MIRA
INFORM REPORT
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Report Date : |
22.08.2007 |
IDENTIFICATION DETAILS
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Name : |
SAPPI FINE PAPER (PTY) LTD |
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Registered Office : |
Enstra Mill, |
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Country : |
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RATING & COMMENTS
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MIRA’s Rating : |
C |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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Status : |
Dormant Company |
COMPANY NAME
SAPPI FINE PAPER (PTY) LTD
PHYSICAL ADDRESS
ENSTRA MILL
Springs
POSTAL ADDRESS
SPRINGS
1560
TELEPHONE NUMBER : (011) 360-0000
On investigation it was established that the subject is a dormant non-trading company from a legal entity point of view. The company has an agency agreement with its holding company, SAPPI MANUFACTURING (PTY) LTD and all business transactions are conducted as an operating division of SAPPI MANUFACTURING (PTY) LTD, which report should be consulted.
The following suppliers and trade references were obtained on SAPPI FINE PAPERS.
MAJOR SUPPLIERS
BASF
STRATA SA
IDWALA SALES
BUCKMAN LABORATORY
TRADE REFERENCES
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. Do not give trade references.
2. Do not give trade references.
3. Old acc declined declined 30 days 30
days Very good
4. 10 yrs open
acc R2 000 000 30 days 30
days Excellent
2.5% 2.5%
COMPANY NAME
SAPPI MANUFACTURING (PTY) LTD
Formerly
SICOR (PTY) LTD, the name having been changed in February 1989.
TRADING NAME
SAPPI KRAFT (PTY) LTD
TUGELA MILLS
SAPPI WASTE
NGODWANA MILL
SAPPI FINE PAPERS (PTY) LTD
ENSTRA MILL
STANGER MILL
ADAMAS MILL
SAPPI FORESTS (PTY) LTD
SAPPI SAICCOR (PTY) LTD
PHYSICAL ADDRESS
BRAAMFONTEIN
POSTAL ADDRESS
BRAAMFONTEIN
2017
TELEPHONE NUMBER: 011 407 8111
FAX NUMBER: 011 403 0602
SAPPI MANUFACTURING (PTY) LTD is reported to be responsible for all debt incurred by the agency companies that sell under it, namely SAPPI KRAFT (PTY) LTD; SAPPI FINE PAPERS (PTY) LTD; SAPPI FORESTS (PTY) LTD; and SAPPI SAICCOR (PTY) LTD
SHAREHOLDERS
100% SAPPI LTD (quoted on the JSE Ltd)
ASSOCIATE COMPANIES
SAPPI MANAGEMENT SERVICES
SAPPI TRADING
SAPPI EXPORT SERVICES (PTY) LTD
SAPPI USUTU PULP COMPANY (PTY) LTD
Plus other companies within the SAPPI GROUP.
DIRECTORS
B M DICK
M R THOMPSON
J H LABUSCHAGNE
V A R LUBBE
A D TUBB
A J W VAN DER MERWE
A ROSSI
D M
H DE JONGH
D VAN AARDE
C M MOWATT
BANKERS
FIRST NATIONAL BANK Johannesburg Corporate branch is the main account. It was, however, stated that each division has its own account in various areas. It was stated that the subject is managed by a cash management scheme controlled by SAPPI LTD. It was stated that the subject also banks with NEDBANK, STANDARD and ABSA.
DATE REGISTERED
12TH September 1951
Registration certificate number 1951/003180/07
VAT NUMBER
4750105456
MAJOR OPERATION
Forest product company, being manufacturers and distributors of tissue, timber and mining timber, as well as manufacturing of pulp and paper, craft paper, craft sacking and fine paper (coated and uncoated).
MAJOR SUPPLIERS
The respondent stated that each division has its own suppliers. Please see narrative report on SAPPI FINE PAPER (PTY) LTD attached.
MAJOR CUSTOMERS OR
BUSINESS SECTORS
Industry in general.
AREA OF DISTRIBUTION
AND SELLING
EXPORTS
Worldwide
TOTAL EMPLOYEES
6 000 approx.
OTHER PREMISES
The subject has premises in
OWNED OR LEASED
It was stated that most of the subject’s large factory premises are owned by group companies, while the head office premises are reported to be leased.
AUTHORISED SHARE
CAPITAL
R12 105 000 divided into 4 008 750 "A" shares and 2 004 375 "B" shares of R2 each; 10 000 "C" ordinary shares of R2 each and 29 375 unspecified ordinary shares of R2 each.
ISSUED SHARE CAPITAL
4 008 750 "A" ordinary shares of R2 each, 2 004 375 "B" ordinary shares of R2 each and 1500 "C" ordinary shares of R2 each
Attached please see extracts from the latest available JSE Ltd handbook on the holding company as respondents declined to provide finances on the subject.
AUDITORS
DELOITTE,
YEAR END
SEPTEMBER
INSURANCE BROKERS
ALEXANDER FORBES
TRADE REFERENCES
Please see trade references on SAPPI FINE PAPER (PTY) LTD attached.
COMMENTS
This is a very well established and well connected company. The subject is considered equal to its normal business engagements.
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. |
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 |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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 and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)