MIRA
INFORM REPORT
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Report Date : |
04.08.2008 |
IDENTIFICATION
DETAILS
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Correct Name : |
EDUCAT EDUCATIONAL ENTERPRISES CC |
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Registered Office : |
40 Long Street, Maitland, Cape Town, Western
Cape |
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Country : |
South Africa |
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Date of Incorporation : |
07.05.1999 |
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Com. Reg. No.: |
1999/024820/23 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Publishers of Educational products being children’s educational
books from charts to science kits, etc |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Small Company |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
COMPANY
NAME
EDUCAT
PUBLISHERS (PTY) LTD
PHYSICAL
ADDRESS
40 Long Street
Maitland
CAPE TOWN
Western Cape
TELEPHONE NUMBER: 021
510 7680
FAX NUMBER: 021
511 8797
On investigation it was established that the correct
registered name of the subject is EDUCAT EDUCATIONAL ENTERPRISES CC trading as
EDUCAT PUBLISHERS, which report should be consulted.
On investigation it was established that there is no
record of a company registered as EDUCAT PUBLISHERS (PTY) LTD.
On contacting respondents at the heading address it
was established that the correct
name of the subject is EDUCAT EDUCATIONAL ENTERPRISES CC, however, the owner of
the company also has a business named EDUCAT PUBLISHERS in the UK.
Please see report
attached on EDUCAT EDUCATIONAL ENTERPRISES CC.
COMPANY NAME
EDUCAT EDUCATIONAL ENTERPRISES CC
TRADING
DIVISION
EDUCAT PUBLISHERS
CHART STUDIO
PHYSICAL
ADDRESS
40 Long
Street
Maitland
CAPE TOWN
Western Cape
POSTAL
ADDRESS
P O Box 881
GREENPOINT
8051
TELEPHONE NUMBER: 021 510 7680
FAX NUMBER: 021
511 8797
EMAIL: educat@mgh.co.za
WEBSITE
ADDRESS
www.educat.co.za
www.chartstudio.com
MEMBERS
100% K C BLAIR ID No. 4108105104100
ASSOCIATE
COMPANIES
EDUCAT PUBLISHERS
UK LTD
MIGHTY GROUP HOLDINGS (PTY) LTD (dormant)
MIGHTY GROUP PROPERTIES (PTY) LTD
EDUCAT SWISS LTD (dormant)
EDUCAT HONG KONG LTD (dormant)
The latter two companies do not trade as they are
registered purely for the application of trademarks, patents and copyrights in
China and other countries.
BANKERS
ABSA BANK, Tyger Valley Branch. It was stated that the subject has
individual overdraft facilities as well as group overdraft facilities, secured
by a pledge of properties. Utilisation
is stated to be nil as credit balances are normally maintained at the bank.
The subject has many bank accounts, but ABSA BANK,
Tyger Valley is the main trading account.
DATE
REGISTERED
7 May 1999
Registration Certificate Number 1999/024820/23
EDUCAT PUBLISHERS was previously a division of the company
MIGHTY GROUP HOLDINGS (PTY) LTD and had been trading for a number of
years. In 2006, the division was taken
out of MIGHTY GROUP (PTY) LTD and put into a shelf close corporation and active
operations commenced. At the beginning
of February 2007 the opposition company to EDUCAT EDUCATIONAL ENTERPRISES CC,
namely CHART STUDIOS, went into liquidation and the subject then purchased the
business out of liquidation and have continued using that trading style.
VAT
NUMBER
4220223574
MAJOR
OPERATION
Publishers of educational products being children’s
educational books from charts to science kits, etc. The business of EDUCAT is represented in more than 90 countries
worldwide in 28 languages. The educational
books and products are for children varying in age from 0 years to 15 years of
age.
The business of EDUCAT is owned worldwide by K C BLAIR
and was founded originally in Newport Beach in California in approximately
1972.
MAJOR
SUPPLIERS
T D SHIPPING Cape Town
PRIME TIME EXPRESS (Sky Net Couriers) Cape Town
PACK-IT Cape Town
WALTONS Cape Town
FREIGHT FORWARDING
MAJOR
CUSTOMERS OR BUSINESS SECTORS
Overseas retailers, educational centres, publishers and
companies such as NASPERS, NASOVCA AFRICA as well as OXFORD UNIVERSITY and
other universities. The subject has 3
markets being the educational market being schools; mass market which is
retailers and consumers; and display market which is book clubs or ordering via
book orders.
AREA
OF DISTRIBUTION AND SELLING
10% to Africa and 90% out of South Africa being UK and
USA.
TOTAL
EMPLOYEES
12
OTHER
PREMISES
The subject has offices in the UK and agents in South
Africa
OWNED
OR LEASED
The premises are reported to be owned by MIGHTY GROUP
PROPERTIES (PTY) LTD and valued in the region of R6.5 million, free of bond.
The following estimated financial situation was
submitted:
STOCK R 7 500 000
DEBTORS R 3 500 000
CASH on hand R 3 200 000
FIXED ASSETS R1
200 000 – R 1 400 000
CREDITORS R 300 000
LONG TERM
LIABILITIES Nil
LOANS to KC Blair R 4 000 000
TURNOVER per annum R21
000 000
It was stated that
the subject’s fixed assets have tripled by taking CHART STUDIO into the subject
and the biggest asset of the company is the intellectual property, trademarks
as well as the name.
AUDITORS
FORTUNATE BUSINESS SERVICES, Cape Town 021 421 3909
YEAR
END
FEBRUARY
INSURANCE
BROKERS
ALEXANDER FORBES
TRADE REFERENCES – FEBRUARY 2007
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 19 yrs R100 000 R120
000 30 days 30 days Excellent
2. 2 yrs+ R 20 000 R
6 000 - 30 days 30/45 days Good
R 20 000
3. 1996 R450 000 R300
000 30 days 30 days Excellent
CURRENT TRADE REFERENCES
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 10 yrs open R150
000 30 days 30 days Good
2. 5 yrs declined R 5 000 - 30
days 45 days Good
R 10 000
3. 3 yrs open R 1 000 30
days 30 days Good
COMMENTS
This is an established business meeting its smaller
commitments over terms at times. We
have not traced dealings to an extent of US$1 000 000 and would prefer to see a
far lesser figure spread and secured.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.42.37 |
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UK Pound |
1 |
Rs.84.00 |
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Euro |
1 |
Rs.65.96 |
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%)