MIRA INFORM REPORT

Report Date :

26.08.2014

IDENTIFICATION DETAILS

Name :	STEELCITY MERCHANTS (PTY) LTD

Registered Office :	Unit 2, 7 Fayers Place, Isipingo Rail, Durban, Kwazulu-Natal

Country :	South Africa

Date of Incorporation :	.20.04.2006

Legal Form :	Private Company

Line of Business :	Subject is a Steel Merchants

No of Employees :	15

RATING & COMMENTS

MIRA’s Rating :

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

Status :	Satisfactory
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 – June 01, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

South Africa

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

SOUTH AFRICA - ECONOMIC OVERVIEW

South Africa is a middle-income, emerging market with an abundant supply of natural resources; well-developed financial, legal, communications, energy, and transport sectors and a stock exchange that is the 16th largest in the world. Even though the country's modern infrastructure supports a relatively efficient distribution of goods to major urban centers throughout the region, unstable electricity supplies retard growth. The global financial crisis reduced commodity prices and world demand. GDP fell nearly 2% in 2009 but has recovered since then, albeit slowly with 2014 growth projected at about 2%. Unemployment, poverty, and inequality - among the highest in the world - remain a challenge. Official unemployment is at nearly 25% of the work force, and runs significantly higher among black youth. Eskom, the state-run power company, has built two new power stations and installed new power demand management programs to improve power grid reliability. Construction delays at two additional plants, however, mean South Africa is operating on a razor thin margin; economists judge that growth cannot exceed 3% until those plants come on line. South Africa's economic policy has focused on controlling inflation, however, the country has had significant budget deficits that restrict its ability to deal with pressing economic problems. The current government faces growing pressure from special interest groups to use state-owned enterprises to deliver basic services to low-income areas and to increase job growth.

Source : CIA

COMPANY NAME & address

STEELCITY MERCHANTS (PTY) LTD

PHYSICAL ADDRESS

Unit 2, 7 Fayers Place

ISIPINGO RAIL

Durban

KwaZulu-Natal

POSTAL ADDRESS

P O Box 26430

ISIPINGO BEACH

4115

TELEPHONE NUMBER: +27 31 902 7591

FAX NUMBER: + 27 31 902 2573

SHAREHOLDERS

S A MOOSA FAMILY TRUST

M S A AKOO FAMILY TRUST

N A AKOO FAMILY TRUST

ASSOCIATE COMPANIES

BLUE SANDS TRADING 144 CC trading as STEEL WINDOW MANUFACTURERS

AKSTEEL INVESTMENTS CC trading as NATAL SHEET METAL INDUSTRIES

DIRECTORS

S A MOOSA ID No. 4609105110088

M S A AKOO ID No. 6808205183056

N A AKOO ID No. 7105145123089

BANKERS

ABSA BANK, Durban City Branch. The subject does not require an overdraft facility as credit balances are maintained at the bank.

DATE REGISTERED

20 April 2006

Registration Certificate Number: 2006/011984/07

The subject commenced trading in 2006

VAT NUMBER

4770228122

TAX NUMBER

9298090169

BEE STATUS

Level 1 contributor

MAJOR OPERATION

Steel merchants

MAJOR SUPPLIERS

The subject imports supplies and deals locally with suppliers.

Previously, we have divulged the names of the major suppliers in our reports. We have discontinued this practice to protect our valuable sources of trade information. This has become necessary because we now give a description of the goods or services to which the trade references relate. This gives our client the ability to assess whether the purchases are vital to the subject’s operation and whether we have only been given their essential suppliers that must be paid promptly for the subject to maintain its operation.

MAJOR CUSTOMERS OR BUSINESS SECTORS

The steel industry

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

FINANCIALS

The following estimated financial situation was submitted as at 18 August 2014:

STOCK R 2 000 000

DEBTORS R 3 000 000

CREDITORS R 1 000 000

TURNOVER per annum R20 000 000

AUDITORS

ISMAIL TAYOB INCORPORATED

FINANCIAL YEAR END

JUNE

INSURANCE BROKERS

M I CASSAM INSURANCE BROKERS

CURRENT TRADE REFERENCES

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 2012 R 300 000 Varies 30 days 30 days Good

c/l

2. 1 year R 350 000 R 150 000 30 days +30 days Good

c/l

NATURE OF GOODS OR SERVICES SUPPLIED

(These descriptions relate respectively by number to the above current trade transactions):

1. Steel

2. Shipper

COMMENTS

This is an established company meeting its commitments timeously. 19 August 2014

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.43
UK Pound	1	Rs.100.12
Euro	1	Rs.79.74

INFORMATION DETAILS

Analysis Done by :	KAR

Report Prepared by :	TPT

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
--	NB	New Business	--

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.