MIRA INFORM REPORT

Report Date :

22.11.2014

IDENTIFICATION DETAILS

Name :	MELCOM LIMITED
Registered Office :	2nd Palace Road Off Dadeban Road North Industrial Area, P. O. Box 3920, Accra
Country :	Ghana
Date of Incorporation :	1990
Legal Form :	Limited Corporation
Line of Business :	Subject operate a chain of retail department stores
No of Employees :	2000

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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Ghana	B2	B2

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

GHANA - ECONOMIC OVERVIEW

Ghana's economy has been strengthened by a quarter century of relatively sound management, a competitive business environment, and sustained reductions in poverty levels. In late 2010, Ghana was recategorized as a lower middle-income country. Ghana is well-endowed with natural resources and agriculture accounts for roughly one-quarter of GDP and employs more than half of the workforce, mainly small landholders. The services sector accounts for 50% of GDP. Gold and cocoa production and individual remittances are major sources of foreign exchange. Oil production at Ghana's offshore Jubilee field began in mid-December 2010,and is producing close to target levels. Additional oil projects are being developed and are expected to come on line in a few years. Estimated oil reserves have jumped to almost 700 million barrels and Ghana’s growing oil industry is expected to boost economic growth as the country faces the consequences of two years of loose fiscal policy, high budget and current account deficits, and a depreciating currency. President MAHAMA faces challenges in managing a population that is unhappy with living standards and that perceives they are not reaping the benefits of oil production because of political corruption.

Source : CIA

SUBJECT'S NAME
Registered Name:	MELCOM LIMITED
Requested Name:	MELCOM LIMITED
Other Names:	None
ADDRESS AND TELECOMMUNICATION
Physical Address:	2nd Palace Road Off Dadeban Road North Industrial Area
Postal Address:	P. o. Box 3920
	Accra,
Country:	Ghana
Phone:	233-302251784/5/6/7/8
Fax:	233-302245963
Email:	info@melcomgroup.com
Website:	www.melcomgroup.com
LEGAL
Legal Form:		Limited Corporation
Date Incorporated:		1990
Reg. Number:		Ghana
Nominal Capital		GHS. 1,000,000
Subscribed Capital		GHS. 1,000,000
Subscribed Capital is Subscribed in the following form:
		Position		Shares
Mr. Bhagwan Khubchandani		Chairman
Mr. Mahesh Melwani		Joint MD
Mr. Ramesh Sadhwani		Joint MD
Mrs. Sonya Sadhwani		Director
Mr. Debashis Mukherjee		Manager
Mr. Rupesh Singh		Manager
Mr. Chris Djan Kweku		Manager
Melcom Group Of Companies		Holding Co.		100%
RELATED COMPANIES
None		Parent company.
None		Subsidiary company.
CENTURY INDUSTRIES LTD, CROWN STAR ELECTRONICS INDUSTRIES LTD, MELCOM HOSPITALITY LIMITED, MELCOM TRAVEL & TOURS LTD.		Affiliated company.
None		Shareholder of subject firm.
29 in Ghana		Branches of the firm
OPERATIONS
Registered to operate a chain of retail department stores
Imports:		Worldwide
Exports:		None
Trademarks:		None
Terms of sale:		Cash (30%) and 25-90 days (70%), invoices.
Main Customers:		Local agencies, general public, firms and organizations
Employees:		2000 employees.
Vehicles:		Several motor vehicles.
Territory of sales:		Ghana
Location:		Owned premises, 100,000 square feet,
AUDITORS AND INSURANCE
Auditors:		Information not available.
Insurance Brokers:		Information not available.
FINANCE
Currency Reported:		Ghanaian Cedi (GHS.)
Approx. Ex. Rate:		1 US Dollar = 3.22 Ghanaian Cedi
Fiscal Year End:		December 31, 2013
Inflation:		According to information given by independent sources, the inflation at December 31st, 2013 was of 13%.
Financial Information not Submitted
Profit and Loss (expressed in GHS.)
			2013
Sales			2,500,000,000
BANK
Bank Name:		Guaranty Trust Bank Ghana Limited
Branch:		Ghana
Comments:		None
TRADE REFERENCES
Experiences:		Good
NOTARIAL BONDS
		None
COMMENTS / ADDITIONAL INFORMATION
This information was obtained from outside sources other than the subject company itself and confirmed the above subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.85
UK Pound	1	Rs.97.01
Euro	1	Rs.77.62

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	SMN

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.