MIRA
INFORM REPORT
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Report Date : |
23rd
June 2006 |
IDENTIFICATION
DETAILS
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Name : |
SOUTH AFRICAN FIBRE YARN RUGS LTD |
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Formerly Known As : |
Lotus
2000 Ltd |
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Registered Office : |
16 Van Eck Avenue Hammarsdale Kwazulu Natal |
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Country : |
South
Africa |
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Date of Incorporation : |
20 July 1963 |
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Legal Form : |
Unquoted Public Company |
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Line of Business : |
Engaged
in the business of manufacturing of polypropylene rugs and carpets as well as
the manufacturing of staple fibres and yarn. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
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Status : |
Good |
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
COMPANY NAME
SOUTH AFRICAN FIBRE
YARN RUGS LTD
(Unquoted Public
Company)
Formerly Lotus 2000 Ltd, the name having
been changed on 1 October 2001, formerly Pan Textiles Ltd the name having been
changed on 2 March 1995; formerly Pan Knitwear Ltd the name having been changed
on 10 May 1984; formerly Telosa Knitting Mills (Pty) Ltd the name having been
changed on 7 July 1964.
TRADING NAME
SAFYR
PHYSICAL ADDRESS
16 Van Eck Avenue
Hammarsdale
Kwazulu Natal
It should be noted
that the subject was previously situated at 5 Van Eck Avenue and has not moved,
but the municipality has renumbered the streets, so they are now at 16 and not
5 Van Eck Avenue.
POSTAL ADDRESS
P O Box 20
Hammarsdale
3700
TELEPHONE NUMBER: 031 736
7100
FAX NUMBER: 031
736 7115
SHAREHOLDERS
98.5% INDUSTRIAL DEVELOPMENT CORPORATION OF SOUTH
AFRICA LTD
1.5% SOUTH AFRICA INVESTMENTS LTD
On 15 December 2004, the previous 45% of the
company owned by PFE INTERNATIONAL INC in Liberia was taken over by the
INDUSTRIAL DEVELOPMENT CORPORATION OF SOUTH AFRICA LTD (IDC).
The subject previously changed its
shareholding in June 2001 and was previously 60% TOLARAM CORPORATION PTE, in
Singapore and 40% The INDUSTRIAL DEVELOPMENT CORPORATION OF SOUTH AFRICA LTD
ASSOCIATE COMPANIES
Companies within the IDC group of companies.
DIRECTORS
K M GOVENDER
P MOOPANAR
S MOLEPO
J G NGCOBO
P LUGAYENI
BANKERS
ABSA BANK, Long Market Street,
Pietermaritzburg, Account Number: 01003540126.
It was stated that the subject does not require an overdraft facility as
credit balances are maintained at the bank.
Please note that the subject no longer banks
with STANDARD BANK, Hillcrest Branch, Account Number 250783819.
DATE REGISTERED
20 July 1963
Registration
Certificate Number: 1963/003842/06.
The subject was placed into provisional
liquidation on 26 January 1994 and final liquidation on 24 February 1994. The liquidation was then set aside on 25
August 1994, Case No.227/94, and an offer of compromise was made to the
creditors and with effect from 1 January 1995 the subject then began operating
with different shareholders.
On 23 April 2001 an offer of compromise was
made to the creditors when the subject was taken over by the INDUSTRIAL
DEVELOPMENT CORPORATION OF SOUTH AFRICA LTD.
It was stated that PFE INTERNATIONAL INC bought into the subject as a
shareholder in June 2001 and the subject then once again commenced
manufacturing.
VAT NUMBER
49440148630
MAJOR OPERATION
Manufacturing of polypropylene rugs and
carpets as well as the manufacturing of staple fibres and yarn, which the
subject exports to GEO textile industries.
MAJOR SUPPLIERS
SAFCOR Durban
MAERSK SHIPPING Durban
CLARIANT
REVERTEX
DOW CHEMICALS
MAJOR CUSTOMERS OR BUSINESS
SECTORS
Wholesalers of rugs, distributors and
retailers: e.g. Consolidated Stores in the USA, Freds Stores in the USA and OK
Furniture, Pick ‘n Pay and Game (Massmart), in South Africa.
AREA OF DISTRIBUTION AND SELLING
South Africa
EXPORTS
USA and
Australia – It was stated that the staple fibres are exported to Europe and USA
and on a small
scale to
Zimbabwe and Mozambique.
TOTAL EMPLOYEES
100 approx.
OTHER PREMISES
None
OWNED OR LEASED
The head
office premises are reported to be owned by the subject and valued in the region of R22
million,
free of bond.
AUTHORISED SHARE CAPITAL
R21 887 007 divided into 21 887 007 ordinary R1 shares
ISSUED SHARE CAPITAL
R20 378 771
In January 2002 the
capital was increased from: 1 887 007 shares divided into 1 887 007 ordinary R1
shares to current.
SHARE PREMIUM ACCOUNT
R3 875 137
The following
estimated financial situation was submitted:
STOCK R12
000 000
DEBTORS R10
000 000
CASH R 200 000
PROPERTY(land
and buildings) R22
000 000
CREDITORS R 5 000 000
LOANS (long
term) Nil
CAPITAL
EMPLOYED R73
000 000
TURNOVER R54
000 000
AUDITORS
GRANT THORNTON
YEAR END
MARCH
INSURANCE BROKERS
ALEXANDER FORBES
TRADE REFERENCES
PERIOD HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
CREDIT CREDIT PATTERN
1. 2003 R600 000 R100
000 30 days 30 days Good
2. 5 yrs R300 000 R250
000 30 days 30 days Very
good
3. 2000 R500 000 R200
000 60 days 60 days Very
good
COMMENTS
This is a well-established and very well
connected company meeting its commitments timeously. The subject is considered equal to US$1 000 000 on DA terms.
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded
healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
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<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |