MIRA INFORM REPORT

Report Date :

15.04.2011

IDENTIFICATION DETAILS

Name :	WOOLWORTHS (PTY) LTD
Registered Office :	Woolworths House, 93 Longmarket Street, Cape Town, Western Cape
Country :	South Africa
Date of Incorporation :	06.03.1956
Com. Reg. No.:	1956/000518/07
Legal Form :	Private Company
Line of Business :	subject is one of the largest retailers of clothing, homeware and food in South Africa

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Usually Correct
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 – December 31, 2010

Country Name	Previous Rating (30.09.2010)	Current Rating (31.12.2010)
South Africa	a2	a2

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

Note:

(The information contained in this report, other than comment by outside authorities, has been voluntarily supplied by Officials of the subject):

COMPANY NAME

WOOLWORTHS (PTY) LTD

TRADING NAME

WOOLWORTHS INTERNATIONAL SA (PTY) LTD (agency company)

WOOLWORTHS

PHYSICAL ADDRESS

Woolworths House

93 Longmarket Street

Cape Town

Western Cape

POSTAL ADDRESS

P O Box 680

CAPE TOWN

8000

TELEPHONE NUMBER: 021 407 9111

FAX NUMBER: 021 407 3924

It was stated by a respondent that the subject’s distribution warehouse is situated at 48 Montague Drive, Montague Gardens.

SHAREHOLDERS

100% WOOLWORTHS HOLDINGS LIMITED (Quoted on the JSE LTD)

(Registration Certificate Number: 1929/001986/06)

ASSOCIATE COMPANIES

COUNTRY ROAD LTD (quoted on the Australian Stock Exchange) (Distributor Company)

UNIVERSAL PRODUCTS NETWORKS (PTY) LTD

(Registration Certificate Number: 1999/024569/07)

IN THE BAG (PTY) LTD (Dormant)

(Registration Certificate Number: 2000/000225/07)

COUNTRY ROAD LTD (Australia)

COUNTRY ROAD VENTURE (Incorporated in Australia)

Subsidiary Companies:

WOOLWORTHS (LESOTHO) (PTY) LTD (dormant)

WOOLWORTHS (SWAZILAND) (PTY) LTD (dormant)

WOOLWORTHS (NAMIBIA) (PTY) LTD (dormant)

WOOLWORTHS INTERNATIONAL SA (PTY) LTD (Reg. Cert. No: 1993/007394/07) which has an agency agreement with WOOLWORTHS (PTY) LTD

WOOLWORTHS FINANCIAL SERVICES (PTY) LTD (A joint venture between WOOLWORTHS (PTY) LTD and ABSA BANK LTD)

(Registration Certificate Number: 2000/009327/07)

VIRTUAL MARKET PLACE (PTY) LTD

(Registration Certificate Number: 1997/016316/07)

Plus other companies within the WOOLWORTHS group.

DIRECTORS

S N SUSMAN ID No: 5005015195088

MS Z RYLANDS ID No: 6411100181083

I MOIR (CEO) D.O.B: 10 December 1958

N W THOMSON ID No: 5106265076083

BANKERS

STANDARD BANK, Adderley Street branch, Cape Town is the main account of the subject, while the Woolworths’ branches deal with STANDARD BANK throughout South Africa.

It is also reported that the subject has various accounts with all the major banks which include FIRST NATIONAL BANK, ABSA and NEDBANK.

It was stated that the branches are managed by a cash management scheme controlled by the subject. Further banking information was declined.

DATE REGISTERED

6 March 1956

Registration Certificate Number: 1956/000518/07

On investigation it was established that the subject changed its name and entity in October 1997 from WOOLWORTHS’ HOLDINGS (PTY) LTD. A dormant company was utilised and WOOLWORTHS HOLDINGS LTD commenced in 1997.

VAT NUMBER

4550102216

MAJOR OPERATION

The subject is one of the largest retailers of clothing, homeware and food in South Africa.

MAJOR SUPPLIERS

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

· DAIRYBELLE CORPORATION, Cape Town

· BIBETTE, Cape Town

· TIGER BRAND, Johannesburg

MAJOR CUSTOMERS OR BUSINESS SECTORS

General public and the retail industry

AREA OF DISTRIBUTION AND SELLING

South Africa

EXPORTS

The subject has franchise outlets in Africa and the Middle East. It was also stated that the subject is exporting to Australia through the distributing company COUNTRY ROAD VENTURES which is based in Australia.

TOTAL EMPLOYEES

18 568 in the group.

OTHER PREMISES

The subject is reported to have ±300 retail stores nationwide as well as warehouses in Cape Town, Durban and Johannesburg.

OWNED OR LEASED

The heading premises are reported to be leased, while some of the branch premises are leased and some are owned.

AUTHORISED SHARE CAPITAL

R100 divided into 100 ordinary shares of R1 each

ISSUED SHARE CAPITAL

100

The following financial situation was submitted as at 17 March 2010

STOCK R 1 475 897 000

DEBTORS R 672 615 000

CASH R 2 155 494 000

OTHER R 485 000

PROPERTY R 1 503 036 000

LOANS R 746 138 000

OTHER R 649 592 000

CREDITORS R 2 192 150 000

OTHER R 281 097 000

LOANS R 1 771 298 000

CAPITAL EMPLOYED R 2 234 508 000

TURNOVER per month R 1 540 887 000

TURNOVER per annum R18 490 641 000

AUDITORS

ERNST & YOUNG Cape Town and SAB & T INC.

YEAR END

JUNE

INSURANCE BROKERS

UNISON RISK MANAGEMENT ALLIANCE

TRADE REFERENCES – NOVEMBER 2006

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 1994 R 15 000 R 10 000 30 days 30 days Very good

2. Old acc. R10 000 000 R10 000 000 7 days 7 days Excellent

3. 5 years+ do not disclose figures 30 days 30 days Very good

TRADE REFERENCES – APRIL 2007

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 1994 R 15 000 R 10 000 30 days 30 days Good

2. 20 years R8 000 000 R10 000 000 30 days 30 days Very good

3. Do not give trade references.

TRADE REFERENCES – FEBRUARY 2008

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 10 years declined declined 30 days 30 days Very good

2. Old acc open R10 000 000 30 days 30 days Very good

3. Old acc R30 000 000 declined 30 days 30 days Very good

TRADE REFERENCES – MAY 2008

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. Old acc declined declined 30 days 30 days Very good

2. Old acc R30 000 000 declined 30 days 30 days Very good

c/l

3. Old acc open R15 000 000 30 days 30 days Excellent

TRADE REFERENCES – FEBRUARY 2009

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. Awaiting trade references – needed to obtain permission from Woolworths

2. 20 years+ Unlimited Many millions 30 days 30 days Very Good

3. Awaiting trade references – needed to obtain permission from Woolworths

TRADE REFERENCES – JULY 2009

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 18 years R40 000 ±R20 000 30 days 30 days Very Good

c/l

2. 20 years ±R20 000 000 ±R10 000 000- 45 days 45 days Very Good

R18 000 000 (by arrangement)

3. ±30 years declined ±R25 000 000- 45 days 45 days Excellent

R30 000 000

TRADE REFERENCES – SEPTEMBER 2009

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 15 years+ declined R 30 000 30 days 30 days Very Good

2. Old acc declined R14 000 000 45 days 45 days Very Good

3. 40 years declined R40 000 000 45 days 45 days Excellent

TRADE REFERENCES – JANUARY 2010

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 15 years R 300 000 30 days 30 days Excellent

2. 40 years declined R40 000 000 45 days 45 days Excellent

3. Old acc declined figures 45 days 45 days Excellent

(in the millions)

TRADE REFERENCES – SEPTEMBER 2010

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 5 years+ R 1 000 000 ±R 400 000 45 days 45 days+ Problematic

c/l

2. ±30 years R40 000 000 R20 000 000 45 days 45 days Excellent

3. Old acc R10 000 000 R 9 000 000 45 days 45 days Very Good

4. Unable to obtain trade references

5. Awaiting trade references

6.

TRADE REFERENCES – FEBRUARY 2011

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. Old acc R60 000 R45 000 30 days 30 days Good

c/l each branch own account

2. Do not give trade references, however subject blue chip client

3. Unable to obtain a trade references

CURRENT TRADE REFERENCES

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 7 years R25 000 R200 000 30 days 30 days Excellent

2. 3 years+ R45 000 R39 000 30 days 30 days Very Good

3. Do not give trade references

COMMENTS

This is a well-established and well-connected company meeting its obtainable commitment timeously. The subject is considered equal to its normal business engagements and to a figure of US$1 000 000 over 30 days and to a maximum figure of US$10 000 000 over 30 days.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.48
UK Pound	1	Rs.72.37
Euro	1	Rs.64.42

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%)

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.