MIRA INFORM REPORT

 

 

 

Report Date :

05.08.2008

 

IDENTIFICATION DETAILS

 

Correct Name :

WELLINGTON INDUSTRIES (PTY) LTD

 

 

Formerly Known as :

Courtex Industries (Pty) Ltd

 

 

Registered Office :

2 Blignaut Street, Wellington, Western Cape

 

 

Country :

South Africa

 

 

Date of Incorporation :

16.09.1963

 

 

Com. Reg. No.:

1963/004981/07

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

The subject is reported to be a Holding Company.  The trading divisions are, however, stated to be involved in the wholesale of materials

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

COMPANY NAME

 

THE FABRIC LIBRARY (PTY) LTD

 

 

PHYSICAL ADDRESS    

 

61 Old Pretoria Road

 

 

POSTAL ADDRESS        

 

P O Box 912

HALFWAY HOUSE

1685

TELEPHONE NUMBER: 011 265 9000    

 

On investigation it was established that the subject is a trading division of WELLINGTON INDUSTRIES (PTY) LTD, which report should be consulted.

 

Contact was once again made with respondents at WELLINGTON INDUSTRIES (PTY) LTD who confirmed that THE FABRIC LIBRARY (PTY) LTD (Reg. No. 2001/003094/07) is a dormant company.  The assets and operations of the subject were incorporated into WELLINGTON INDUSTRIES (PTY) LTD and now are a trading division of this company, with effect 31 January 2001.

 

Therefore the legal entity of THE FABRIC LIBRARY (PTY) LTD is dormant and not trading and operations fall under WELLINGTON INDUSTRIES (PTY) LTD, which company is now responsible for all payments of THE FABRIC LIBRARY division.

 

Please see the attached report on WELLINGTON INDUSTRIES (PTY) LTD.

 

 

 

 

 

COMPANY NAME

 

WELLINGTON INDUSTRIES (PTY) LTD

 

Formerly Courtex Industries (Pty) Ltd, the name having been changed on 7 November 1995.

 

 

TRADING DIVISIONS    

 

FABRIC LIBRARY

 

 

PHYSICAL ADDRESS

 

2 Blignaut Street

WELLINGTON

Western Cape

 

 

POSTAL ADDRESS   

 

P O Box 101

WELLINGTON

7654

TELEPHONE NUMBER: 021 864 5000 / 868 3000

FAX NUMBER:  021 873 3513

 

It should be noted that HOME FABRICS division of WELLINGTON INDUSTRIES (PTY) LTD was sold off to a consortium retrospective from January  2008.

 

Although it is retrospective to the 1st January 2008 the finalisation of the sale of the business was finalised on the 23rd May 2008.

 

 

SHAREHOLDERS

 

100%    COURTHIEL HOLDINGS (PTY) LTD, which in turn is owned 80% by DAUN ET CIE AG, a company in Germany and 20% by BUILMA (PTY) LTD.

 

 

ASSOCIATE COMPANIES

 

Companies within the DAUN ET CIE group including the KAP INTERNATIONAL group of companies

 

SUBSIDIARY COMPANIES

 

TABLE BAY SPINNERS (PTY) LTD (dormant)

BOLAND FINE SPINNERS (PTY) LTD (dormant)

 

Both the latter companies are reported to be dormant and their cotton, spinning mill and dyeing operations have closed down.

 

 

DIRECTORS

 

C E DAUN

K WRIGHT

C P J KOTZE

 

 

BANKERS

 

FIRST NATIONAL BANK, Cape Town Corporate Branch, Account Number: 62023134901.  It was stated that the group enjoys substantial overdraft facilities, secured by the holding company.  Further information regarding banking facilities was not forthcoming from respondents at the subject.

 

 

DATE REGISTERED

 

16 September 1963

Registration Certificate Number: 1963/004981/07

 

The subject is reported to have taken over operations and assets of a company namely HOMEMAKERS GROUP LTD, which traded under the divisional names of Fabric Library and Home Fabrics, with effect from 31 January 2001.

 

The subject took over the assets and operations of a company, WELLINGTON INDUSTRIES (PTY) LTD, which was originally commenced in 1953.  The latter company changed its name to INDUSTEX WESTERN CAPE (PTY) LTD.

 

 

VAT NUMBER          

 

4330103846  It was stated that the divisions have their own VAT numbers

 

 

MAJOR OPERATION

 

The subject is reported to be a holding company.  The trading divisions are, however, stated to be involved in the wholesale of materials.  It was stated that a group company manufactures textiles, polyester and acrylic yarn.

 

 

MAJOR SUPPLIERS

 

CHT SA Durban

DYSTAR

CLARIANT

FREDISCO DYES

FFS REFINERS

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

Garment manufacturers and knitting factories.

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

None.

 

 

TOTAL EMPLOYEES

 

308 for WELLINGTON INDUSTRIES (PTY) LTD and 200 for the divisions.

 

 

OTHER PREMISES   

 

WELLINGTON only has the head office premises where a dyeing plant is situated.  The head office of Home Fabrics is situated in Midrand, with a satellite showroom in Kramerville, and showrooms in Cape Town, Durban and Port Elizabeth.  The Fabric Library head office is situated in Halfway House, and they have showrooms in Cape Town, Durban and Port Elizabeth.

 

 

OWNED OR LEASED

 

The head office premises are reported to be owned by a group company and the other premises are stated to be leased.

 

 

AUTHORISED SHARE CAPITAL

 

R100 divided into 100 ordinary shares of R1 each

 

ISSUED SHARE CAPITAL

 

R2

Full financial information was not forthcoming from respondents at the subject and outside authorities were unable to assist in this regard.

 

 

AUDITORS    

 

DELOITTE

 

 

YEAR END    

 

DECEMBER

 

 

INSURANCE BROKERS

 

ALEXANDER FORBES

 

 

TRADE REFERENCES - MARCH 2007

 

ACCOUNT        HIGHEST         AVERAGE         TERMS             PAYMENT         EXPERIENCE

OPENED           CREDIT           CREDIT                                    PATTERN

 

1.25 yrs                        R1 500 000        R400 000-         60 days             60+ days           Fair

R500 000                                  needs monitoring

 

2.Old acc          R   150 000       R100 000-         60 days             60 days             Good

R150 000

 

 

TRADE REFERENCES – JULY 2007

 

ACCOUNT        HIGHEST         AVERAGE         TERMS             PAYMENT         EXPERIENCE

OPENED           CREDIT           CREDIT                                    PATTERN

 

1.10 yrs                        R800 000+        R800 000 -        7 days              7 days+                        Slow

R753 000 outstanding

 

2.1995              R500 000          R200 000 -        30/60                30/60 days        Good

R500 000          days     discount

 

3.25 yrs                        R600 000          R600 000          60 days             70 days             Average

Reference on subsidiary:  Table Bay Spinners

 

 

TRADE REFERENCES – OCTOBER 2007

 

ACCOUNT        HIGHEST         AVERAGE         TERMS             PAYMENT         EXPERIENCE

OPENED           CREDIT           CREDIT                                    PATTERN

 

1.7 yrs              R150 000          R  50 000          60 days             60 days             Good

 

2.Old acc          R295 000          R100 000          30 days             30 days             Good

 

3.20 yrs                        R200 000          R  60 000          30 days             30 days             Good

 

 

TRADE REFERENCES – MAY 2008

 

ACCOUNT        HIGHEST         AVERAGE         TERMS             PAYMENT         EXPERIENCE

OPENED           CREDIT           CREDIT                                    PATTERN

 

1.Old acc          R250 000          R250 000          60 days             60 days             Excellent

 

2.10 yrs                        declined            R  60 000          60 days             60 days             Very good

 

3.Old acc          declined            R100 000          60 days             60 days             Very good

 

 

CURRENT TRADE REFERENCES – MAY 2008

 

ACCOUNT        HIGHEST         AVERAGE         TERMS             PAYMENT         EXPERIENCE

OPENED           CREDIT           CREDIT                                    PATTERN

 

1.20 yrs±           R200 000          R  50 000          30 days             30 days             Very good

c/l                                             2.5%                 2.5%

 

2.10 yrs                        R60 000            R  50 000          60 days             60 days             Good

 

3.Old acc          R100 000          R  50 000 -        60 days             60 days             Good

R100 000

4.Do not give trade references

 

 

COMMENTS

 

This is a large, well established and well connected company meeting commitments timeously.  We have not traced dealings to an extent of US$1 000 000 over DA terms and would prefer to see a far lesser figure on a well spread basis.  The lack of financial information should be borne in mind.

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.42.28

UK Pound

1

Rs.82.79

Euro

1

Rs.65.69

 

 

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