MIRA INFORM REPORT

 

 

Report No. :

313098

Report Date :

21.03.2015

 

IDENTIFICATION DETAILS

 

Name :

MELCOM LIMITED

 

 

Registered Office :

2nd Palace Road Off Dadeban Road North Industrial Area, Accra P. o. Box 3920/2930 Accra

 

 

Country :

Ghana

 

 

Date of Incorporation :

11.09.1990

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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

 

 

Company NAME

Registered Name:

MELCOM LIMITED

Requested Name:

MELCOM LIMITED

Other Names:

None

 

 

ADDRESS AND TELECOMMUNICATION

 

oPhysical Address:

2nd Palace Road Off Dadeban Road North Industrial Area, Accra,

Postal Address:

P. o. Box 3920/2930

 

Accra,

Country:

Ghana

Phone:

233-302251784/5/6/7/8

Fax:

233-302245963

Email:

info@melcomgroup.com

Website:

www.melcomgroup.com

 

 

CREDIT OPINION

 

 

Financial Index as of December 2014 shows subject firm with a medium risk of credit.

 

 

LEGAL

 

 

Legal Form:

Limited Corporation 

Date Incorporated:

11-Sept-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 = 3.63 Ghanaian Cedi

Fiscal Year End:

December 31, 2015

Inflation:

According to information given by independent sources, the inflation at December 31st, 2015 was of 13%.

 

Financial Information not Submitted

 

 

 

 

 

Profit and Loss (expressed in GHS.)

 

 

2014

Sales

 

3,850,000,000

 

 

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.62.49

UK Pound

1

Rs.92.26

Euro

1

Rs.66.80

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ANK

 

               


 

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.