MIRA INFORM REPORT

Report Date :

22.12.2014

IDENTIFICATION DETAILS

Name :	ARCTOCEL (PTY) LTD

Registered Office :	1st Floor, Galaxy House River World Park 42 Homestead Road Rivonia Sandton Gauteng

Country :	South Africa

Date of Incorporation :	08.04.2010

Legal Form :	Private Company

Line of Business :	Subject is engaged in the exporting of scrap metal being ferrous and non-ferrous metals.

No. of Employees :	29

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 – September 30, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

South Africa

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

ARCTOCEL (PTY) LTD

Company summary

PHYSICAL ADDRESS: 1st Floor, Galaxy House

River World Park

42 Homestead Road

RIVONIA

Sandton

Gauteng

POSTAL ADDRESS: Same as above

TELEPHONE NUMBER: +27 11 234 5230/31/32

FAX NUMBER: +27 11 234 5240

CELL NUMBER: +27) 76 834 3588

E-MAIL ADDRESS: skdalmia@arctocel.com

SHAREHOLDERS

100% ARNAV JHUNJHUNWALA

ASSOCIATE COMPANIES

None

DIRECTORS

ARNAV JHUNJHUNWALA D.O.B. 1990/10/01

BANKERS

FIRST NATIONAL BANK, Rosebank Branch, Account Number: 62277432896. It was stated that the subject enjoys a total facility to an extent of R10 000 000, secured by a cession of debtors. Utilisation of the overdraft is stated to fluctuate.

DATE REGISTERED

8 April 2010

Registration Certificate Number: 2010/006739/07

The subject commenced trading in 2010 as a new business.

VAT NUMBER

4110256569

TAX NUMBER

9303576178

MAJOR OPERATION

The subject is engaged in the exporting of scrap metal being ferrous and non-ferrous metals.

MAJOR 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: India and China

TOTAL EMPLOYEES: 29

OTHER PREMISES: None

OWNED OR LEASED: The premises are reported to be leased

AUTHORISED SHARE CAPITAL

R2 000 000 divided into 2 000 000 ordinary shares of R1 each

FINANCIALS

The following estimated financial situation was submitted as at 31 December 2013:

STOCK R 27 132 026

DEBTORS R149 636 427

FIXED ASSETS R 6 910 535

CREDITORS R 15 278 432

TURNOVER per annum R583 423 200

It was stated that the subject’s turnover increased from R5 050 000 since the subject commenced trading to R583 423 200 in December 2013.

AUDITOR

NEXIA LEVITT KIRSON

YEAR END

DECEMBER

INSURANCE BROKERS

A-ONE INSURANCE

CURRENT TRADE REFERENCES

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 4 years Open R10 000 000 30 days 30 days Very Good

2. 3 years Declined R 1 500 000 (cash in advance) Very Good

(per week)

3. Closed for December Holidays

4. Closed for December Holidays

NATURE OF GOODS OR SERVICES SUPPLIED

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

1. Metal processors

2. Metal recycling

COMMENTS

This is a relatively established business meeting its obtainable commitment timeously and also deals on cash in advance basis.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.07
UK Pound	1	Rs.99.73
Euro	1	Rs.77.46

INFORMATION DETAILS

Analysis Done by :	RAS

Report Prepared by :	NIS

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%)

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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.