Competition Tribunal File No: The Competition Tribunal In the matter of an Application by Safa Enterprises hie. doing business as My Convenience Store for an order pursuant to Section 103.1 of the Competition Act, RSC 1985 c. C-34, as amend •d granting leave to bring an application pursuant to Section 76 of the Competition Act
BETWEEN: Safa Enterprises Inc. Applicant AND: Imperial Tobacco Company Limited. Respondent
AFFIDAVIT IN SUPPORT OF NOTICE OF MOTION I, RAINA K. ADNAN of 11957 96A Avenue, Surrey BC V3V 2AS, MAKE OATH AND SAY AS FOLLOWS: 1. I am the sole Shareholder/Director of the Applicant Safa Enterprises Inc. ("SEI") carrying on business as My Convenience Store.
2. Being the sole Shareholder/Director of the Applicant I have auth rized my husband Adnan Mustafa to act on Applicant's behalf if the leave granted to bring an Application before Competition Tribunal.
3. t pplicant Safa Enterprises Inc. ("SEI") is a small family business establishment that happened to oe a corporation. 4. 1( my husband Adnan Mustafa and Applicant do not have funds to retain a legal counsel. We are ~nable to get any loan from banks or personal sources to retain a legal counsel.
5. Attached are the Financial Statements for the fiscal year ending December 31, 2012 of the t pplicant to reflect the financial position of the business.
Exhibit A {Financial Statements for the period ending 2012-12-31} 6. t t:tached Exhibit "A" reflects the financial position of the Applicant; the retained earnings are in deficit of $86,933.75 for the fiscal period ending December 31, 2012 .
7. Due to shareholders in Exhibit "A" is comprised of mostly borrowed capital from banks and <Dt:her personal sources.
8. My husband Adnan Mustafa is responsible for managing the Applicant's business and has complete knowledge of the situation that will be brought before Competition Tribunal.
9. My husband works 16-18 hours every day and always stressed out about the business as we are unable to meet our financial needs due to discriminating policy adopted by the Respondent I Imperial Tobacco Company Limited "ITCO" . 10. I am worried if something happens to my husband due to the stress he is facing to run the business, I will not be able to take care of the business, my husband and my 3.5 years old daughter in such a unfavorable circumstances created by discriminating behavior of ITCO towards Applicant' s business.
11. My husband has already gone through hard times, due to colon cancer treatment and doctors ~ re making him go through other tests, CT scan and Colonoscopy as they suspect that cancer
might be relapsing. I 12. Originally my husband's Colonoscopy was not due till June 2015. I believe it is all happening due to the stress he is going through since October 2012 when he found out about the discrimination policy adopted by the Respondent ITCO.
13. I will have all the medical records available for Competition Tribunal with the doctor's notes on lhis medical file to confirm my statement made under this Affidavit.
14. lln the event Competition Tribunal rules in the favor of Respondent, Competition Tribunal will have all the ass.ets owned by the Applicant to recover the cost of the Application.
15. In the event Competition Tribunal rules in favor of the Applicant, the Applicant would seek an dpinion from the Tribunal if the conduct of the Respondent was/is criminal in nature. 16. I am disappoi ted about why we were allowed to open up a small family business if discrimination by ITCO against our small establishment is legal. 17. IIw ill be more disappointed if we were not given an opportunity to bring our Application before ~he Competition Tribunal in presence of Section 76 of Competition Act which restricts discriminated policy adopted by the Respondent ITCO; just because we are a corporation and a cmrporation has to be represented by a legal counsel.
18. Mr. Thierry Schmidt, the Regional Sales Manager of ITCO has acknowledged and insisted to cwntinue the discrimination policy against the Applicant in his letter dated January 17, 2013.
Exhibit B {Mr. Schmidt Letter dated Jan 17, 2013} 19. I am attending school to be an Early Childhood Educator, so that I can keep my daughter with me while I am working in the event my husband's cancer relapses causing us further financia l ft'unch. I 20. My husband is; not a member of Law Society of British Columbia but have Background in pusiness studies and capable of researching the Competition Tribunal Rules and Procedures necessary toe sure that the Tribunal hearing will be conducted in businesslike manner. I 21. By bringing this Application, all we are trying to save our life savings invested in this business.
22. ~herefore, I seek an order from Competition Tribunal for leave to represent the Applicant in )Proceedings by my husband Adnan Mustafa, rather than a solicitor, pursuant to Rule 120 of the \Federal Rules of Court.
Dated at Vancouver, British Columbia, this 6th day of September, 2013. RaT a K. Adnan Director/Shareholder I Safa Enterprises Inc.
GOLZEfB-P:GRA-. ---------~·- =---~-··-~ __ _ ··--· _ ___ __ ,P_=UB,._,=LI"C'-A'-"C,,__C,~O'--"'U'-N'..!.T!.!A:!N~!..T'.~S- __ _ _ - . --- ----- -------- -- - - -- - ---- --_:·~--_--- -- - ------ -·-· --1o4-:7s4s132-STREET_ __ -- . - ----- ·--- ·--- ·- -- :-~- -- --- -- . This Is Exhibit •.LL: to tbi.~~-w--'~_J..__~ ~::.:::..:.~'~ss't-21i>NAN ~~-- ~- ~~--·-~- +1 ----,,,-~--~-. ---,--------- -~=.ll.L-. --•1--- - - BC thiu day of Sen ~No:tahry aPunb lic for the Provin..c.e.- -of\ _ ~~-=--~~=-=-~~~----Br_i· t_ is_h _Co_ lum_bi·a------~------·-· - ~- ==·--='=- ==-·-· -~·--~-~~---== NOTICE TO READER We have compiled the Balance Sheet of Safa Enterprises Inc. for the ye~r ended December 31 , 2012 and the Sl:atement of Income and Expenses for the year then endetl, from the information provided by management. We have not audited, reviewed or otherwise 1 accuracy or completeness of such information. Readers are cautioned that these statements may not be appropriate fortheir purposes.
{/u/I / Gulze~p Agha
------ ------~ ------------August 16, 201 .3
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SAFA ENTERPRISES INC. - •t--------- ------- - -- ~--- ---------- ------·- - - -----~--- -------111---NOTES TO FINANCIAL STATEMENTS - F.O.R-THE-YEARENDED DECEMBER 31 ,_2012. 1. GENERAL INFORMATION The accompanying statements reflect the revenue and expenditure for the period of twelve months from January 01 , 2012 to December 31, 2012.
These financial statements reflect the assets, liabilities,_revenues and expenses of and do not_ include any other assets, liabilities, revenues and expenses of the sharehc1lders or the liability of the shareholders for taxes on the earnings of the company.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Operation Financial statements have been prepared in accordance with generally accepted accounting principles. Fixed Assets are recorded at cost. Revenues and expenses are recorded on accrual basis.
3. CAPITAL ASSETS Capital assets are depreciated on diminishing balance method at the following rates. Furniture & equipmemt 20%-Accumulated Nlet Book Assets Cost Deoreciation Value Furniture & equipment 4,733 4,733 In the year of acquisition of an asset, one halfof the above rates are applied. 4. FINANCIAL INSTRUMENTS The company's financial instruments consist of cash, accounts receivable, accounts payable and long tenn debt. Unless otherwise noted, it is management's opinion that the company is nD 1 t exposed to significant interest, currency or credit risks arising from these financial instruments. The fair values of these financial instruments approximate their carrying values, unless otherwise noted.
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(These notes form an integral part of the Financial Statemr ts)
5. SHARE CAPITAL - - ---Autho~ized :_ 10,000 Common shares
Issued and fully paid : 1,0 00 Common shares without par value at $1 . 00 each
--- ----- 6. DUE TO SHAREHOLDERS Loans from Shareholders are not interest-bearing and have no fixed terms 1)f repayment. These have been classified as non-current.
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(These notes form an integral part of the Financial Statements)
Without par v11ue Without s_pecL~J rights or Restrictions attached
- - -- ------------- -- I--
I i -i ------- ------------ - ----- -- -- --~--- -------------------~-!--SAFA ENTERIRSES INC. BALANCE SHEET
/ AS AT DECEMBER 31 , 2012 (UNAUDITED) LIABILITIES AND SHAREHOLDERS' EQUITY
--------- -- --- CURRENT Bank overdraft Accounts payable & accruals Due to government agencies Total Current Liabilities Due to shareholders CAPITAL Issued and Fully paid 1000 common shares @ 1.00 each Retained Earnings Shareholders' Equity APPROVED ON BEHALF OF THE BOARD
DIRECTOR (see notice to reader) The accompanying notes are an integral part of financial statements
-- -- ---- - - - - - -
2012-·- · - --2011---- --- -$ $ - 4,141 .82 13,488.59 8,997.18 - 471.46 13,488.59 I 13,610.46 249,898.67 155,668.31 1,000.00 1,000.00 (86,933.75) (52,453.95) (85,933.75) (51,453.95) I 177,453.51 117,824.82
I - - - -- ----- - ~ - -------- . ··- - ---SAFA ENTERIRSES INC. - -- - --~ -- - ---- ------ ------------- -BALANCE SHEET
AS AT DECEMBER 31, 2012 (UNAUDITED)
ASSETS - - - -- --- - - - -- - CURRENT
Cash and bank Accounts receivables Due from govt. agencies Prepaid deposits Inventory Total Current Assets I FIXED I Furniture & equipment Goodwill Less accumulated depreciation Total Fixed Assets Organisation cost (see notice reader) The accompanying notes are an integral part of the financial statements. - - - - - -- - - - - - - -- I
I ~~ I
- - - 2012 - - wn ----$ $
2, 192.14 500.00 700.00 -25,627.70 15,191 .15 11,300.00 6,500.00 120,000.00 78,000.00 159,819.84 100,191 .15 4,733.67 4,733.67 12,500.00 12,500.00 - - I 17,233.67 17,233.67 400.00 400.00 177,453.51 117,824.82 ' - -- - -- -- -- - -
I --~ - ---- -+-- --··---- --- ----- - -- --- - ------- - -- ------ - - -- - - -- --- -- +-- -- ---~-- ____s_A F_A_ EN_T_E__R __I R _s__ E_ S_IN_c_._ _ -· STATEMENT OF RETAINED EARNINGS FOR THE PERIOD ENDED DECEMBER 31, 2012 (UNAUDITED)
1-- - - I
Balance at beginning of period (34.479.80) (52,453.95) Net lnc~me (Loss) for the~ period Balance at the end of period (86,933.75) (52,453.95) I I -(see n0tice to reader) 1-- --I
2012 2011 $ $ -c52;-453~95)·-----o---
I _J ------·---------------·---SAFA ENTERPRISES INC. -------- ----- - -- - STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2012 (UNAUDITED) REVENUE Sales Other ----------- --- - - ---- -·-- -DIRECT COST Inventory-opening Supplies Inventory-Closing Cost of goods sold GROSS MARGIN EXPENSES Accounting Advertising and promotion Automobile expenses Bank charges & intrest Business licence and pem1its Entertainment Office supplies and sundry Rent Repairs & maintenance Security Telephone Wages & benefits TOT AL EXPENSES Net Income before management salary Management Salary Net Income after mana~1ement salary (see notice to reader) (The accompanying notes are an integral part of financial statements)
--- --- -- -------------- -- ~,.__ 2012 2011 $ $ 324,079.83 198,227.84 11,668.79 3,954.00 78,000.00 -321,168.45 256,506.10 (120,000.00) {78,000.00) 279,168.45 178,506.10 56,580.17 23,675.74 2,000.00 2,000.00 - 100.43 1,080.66 4,402.59 3,979.70 3,378.05 287.00 281 .00 184.73 503.27 662.57 431 .75 57,957.14 43,035.71 1,149.11 3,577.30 364.00 142.87 4,514.27 3,618.11 12,880.79 8,658.61 85,059.97 I 70, 129.69 {28,479.80j {46,453.95) 6,000.00 / 6,000.00 (34,479.80 (52,453.95)
IMPERIAL TOBACCO -~~~--GG-MPANY Saira Khan - -- - - - - ·---··---· ·Notary-Public-tor tne· British Columbia - ·-------·--- ----- --
January 17, 2013 ,( Without Prejudice
Safa Enterprises Inc. dba_My ConvenienQe._Store._(ERP. # 1060295) c/o Mr. Adnan Mustafa, MaBagei' 450 West Hastings Street Vancouver, BC V6B 111
Dear Sir, I am writing in response to the complaint you made recently to your Acco~t Representative, Rob Laing, in relation with our expansion, preferred pricing program (the "PP' ").
AB you probably know, the main objective of this program is to ultimately offer lower retail prices to consumers on Imperial Tobacco products. The PPP i~ offered to selected retailers, comprised of both independent small businesses as well as corporate banners. It is legal to offer the PPP to some retailers, and not to all. We have attempted to select as any independent retailers as possible, keeping in mind that limited financial resources prevenj us from offering the PPP to·a ll customers.
Let me reassure you that we are, and continue to be, fully committed to 11 our customers, including those who are not participating in the PPP. We express our commitment to you and
your business in various manners. First, by offering you a winning brand po[ 1 folio comprising high quality products and unique innovations. Our portfolio provides you with the leading brands that adult smokers are looking for. Our commitment to your busines continues day in and day out through our DSS model, which ensures that your ITCO produc s are delivered to 1 yo~r store, hassle free and your ITCO Account representative is always avapable to help you with any issues that you may encounter. Finally, otir commitment to your Business is also to keep our prices as competitive as possible in each segment. In essence, our crmmitment to you is to offer popular and innovative brands, competitive prices and unique se ice through our
==~~~B:-S-S~medel.'·.: ""~~-~~----------------!------------
Imperial Toba7co Company Limited
--- - --- ----- --1329 - 4Sth Avenue NE ··-'-'= 0 =~·=calga?f,=Atf''f-ZE"-2p3"-canada Tel. 1-403-717-8020 __Fax 1-403-531-9589 Toll free 1-888-896-691 O .imperialtobaccocanada.com
1
lMPER.IAL TOBACCO - eoMP;ltN-Y- - -- -- - -- - -
I understand yo,µr disappointment from the fact that your outlet is not eligib e to PPP. But you should not underestimate the . benefits that you derive from. your participiation in our Low Segment Term Program ("LST Program"). Indeed, the LST Program ~rovides you with substantial-rebates-(whiclLare equivalenUo th~J>PP rebates) on John Player Standard which is the number 1 selling brand in Canada. In addition, if you wish to obtairi hi her rebates on our products, we invite you to consider the. option of adopting the PAD 0 day~ payment term. It would award you an additional rebate of $0.45 per carton of Premium and $0.35 per carton of Below Premium cigarettes. Ple:se consult with your Account Representative {Rob Laing at 778-874-7823) or your District Manager (Vincent Chai at 604-366-5085) if you ish to learn more about this option.
Thank you and regards, ·e rry Schmidt Regional Sales Manager
Imperial Tob, cco Company Limited
1329 - 45th Avenue NE Calgary, AB T2E 2P3 Canada Tel. 1-403-717-8020 Fax 1-403-531-9589 Toll free 1-888-896-691 O www.imperialtobaccocanada.com