MIRA INFORM REPORT

 

 

 

Report Date :

16.12.2008

 

IDENTIFICATION DETAILS

 

Name :

CHARMFIT (PTY) LTD - DIVISION OF SEARDEL GROUP TRADING (PTY) LIMITED

 

 

Formerly Known As :

DESIREE CLOTHING MANUFACTURERS (PTY) LTD

 

 

Registered Office :

2nd Floor, Seardel House, Alphen Park, Constantia Main Road, Constantia, Cape Tow, Western Cape

 

 

Country :

South Africa

 

 

Date of Incorporation :

20.08.1968

 

 

Com. Reg. No.:

1968/009480/07

 

 

Legal Form :

Propriety Limited

 

 

Line of Business :

Manufacturers of textiles and clothing

 

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

 

CHARMFIT (PTY) LTD

 

 

PHYSICAL ADDRESS

                                                 

1 Moorsom Avenue

Epping Industria II

Cape Town

Western Cape

Telephone Number:                  021 505 5000

 

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

 

COMPANY NAME

 

SEARDEL GROUP TRADING (PTY) LTD

 

Formerly DESIREE CLOTHING MANUFACTURERS (PTY) LTD, the name having been changed on 15 May 1985.

 

 

TRADING DIVISIONS    

 

MANAGEMENT DIVISIONS:

SEARDEL MANAGEMENT SERVICES

SOUTH AFRICAN CLOTHING MANAGEMENT SERVICES

 

LINGERIE & FOUNDATION GARMENTS DIVISION:

CHARMFIT (manufacturing TRIUMPH INTERNATIONAL products under licence from TRIUMPH in Germany)

CAPE UNDERWEAR MANUFACTURERS

Incorporating -

CREATIVE FASHIONS

STRATON CLOTHING

PRESTIGE CLOTHING MANUFACTURERS

 

SPORTSWEAR & PLAYWEAR DIVISIONS:

CYGNET MANUFACTURING CO (brand name Speedo)

DERMAR DESIGN CENTRE

LITTLE NUMBER

BIBETTE

BONWIT

SOUTH AFRICAN CLOTHING LADIES WEAR

 

KNITTING, QUILTING & TEXTILE DIVISION:

BRITS NONWOVEN

FRAME TEXTILE GROUP

FRAME SPINNING

FRAME DENIM

FRAME FABRICS

FRAME KNITTING

FRAME MANCHESTER

FIRST FACTORY SHOPS

BERG RIVER TEXTILES

HEXTEX (Hex River Textiles)

ROMATEX GOLD REEF

GOLD REEF SPECIALITY CHEMICALS

ROMATEX HOME TEXTILES

DESIREE QUILTED PRODUCTS

MONVISO KNITWEAR

 

MENS OUTERWEAR DIVISION:

SOUTH AFRICAN CLOTHING MENSWEAR

DURBAN CLOTHING MANUFACTURERS

CAMBRIDGE SHIRT MANUFACTURERS

 

PROPERTY DIVISION:

SEARDEL GROUP PROPERTIES

 

 

PHYSICAL ADDRESS    

 

2nd Floor, Seardel House

Alphen Park

Constantia Main Road

Constantia

Cape Town

Western Cape

 

 

POSTAL ADDRESS   

 

Private Bag X8

Constantia

7800

Telephone Number:     021 794 3600

Fax Number:    021 794 2009    

 

The frame denim division is situated at:

 

2 Valley View Road, New Germany, Durban, Kwazulu Natal.

Telephone 031 710 4621.

Fax 031 710 4629

 

 

SHAREHOLDERS

 

100%     SEARDEL INVESTMENT CORPORATION LIMITED (Reg. No. 1968/011249/06) quoted on the JSE LTD.

 

 

ASSOCIATE COMPANIES

 

FRAME INDUSTRIALS (PTY) LTD

SEARTEC INDUSTRIES (PTY) LTD incorporating the divisions of SHARP ELECTRONICS and SCRIPTO

PRIMA TOYS & LEISURE TRADING (PTY) LTD

OCEANAIR TRAVEL (PTY) LTD (55%)

HARVEN MANUFACTURING COMPANY (PVT) LTD (50%)          

SUSTAINABLE FIBRE SOLUTIONS (PTY) LTD (39%)

BRITS AUTOMOTIVE SYSTEMS (PTY) LTD (66%)

 

As well as other companies within the Seardel Group of companies

 

 

DIRECTORS

 

DR A SEARLL               ID No. 3109255034007

A D JACOBSON            ID No. 3901275011084

G C DE BRUIN              ID No. 3704225038185

 

 

BANKERS

 

It was stated that SEARDEL GROUP TRADING (PTY) LTD uses all the major banks throughout South Africa, excluding FIRST NATIONAL BANK.  The subject’s main bank is ABSA BANK, Heerengracht branch.  It was stated that each trading division operates on its own bank account.

 

 

DATE REGISTERED

 

20 August 1968

Registration certificate number 1968/009480/07

 

The subject is reported to have taken over the assets and operations of various companies in the ROMATEX LTD and FRAME TEXTILE CORPORATION LTD groups together with subsidiary companies. 

 

VAT NUMBER

 

4540103605

 

 

MAJOR OPERATION

 

Manufacturers of textiles and clothing

 

 

MAJOR SUPPLIERS

 

It was stated that each division has its own suppliers as each division has different operations.

 

The HEXTEX DIVISION deals locally with:

 

HOSAF FIBRES Cape Town

DYSTAR SA

TIOXIDE

CHT SOUTH AFRICA

LANXESS

 

The CHARMFIT DIVISION deals locally with:

 

APPAREL COMPONENTS

INTERNATIONAL TRIMMING

BERGRIVIER TEXTILES

ZA TRANS

 

The FRAME DENIM DIVISION deals locally with:

 

DYESTAR Pietermaritzburg

PROTEA CHEMICALS Durban

CREST CHEMICALS Durban

CHEMAY Durban

VENKPAC Verulam

 

The ROMATEX HOME TEXTILES DIVISION deals locally with:

 

HOSAF FIBRES

STANDERTON MILLS

DERLON TEXTILES

CGS TRANSPORT

SOLO PACK

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS 

 

Major chain stores (e.g. Woolworths and Edgars), retailers and sport shops etc.

 

 

AREA OF DISTRIBUTION AND SELLING   

 

South Africa

 

 

EXPORTS

 

Europe, UK and Australia.

 

 

TOTAL EMPLOYEES

 

15 000 in the group

 

 

OTHER PREMISES

 

The subject has divisional premises countrywide, the bulk operations being in the Western Cape and also has 4 large factories in the Durban, Kwazulu Natal area.

 

 

OWNED OR LEASED

 

Most premises are reported to be owned by the group.

 

For financial information on the holding company please see the balance sheets and income statements for 6 months from December 2007 for the group.

 

 

AUDITORS    

 

KPMG

 

 

YEAR END    

 

JUNE

 

 

INSURANCE BROKERS 

 

HERITAGE

 

 

TRADE REFERENCES – APRIL 2005

 

       PERIOD       HIGHEST       AVERAGE      TERMS     PAYMENT    EXPERIENCE

                          CREDIT         CREDIT                          PATTERN    

 

1.    20 yrs+         R   300 000    R   300 000     60 days     60 days        Excellent

 

2.    5 yrs+          Do not disclose figures          60 days     60 days        Very Good

 

3.    5 yrs+          R1 000 000    R1 000 000     30 days     30 days        Very Good

 

 

TRADE REFERENCES – AUGUST 2007

 

       PERIOD       HIGHEST       AVERAGE      TERMS     PAYMENT    EXPERIENCE

                          CREDIT         CREDIT                          PATTERN    

 

1.    Old acc        declined        R300 000        60 days     60 days        Excellent

 

2.    10 yrs           R583 000       R144 000        30 days     30 days        Very Good

                                                                     3%

 

3.    Do not give trade references

 

4.    20 yrs           R  50 000       R  25 000        30 days     30 days        Excellent

 

5.    Do not give trade references

 

 

TRADE REFERENCES – JANUARY 2008   

 

HEXTEX DIVISION

 

       PERIOD       HIGHEST       AVERAGE      TERMS     PAYMENT    EXPERIENCE

                          CREDIT         CREDIT                          PATTERN    

 

1.    25 yrs           declined         R300 000        60 days     60 days        Very good

 

2.    Old acc        R  30 000       R  20 000        30 days     30 days        Very good

 

3.    5 yrs            R500 000       R500 000        30 days     30 days        Excellent

 

 

TRADE REFERENCES – NOVEMBER 2008

 

ROMATEX HOME TEXTILES

 

       PERIOD       HIGHEST       AVERAGE      TERMS     PAYMENT    EXPERIENCE

                          CREDIT         CREDIT                          PATTERN    

 

1.    Old acc       declined         R2 000 000 -   60 days     60 days+      Good

                                               R3 000 000

 

2.    Do not give trade references

 

3.    19997           R1 000 000    R   300 000     60 days     60 days        Very good

 

 

MAJOR SUPPLIERS 

 

CHARMFIT

APPAREL COMPONENTS

INTERNATIONAL TRIMMING

BERGRIVIER TEXTILES

ZA TRANS

 

 

TRADE REFERENCES – JULY 2008

 

CHARMFIT

 

       PERIOD       HIGHEST       AVERAGE      TERMS     PAYMENT    EXPERIENCE

                          CREDIT         CREDIT                          PATTERN    

 

1.    2002            R2 500 000    R   900 000 -   30 days     30 days        Very good

                          c/l                 R1 500 000                     2.5%

 

2.    1985             R  850 000     R   300 000 -   30 days     30 days        Very good

                          c/l                 R   800 000

 

3.    Group company

 

4.    Old acc        R2 000 000    R   500 000 -   30 days    30 days        Excellent

                          c/l                 R1 200 000

 

 

COMMENTS

 

This is a very well established and well-connected company. Its division is meeting its commitments timeously. The subject is considered equal to US$1 000 000 over DA terms. The imminent changes in the company should be borne in mind.

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.47.82

UK Pound

1

Rs.73.08

Euro

1

Rs.65.56

 

 

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