MIRA INFORM REPORT

Report No. :	354550
Report Date :	21.12.2015

IDENTIFICATION DETAILS

Name :	AZHARI IMPORTS CC
Registered Office :	Unit 5, 81 Silverpalm Road Overport Durban KwaZulu-Natal 4091
Country :	South Africa
Date of Incorporation :	10.06.2010
Com. Reg. No.:	2010/086626/23
Legal Form :	Close Corporation (CC)
Line of Business :	The subject imports and distributes of foodstuffs, including frozen foods and dry goods.
No. of Employee :	20

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 :	Slow
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)
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 Africa’s largest and among the top 20 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. Economic growth has decelerated in recent years, slowing to just 1.5% in 2014. Unemployment, poverty, and inequality - among the highest in the world - remain a challenge. Official unemployment is roughly 25% of the work force, and runs significantly higher among black youth. Eskom, the state-run power company, is building three new power stations and is installing new power demand management programs to improve power grid reliability. Load shedding and resulting rolling blackouts gripped many parts of South Africa in late 2014 and early 2015 because of electricity supply constraints that resulted from technical problems at some generation units, unavoidable planned maintenance, and an accident at a power station in Mpumalanga province. The rolling black outs were the worst the country faced since 2008. Construction delays at two additional plants, however, mean South Africa will continue to operate on a razor thin margin; economists judge that growth cannot exceed 3% until electrical supply problems are resolved.

South Africa's economic policy has focused on controlling inflation; however, the country faces structural constraints that also limit economic growth, such as skills shortages, declining global competitiveness and frequent work stoppages due to strike action. The current government faces growing pressure from urban constituencies to improve the delivery of basic services to low-income areas and to increase job growth.

Source : CIA

General Comments

This is a relatively established business which underwent a complete change of membership in September 2014, however, has retained the previous member as the General Manager at the subject. In view of the subject's slow payment pattern and report cash flow stress, it is suggested that all dealings be on a letter of credit basis.

COMPANY INFORMATION

OVERVIEW

History	AZHARI IMPORTS CC was established in June 2010. It should be noted that the subject was originally registered with the sole member being RIDWAAN RAZA. The membership was changed to the sole member being TASNEEM TAYOB in September 2014, however, Mr Raza is still the active General Manager at the subject. A search at CIPC revealed that the subject has entered Annual Return Deregistration Process, however, it was confirmed by Mr Raza that this has been sorted out, and is no longer in deregistration process.
Major Operations or Business Sectors	The subject imports and distributes foodstuffs.
Industry	Import and wholesale
SIC Code(s)	65(Import)

STATUTORY INFORMATION

Registered Name	AZHARI IMPORTS CC
Registration Number	2010/086626/23
Type of Company	Close Corporation (CC)
Registration Date	06/10/2010
Date Commenced Trading	10/06/2010
Commercial Status	In Business

CONTACT DETAILS

Contact Number	+27 31 822 7862
Fax Number	+27 31 466 5338
Website	No website located for the registered entity.
Social Media Presence	No social media presenece located.
Registered Physical Address	Unit 5, 81 Silverpalm Road Overport DURBAN KwaZulu-Natal 4091
Trading Physical Address	44 Grunter Gully Maydon Wharf DURBAN KwaZulu-Natal 4057
Postal Address	P O Box 70973 OVERPORT Durban 4067

TAX INFORMATION

AUDITORS INFORMATION

INSURANCE BROKER INFORMATION

OWNERSHIP STRUCTURE

Shareholders/Members	Share/Interest (%)
TASNEEM TAYOB	100

PRINCIPAL INFORMATION PRINCIPAL DETAILS

Full Name	ID No.	Designation	Status	Date of Appoint- ment	Active Interests	Prev. Interests	Judg- ments	Fraud Listing
TAYOB, TASNEEM	8511030033086		Active	14/05/2014	1	0	0	0
RAZA, RIDWAAN	8003115074086		Resigned	10/06/2010	0	0	0	0

GENERAL COMMENTS

Comments It was stated that Ridwaan Raza is the active General Manager at the subject.

GENERAL COMMENTS

Comments Stated to have no certification available

BANK ACCOUNT VERIFICATION

Verified	Yes
Bank Name	HBZ BANK
Branch Code	570126
Account Holder	AZHARI IMPORTS CC
Account Number	11901284514

GENERAL COMMENTS

Comments

It was stated that the above bank is utilised for all import purposes.

The subject is stated to bank with STANDARD BANK, Overport City Branch.

OPERATIONS

MAJOR OPERATIONS

Major Business Activities	The subject imports and distributes foodstuffs, including frozen foods and dry goods.
Foreign Trade Activities	It was stated that the subject imports approximately 90% of its supplies from various overseas companies.
Major Suppliers	The subject is reported to only utilise the services of local freight forwarding, clearing and storage companies: SRA SHIPPING, Durban FOURWAY LOGISTICS, Durban CONGELA COLD STORAGE, Durban
Major Customers	Mainly wholesalers and retailers in the FMCG sector, as well as the food processing industry.
Major Brands	The subject is reported to import numerous brand names, however, further information was not forthcoming.

BRANCH & PREMISES INFORMATION

Area of Distribution Mainly KwaZulu-Natal

Location	Description/Type	Size (m²)	# of Staff	Rented or Owned	If rented: Lease Expiry Date
	Head Office,
Maydon Wharf, Durban	which is reported to be leased from			Rented
	TRANSNET.

EMPLOYEES

Salaried Employee	4
Waged Employees	16
Total Permanent Employees	20

COMPANY FLEET FINANCING TERMS

Sales Terms	30 days,
Overdraft	All further information regarding banking details was declined.
Date Obtained	15/12/2015
Year End	FEBRUARY

GENERAL COMMENTS

Comments Financing details were not made available

FINANCIAL FIGURES

Currency	ZAR
Actual numbers, 000' or mio	Actual Numbers
Source	Ridwaan Raza - General Manager

INCOME STATEMENT

	Current Financial Year (est)	Previous Financial Year	Prior Financial Year
Turnover/Revenue	55,000,000
Gross Profit	4,500,000

BALANCE SHEET

	Current Financial Year (est)	Previous Financial Year
Assets
--Inventory/Stock	5,000,000
--Accounts Receivable/Debtors	8,000,000

Comments

It was stated that most of the subjects suppliers are dealt with on a Cash Up Front basis, and the remainder on a 30 or 45 day basis.

TRADE REFERENCES

TRADE REFERENCE ANALYTICS

# of Trade Refs in the last 3 years	Overall Trade Score	Average Usage of Terms	Average Monthly Purchase	Average Usage of Credit Limit
3	33%	0%	203,333.33 ZAR	95%

TRADE REFERENCES

Trade Ref #	Date	Trade Score 2 = best 0 = worst	Terms Given (Taken) in days	Monthly Limit Given (Taken)	Account Opened years	Payment Trend (prev. 3 years)			Acc. Insured	Notes
Ref 1	16/12/2015	0	see notes (see notes)	40,000 ZAR (10,000 ZAR)		0	-	-	Unknown	The terms given were 25 days, however, the account often extends up to 60 days. A high maintenanc e account.
Ref 2	16/12/2015	1	see notes (see notes)	250,000 ZAR (250,000 ZAR)	0	1	-	-	Yes	The subject has a 7 day account and a 30 day account, which are both paid timeously. The account is new but good so far.
Ref 3	16/12/2015	1	30 (see notes)	350,000 ZAR (350,000 ZAR)	5	1	-	-	Unknown	It was stated occasionally the subject pays slowly when experiencing cash flow issues, however, contact is always maintained with the supplier.
Ref 4		1	30 (30)	25,000 ZAR (20,000 ZAR)	3	-	-	-	No	Good account. Payments are received on due date
Ref 5		1	30 (30)	1,000,000 ZAR (1,000,000 ZAR)	3	-	-	-	Yes	Good account. Payments are received on due date
Ref 6		2	30 (30)	50,000 ZAR (25,000 ZAR)	4	-	-	-	No	Good account. Payments are received on due date

ADMIN DETAILS

INTERVIEWER

Researcher	Inoxico
Contact Tel No.	+27 10 001 0540
Email	research@inoxico.com

INTERVIEWEE

Contact Person	Ridwaan Raza
Position	General Manager
Company Tel No.	Messages left with Tasneem +27 82 928 5615

LEGEND

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.42
UK Pound	1	Rs.99.17
Euro	1	Rs.72.14
ZAR	1	Rs.4.40

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

INFORMATION DETAILS

Analysis Done by :	KAS
Report Prepared by :	TRU

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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