MIRA INFORM REPORT

Report No. :	498141
Report Date :	15.03.2018

IDENTIFICATION DETAILS

Name :	RAB PROCESSORS LTD
Registered Office :	Masauko Chipembre Highway, P. o. Box 5338, Limbe,
Country :	Malawi
Date of Incorporation :	01.09.1980
Com. Reg. No.:	2164
Legal Form :	Limited Corporation
Line of Business :	Suppliers of food and non-food products and also exports processed and unprocessed Agro-based products
No. of Employees :	2200

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 :	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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
Malawi	C1	C1

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

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, poor infrastructure, rampant corruption, high population growth, 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 80% of export revenues. The performance of the tobacco sector is key to short-term growth as tobacco accounts for more than half of exports, although Malawi is looking to diversify away from tobacco to other cash crops.

The economy depends on substantial inflows of economic assistance from the IMF, the World Bank, and individual donor nations. Donors halted aid from 2013 to 2016 because of concerns about corruption and fiscal carelessness, but the World Bank resumed budget support in May 2017. In 2006, Malawi was approved for relief under the Heavily Indebted Poor Countries (HIPC) program but recent increases in domestic borrowing mean that debt servicing in 2016 exceeded the levels prior to HIPC debt relief.

Heavily dependent on rain-fed agriculture, with corn being the staple crop, Malawi’s economy was hit hard by the El Nino-driven drought in 2015 and 2016, and now faces threat from the fall armyworm. The drought also slowed economic activity, led to two consecutive years of declining economic growth, and contributed to high inflation rates. Because of concerns about subsequent droughts, the government banned maize exports from 2016 to late 2017, causing a market glut and depressing local prices.

Source : CIA

Company name
Registered Name:	RAB PROCESSORS LTD
Requested Name:	RAB PROCESSORS LTD
Other Names:	None
ADDRESS AND TELECOMMUNICATION
Physical Address:	Masauko Chipembre Highway,
Postal Address:	P. o. Box 5338
	Limbe,
Country:	Malawi
Phone:	265-1-845200/ 841422/840439/842771
Fax:	265-1-844927/843293
Email:	rab@rabmw.com
Website:	www.rabmw.com
CREDIT OPINION
Financial Index as of December 2016 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:		1-Sept-1980
Reg. Number:		2164
Nominal Capital		MWK. 1,000,000
Subscribed Capital		MWK. 500,000
Subscribed Capital is Subscribed in the following form:
		Position		Shares
Mr. Abdul Gaffar Aboo Jakhura		Chairman		20%
Mr. Sai Kiran Josyabhatla		MD
Mr. Afzel Thassim		Finance Director
Mr. Hussein Aboo Jakhura		Director		20%
Mr. Abdul Rashid Aboo Jakhura		Director		20%
Mr. Mohamed Aboo Jakhura		Director		20%
Mr. Farook Mohamed Aboo Jakhura		Director		20%
Mr. Ahmed Sunka		Director
Mr. H.J.M. Kroese		Director
Mr. Hisham Jamaldeen		Manager
RELATED COMPANIES
None		Parent company.
None		Subsidiary company.
KULIMA GOLD DEPOTS MALAWI		Affiliated company.
Mr. Abdul Gaffar Aboo Jakhura, Mr. Hussein Aboo Jakhura, Mr. Abdul Rashid Aboo Jakhura, Mr. Mohamed Aboo Jakhura, Mr. Farook Mohamed Aboo Jakhura.		Shareholder of subject firm.
Lilongwe and Mzuzu in Malawi		Branches of the firm
OPERATIONS
Registered to operate as suppliers of food and non-food products and also exports processed and unprocessed Agro-based products
Imports:		Asia
Exports:		Neighboring countries
Trademarks:		None
Terms of sale:		Cash (30%) and 25-90 days (70%), invoices.
Main Customers:		Local agenices, stores, outlets and distributors
Employees:		2200 employees.
Vehicles:		Several motor vehicles.
Territory of sales:		Malawi
Location:		Owned premises, 20,000 square feet,
AUDITORS AND INSURANCE
Auditors:		Information not available.
Insurance Brokers:		Information not available.
FINANCE
Currency Reported:		Malawin Kwacha (MWK.)
Fiscal Year End:		December 31, 2016
Inflation:		According to information given by independent sources, the inflation at December 31st, 2016 was of 13%.
Financial Information not Submitted
Profit and Loss (expressed in MWK.)
			2016
Sales			2,750,000,000
BANK
Bank Name:		COMMERCIAL BANK OF MALAWI LTD
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	INR 64.99
UK Pound	1	INR 90.83
Euro	1	INR 80.58
MWK	1	INR 0.090

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

INFORMATION DETAILS

Analysis Done by :	NIS
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.