MIRA INFORM REPORT

 

 

Report Date :

29th January, 2007

 

IDENTIFICATION DETAILS

 

Name :

EASTERN CAPE INDUSTRIES CC

 

 

Registered Office :

7 Bennett Street, Neave Industrial Park, Neave Township, Port Elizabeth, Eastern Cape

 

 

Country :

South Africa

 

 

Date of Incorporation :

29.09.1997

 

 

Com. Reg. No.:

1997/051776/23

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacture and distribution of cordials and cleaning aids.

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but Correct

 

 

Litigation :

Clear

 

COMPANY NAME

 

EASTERN CAPE INDUSTRIES CC

 

 

TRADING NAME

 

SPRING PRODUCTS

 

 

PHYSICAL ADDRESS

 

7 Bennett Street

Neave Industrial Park

NEAVE TOWNSHIP

Port Elizabeth

Eastern Cape

 

 

POSTAL ADDRESS

 

P O Box 4294

KORSTEN

6014

 

 

TELEPHONE NUMBER

 

(041) 451 2377

 

 

FAX NUMBER

 

(041) 451 1347

 

 

MEMBERS

 

100%  A H SOOMAR

 

 

 

ASSOCIATE COMPANIES

 

None

 

 

BANKERS

 

ABSA BANK, Main Branch, Port Elizabeth, account number 4047753927.  It was stated that the subject enjoys overdraft facilities to an extent of R240 000, secured by a cession of debtors.  Utilisation of the overdraft is stated to be partial.

 

 

DATE REGISTERED

 

29th September 1997

Registration Certificate Number 1997/051776/23

 

The subject was registered to take over a sole proprietorship which was originally commenced in 1993.

 

 

VAT NUMBER

 

4510172127

 

 

MAJOR OPERATION

 

Manufacture and distribution of cordials and cleaning aids.

 

 

MAJOR SUPPLIERS

 

PROTEA INDUSTRIAL CHEMICALS  Port Elizabeth

QUEST INTERNATIONAL

POLYOAK  Port Elizabeth

DUCKWORTHS  Cape Town

HENROSE PLASTICS  Port Elizabeth

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

Wholesalers, retailers and companies such as Spar.

 

 

AREA OF DISTRIBUTION AND SELLING

 

Southern Cape

 

 

EXPORTS

 

None

 

 

TOTAL EMPLOYEES

 

40

 

 

OTHER PREMISES

 

None

 

 

OWNED OR LEASED

 

Leased

 

 

MEMBERS CONTRIBUTION

 

R100

 

The following estimated financial situation was submitted:

 

STOCK                                                                                          R200 000 -   R   250 000

DEBTORS                                                                                                         R1 300 000

CREDITORS                                                                                                      R1 500 000

OVERDRAFT                                                                                                    R   150 000

TURNOVER per month                                                                                       R   850 000

 

 

AUDITORS

 

FINTAX TRUST

 

 

FINANCIAL YEAR END

 

FEBRUARY

 

 

INSURANCE BROKERS

 

PATRICK EKE INSURANCE BROKERS

 

 

TRADE REFERENCES – JULY 2000

 

             ACCOUNT   HIGHEST   AVERAGE     TERMS   PAYMENT      EXPERIENCE

             OPENED     CREDIT     CREDIT                       PATTERN

 

1.          02/1998       R75 000     R20 000 -       30 days   30 days          Very good

                               c/l             R30 000

 

2.          2 yrs           R500 000   R500 000       30 days   30 days          Good

 

3.          5 yrs+         do not disclose figures     60 days   60 days          Good

 

 

CURRENT TRADE REFERENCES

 

             ACCOUNT   HIGHEST   AVERAGE     TERMS   PAYMENT      EXPERIENCE

             OPENED     CREDIT     CREDIT                       PATTERN

 

1.                    Unable to trace account

 

2.          Old acc.      R400 000   R20 000 -       30 days   30/60 days     Very good

                                                R150 000

 

3.               Do not give trade references

 

4.          6 yrs           R100 000   R25 000         30 days   40 days          Good

 

 

COMMENTS

 

This is an established business meeting commitments over terms at times.  We would prefer to see dealings with the subject on a letter of credit basis in view of the slow payment and the relatively high creditors figure.

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

Unlimited

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

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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

 

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