MIRA INFORM REPORT

Report Date :

07.08.2010

IDENTIFICATION DETAILS

Name :	RAINBOW TRADING CC

Registered Office :	Hayllet House, 9 Melbourne Road, Durban, Kwazulu-Natal

Country :	South Africa

Date of Incorporation :	13.04.2007

Com. Reg. No.:	2007/073102/23

Legal Form :	Closed Corporation

Line of Business :	Importers, wholesalers and distributors of textiles and retail products eg towels, cloths etc.

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	No Complaints
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 – April 1, 2010

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

South Africa

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

COMPANY NAME

RAINBOW TRADING CC

PHYSICAL ADDRESS

Hayllet House

9 Melbourne Road

Durban

Kwazulu-Natal

POSTAL ADDRESS

Hayllet House

9 Melbourne Road

Durban

Kwazulu-Natal

Telephone Number: 031 304 6345 / 083 736 6682

Fax Number: 031 305 4192

MEMBERS

50% N P CHOUDHRY ID No. 5109115645082

50% MRS S R CHOUDHRY (wife) ID No. 5208160815084

ASSOCIATE COMPANIES

NPC FAMILY TRUST

BANKERS

HBZ BANK LTD, Durban, Account Number: 11078363. It was stated that the subject enjoys overdraft facilities secured by the personal guarantees of the members. Utilisation is stated to fluctuate.

DATE REGISTERED

13 April 2007

Registration Certificate Number: 2007/073102/23

The subject was originally registered in 2000 as AFROPAK TRADING CC, trading as RAINBOW TRADING. It was then stated that a new company was registered under the name of RAINBOW TRADING CC, which took over operations and assets of AFROPAK TRADING CC in 2007. The latter business had the same members as the subject.

VAT NUMBER

4850235849

MAJOR OPERATION

Importers, wholesalers and distributors of textiles and retail products eg towels, cloths etc.

MAJOR SUPPLIERS

It was stated that the subject imports all of its supplies, dealing locally with BLS SOLUTIONS, Durban

MAJOR CUSTOMERS OR BUSINESS SECTORS

Retail chain stores eg Mr Price Home, Edgars, Sheet Street etc.

AREA OF DISTRIBUTION AND SELLING

South Africa

EXPORTS

Lesotho

TOTAL EMPLOYEES

OTHER PREMISES

None

OWNED OR LEASED

The premises are stated to be owned by the associate trust.

MEMBERS CONTRIBUTION

R100

Full financial information was not forthcoming from respondents at the subject, however, it was stated that as at 4 August 2010 the annual turnover for 2008 was R42 000 000, 2009 R29 000 000 and estimated annual turnover for 2010 is R29 000 000.

AUDITORS

ISMAIL TAYOB INC (Tel No. 031 309 5955)

YEAR END

FEBRUARY

INSURANCE BROKERS

MOUNT BATON INSURANCE BROKERS

TRADE REFERENCES

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 1½ years R300 000 R 50 000- pay after invoice Very Good

R100 000

COMMENTS

This is a comparatively new close corporation that took over an established business that imports all of its supplies. We have not trace dealings to an extent of US$1 000 000 over DA terms and would prefer to see a far lesser figure on a well spread and secured basis.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.46.02
UK Pound	1	Rs.73.21
Euro	1	Rs.60.70

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	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

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.