MIRA INFORM REPORT

 

 

Report No. :

340171

Report Date :

10.09.2015

 

IDENTIFICATION DETAILS

 

Name :

EDGARS STORES LIMITED

 

 

Registered Office :

Corner 9th Avenue / Herbert Chitepo Street, P. o. Box 894 Bulawayo

 

 

Country :

Zimbabwe

 

 

Financials (as on) :

10.01.2015 (Consolidated)

 

 

Date of Incorporation :

04.06.1948

 

 

Com. Reg. No.:

379/1948

 

 

Legal Form :

Limited Corporation 

 

 

Line of Business :

Subject operate as general traders dealing with textiles, garments, footwear, household goods

 

 

No. of Employee :

1000 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

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

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 from 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 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:

EDGARS STORES LIMITED

Requested Name:

EDGARS STORES LIMITED

Other Names:

None

 

 

ADDRESS AND TELECOMMUNICATION

 

Physical Address:

Corner 9th Avenue / Herbert Chitepo Street,

Postal Address:

P. o. Box 894

 

Bulawayo

Country:

Zimbabwe

Phone:

263-9-881626/35

Fax:

263-9-68443

Email:

info@edgars.co.zw

Website:

www.edgars.co.zw

 

 

LEGAL

 

Legal Form:

Limited Corporation 

Date Incorporated:

04-June-1948

Reg. Number:

379/1948

Nominal Capital

USD. 400,000,000

Subscribed Capital

USD. 352,472,000

Subscribed Capital is Subscribed in the following form:

 

Position

Shares

Themba N. Sibanda

Chairman

 

Linda Masterson

Group MD

 

James Blair Galloway

Director

 

Vusumuzi Mpofu

Director

 

Raymond Mlotshwa

Director

 

Zebhediah Vella

Director

 

James Blair Galloway

Director

 

Debbie Millar

Director

 

Canaan F. Dube

Director

 

Dr. Leonard L. Tsumba

Director

 

Edcon Holdings (Pty) Ltd (South Africa)

Holding Co.

100%

 

 

RELATED COMPANIES

 

Edcon Holdings (Pty) Ltd (South Africa)

Parent company.

None

Subsidiary company.

Various worldwide

Affiliated companies.

None

Shareholder of subject firm.

Various in Zimbabawe

Branches of the firm

 

 

OPERATIONS

 

Registered to operate as general traders dealing with textiles, garments, footwear, household goods

Imports:

South Africa

Exports:

Neighboring countries

Trademarks:

None

Terms of sale:

Cash (40%) and 25-90 days (60%), invoices.

 

 

Main Customers:

Local agencies, general public, firms and organizations  

Employees:

1000 employees.

Vehicles:

Several motor vehicles.

Territory of sales:

Zimbabwe

Location:

Owned premises, 100,000 square feet,

 

 

AUDITORS AND INSURANCE

 

Auditors:

Ernst & Young Chartered Accountants Zimbabwe

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 Submitted Below

 

 

                                                                    

BANK

                                                                    

Bank Name:

Barclays Bank Zimbabwe Limited

Branch:

Cnr Main Street/8th Avenue, P.o. Box 702, Bulawayo, 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.66.29

UK Pound

1

Rs.101.89

Euro

1

Rs.73.98

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

SDA

 

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.