MIRA INFORM REPORT

Report No. :	495910
Report Date :	07.03.2018

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 :	2400

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Good
Payment Behaviour :	Regular
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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
Ghana	B2	B2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

GHANA - ECONOMIC OVERVIEW

Ghana has a market-based economy with relatively few policy barriers to trade and investment in comparison with other countries in the region, and Ghana is well-endowed with natural resources. Ghana's economy was strengthened by a quarter century of relatively sound management, a competitive business environment, and sustained reductions in poverty levels, but in recent years has suffered the consequences of loose fiscal policy, high budget and current account deficits, and a depreciating currency.

Agriculture accounts for about 20% of GDP and employs more than half of the workforce, mainly small landholders. Gold and cocoa exports, and individual remittances, are major sources of foreign exchange. Expansion of Ghana’s nascent oil industry has boosted economic growth, but the fall in oil prices since 2015 reduced by half Ghana’s oil revenue. Production at Jubilee, Ghana's offshore oilfield, began in mid-December 2010. The country’s first gas processing plant at Atubao is also producing natural gas from the Jubilee field, providing power to several of Ghana’s thermal power plants.

As of 2017, key economic concerns facing the government include the lack of reliable electricity and the high debt burden. The AKUFO-ADDO administration has made some progress by committing to fiscal consolidation, but much work is still to be done in 2018. Ghana signed a $920 million extended credit facility with the IMF in April 2015 to help it address its growing economic crisis. The IMF fiscal targets require Ghana to reduce the deficit by cutting subsidies, decreasing the bloated public sector wage bill, strengthening revenue administration, and boosting tax revenues. Priorities for the new administration include rescheduling some of Ghana’s $31 billion debt, stimulating economic growth, reducing inflation, and stabilizing the currency. Prospects for new oil and gas production and follow through on tighter fiscal management are likely to help Ghana’s economy in 2018.

Source : CIA

Company NAME

Registered Name:	MELCOM LIMITED
Requested Name:	MELCOM LIMITED
Other Names:	None
ADDRESS AND TELECOMMUNICATION
Physical 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 2017 shows subject firm with a medium risk of credit. However, bank and credit information obtained reveal a history of prompt payments.
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		Group Chairman
Mr. Mahesh Melwani		Group Joint MD
Mr. Ramesh Sadhwani		Group 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
Melcom Group Of Companies		Parent company.
None		Subsidiary company.
CENTURY INDUSTRIES LTD, CROWN STAR ELECTRONICS INDUSTRIES LTD, MELCOM HOSPITALITY LIMITED, MELCOM TRAVEL & TOURS LTD, MELCOM STORES LTD, MELCOM CARE.		Affiliated company.
None		Shareholder of subject firm.
39 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:		2400 employees.
Vehicles:		Several motor vehicles.
Territory of sales:		Ghana
Location:		Owned premises, 120,000 square feet,
AUDITORS AND INSURANCE
Auditors:		Information not available.
Insurance Brokers:		Information not available.
FINANCE
Currency Reported:		Ghanaian Cedi (GHS.)
Fiscal Year End:		December 31, 2017
Inflation:		According to information given by independent sources, the inflation at December 31st, 2017 was of 13%.
Financial Information not Submitted
Profit and Loss (expressed in GHS.)
			2017
Sales			5,275,000,000
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	INR 64.99
UK Pound	1	INR 89.91
Euro	1	INR 80.21
GHS	1	INR 14.59

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	PRA
Report Prepared by :	TRU

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
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

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.