
Sales 22,312,515,497 27,164,146,901 38,245,041,010 57,276,066,914
Other income 5,526,461 1,065,240 91,876,198 91,083,559
Cost of Sales 19,368,233,912 23,499,859,709 33,526,998,374 43,978,045,117
GROSS PROFIT (GP) 2,949,808,046 3,665,352,432 4,809,918,834 13,389,105,356
Administrative expenses 886,574,133 1,098,458,467 1,212,766,710 8,630,858,040
Finance Costs 64,848,436 69,897,419 127,775,812 494,472,744
Depreciation 743,558,807 739,483,355 1,414,658,989 1,626,047,968
OPERATING EXPENSES 1,694,981,376 1,907,839,241 2,755,201,511 10,751,378,752
PROFIT/(LOSS) BEFORE TAX 1,254,826,670 1,757,513,191 2,054,717,323 2,637,726,604
Taxation 375,474,683 526,239,530 615,397,195 791,317,981
NET PROFIT/(LOSS) AFTER 879,351,987 1,231,273,661 1,439,320,128 1,846,408,623
TAX
Depreciation 743,558,807 739,483,355 1,414,658,987 683,649,824
GROSS CASH ACCRUALS 1,622,910,794 1,970,757,016 2,853,979,115 2,530,058,447

Comments:

The Turnover of the business is mainly generated from processing fruits and vegetables such as rose flavor
Syrup, Tomato ketchup, custard powder, chutney, Pure Cumin Cumin Powder, Chili Powder etc. which are sold
under the brand name of Red Gold. Darsh Industries Limited has been in operation since 2010 and generally
performing well. The business is known to improve yearly as the company gets into increased product range
year by year. In FY 2020 the business’ turnovers stood at TZS 22.3 billion and increased to TZS 27.1 billion in
FY 2021. It further increased to TZS 38.2 billion in FY 2022. Just by June 2023 as per management accounts
the Company recorded a turnover of TZS 27.6 billion. The annual increase is attributed by the growing demand
of the various products they produce such as tomato- based sauces, ketchup and pastes. Also, the client has been
expanding their market ensuring their products are reaching to various cities domestically and internationally.
Based on the same trend, the promoters and the business at large are positive in growth of the business and the
same is expected to increase to TZS 55.3 billion by the end of year, 2023. The client is able to attain the same
based on the efforts underlined in effective marketing, promotion and brand building efforts which is and will
attract more customers and increase in sales.

NET PROFIT:

Total Net worth had been increasing over the period under review based on the increasing trend of the revenues,
Based on various business strategies and the positive growth of the business, the same is projected at TZS 16.07
billion by December,2023
III. FINANCIAL RATIOS

PROFITABILITY RATIOS 31.12.2020 31.12.2021 31.12.2022 31.12.2023

Cost of sales to sales 87% 87% 88% 77%
Gross profit to sales 13% 13% 13% 23%
Net profit to sales 4% 5% 4% 3%
LIQUIDITY RATIOS
Current Ratio 1.51 1.36 1.79 1.34
FINANCIAL STABILITY RATIOS
Shareholders' funds to total Assets 0.38 0.44 0.40 0.38
leverage Ratio 0.97 1.03 0.81 1.20
Debt Equity Ratio 1.62 1.25 1.49 1.64
EFFICIENCY RATIOS
 Debtor days 18 18 8 4
Creditor days 15 15 7 28
Inventory days 83 79 79 60

Comments:
➢ Debtor days of the business stood at an average of less than 30 days throughout the period reviewed.
As per Audited accounts 30.06.2023 debtor days stood at TZS 10 days.
➢ As per analysis above, creditor days ranged between 5-45days. Due to long standing relationship with
its suppliers, the Company is granted 60 days credit period of which the client normally settles within
the specified period.
➢ The time taken for replenishment of stock stands at a maximum period of 3 months. The inventory
management is satisfactory and the position is at acceptable levels

IV. WORKING CAPITAL GAP

DARSH INDUSTRIES LIMITED 31.12.2020 31.12.2021 31.12.2022 31.12.2023

Audited Audited Audited Management

Stock 5,047,747,880 5,857,503,745 8,284,754,657 9,448,908,278

Debtors 1,130,791,298 1,335,648,743 879,302,621 700,512,314
Total 6,178,539,178 7,193,152,488 9,164,057,278 10,149,420,592
Current Liabilities 787,374,099 989,260,703 652,717,185 6,801,715,410
Net Working Capital Gap 5,391,165,079 6,203,891,785 8,511,340,093 3,347,705,182
Overdraft Outstanding 3,630,978,700 4,968,613,238 4,991,808,584 3,592,654,599
OD %ge to net working capital gap 67% 80% 59% 107%

Comments.
The company’s dependence on the overdraft is high due to large payments that are due to the supplies of the
raw materials for processing. The utilization however, remains at acceptable levels. The consistent increase in
current assets indicates business growth and an expanding scale of operations, necessitating additional working
capital. The financial support will enable the company to maintain liquidity, manage short term obligations and
continue growth trajectory.
V. CASHFLOW PROJECTIONS
DARSH 31.12.2020 31.12.2021 31.12.2022 31.12.2023 31.12.2023
INDUSTRIES Audited Audited Audited Management Projected
LIMITED
INFLOWS 22,312,515,497 27,164,146,901 38,245,041,010 57,276,066,914 60,139,870,260
OUTFLOWS 20,695,131,164 25,194,455,125 35,482,938,093 54,837,092,026 56,531,478,044
1,617,384,333 1,969,691,776 2,762,102,917 2,438,974,888 3,608,392,216
SURPLUS/(DEFICIT)
% OF TOTAL 93% 93% 93% 96% 94%
EXPENDITURE
/TOTAL INFLOWS

Comments:
Cash Inflow:
 The inflows have stood at TZS 38.2 billion as per the Audited accounts FY 2022. With the strategy that the
business is undertaking, and the next coming season in respect to the sector, the same is expected to increase by
the end of the year to TZS 55.3 billion by the end of the year. With regards to the trend of the business the
projections are achievable.
Cash Outflow:
Expenses of the business have been fluctuating in years under review. As per the Audited accounts at FY 2022
the company’s expenses stood at TZS 34.06 billion, the same is said to increase due to increase in operating
expenses related to more production lines in the company. Thus, the company is projecting expenses of TZS
50.7 billion.
VI. COLLECTIONS AND PAYMENT OF CREDIT AND STOCK HOLDING
DARSH INDUSTRIES LIMITED 31.12.2020 31.12.2021 31.12.2022 31.12.2023
Audited Audited Audited Management
12 Months 13 Months 12 Months 12 Months
Outstanding Debtors 1,130,791,298 1,335,648,743 879,302,621 700,512,314
Equivalent to month’s sales 0.6 0.6 0.3 0.1
Outstanding Creditors 787,374,099 989,260,703 652,717,185 6,801,715,410
Equivalent months cost of sales 0.49 0.51 0.23 1.86
Outstanding Stock 5,047,747,880 5,857,503,745 8,284,754,657 9,448,908,278
Equivalent to month’s sales 2.71 2.59 2.60 1.98

8. COMPLIANCE WITH CREDIT POLICY

I. EXCEPTION TO CREDIT POLICY
➢ Waiver – OMV of property is below 125%
II. COVENANTS
9. AUDIT QUERY IF ANY: NONE

10. EVALUATION OF RISK AND MITIGATION

Positive Factors Negative Factors and Mitigants

⚫ The company’s good track record of business ✓ The business faces competition from
and healthy financials. Dabaga Veg and Fruit Canning Co., Zesta
⚫ The company’s brand – Red Gold is very and Peptang.
popular in the market. ✓ Keyman risk – The directors’ son is
currently involved.
⚫ Good track record.
✓ FCY Risk – The client also receives
⚫ Very large players in the market. payments in USD.
⚫ The security offered is adequate.
✓ Liquidity risk – The current ratio
⚫ Very well-known and respected promoters in
currently stands at 1.34.
the market.
The company has an upper hand when it comes to
quality this factor therefore highlights its products
over all the competitor’s products.
11. RECOMMENDATION

Darsh Industries Limited is the leading manufacturer of fruits and vegetable products. It is situated in the Themi
industrial area of Arusha, Tanzania. The Company is promoted by experienced promoters and having strong
financials. The company is well known for its quality products under brand name ‘Red Gold’. This allows them
a competitive advantage in their business operations. Darsh Industries Limited has established a vast branch
network of agents all over Tanzania and with the establishment of the factory in Iringa: it has started exporting
to Kenya, Uganda, Rwanda and Burundi. The company is one of the major players in the consumer producing
product in Tanzania and is highly successful running a dynamic business with acceptable profitability, quality
and innovation.

Darsh Industries Limited has been making premium quality tomato and fruit products since 2003 and currently
boasts the following products: Tomato Ketchup, Tomato Sauce, Chili Sauce, Pili Pili Mbuzi Sauce, Garlic chili
Sauce, Tomato Paste, Fruit Jams, Pickles Chutneys, Baked beans in tomato sauce, Canned Fruit Juices, Fruit
Drinks, Rose Syrup, Jelly Crystals, Vinegars, Custard powder, Peanut Butter, Honey, whole & Ground spices,
Masala’s and corn flour. With an annual processing capacity of around 16,000MT, REDGOLD is a market
leader in Tanzania.

Looking at the healthy financials, strong security, promoter’s reputation in the market, we recommend approval
for the facilities as detailed in the CA.
12. MCC + BCC DECISIONS

DARSH INDUSTRIES LTD.

REQUEST FOR:
3. NEW OVERDRAFT FACILITY OF USD 1,000,000/- FOR A PERIOD OF 12 MONTHS.
4. CONTINUATION OF THE FOLLOWING FACILITES.
xii. Overdraft Facility of TZS 7 billion at an outstanding balance of -2,653,965,800/- valid up to January 2025.
xiii. Term Loan Facility I of TZS 800,000,000/- at an outstanding balance of TZS 16,666,667/- payable up to
November 2024.
xiv. Term Loan Facility II of USD 2,000,000/- at an outstanding balance of USD 1,400,000/- payable up to
September 2027.

TOTAL PROPOSED EXPOSURE AGGREGATE TO USD 2,300,000/- and TZS 7,016,666,666/- (Equivalent
to TZS 13,226,666,666/- USD@TZS 2700-.

Niram Hashim Jameel Kassam

ANALYST HEAD
CORPORATE BANKING CORPORATE BANKING
RECOMMENDED BY CREDIT REVIEW AND CONTROL (CRC):
1. NAME
2. SIGNATURE
3. DATE
RECOMMENDED BY MANAGEMENT CREDIT COMMITTEE: (MCC)
RAVNEET ABRAHAM JOSEPH SABIHA EBRAHIM
NAME
CHOWDHURY THOMAS MABUSI GULAM ALIBHAI
SIGNATURE
DATE

RECOMMENDED BY TECHNICAL REVIEW COMMITTEE: (TRC)

NAME
SIGNATURE
DATE

APPROVED BY BOARD CREDIT COMMITTEE: (BCC)

NAME
SIGNATURE
DATE
13. ANNEXURES
➢ CASHFLOW STATEMENT’TZS

Starting Starti
1,020 Aug
cash on ng
,260, 2024
hand date
742

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
2024 2024 2024 2024 2024 2025 2025 2025 2025 2025 2025 2025 Total
Cash on
1,17 1,29 1,41 1,53 1,52 1,52 1,52 1,52 1,52 1,52
hand 1,020 1,530
6,76 5,26 3,76 2,26 9,26 7,76 6,26 4,76 3,26 1,76
(beginning ,260, ,760,
0,74 0,74 0,54 0,54 0,54 0,54 0,54 0,54 0,54 0,54
of month) 742 542
2 2 2 2 2 2 2 2 2 2

Cash
Receipts

5,00 5,00 5,00 6,00 6,00 6,00 6,00 6,00 6,00 6,00 67,0
Cash 4,000 6,000
0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 00,0
sales ,000, ,000,
0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 00,0
000 000
0 0 0 0 0 0 0 0 0 0 00
Returns
and
200 200
allowances
Collectio
ns on
accounts -
receivable
Interest,
other
-
income
Loan
proceeds - - - - - - - - - - - - -
Owner
contribution
-
s
Other
receipts -

Total 5,00 4,99 5,00 6,00 6,00 6,00 6,00 6,00 6,00 6,00 67,0
4,000 6,000
Cash 0,00 9,99 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 00,0
,000, ,000,
Receipts 0,00 9,80 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 00,2
000 000
0 0 0 0 0 0 0 0 0 0 00

Total 6,17 6,29 6,41 7,53 7,52 7,52 7,52 7,52 7,52 7,52
5,020 7,530
Cash 6,76 5,26 3,76 2,26 9,26 7,76 6,26 4,76 3,26 1,76
,260, ,760,
Available 0,74 0,54 0,54 0,54 0,54 0,54 0,54 0,54 0,54 0,54
742 542
2 2 2 2 2 2 2 2 2 2

Cash
Paid Out
 Purchase
Raw 3,50 3,50 3,50 4,20 4,20 4,20 4,20 4,20 4,20 4,20 46,9
2,800 4,200
Materials & 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 00,0
,000, ,000,
Packing 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 00,0
000 000
Materials 0 0 0 0 0 0 0 0 0 0 00

3,73
Salaries 185,0 250, 250, 250, 350, 350,0 350, 350, 350, 350, 350, 350,
5,00
and Wages 00,00 000, 000, 000, 000, 00,00 000, 000, 000, 000, 000, 000,
0,00
0 000 000 000 000 0 000 000 000 000 000 000
0

Manufact 8,60
400,0 600, 600, 600, 800, 800,0 800, 800, 800, 800, 800, 800,
uring 0,00
00,00 000, 000, 000, 000, 00,00 000, 000, 000, 000, 000, 000,
Expenses 0,00
0 000 000 000 000 0 000 000 000 000 000 000
0
Selling
2,15
and 100,0 150, 150, 150, 200, 200,0 200, 200, 200, 200, 200, 200,
0,00
Distribution 00,00 000, 000, 000, 000, 00,00 000, 000, 000, 000, 000, 000,
0,00
Expenses 0 000 000 000 000 0 000 000 000 000 000 000
0

Interest 60,0 60,0 60,0 70,0 70,0 70,0 70,0 70,0 70,0 70,0 795,
55,00 70,00
expense 00,0 00,0 00,0 00,0 00,0 00,0 00,0 00,0 00,0 00,0 000,
0,000 0,000
00 00 00 00 00 00 00 00 00 00 000

1,20
100,0 100, 100, 100, 100, 100,0 100, 100, 100, 100, 100, 100,
0,00
00,00 000, 000, 000, 000, 00,00 000, 000, 000, 000, 000, 000,
Taxes 0,00
0 000 000 000 000 0 000 000 000 000 000 000
& Duties 0
Land
Rent & 15,0
15,00
Property - - - - - - - - - - - 00,0
0,000
Tax 00

20,0 20,0 20,0 20,0 20,0 20,0 20,0 20,0 20,0 20,0 240,
20,00 20,00
Insur 00,0 00,0 00,0 00,0 00,0 00,0 00,0 00,0 00,0 00,0 000,
0,000 0,000
ance 00 00 00 00 00 00 00 00 00 00 000

35,0 35,0 35,0 40,0 40,0 40,0 40,0 40,0 40,0 40,0 457,
32,00 40,00
00,0 00,0 00,0 00,0 00,0 00,0 00,0 00,0 00,0 00,0 000,
0,000 0,000
Rent 00 00 00 00 00 00 00 00 00 00 000
Tele
phone and 2,00 2,00 2,00 2,00 2,00 2,00 2,00 2,00 2,00 2,00 24,0
2,000 2,000
Office 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 00,0
,000 ,000
Expenses 0 0 0 0 0 0 0 0 0 0 00

Trav 20,0 20,0 20,0 25,0 25,0 25,0 25,0 25,0 25,0 25,0 275,
15,00 25,00
elling & 00,0 00,0 00,0 00,0 00,0 00,0 00,0 00,0 00,0 00,0 000,
0,000 0,000
Conveyance 00 00 00 00 00 00 00 00 00 00 000

Repairs & 2,00 2,00 2,00 2,00 2,00 2,00 2,00 2,00 2,00 2,00 24,0
2,000 2,000
Maintenanc 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 00,0
,000 ,000
e - Others 0 0 0 0 0 0 0 0 0 0 00

Heal 3,00 3,00 3,00 3,00 3,00 3,00 3,00 3,00 3,00 3,00 36,0
3,000 3,000
th and 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 00,0
,000 ,000
Safety 0 0 0 0 0 0 0 0 0 0 00

Com 1,500 1,500

1,50 1,50 1,50 1,50 1,50 1,50 1,50 1,50 1,50 1,50 18,0
puter ,000 ,000
Maintenanc 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 00,0
e Expenses 0 0 0 0 0 0 0 0 0 0 00

6,00 6,00 6,00 6,00 6,00 6,00 6,00 6,00 6,00 6,00 72,0
6,000 6,000
Don 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 00,0
,000 ,000
ations 0 0 0 0 0 0 0 0 0 0 00

Freight 2,17
125,0 150, 150, 150, 200, 200,0 200, 200, 200, 200, 200, 200,
and 5,00
00,00 000, 000, 000, 000, 00,00 000, 000, 000, 000, 000, 000,
Forwarding 0,00
0 000 000 000 000 0 000 000 000 000 000 000
Expenses 0
Sam
ple
-
Expenses

Ban 4,00 4,00 4,00 4,00 4,00 4,00 4,00 4,00 4,00 4,00 48,0
4,000 4,000
k & Finance 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 00,0
,000 ,000
Charges 0 0 0 0 0 0 0 0 0 0 00

Farm
Maintenanc -
e Expenses

8,00 8,00 8,00 8,00 8,00 8,00 8,00 8,00 8,00 8,00 96,0
8,000 8,000
Fees & 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 00,0
,000 ,000
Membership 0 0 0 0 0 0 0 0 0 0 00

Labo 1,00 1,00 1,00 1,00 1,00 1,00 1,00 1,00 1,00 1,00 12,0
1,000 1,000
ratory 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 00,0
,000 ,000
Expenses 0 0 0 0 0 0 0 0 0 0 00

Print 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 60,0
5,000 5,000
ing & 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 00,0
,000 ,000
Stationery 0 0 0 0 0 0 0 0 0 0 00

Secu 4,00 4,00 4,00 4,00 4,00 4,00 4,00 4,00 4,00 4,00 48,0
4,000 4,000
rity 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 00,0
,000 ,000
Expenses 0 0 0 0 0 0 0 0 0 0 00
Exch
ange Gain /
-
Loss
Dire
ctors 60,0 60,0 60,0 60,0 60,0 60,0 60,0 60,0 60,0 60,0 720,
60,00 60,00
Remunarati 00,0 00,0 00,0 00,0 00,0 00,0 00,0 00,0 00,0 00,0 000,
0,000 0,000
on 00 00 00 00 00 00 00 00 00 00 000

4,98 4,98 4,98 6,10 6,10 6,10 6,10 6,10 6,10 6,10 67,7
3,943 6,101
Subtotal 1,50 1,50 1,50 1,50 1,50 1,50 1,50 1,50 1,50 1,50 00,0
,500, ,500,
0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 00,0
000 000
0 0 0 0 0 0 0 0 0 0 00

Loan 1,20
100,0 100, 100, 100, 100, 100,0 100, 100, 100, 100, 100, 100,
principal 0,00
00,00 000, 000, 000, 000, 00,00 000, 000, 000, 000, 000, 000,
payment 0,00
0 000 000 000 000 0 000 000 000 000 000 000
0
Capital
purchases -
 Other
startup costs -
To
reserve
and/or -
escrow
Owners'
withdrawal -

Total 4,88 4,88 4,88 6,00 6,00 6,00 6,00 6,00 6,00 6,00 68,9
3,843 6,001
Cash Paid 1,50 1,50 1,50 1,50 1,50 1,50 1,50 1,50 1,50 1,50 00,0
,500, ,500,
Out 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 00,0
000 000
0 0 0 0 0 0 0 0 0 0 00

Cash on 1,29 1,41 1,53 1,53 1,52 1,52 1,52 1,52 1,52 1,52
1,176 1,529
hand (end of 5,26 3,76 2,26 0,76 7,76 6,26 4,76 3,26 1,76 0,26
,760, ,260,
month) 0,74 0,54 0,54 0,54 0,54 0,54 0,54 0,54 0,54 0,54
742 542
2 2 2 2 2 2 2 2 2 2

KYC CHECKLIST
n/o Documents Submission
1. Site visit report Available
2. 2023 annual returns Not Available
3. Debenture monitoring report Not Available
4. Latest Insurances Available
5. Latest Audited accounts Available 2022
6. 2023 Land rent receipts Not Available
7. Status of Securitization Perfected
8. Age-wise creditors & Debtors Not Available
Pending Documents:
The items currently unavailable will be incorporated before disbursement. We request your review while we
communicate with the client to submit the necessary documents.

_______________
Srikanth Tirunagari
SENIOR MANAGER
CORPORATE BANKING
 MATRIX ON EXCEPTIONS TO CREDIT POLICY
PARAMETERS COMMENTS
(Y/N) or N/A
Lease period is less than 15 Years? N
Disbursement to be done Prior security perfection? N
Motor Vehicles year of manufacture is more than 8yrs N
Is it purely debenture? N
Is there foreign ownership of land? N
Valuation is less than 3 years validity and done by a firm not on our panel N
OMV of mortgaged property is less than 125% of the exposure availed? Y
Has Interest been capitalized? N
Are there use of compilation reports N
Does the total Residual Value of Maturities above 5 years of the loan exceeds 12.5% of the total
N
loan portfolio
Is there any breach in sectorial concentration? N

MATRIX ON EXCEPTIONS TO BOT REGULATIONS

PARAMETERS COMMENTS
(Y/N) or N/A
Has the facility been restructured more than two times? N
Has the Single borrower limit exceeded 25% of core capital or TZS 25 Billion? N
Has the single/group borrower limit exceeded 10% of core capital and secured by not less than
N/A
125% collateral value?
Has the unsecured single/ Group borrower facilities exceeded 5% of core capital? N
Has the aggregate large exposures exceeded 500% of core capital of lending Bank? N
Has the single Lending to an Insider exceeded 10% of core capital? N/A
Has the aggregate accommodation to insiders (directly & indirectly) exceeded 25% of core capital N/A
Are facilities to Insiders covered by at least 100% security value? N/A

MATRIX ON EXCEPTIONS TO INTERNATIONAL ORGANISATIONS

PARAMETERS COMMENTS
(Y/N) or N/A
Is there any non-compliance with National Environmental Management Authority? N
Is facility is to be used to acquire land, is the land acquisition, usage, rehabilitation and
N
resettlement in compliance with IFC, ARIZ and DEG policies?
Is there any non-compliance on the sectorial exposure – i.e. Restricted by IFC, DEG and AFD
N
i.e. hunting, arms manufacture, gambling, casinos, manufacture of alcohol, deforestation?
CREDIT GRADING

Risk Factor Characteristic Cutpoint Weight

DEMOGRAPHIC Period of operation >6 1.662
Period of existence of group > 10 1.402
Is a Family Business YES 0.041
Experience of Promoters in Business >10 years 5.861
More than one director involved in
Board Activity operations 6.447
Professional Management Semi - Decentralized Management 1.172
Experience of Management >10 years 4.689
Concentration / Diversification of Income by product line 60 - 90% of Turnover from one Product 2.931
Market Share 30-50% 3.517
Business Plan Provided YES 2.813
Length of stay at current business premises >2 years 3.517

BANKING Length of Relationship (Years) >6 (0.003)

Length of Relationship of the Group >6 (1.299)
Total Turnover (Million TZS) 7500 - 20,000 0.069
Total Group Turnover (Millions TZS) >15000 (0.774)
Credit Turnover Cover >1 0.783
Unpaid Items - Inwards > 3 - 10 -
No. Unpaid Items - Outwards > 3 - 10 3.839

SECURITY Security Strength >70 1.127

Security Cover >= 1 3.732
Insurance One of life, Key man or fire and burglary -

CREDIT HISTORY CRB Delinquency Status Not Delinquent -

CRB Delinquency Status Group Not Delinquent (0.406)
No. of Days overdue None -
No. of Days overdue for the Group None -
Highest No. of Days overdue None -
Fresh facilities (last 6 months) 1-5 -

FINANCIALS Quick Ratio <= 1 0.203

Current Ratio > 1.5 (0.282)
Change in Current Ratio Zero or Negative 0.209
Current Liabilities over Total Assets 0-1 0.215
Total Liabilities over Total Assets > 0.5 - 0.75 5.718
Debt Service Coverage Ratio <= 0.25 (1.336)
Debtors Days >0 - 60 days 4.298
Change In Debtors Days > 0.1 4.289
creditor days > 30 - 60 days 3.240
Change in creditor days <= -0.1 (2.221)
Return on Assets > 0.05 (0.764)
Gross Profit Margin > 20 - 50 0.137
Net Profit Margin > 0 - 10 0.260
Change in Net Profit Margin > 0 - 0.2 0.752
Stock Days 0 - 30 (4.425)
Working Capital Cycle > 60 0.453
Overal Gearing >50 - 100% -
Overal Gearing Group > 100 -
Overal Group leaverage > 100 -
Overal gearing change > 0.5 -
Period Since Latest Financials > 1 Years 0.540
Financials Provided Score >50 (1.288)
Fixed Assets over Networth > 1.5 - 2 -
Total Networth of the Group > 400 (1.179)
Long Term Leverage > 100 -
Short Term Leverage >0 - 50 -
Log Odds BB
Score
66.524