MIRA INFORM REPORT

Report No. :	329050
Report Date :	01.07.2015

IDENTIFICATION DETAILS

Name :	STEEL MAKERS ZIMBABWE PVT. LTD
Registered Office :	Old Steel Work Road, heavy Ind. Area., Red Cilff, Redcliff
Country :	Zimbabwe
Date of Incorporation :	02.06.1998
Legal Form :	Limited Corporation
Line of Business :	Manufacturing of steel
No. of Employees :	1300 employees

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)
Zimbabwe	C1	C1

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

ZIMBABWE ECONOMIC OVERVIEW

Zimbabwe's economy depends heavily on its mining and agriculture sectors. Following a decade of contraction from 1998 to 2008, the economy recorded real growth of more than 10% per year in 2010-13, before slowing to roughly 3% in 2014 due to poor harvests, low diamond revenues, and decreased investment. Infrastructure and regulatory deficiencies, a poor investment climate, a large public and external debt burden, and extremely high government wage expenses impede the country’s economic performance. Until early 2009, the Reserve Bank of Zimbabwe (RBZ) routinely printed money to fund the budget deficit, causing hyperinflation. Dollarization in early 2009 - which allowed currencies such as the Botswana pula, the South Africa rand, and the US dollar to be used locally - ended hyperinflation and reduced inflation below 10% per year, but exposed structural weaknesses that inhibit broad-based growth. The RBZ introduced bond coins denominated in 1, 5, 10, and 25 cent increments on a par with the US dollar in December 2014, more than five years after the Zimbabwe dollar was taken out of circulation. In January 2015, as part of the government’s effort to boost trade and attract foreign investment, the RBZ announced that the Chinese renmimbi, Indian rupee, Australian dollar, and Japanese yen would be accepted as legal tender in Zimbabwe. Zimbabwe’s government entered a second Staff Monitored Program with the International Monetary Fund in 2014 and undertook other measures to reengage with the international financial institutions. Foreign and domestic investment continues to be hindered by the lack of clarity regarding the government’s Indigenization and Economic Empowerment Act.

Source : CIA

SUBJECT'S NAME
Registered Name:	STEEL MAKERS ZIMBABWE PVT. LTD
Requested Name:	STEEL MAKERS ZIMBABWE PVT. LTD
Other Names:	None
_______________________________________________________________________
ADDRESS AND TELECOMMUNICATION
Physical Address:	Old Steel Work Road, heavy Ind. Area., Red Cilff
Postal Address:	P. o. Box 120
	Redcliff,
Country:	Zimbabwe
Phone:	263-5568743/569171
Fax:	263-5568569/62353
Email:	sach.patell@steelmakerszim.com
Website:	www.steelmakerszim.com
_______________________________________________________________________
CREDIT OPINION
Financial Index as of December 2014 shows subject firm with a medium risk of credit. However, bank and credit information obtained reveal a history of prompt payments.
_______________________________________________________________________
LEGAL
Legal Form:		Limited Corporation
Date Incorporated:		02-June-1998
Reg. Number:		Zimbabwe
Nominal Capital		USD. 100,000
Subscribed Capital		USD. 100,000
Subscribed Capital is Subscribed in the following form:
		Position		Shares
Mr. Rasik Patel		Chairman
Mr. Kalpesh Patel		MD
Mr. Shashikant Wankhede		GM
Steelmakers International Limited (SML)		Holding Co.		100%
_______________________________________________________________________
RELATED COMPANIES
Steelmakers International Limited (SML)		Parent company.
None		Subsidiary company.
In Group		Affiliated company.
None		Shareholder of subject firm.
Kadoma, Masvingo and Chiredzi in Zimbabwe		Branches of the firm
___________________________________________________________________________
OPERATIONS
Registered to operate steel manufacturing
Imports:		Asia,Middle East
Exports:		None
Trademarks:		None
Terms of sale:		Cash (40%) and 25-90 days (60%), invoices.
Main Customers:		Industries,firms and organizations
Employees:		1300 employees.
Vehicles:		Several motor vehicles.
Territory of sales:		Zimbabwe
Location:		Owned premises, 500,000 square feet,
_______________________________________________________________________
AUDITORS AND INSURANCE
Auditors:		Information not available.
Insurance Brokers:		Information not available.
_______________________________________________________________________
FINANCE
Currency Reported:		US Dollar (USD.)
Approx. Ex. Rate:		1 US Dollar = 1 US Dollar
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 USD.)
			2014
Sales			25,000,000
_______________________________________________________________________
BANK
Bank Name:		Metropolitan Bank of Zimbabwe
Branch:		Zimbabwe
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. 63.75
UK Pound	1	Rs. 100.12
Euro	1	Rs. 71.20

INFORMATION DETAILS

Analysis Done by :	KRN
Report Prepared by :	DPT

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.