MIRA INFORM REPORT

 

 

Report Date :

27.12.2014

 

IDENTIFICATION DETAILS

 

Name :

OKAVANGO DIAMOND COMPANY (PTY) LTD

 

 

Registered Office :

Plot 67782, Block 8, P O Box 2258 ABG Sebele, Diamond Technology Park, Industrial Gabarone Botswana

 

 

Country :

South Africa

 

 

Date of Incorporation :

18.04.2013

 

 

Com. Reg. No.:

CO2013/4158

 

 

Legal Form :

Private Company

 

 

Line of Business :

Engaged in Distribution of Rough Diamond

 

 

No. of Employees :

25

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Unknown

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

A2

A2

 

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

 

OKAVANGO DIAMOND COMPANY (PTY) LTD

 

 

PHYSICAL ADDRESS

 

Plot 67782

Block 8

Diamond Technology Park

Industrial

GABARONE

Botswana

 

 

POSTAL ADDRESS

 

P O Box 2258 ABG

SEBELE

Gabarone

Botswana

 

 

TELEPHONE NUMBER   

 

00 267 399 2300

 

 

FAX NUMBER

 

00 267 390 7711

 

 

SHAREHOLDERS

 

100%    GOVERNMENT OF BOTSWANA

 

 

ASSOCIATE COMPANIES

 

None

 

 

DIRECTORS

 

J THAMAGE

B MOLOSIWA

C DE KOP

B MOESI

T FREARS

 

 

BANKERS

 

STANDARD CHARTERED BANK, Main Branch, Account Number: 8740073289600.  The subject does not require an overdraft facility as credit balances are maintained at the bank.

 

 

DATE REGISTERED

 

18 April 2013

Registration Certificate Number:  CO2013/4158

 

The subject commenced trading in 2013 as a new business

 

 

VAT NUMBER

           

C28676501113

 

 

TAX NUMBER    

 

C28676

 

 

MAJOR OPERATION

 

Rough diamond distribution

 

 

MAJOR SUPPLIERS

 

The subject deals with:

 

DIAMOND TRADING CO BOTSWANA

MALCA AMIT

TRAVEL WISE

GRAND PALM

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

Diamond Industry

 

 

AREA OF DISTRIBUTION AND SELLING   

 

Botswana

 

 

EXPORTS

 

India, Belgium, Israel, South Africa, United Arab Emirates, Hong Kong and the USA

 

 

TOTAL EMPLOYEES

 

25

 

 

OTHER PREMISES   

 

None

 

 

OWNED OR LEASED

 

The premises are reported to be leased

 

 

AUTHORISED SHARE CAPITAL

 

BWP100 divided into 100 ordinary shares of BWP1 each

 

 

ISSUED SHARE CAPITAL

 

BWP100

 

 

FINANCIALS

 

The following estimated financial situation was submitted as at 6 October 2014:

 

STOCK                                                                                             BWP   400 000 000

CASH                                                                                               BWP   390 000 000

FIXED ASSETS                                                                                BWP     14 600 000

TURNOVER per annum                                                                      BWP1 000 000 000

 

 

AUDITORS    

 

KPMG

 

 

FINANCIAL YEAR END  

 

MARCH

 

 

INSURANCE BROKERS

 

AON INSURANCE BROKERS

 

 

TRADE REFERENCES – APRIL 2014

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS     PAYMENT   EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    +1 years       Open             R 200 000       30 days     30 days       Very Good                       

2.    June 2013     Open             R   70 000       60 days     30 days       Excellent

 

3.    May 2013     R  30 000       R   25 000       30 days     30 days       Excellent

 

 

NATURE OF GOODS OR SERVICES SUPPLIED

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

 

1.    Rental         

                         

2.    Courier        

 

3.    Accommodation

 

 

CURRENT TRADE REFERENCES

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS     PAYMENT   EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    May 2013     BWP30 000    Declined         30 days     30 days       Very Good                       

2.    1 year           Declined       R 100 000        30 days     30 days       Very Good

 

3.    1 year           Open            BWP500 000    30 days     30 days       Very Good

 

 

NATURE OF GOODS OR SERVICES SUPPLIED

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

 

1.    Accommodation               

                         

2.    Courier        

 

3.    Accommodation

 

 

COMMENTS

 

This is a new business which is owned by the Botswana Government.  The subject is meeting its commitments timeously. The subject appears to be cash flush at present.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.64

UK Pound

1

Rs.98.98

Euro

1

Rs.77.74

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

MNL

 

               

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.