MIRA INFORM REPORT

 

 

Report Date :

07.11.2007

 

IDENTIFICATION DETAILS

 

Name :

DAVINSCOT TONGAAT (PTY) LTD

 

 

Formerly Known As :

DAVINSCOT HOLDINGS (PTY) LTD

 

 

Registered Office :

27 - 29 Edmund Morewood Road, Truroland, TongaaT, Kwazulu Natal

 

 

Country :

South Africa

 

 

Date of Incorporation :

8.04.1984

 

 

Com. Reg. No.:

1984/002350/07

 

 

Line of Business :

Clothing Manufacturing

 

 

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

 

DAVINSCOT TONGAAT (PTY) LTD

 

Formerly DAVINSCOT HOLDINGS (PTY) LTD, the name having been changed.

 

 

PHYSICAL ADDRESS

 

27 - 29 Edmund Morewood Road

Truroland

TONGAAT

Kwazulu Natal

 

 

POSTAL ADDRESS

 

Private Bag X47

TONGAAT

4400

 

 

REGISTERED OFFICE

 

19 Buro Crescent

MAYVILLE

Kwazulu Natal

4091

TELEPHONE NUMBER:  031 203 5600

FAX NUMBER:                031 203 5650

 

It was stated by the respondent that the subject moved from 122 Ramsy Street, Mayville approximately 3 years ago.

 

 

SHAREHOLDERS:

 

62,5%   FALSE BAY CANNERS (PTY) LTD

37,5%   GERBER GOLDSCHMIDT GROUP (SA) (PTY) LTD

 

 

ASSOCIATE COMPANIES:

 

DAVINSCOT DURBAN (PTY) LTD (dormant)

DAVINSCOT KWAZULU NATAL (PTY) LTD, which company is reported to only own assets and machinery

DAVINSCOT INVESTMENTS (PTY) LTD (property owning company)

 

DIRECTORS:

 

G D BUCK

P S HOWARD

F J WESSELS

E G THOMAS

J A EVANS

M F WHITEHEAD

 

 

BANKERS

 

STANDARD BANK, Overport Branch, Account Number: 250550571.  The subject is also reported to bank with NEDBANK Gale Street Branch, Account Number: 138129836.  It was stated that the subject enjoys overdraft facilities to a total extent of R10 million, secured by personal guarantees of the directors and a cession of debtors.  Utilisation is stated to be minimal in the last 2 years.

 

 

DATE REGISTERED:

 

8 March 1984

Registration Certificate Number: 1984/002350/07

 

It was stated that the subject was originally commenced in 1933.  The subject is reported to have taken over assets and operations of 2 well-established companies namely DA VINCI SHIRTS and ASCOT CLOTHING MANUFACTURERS.

 

 

MAJOR OPERATION:

 

Clothing manufacturers

 

 

MAJOR SUPPLIERS:

 

The subject imports most of its supplies and deals locally with:

 

SA MERCANTILE  Durban

SBH COTTON MILLS Durban 

FRAME TEXTILE CORPORATION 

COBITEX AGENCIES  Durban

DA GAMA TEXTILES  East London

STAFLEX  Durban

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS:

 

Retailers, e.g. Woolworths, Truworths, Markhams, Levi Strauss & Co and Cape Union Mart, etc.

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

None

 

 

TOTAL EMPLOYEES

 

1925

 

 

OTHER PREMISES

 

The subject is reported to have 8 factories in Kwazulu Natal.

           

 

OWNED OR LEASED

 

The Tongaat factory premises are reported to be owned by the associate property owning company and valued in the region of R9 million, bonded in favour of NEDBANK to an extent of R2 million.    The head office premises are reported to be valued in the region of R3.2 million, bonded in favour of NEDBANK to an extent of R2.6 million.

 

The subject has recently purchased a factory in Verulam which is valued at R2  million, bonded in favour of NEDBANK to an extent of R1.5 million.

 

 

ISSUED SHARE CAPITAL

 

R120

 

The following estimated financial situation was submitted:

 

STOCK                         R  33 000 000

DEBTORS                     R14 000 000 – R  27 000 000

CREDITORS                  R  11 000 000

TURNOVER per annum  R215 000 000

 

 

AUDITORS

 

MOORES ROWLAND

 

 

YEAR END

 

DECEMBER

 

 

INSURANCE BROKERS

 

BAY UNION

 

 

TRADE REFERENCES – JANUARY 2006:

 

            ACCOUNT        HIGHEST          AVERAGE         TERMS PAYMENT         EXPERIENCE

            OPENED           CREDIT            CREDIT                        PATTERN

 

1.         20 yrs               R1 000 000        R1 000 000        30 days 30 days             Excellent

                                    c/l

 

2.         1997                 R   500 000       R     40 000       30 days 30 days             Very good

                                    c/l

 

3.         5 yrs                 R   650 000       R   100 000       60 days 60 days             Excellent

                                    c/l

 

 

TRADE REFERENCES – APRIL 2007:

 

            ACCOUNT        HIGHEST          AVERAGE         TERMS PAYMENT         EXPERIENCE

            OPENED           CREDIT            CREDIT                        PATTERN

 

1.         5 yrs                declined            declined            30 days 30 days             Very good

 

2.         5 yrs                 R650 000          R250 000          60 days 30 days             Excellent

 

3.         1997                 R550 000          R150 000±         30 days 30 days             Good

 

 

CURRENT TRADE REFERENCES:

 

            ACCOUNT        HIGHEST          AVERAGE         TERMS PAYMENT         EXPERIENCE

            OPENED           CREDIT            CREDIT                        PATTERN

 

1.         20 yrs  R1 000 000        R   500 000 -     30 days 30 days Very good

                                    R1 200 000

 

2.         Do not give trade references

 

3.         2003     R   299 000       R     20 000       30 days 30 days Good

 

4.         1997     R   552 000       R   100 000       30 days 30 days Good

COMMENTS:

 

This is an established company that forms part of a large group.  The subject is meeting its commitments timeously.  We have not traced dealings to an extent of US$1 000 000 DA and would prefer to see such a figure spread over 90 days.

 

 

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.

 

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