MIRA INFORM REPORT

Report Date :

07.06.2014

Tel. No.:

272104079111

IDENTIFICATION DETAILS

Name :	WOOLWORTHS (PTY) LTD
Formerly Known as :	WOOLWORTHS HOLDINGS (PTY) LTD
Registered Office :	Woolworths House, 93 Longmarket Street, Cape Town, Western Cape 8001
Country :	South Africa
Financials (as on) :	24.06.2012 (Consolidated Group Figures - Woolworths Holdings Limited)
Date of Incorporation :	02.03.1956
Com. Reg. No.:	1956/000518/07
Legal Form :	Private Company
Line of Business :	Subject  is a respected chain of over 400 retail stores, including franchise stores, and offers a selected range of quality clothing, food, homeware, beauty and financial services (in partnership with Absa Bank) under its own brand name in South Africa, Africa and the Middle East.
No of Employees :	23 538 (group)

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 :	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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
South Africa	A2	A2

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

Note:-

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

On investigation numerous messages were left for the respondent to return the investigator’s call which proved unsuccessful. Nevertheless an email has been forwarded to the respondent to update the report. To date no response has been forthcoming. Nevertheless, please see historical information dated February 2014)

COMPANY NAME

WOOLWORTHS (PTY) LTD

· Formerly: WOOLWORTHS HOLDINGS (PTY) LTD, the name having been changed on 6 July 1993

· Formerly: TRUPROP ELOFF STREET (PTY) LTD, the name having been changed on 22 February 1988

· Formerly: STANLEN BUILDINGS (JOHANNESBURG) (PTY) LTD, the name having been changed on 2 March 1956

TRADING NAME

WOOLWORTHS

PHYSICAL ADDRESS

Woolworths House

93 Longmarket Street

Cape Town

Western Cape

8001

POSTAL ADDRESs

P O Box 680

Cape Town

8000

TELEPHONE NUMBER: +27 21 407 9111

FAX NUMBER: +27 21 407 2151

Please note that the respondent at the company updated the information which is now included in this report.

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

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) (Retailing)

· E-COM INVESTMENTS 16 (PTY) LTD (Investment Holding)

· WOOLWORTHS DEVELOPMENT (PTY) LTD (Property Development)

SUBSIDIARY COMPANIES

UNIVERSAL PRODUCT NETWORKS (PTY) LTD (LOGISTICS)

(Registration Certificate Number: 1999/024569/07)

(Registration Certificate Number: 2000/000225/07)

VIRTUAL MARKET PLACE (PTY) LTD (Retailing)

WOOLWORTHS INTERNATIONAL SA (PTY) LTD (Dormant)

WOOLWORTHS (NAMIBIA) (PTY) LTD (Dormant)

WOOLWORTHS HOLDINGS (MAURITIUS) LTD (Holding)

WOOLWORTHS (LESOTHO) (PTY) LTD (Retailing)

WOOLWORTHS FINANCIAL SERVICES (PTY) LTD

Plus other companies in the WOOLWORTHS GROUP

DIRECTORS

MS Z RYLANDS ID No. 6411100181083

M R ISAACS ID No 6811155256088

I MOIR (CEO) D.O.B. 1958/12/10

BANKERS

STANDARD BANK OF SOUTH AFRICA LIMITED (Cape Town is the main account of the subject), while the Woolworths’ branches deal with STANDARD BANK throughout South Africa.

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

DATE REGISTERED

2 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

TAX NUMBER

9487806714

BEE STATUS

Level 3 contributor

MAJOR OPERATION

Subject  is a respected chain of over 400 retail stores, including franchise stores, and offers a selected range of quality clothing, food, homeware, beauty and financial services (in partnership with Absa Bank) under its own brand name in South Africa, Africa and the Middle East.

MAJOR SUPPLIERS

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

· PARMALAT SA

· TIGER BRANDS

· THE DAIRY CONNECTION

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

TOTAL EMPLOYEES

23 538 in the group

OTHER PREMISES

The subject is reported to have ±450 retail stores in South Africa, Africa and the Middle East with distribution centres 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

100 ordinary shares of R2 each

ISSUED SHARE CAPITAL

100

FINANCIALS

Please see attached Consolidated Group figures for 24 June 2012 for Woolworths Holdings Limited attached.

AUDITORS

UNKNOWN

YEAR END

JUNE

INSURANCE BROKERS

UNISON RISK MANAGEMENT ALLIANCE INSURANCE BROKERS

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

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

TRADE REFERENCES – MARCH 2011

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 R 39 000 30 days 30 days Very Good

3. Do not give trade references

TRADE REFERENCES – JULY 2011

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. Old acc unlimited R20 000 000- 45 days 45 days Excellent

R35 000 000 less 2½%

2. Old acc R50 000 000 R30 000 000- 45 days 45 days Excellent

R40 000 000

3. Old acc R 500 000 R 260 000 30 days 30 days Excellent

TRADE REFERENCES – NOVEMBER 2011

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. +5 years R120 000 R 50 000 30 days 30 days Excellent

2. +10 years open R10 000 000- 45 days 45 days Very Good

R15 000 000

3. +20 years open R 2 000 000 30 days 30 days Excellent

TRADE REFERENCES – JULY 2012

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. ±5 years R 60 000 R 30 000 30 days 30 days Very Good

2. Do not give

3. 20 Years R20 000 000 Not available As arranged Excellent

TRADE REFERENCES – MAY 2013

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. Awaiting fax reply

2. ±1997 J/O R 3 000 000 R 200 000 45 days 45 days Very Good

T/R R10 000 000 R3 000 000 1.5% disc

T/M R 5 000 000 R 100 000

3. ±10 years Open Declined 7 days 7 days Very Good

TRADE REFERENCES – APRIL 2014

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. ±10 years R55 000 000 ±R20 000 000 45 days 45 days Very Good

2. +7 years R10 000 000 R 295 000 45 days 45 days Good

3. 10 years Open acc R 5 000 000 7 days 7 days Very Good

COMMENTS

This is an established company meeting its commitments timeously. The subject is highly regarded by its suppliers and is considered equal to its normal business engagements.

CURRENT TRADE REFERENCES

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 10 years R55 000 000 ±R20 000 000 45 days 45 days Excellent

2. Old Unlimited R20 000 000 45 days 45 days Excellent

3. Old Declined Declined 7 days 7 days Excellent

COMMENTS

This is an established company meeting its commitments timeously. The subject is highly regarded by its suppliers and is considered equal to a maximum credit figure of US$3 000 000 over 30 days.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.59.20
UK Pound	1	Rs.99.52
Euro	1	Rs.80.83

INFORMATION DETAILS

Analysis Done by :	DIV
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%)

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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.