MIRA INFORM REPORT

Report Date :

08.11.2007

IDENTIFICATION DETAILS

Name :	CREAM MAGENTA 295 (PTY) LTD

Registered Office :	13 Spartan Crescent, Eastgate Ext 12, Sandton, Gauteng

Country :	South Africa

Date of Incorporation :	29 November 2005

Com. Reg. No.:	2005/041856/07

Legal Form :	Private Limited Liability Company

Line of Business :	Wholesale of clothing

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Small Company

Payment Behaviour :	Slow

Litigation :	Clear

COMPANY NAME

GLOBAL SOURCING

PHYSICAL ADDRESS

13 Spartan Crescent

Eastgate Ext 3

SANDTON

Gauteng

TELEPHONE NUMBER: 011 555 0600

FAX NUMBER: 011 444 9247

note

On investigation it was established that the correct registered name of the subject is CREAM MAGENTA 295 (PTY) LTD trading as GLOBAL SOURCING, which report should be consulted.

COMPANY NAME

CREAM MAGENTA 295 (PTY) LTD

TRADING NAME

GLOBAL SOURCING

PHYSICAL ADDRESS

13 Spartan Crescent

Eastgate Ext 12

SANDTON

Gauteng

POSTAL ADDRESS

P O Box 124

WENDYWOOD

2144

TELEPHONE NUMBER: 011 555 0600

FAX NUMBER: 011 448 2016

SHAREHOLDERS

60% MOLASH INVESTMENTS (PTY) LTD, which is in turn owned by E BEINART, D E PIMSTEIN and S I

LAFFER.

20% S BRASG

20% INVESTEC BANK LTD

ASSOCIATE COMPANIES

SUNPAC (PTY) LTD

THAIMAN HOLDINGS LTD

DIRECTORS

E BEINART ID No. 7307205070081

D E PIMSTEIN ID No. 7406255176085

S K BRASG ID No. 7909275128085

S I LAFFER ID No. 7311025139084

BANKERS

STANDARD BANK, Sandton branch, account number 422139831. It was stated that the subject does not require overdraft facilities at STANDARD BANK, however, the subject enjoys overdraft facilities at INVESTEC BANK LTD to an extent of R22 million, secured by assets. Utilisation is stated to vary.

DATE REGISTERED

29 November 2005

Registration Certificate Number 2005/041856/07

The subject was registered to take over the assets and operations of a company named MELTZ LASHANSKY HOLDINGS (PTY) LTD which company operated for 6 years.

VAT NUMBER

4560226005

MAJOR OPERATION

Wholesale of clothing

MAJOR SUPPLIERS

The subject imports from TOLANI in China and RISING SUN in Botswana and deals locally with:

MY STYLE Durban

SAFCOR

JAZ FORWARDING

TRANS MEDIT

MAJOR CUSTOMERS OR BUSINESS SECTORS

Major retail clothing outlets, e.g. Edgars, Foschini, Makro, Pick ‘n Pay and Meltz Mega Stores.

AREA OF DISTRIBUTION AND SELLING

South Africa

EXPORTS

None

TOTAL EMPLOYEES

OTHER PREMISES

None

OWNED OR LEASED

The premises are reported to be leased

AUTHORISED SHARE CAPITAL

R1 000 divided into 1 000 ordinary shares of R1 each

ISSUED SHARE CAPITAL

R100

For financial information please see attached balance sheet and income statement dated 30 April 2007.

AUDITORS

GRANT THORNTON

YEAR END

MARCH

INSURANCE BROKERS

LIONEL ISAACS & CO

TRADE REFERENCES – JUNE 2006

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 1 yr R 100 000 R100 000 60 days 60 days Very good

2. 10 months R 60 000 R 60 000 60 days 60 days Good

3. 1 week R1 000 000 declined 30 days 30 days too new

to comment

TRADE REFERENCES – JANUARY 2007

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. Unable to obtain trade reference

2. 2003 R3 000 000 varies 30 days 30 days Excellent

3. 2006 R1 500 000 R800 000 30 days 30 days Very good

CURRENT TRADE REFERENCES

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. Unable to obtain

2. Do not give trade references

3. 06/2006 R3 000 000 R100 000 - 30 days 30 days+ Average

R250 000 varies

4. 4 mths open R500 000 - 30 days 30 days Very good

R800 000

COMMENTS

This is a new company that has taken over the assets and operations of a well-established business. The subject is meeting one of its commitments over terms at times. We have not traced dealings to an extent of US$1 000 000, but, the subject is considered equal to such a figure over 90 days.

Cream Magenta 295 [Proprietary] Limited
[Registration Number 2005/041/6/07
Trading as Global Sourcing
Financial Statements for the 16 months ended 31 March 2007

Balance Sheets
	Group	Company
Figures in Rand	31 March, 2007	31 March, 2007

Assets

Non – Current Assets
Property, Plant and equipment	992282	992282
Goodwill	23318459	23318459
Investment in subsidiary	-	100
Deferred tax	7310	-
	24318051	24310841

Current Assets
Inventories	18881309	18881309
Loan to group company	60	15960
Trade and other receivables	48105293	48156655
Cash and cash equivalents	389242	313352
	67375904	67367276
Total Assets	91673955	91678117

Equity and Liabilities

Equity
Share Capital	100	100
Retained Income	6464368	6483722
	6464468	6483822

Liabilities

Non – Current Liabilities
Other Financial Liabilities	42664353	42664353
Finance Lease Obligation	155127	155127
Finance Lease deferred interest	11301	11301
Deferred Tax	166970	166970
	42997751	42997751

Current Liabilities	164787	164787
Loans from group companies	24800978	24800978
Other financial liabilities	1633313	1631353
Current tax payable	214734	214734
Finance lease obligation	14079423	14066191
Trade and other payables	27699	27699
Finance lease deferred interest	1290802	1290802
Bank overdraft	42211736	42196544
	85209487	85194295
Total Liabilities	91673955	91678117
Total Equity and Liabilities

Cream Magenta 295 [Proprietary] Limited
[Registration Number 2005/041/6/07
Trading as Global Sourcing
Financial Statements for the 16 months ended 31 March 2007

Balance Sheets
	Group	Company
Figures in Rand	16 months ended 31 March, 2007	16 months ended 31 March, 2007

Revenue	174168010	173574163
Cost of sales	[129516785]	[129516785]
Gross Profit	44651225	44057378
Other income	956800	956800
Operating expenses	[30729358]	[30110227]
Operating Profit	14878667	14903951
Interest received	39933	39353
Fair value adjustments	[183914]	[183914]
Finance costs	[4447345]	[4447345]
Profit before taxation	10287341	10312045
Taxation	3822973	[3828323]
Profit for the period	6464368	6483722

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	Unfavourable & favourable factors carry similar weight in credit consideration. 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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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