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MIRA INFORM REPORT
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Report No. : |
500601 |
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Report Date : |
05.04.2018 |
IDENTIFICATION DETAILS
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Name : |
CARDINAL DISTRIBUTORS LTD |
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Registered Office : |
Plot
8628 Njanshinshi Road, Off Lumumba Road, P. O. Box 36094, Lusaka |
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Country : |
Zambia |
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Date of Incorporation : |
10.04.1982 |
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Legal Form : |
Limited Corporation |
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Line of Business : |
Subject operates as
distributors of FMCG products such as hardware, batteries, appliances,
bicycles, fabrics. |
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No. of Employees : |
85 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Zambia |
B1 |
B1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
ZAMBIA - ECONOMIC OVERVIEW
Zambia had one of the world’s fastest growing economies for the ten years up to 2014, with real GDP growth averaging roughly 6.7% per annum, though growth slowed during the period 2015 to 2017, due to falling copper prices, reduced power generation, and depreciation of the kwacha. Zambia’s lack of economic diversification and dependency on copper as its sole major export makes it vulnerable to fluctuations in the world commodities market and prices turned downward in 2015 due to declining demand from China; Zambia was overtaken by the Democratic Republic of Congo as Africa’s largest copper producer. GDP growth picked up in 2017 as mineral prices rose.
Despite recent strong economic growth and its status as a lower middle-income country, widespread and extreme rural poverty and high unemployment levels remain significant problems, made worse by a high birth rate, a relatively high HIV/AIDS burden, and by market-distorting agricultural and energy policies. Zambia has raised $7 billion from international investors by issuing separate sovereign bonds in 2012, 2014, and 2015, significantly increasing the country’s public debt burden to more than 50% of GDP; the government has considered refinancing $2.8 billion worth of Eurobonds to cut debt servicing costs.
Poor management of water resources has also contributed to a power generation shortage, which has hampered industrial productivity and contributed to an increase in year-on-year inflation to more than 20% in 2016. Zambia’s currency, the kwacha, also depreciated sharply against the dollar through 2016, leading the central bank to restrict lending. Rampant spending in recent years has increased the fiscal deficit to over 8% in 2017 and may encourage the government to seek external financing from the IMF to fund the shortfall if they can agree to austerity measures.
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Source
: CIA |
SUBJECT'S NAME |
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Registered Name: |
CARDINAL
DISTRIBUTORS LTD |
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Requested Name: |
CARDINAL DISTRIBUTORS LTD |
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Other Names: |
CDL |
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ADDRESS AND TELECOMMUNICATION |
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Physical Address: |
Plot
8628 Njanshinshi Road,, Off Lumumba Road |
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Postal Address: |
P.
o. Box 36094 |
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Lusaka,
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Country: |
Zambia |
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Phone: |
260-211-847176 |
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Cell: |
260-977287176/955287176 |
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Fax: |
260-211-287177/79 |
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Email: |
info@cdlzambia.com/cdlzambia@gmail.com |
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Website: |
www.cdl.co.zm |
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CREDIT OPINION |
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Financial Index as of
December 2017 shows subject firm with a medium risk of credit. However, bank
and credit information obtained reveal a history of prompt payments. We
recommend Credit of USD 220,000 on 90 days. |
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LEGAL |
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Legal Form: |
Limited Corporation |
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Date Incorporated: |
10-April-1982 |
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Reg. Number: |
-- |
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Nominal Capital |
ZMW.
1,000,000 |
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Subscribed Capital |
ZMW.
1,000,000 |
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Subscribed Capital is Subscribed in the following form: |
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Position |
Shares |
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Mr. Ayoob Ahmed Patel |
MD |
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Mr. Inonge Wina |
VP |
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RELATED COMPANIES |
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None |
Parent company. |
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None |
Subsidiary company. |
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None |
Affiliated company. |
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None |
Shareholder of subject
firm. |
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None |
Branches of the firm |
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OPERATIONS |
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Registered to operate as
distributors of FMCG products such as hardware, batteries, appliances,
bicycles, fabrics. |
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Imports: |
Asia, South Africa |
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Exports: |
Malawi, Zimbabwe, Angola and Congo |
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Trademarks: |
None |
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Terms of sale: |
Cash (40%) and 25-90 days (60%), invoices. |
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Main Customers: |
firms and organizations |
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Employees: |
85 employees. |
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Vehicles: |
Several motor vehicles. |
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Territory of sales: |
Zambia |
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Location: |
Owned premises, 100,000 square feet, |
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AUDITORS AND INSURANCE |
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Auditors: |
Information not
available. |
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Insurance Brokers: |
Information not
available. |
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FINANCE |
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Currency Reported: |
Zambian Kwacha (ZMW.) |
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Fiscal Year End: |
December 31, 2017 |
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Inflation: |
According to information given by independent sources, the inflation
at December 31st, 2017 was of 13%. |
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Financial Information not
Submitted |
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Profit and Loss
(expressed in ZMW.) |
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2017 |
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Sales |
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346,000,000 |
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BANK |
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Bank Name: |
Indo-Zambia
Bank Limited |
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Branch: |
Zambia |
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Comments: |
None |
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TRADE
REFERENCES
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Experiences: |
Good |
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NOTARIAL
BONDS
None |
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COMMENTS/ ADDITIONAL INFORMATION |
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This information was
obtained from outside sources other than the subject company itself and
confirmed the above subject. |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.02 |
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1 |
INR 91.49 |
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Euro |
1 |
INR 79.79 |
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ZMK |
1 |
INR 6.99 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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PRA |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
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Company
background and operations size
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.