MIRA INFORM REPORT

Report No. :	330206
Report Date :	15.07.2015

IDENTIFICATION DETAILS

Name :	MEDIA24 BOEKE (PTY) LTD
Formerly Known As :	LUX VERBI BYBELMEDIA (PTY) LTD LUX VERBI (PTY) LTD
Registered Office :	10th Floor Naspers Centre 40 Heerengracht Street P O Box 5496 Cape Town 8000 Western Cape
Country :	South Africa
Date of Incorporation :	16.01.1953
Legal Form :	Private Company
Line of Business :	The subject operates as book publishers and sale of books.
No. of Employees :	300

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)
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

COMPANY NAME:

MEDIA24 BOEKE (PTY) LTD

Formerly: LUX VERBI BYBELMEDIA (PTY) LTD the name having been changed on 17 May 2012

Formerly: LUX VERBI (PTY) LTD the name having been changed on 4 May 2001

address

TRADING DIVISIONS NB PUBLISHERS

HUMAN & ROSSEAU

TAFELBERG

BEST BOOKS

LEISURE BOOKS

Plus many other divisions

PHYSICAL ADDRESS: 10^th Floor

Naspers Centre

40 Heerengracht Street

CAPE TOWN

Western Cape

POSTAL ADDRESS: P O Box 5496

CAPE TOWN

8000

TELEPHONE NUMBER: +27 21 406 3033 / 406 2809

FAX NUMBER: +27 21 406 2926

SHAREHOLDERS

100% MEDIA24 (PTY) LTD, which is in turn owned by MEDIA24 HOLDINGS LTD which is ultimately owned by NASPERS LTD (listed on the JSE Ltd)

ASSOCIATE COMPANIES

RCP MEDIA LTD (a subsidiary of MEDIA 24 (PTY) LTD)

(Registration Certificate Number: 1997/001319/07)

NASOU VIA AFRICA (PTY) LTD

(Registration Certificate Number: 1996/012379/07)

WELKOM YIZANI INVESTMENTS LTD (BBBEE Scheme)

(Registration Certificate Number: 2006/021434/06)

Plus other group companies within the NASPERS LTD Group.

DIRECTORS

O LALBAHADUR ID No: 5802205097086

A MAYMAN ID No: 5502165011081

L WOLFF ID No: 7311095206086

JJ PIETERSE ID No: 6703235126086

LJ KLINK ID No: 8004280043088

BANKERS

ABSA BANK, Adderley Street Main Branch, Cape Town where the subject is reported to have many accounts as well as having accounts with NEDBANK and STANDARD BANK. It was stated that cash management schemes are in operation at ABSA BANK and NEDBANK through the Group. Credit balances are normally maintained at the banks.

DATE REGISTERED

16 January 1953

Registration Certificate Number: 1953/000037/07

MEDIA24 BOEKE (PTY) LTD was established in January 1953 when the assets and operations of VIA AFRIKA LTD were incorporated into a newly registered entity styled LUX VERBI (PTY) LTD. The subject then changed its name to LUX VERBI BYBELMEDIA (PTY) LTD in May 2001. In May 2012 the subject underwent a further name change to the current name.

VAT NUMBER

4490197763

TAX NUMBER

9580260033

BBBEE STATUS

Level 3 contributor which is for the group as a whole

MAJOR OPERATION

The subject operates as book publishers and sale of books.

MAJOR SUPPLIERS

Previously, we have divulged the names of the major suppliers in our reports. We have discontinued this practice to protect our valuable sources of trade information. This has become necessary because we now give a description of the goods or services to which the trade references relate. This gives our client the ability to assess whether the purchases are vital to the subject’s operation and whether we have only been given their essential suppliers that must be paid promptly for the subject to maintain its operation.

MAJOR CUSTOMERS OR BUSINESS SECTORS

Bookshops, Club members, Government Education Departments, schools

AREA OF DISTRIBUTION AND SELLING

South Africa

EXPORTS

Limited to neighbouring countries and Europe

TOTAL EMPLOYEES

300

OTHER PREMISES

The subject is reported to have branches in the main centres.

OWNED OR LEASED

The head office premises are reported to be owned by NASPERS LTD and the branch premises are mostly leased.

FINANCIALS

The following estimated financial situation was submitted as at 10 July 2015:

STOCK R150 000 000

DEBTORS R140 000 000

CREDITORS R 40 000 000

TURNOVER per annum for the subject R350 000 000

TURNOVER per annum for the group R900 000 000

Please see attached Consolidated Statement of Financial Position and Consolidated Income Statements for MEDIA24 HOLDINGS (PTY) LTD for the years ended 31 March 2015 and 2014.

AUDITORS

PRICEWATERHOUSECOOPERS Cape Town Tel: +27 21 529 2000

YEAR END

MARCH

INSURANCE BROKERS

MARSH INSURANCE BROKERS

TRADE REFERENCES – AUGUST 2007

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. Old acc R 200 000 R 150 000 - 60 days 60 days Very Good

R 200 000 EFT

2. 10 years+ R5 000 000 R2 000 000- 60 days 60 days Very Good

R5 000 000

TRADE REFERENCES – JULY 2008

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. Old acc R 200 000 R 200 000 60 days 60 days Very Good

2. 10 years+ R9 000 000 R3 000 000- 60 days 60 days Excellent

c/l R8 000 000

3. Unable to obtain a trade reference

TRADE REFERENCES – APRIL 2009

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 4 years Declined Figures 60 days 60 days Very Good

2. Old Declined +R4 000 000 60 days 60 days Very Good

3. 2002 R500 000 R 150 000- 60 days 60 days Very Good

(CGIC) c/l +R 200 000

TRADE REFERENCES – JANUARY 2011

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 10 years undisclosed R 500 000- 60 days 60 days Very Good

R1 000 000

2. ±10 years R3 000 000 R1 500 000± 60 days 60 days Very Good

c/l

3. Old undisclosed R1 000 000- 60 days 60 days Very Good

R3 000 000

TRADE REFERENCES – AUGUST 2012

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. Apr 2010 R500 000 R400 000 30 days 30 days Very Good

(Subsidiary company)

2. 1993 R130 000 R 6 000- 30 days 30 days Very Good

(Subsidiary company) R 20 000

3. 10 Years R200 000 R150 000 60 days 60 days Very Good

TRADE REFERENCES – NOVEMBER 2013

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 3 years R 300 000 <R 500 000 30 days 30 days Excellent

2. +10 years R 250 000 R 150 000- 30 days 30 days Excellent

R 200 000

3. Do not give trade references

4. Associate Company

CURRENT TRADE REFERENCES

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. Many years R1 000 000 R 200 000 30 days 30 days Good

(Associate Company)

2. Many years declined declined 60 days 60 days Excellent

3. unable to obtain a trade reference

4. Many Yrs R 80 000 R 40 000 30 days 60 days Good

Sporadic purchases

NATURE OF GOODS OR SERVICES SUPPLIED

(These descriptions relate respectively by number to the above current trade transactions):

1. Printing

2. Printing

3. Printing

COMMENTS

This is an established and well-connected company meeting its commitments generally timeously. The subject is considered equal to its normal business engagements. .

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.50
UK Pound	1	Rs.98.20
Euro	1	Rs.69.73

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	VNT

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.