MIRA INFORM REPORT

Report No. :	354823
Report Date :	16.12.2015

IDENTIFICATION DETAILS

Name :	HARLEYS LIMITED
Registered Office :	Westland’s Road, On Harleys Complex, Nairobi, P. O. Box 42718-00100, Nairobi
Country :	Kenya
Date of Incorporation :	09.11.1953
Com. Reg. No.:	2849
Legal Form :	Limited Corporation
Line of Business :	Subject operate as importers and distribution of pharmaceuticals, Laboratory equipment and medicines and related facilities
No. of Employees :	75

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, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
Kenya	B1	B1

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

KENYA - ECONOMIC OVERVIEW

Kenya is the economic and transport hub of East Africa. Kenya’s real GDP growth has averaged around 5% for the past several years. According to recently rebased national statistics, Kenya’s GDP for 2013 was $55.3 billion, placing Kenya among the low middle income countries with per capita income of $1,300. Agriculture remains the backbone of the Kenyan economy, contributing 25% of GDP. About 80% of Kenya’s population of roughly 42 million work at least part-time in the agricultural sector, including livestock and pastoral activities. Over 75% of agricultural output is from small-scale, rain-fed farming or livestock production. While Kenya has a growing entrepreneurial middle class, faster growth and poverty reduction is hampered by corruption and by reliance upon several primary goods whose prices have remained low. Inadequate infrastructure threatens Kenya's long-term position as the largest East African economy, although the KENYATTA administration has prioritized infrastructure development. International financial lenders and donors remain important to Kenya's economic growth and development, but Kenya has also successfully raised capital in the global bond market. Kenya issued its first sovereign bond offering in mid-2014, generating $2 billion at 6% interest; the funds are slated to be used for infrastructure projects. Nairobi has contracted with a Chinese company to begin construction of a new standard gauge railway, but the project allegedly has been beset by corruption and fraud. Unemployment is high at around 40%. The country has chronic budget deficits and is in the process of devolving some state revenues and responsibilities to the counties. Inflationary pressures and sharp currency depreciation peaked in early 2012 but have since abated following low global food and fuel prices and monetary interventions by the Central Bank. Recent terrorism in Kenya and the surrounding region threatens Kenya's important tourism industry.

Source : CIA

SUBJECT'S NAME
Registered Name:	HARLEYS LIMITED
Requested Name:	HARLEYS LIMITED
Trade Names:	HARLEYS LTD
ADDRESS AND TELECOMMUNICATION
Physical Address:	Westland’s Road, On Harleys Complex, Nairobi
Postal Address:	P. o. Box 42718-00100
	Nairobi,
Country:	Kenya
Phone:	254-20-3747380/90/93/95/315522/4261000
Cell:	254-722202030/733625979
Fax:	254-20-3747390/2247216/3748141/3748099
Email:	info@harleysltd.com/anjana@harleysltd.com/ hitesh@swiftkisumu.com/vinod@harleysltd.com
Website:	www.harleyslimited.com
LEGAL
Legal Form:		Limited Corporation
Date Incorporated:		9-Nov-1953
Reg. Number:		2849
Nominal Capital		KES. 50,000,000 Divided into Shares of 1,000,000 each KES 50
Subscribed Capital		KES. 800,000 being 16,000
Subscribed Capital is Subscribed in the following form:
		Position		Shares
Mr. Ashwin Kumar Raishi Haria		Chairman		7800
Mr. Rupen Mulchand Haria		Director		7800
Mr. Nishil Haria		Director		400
Mr. Hitesh Chandulal Haria		Director
Mr. Mansukhlal Raishi Haria		Director
RELATED COMPANIES
None		Parent company.
None		Subsidiary company.
CROSS LABORATORY SUPPLIERS LTD, PALSHA LIMITED, R.H AND SONS LTD, HARIA PRINTERS LIMITED.		Affiliated companies.
None		Shareholder of subject firm.
Kisumu and Mombasa in Kenya Dar Es Salaam, Tanzania and Kampala, Uganda		Branches of the firm
OPERATIONS
Registered to operate as importers and distribution of pharmaceuticals, Laboratory equipment and medicines and related facilities
Imports:		Asia, UK
Exports:		East Africa i.e. Tanzania, Uganda, Rwanda, Burundi, Congo, Seychelles, Zanzibar, Malawi, Zambia, Liberia, Sierra Leon and South Sudan
Trademarks:		Deep Heat, Artefan, Ascoril, Candid, Medimax, Keeler and Pinkoo
Terms of sale:		Cash (30%) and 25-90 days (70%), invoices.
Main Customers:		Distributors, Medical institutions etc
Employees:		75 employees.
Vehicles:		Several motor vehicles.
Territory of sales:		Kenya
Location:		Owned premises, 2226 square meters,
AUDITORS AND INSURANCE
Auditors:		PKF KENYA
Insurance Brokers:		Information not available.
FINANCE
Currency Reported:		Kenya Shillings (KES.)
Approx. Ex. Rate:		1 US Dollar = 86.50 Kenya Shillings
Fiscal Year End:		December 31, 2014
Inflation:		According to information given by independent sources, the inflation at December 31st, 2014 was of 13%.
Financial Information not Submitted
Profit and Loss (expressed in KES.)
			2014
Sales			2,520,000,000
BANK
Bank Name:		BARCLAYS BANK
Branch:		Kenya
Comments:		Other Banks
		CO-OPERATIVE BANK LIMITED
		I&M BANK LIMITED
		CFC BANK LIMITED
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.67.04
UK Pound	1	Rs.101.67
Euro	1	Rs.73.93
KES	1	Rs.0.65

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	HEE
Report Prepared by :	NIT

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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