MIRA INFORM REPORT

Report Date :

22.01.2008

IDENTIFICATION DETAILS

Name :	IGUNYA POWER (PTY) LTD

Registered Office :	46 Third Avenue, Linden, Johannesburg, Gauteng

Country :	South Africa

Date of Incorporation :	30.11.1999

Com. Reg. No.:	19999/026533/07

Legal Form :	Private Limited Company

Line of Business :	The subject has an agency agreement with a company in India for overhead line conductors as well as doing consultancy in high voltage power lines

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 :	Moderate

Payment Behaviour :	Unknown

Litigation :	Clear

COMPANY NAME

IGUNYA POWER (PTY) LTD

PHYSICAL ADDRESS

46 Third Avenue

Linden

JOHANNESBURG

Gauteng

POSTAL ADDRESS

P O Box 6221

CRESTA

2118

TELEPHONE NUMBER: 011 782 2757

FAX NUMBER: 011 782 2759

SHAREHOLDERS

70% N M H DESAI (Mrs)

20% SANDEEP TRUST

10% M N DESAI

ASSOCIATE COMPANIES

The subject is reported to have a shareholding in 2 service stations

DIRECTORS

M N DESAI (MD)

N M H DESAI (Mrs)

M N DESAI worked at ABB POWERLINES as General Manager for approximately 14-15 years and is a qualified civil structural engineer. N M H DESAI has been practising as a lawyer for the last 20 years.

BANKERS

ABSA BANK, Cresta branch, account number: 4051238737. It was stated that the subject does not require overdraft facilities as credit balances are maintained at the bank.

DATE REGISTERED

30 November 1999

Registration Certificate Number: 19999/026533/07

The subject commenced active operations in January 2000.

VAT NUMBER

4470188279

MAJOR OPERATION

The subject has an agency agreement with a company in India for overhead line conductors as well as doing consultancy in high voltage power lines. They also design and erect microwave towers as well as underground and overhead low voltage cables.

MAJOR SUPPLIERS

The subject imports most of its supplies and deals locally with:

ROHLIG GRINDROD

JRMP EXPORTS

MAJOR CUSTOMERS OR BUSINESS SECTORS:

Municipalities, contractors and Eskom

AREA OF DISTRIBUTION AND SELLING:

EXPORTS

Neighbouring countries

TOTAL EMPLOYEES

OTHER PREMISES

None

OWNED OR LEASED

The premises are reported to be the home premises of M N DESAI and his wife and valued in the region of R2.4 million, free of bond.

AUTHORISED SHARE CAPITAL

R1000 divided into 1000 ordinary shares of R1 each

ISSUED SHARE CAPITAL

R1000

Full financial information was not forthcoming from respondents at the subject, however, it was stated that the annual group turnover for the subject and the service stations is R80 million

AUDITORS

KANA & ASSOCIATES

YEAR END

FEBRUARY

INSURANCE BROKERS

ABSA BROKERS

TRADE REFERENCES

PERIOD HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

CREDIT CREDIT PATTERN

1. Awaiting trade reference

2. Do not give trade references

COMMENTS

This is an established business. We have not traced dealings to an extent of US$1 000 000 over DA terms and would prefer to see a far lesser amount spread and secured. The lack of a current payment pattern should be borne in mind.

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