MIRA INFORM REPORT

Report No. :	344820
Report Date :	15.10.2015

IDENTIFICATION DETAILS

Name :	ISAAK SHOPPING CENTRE

Registered Office :	Old Market Street, P. O. Box 51138, Limbe, Blantyre

Country :	Malawi

Date of Incorporation :	17.07.1998

Legal Form :	Limited Corporation

Line of Business :	Dealers in bicycles, spare parts and related accessories

No. of Employees :	25 Employees

RATING & COMMENTS

MIRA’s Rating :

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)

Malawi

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

MALAWI - ECONOMIC OVERVIEW

Landlocked Malawi ranks among the world's most densely populated and least developed countries. The country’s economic performance has historically been constrained by policy inconsistency, macroeconomic instability, limited connectivity to the region and the world, and poor health and education outcomes that limit labor productivity. The economy is predominately agricultural with about 80% of the population living in rural areas. Agriculture accounts for about one-third of GDP and 90% of export revenues. The performance of the tobacco sector is key to short-term growth as tobacco accounts for more than half of exports.

The economy depends on substantial inflows of economic assistance from the IMF, the World Bank, and individual donor nations. In 2006, Malawi was approved for relief under the Heavily Indebted Poor Countries program. Between 2005 and 2009 Malawi’s government exhibited improved financial discipline under the guidance of Finance Minister Goodall GONDWE and signed a three year IMF Poverty Reduction and Growth Facility worth $56 million. The government announced infrastructure projects that could yield improvements, such as a new oil pipeline for better fuel access, and the potential for a waterway link through Mozambican rivers to the ocean for better transportation options.

Since 2009, however, Malawi has experienced some setbacks, including a general shortage of foreign exchange, which has damaged its ability to pay for imports, and fuel shortages that hinder transportation and productivity. In October 2013, the African Development Bank, the IMF, several European countries, and the US indefinitely froze $150 million in direct budgetary support in response to a high level corruption scandal, called “Cashgate,” citing a lack of trust in the government’s financial management system and civil service. Most of the frozen donor funds—which accounted for 40% of the budget—have been channeled through non-governmental organizations in the country. The government has failed to address barriers to investment such as unreliable power, water shortages, poor telecommunications infrastructure, and the high costs of services. Investment had fallen continuously for several years, but rose 4 percentage points in 2014 to 17% of GDP.

The government faces many challenges, including developing a market economy, improving educational facilities, addressing environmental problems, dealing with HIV/AIDS, and satisfying foreign donors on anti-corruption efforts.

Source : CIA

SUBJECT'S NAME

Registered Name:	ISAAK SHOPPING CENTRE
Requested Name:	ISAAK SHOPPING CENTRE
Other Names:	None

ADDRESS AND TELECOMMUNICATION

Physical Address:	Old Market Street
Postal Address:	P. o. Box 51138
	Limbe, Blantyre
Country:	Malawi
Phone:	265-1-840300/641721
Fax:	265-1-840300
Email:	None
Website:	None

LEGAL

Legal Form:	Limited Corporation
Date Incorporated:	17-July-1998
Reg. Number:	Malawi
Nominal Capital	MWK. 1,000,000
Subscribed Capital	MWK. 1,000,000
Subscribed Capital is Subscribed in the following form:
	Position	Shares
Mr. M. Isaak	Director

RELATED COMPANIES

None	Parent company.
None	Subsidiary company.
None	Affiliated company.
None	Shareholder of subject firm.
None	Branches of the firm

OPERATIONS

Registered to operate as dealers in bicycles, spare parts and related accesories
Imports:	Asia
Exports:	None
Trademarks:	None
Terms of sale:	Cash (40%) and 25-90 days (60%), invoices.

Main Customers:	General Public
Employees:	25 employees.
Vehicles:	Several motor vehicles.
Territory of sales:	Malawi
Location:	Leased premises, 20,000 square feet,

AUDITORS AND INSURANCE

Auditors:	Information not available.
Insurance Brokers:	Information not available.

FINANCE

Currency Reported:	Malawian Kwacha (MWK.)
Approx. Ex. Rate:	1 US Dollar = 553.88 Malawian Kwacha
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 MWK.)
		2014
Sales		1,450,000,000

BANK

Bank Name:	Stanbic Bank
Branch:	Malawi
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.65.11
UK Pound	1	Rs.99.50
Euro	1	Rs.74.24

INFORMATION DETAILS

Analysis Done by :	KAS

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%)

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.