MIRA INFORM REPORT

 

 

Report Date :

26.07.2007

 

IDENTIFICATION DETAILS

 

Name :

EUROPEAN METAL TRADING (AFRICA) (PTY) LTD

 

 

Registered Office :

P O Box 47032, Greyville, 4023,

 

 

Country :

South Africa

 

 

Date of Incorporation :

02.03.1998

 

 

Com. Reg. No.:

1998/003808/07

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Export of scrap metals

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

COMPANY NAME

 

EUROPEAN METAL TRADING (AFRICA) (PTY) LTD

 

 

TRADING NAME

 

EUROTRADE

 

 

PHYSICAL ADDRESS

 

20 – 24 Kent Road

Greyville

Durban

KwaZulu-Natal

 

 

POSTAL ADDRESS

 

P O Box 47032

GREYVILLE

4023

TELEPHONE NUMBER  : 031 308 9400

FAX NUMBER               : 031 309 7744

 

 

SHAREHOLDERS

 

M FLANAGAN

D G FLANAGAN (brother)

I M DAVIE

 

 

ASSOCIATE COMPANIES

 

CADE MANAGEMENT CC, trading as SCRAPMET

LEE SCRAP METALS CC

CASHMET CC

METAL SOLUTIONS CC

 

 

DIRECTORS

 

M FLANAGAN

D G FLANAGAN (brother)

I M DAVIE

BANKERS

 

STANDARD BANK, Jacobs Branch, Account Number 051771632.  It was stated that the subject enjoys overdraft facilities to an extent of R2 million, secured by the shareholders guarantees..  Utilisation of the overdraft is stated to be partial.

 

 

DATE REGISTERED

 

2 March 1998

Registration Certificate Number 1998/003808/07

 

 

VAT NUMBER

 

4730173052

 

 

MAJOR OPERATION

 

Export of scrap metals.

 

 

MAJOR SUPPLIERS

 

BIDPORT OPERATIONS  Durban

R P T TRANSPORT

MASSLIFT  Durban

REDSCRAP  Richards Bay

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

End users and manufacturers.

 

 

AREA OF DISTRIBUTION AND SELLING

 

The subject exports to China, Korea and UK.

 

 

TOTAL EMPLOYEES

 

±120

 

 

OTHER PREMISES

 

The subject is reported to have premises at Kent Road, Durban, a branch in Phoenix and various bucket shops on sites in the Kwazulu Natal area.

 

 

OWNED OR LEASED

 

The head premises and the Phoenix premises are reported to be owned by the subject valued in the region of R15 million, free of bond.

 

 

ISSUED SHARE CAPITAL

 

R200

 

The Following estimated financial situation was submitted:

 

STOCK (inventory)                                                         R  3 000 000

DEBTORS (trade & other receivables)                              R10 000 000

FIXED ASSETS (property, plant & equipment)                  R23 000 000

CREDITORS (trade & other payables)                              R  5 000 000

OVERDRAFT                                                                R  1 500 000

LONG TERM LIABILITIES                                               R12 000 000

LOANS (interest bearing borrowings)                                                 R

CAPITAL EMPLOYED                                                    R  4 000 000

TURNOVER per annum                                                  R64 000 000

 

 

AUDITORS

 

SWABY & CO

 

 

YEAR END

 

FEBRUARY

 

 

INSURANCE BROKERS

 

STEVE SLATTER & CO

 

 

TRADE REFERENCES JUNE 2005

 

            ACCOUNT         HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT CREDIT                         PATTERN

 

1.         5 yrs+               R70 000            R40 000            30 days             30 days             Very good

                                    c/l

 

2.         ±8 yrs               R15 000            R12 000 -          30 days             30 days             Very good

                                    R15 000

 

3.         Few yrs             R30 000            R20 000 -          30 days             60 days             Fair

                                                            R30 000

 

 

CURRENT TRADE REFERENCES

 

            ACCOUNT         HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT CREDIT                         PATTERN

 

1.         Do not give trade references

 

2.         10 yrs               R30 000            R20 000            30 days             30 days             Very Good

                                    c/l

 

3.         5 yrs+               open acc           R300 000          30 days             30 days             Very Good

 

 

COMMENTS

 

This is a well established company meeting its commitments timeously.  The subject is considered equal to its normal business engagements.

 

                                   

  

             

           

                                                                       


 

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

 

 

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%)

 

 

 

 

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