MIRA INFORM REPORT

Report No. :	496733
Report Date :	13.03.2018

IDENTIFICATION DETAILS

Name :	KAL TIRE (ZAMBIA) LIMITED
Registered Office :	Plot No.7250 Mukatasha Road, Postnet 434, P/Bag E10 Arcades,
Country :	Zambia
Date of Incorporation :	14.12.2011
Com. Reg. No.:	98148
Legal Form :	Limited Corporation
Line of Business :	Subject operate as dealers in automotive tyres and related products
No. of Employees :	65

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

Maximum Credit Limit :	USD 220,000
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.

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.

Source : CIA

Company Name
Registered Name:	KAL TIRE (ZAMBIA) LIMITED
Requested Name:	KAL TIRE (ZAMBIA) LIMITED
Other Names:	None
ADDRESS AND TELECOMMUNICATION
Physical Address:	Plot No.7250 Mukatasha Road
Postal Address:	Postnet 434, P/Bag E10 Arcades,
	Lusaka,
Country:	Zambia
Phone:	260-211-286053
Fax:	260-211-286060
Email:	charles_vanrensburg@kaltire.com/ africa@kaltire.com
Website:	www.kaltiremining.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. We recommend Credit of USD 220,000 on 90 days.
LEGAL
Legal Form:		Limited Corporation
Date Incorporated:		14-Dec-2011
Reg. Number:		98148
Nominal Capital		ZMW. 100,000
Subscribed Capital		ZMW. 100,000
Subscribed Capital is Subscribed in the following form:
		Position		Shares
Mr. Charles Janse Van Rensburg		MD		2%
Mr. Peter John Le Noury		Director
OTR Holdings Limited		Shareholder		29%
Kal Tire Mining Tire Group		Holding Co.		69%
RELATED COMPANIES
None		Parent company.
None		Subsidiary company.
Various worldwide		Affiliated companies.
None		Shareholder of subject firm.
-Natwange Road, Kitwe, Copperbelt, Zambia -Livingstone Road, Mazabuka, Southern Province, Zambia -Kansanshi Mine Road, Solwezi, Zambia -Plot No. 4066 Euclid Road, Kitwe, Copperbelt, Zambia		Branches of the firm
OPERATIONS
Registered to operate as dealers in automotive tyres and related products
Imports:		Asia, Middle East
Exports:		None
Trademarks:		None
Terms of sale:		Cash (40%) and 25-90 days (60%), invoices.
Main Customers:		firms and organizations
Employees:		65 employees.
Vehicles:		Several motor vehicles.
Territory of sales:		Zambia
Location:		Leased premises, 10,000 square feet,
AUDITORS AND INSURANCE
Auditors:		Information not available.
Insurance Brokers:		Information not available.
FINANCE
Currency Reported:		Zambian Kwacha (ZMW.)
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 ZMW.)
			2017
Sales			12,500,000
BANK
Bank Name:		FIRST NATIONAL BANK ZAMBIA
Branch:		Plot No. 16808 Lumumba Road, Light Industrial Area, P.o. Box 36187 Lusaka, Zambia
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 65.02
UK Pound	1	INR 90.12
Euro	1	INR 80.91
ZMK	1	INR 6.72

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

INFORMATION DETAILS

Analysis Done by :	VIV
Report Prepared by :	KET

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.