MIRA INFORM REPORT

 

 

Report Date :

02.02.2008

 

IDENTIFICATION DETAILS

 

Name :

NON-FERROUS METAL WORKS (S.A.) (PTY) LTD

 

 

Registered Office :

288 - 306 Balfour Road, JACOBS, Durban, Kwazulu Natal

 

 

Country :

South Africa

 

 

Date of Incorporation :

20.02.1951

 

 

Com. Reg. No.:

1951/000559/07

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Non-ferrous metal smelters, manufacturers, merchants, extruders and traders as well as allied products

 

 

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

 

NON-FERROUS METAL WORKS (S.A.) (PTY) LTD

 

 

PHYSICAL ADDRESS

 

288 - 306 Balfour Road

JACOBS

Durban

Kwazulu Natal

 

 

POSTAL ADDRESS

 

P O Box 25

DURBAN

4000

Telephone Number:031 480 7388 / 9

Fax Number:031 468 6934

 

 

SHAREHOLDERS

 

50%      BERNHARD LAZARUS INVESTMENTS (PTY) LTD

50%      GUNTHER LAZARUS INVESTMENTS (PTY) LTD

 

It was stated that G LAZARUS, who passed away a few years ago, was the father of B LAZARUS

 

 

ASSOCIATE COMPANIES

 

PRIME METAL INDUSTRIES (PTY) LTD (100% subsidiary)

 

Plus more companies in the group which are reported to be family owned businesses.

 

 

DIRECTORS

 

B LAZARUS (Father)

S E LAZARUS (Cousin)

R S LAZARUS (Son)

H J WADE

W WHITING

S LEIBOWITZ (Mrs) (Company Secretary)

 

 BANKERS

 

STANDARD BANK, Jacobs Branch, Account Number 251294927.  It was stated that the subject enjoys total overdraft facilities of R35 million, secured by a cession of debtors.  Utilisation is stated to fluctuate.

 

It was stated that the subject has an overnight borrowing facility with INVESTEC BANK to an extent of R35 million.

 

 

DATE REGISTERED

 

20 February 1951

Registration Certificate Number: 1951/000559/07

 

The subject was commenced as a new business.

 

VAT NUMBER

 

4370108260

 

 

MAJOR OPERATION

 

Non-ferrous metal smelters, manufacturers, merchants, extruders and traders as well as allied products.

 

 

MAJOR SUPPLIERS

 

The subject imports on a small scale and deals locally with:

 

DEMAG Johannesburg

THYSSEN MARATHON STEEL

EXXARO

HULETTS ALUMINIUM

MICOR SHIPPING

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS:

 

Manufacturing and engineering industries e.g. tap manufacturers, e.g. Cobra and lock manufacturers e.g. Securex

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

North Africa, Far East and the USA.

 

 

TOTAL EMPLOYEES

 

450

 

 

OTHER PREMISES

 

The subject is reported to have 8 branches countrywide (Cape Town, Port Elizabeth, East London, Johannesburg, Pretoria) and an extrusion division in Isipingo, Durban.

 

 

OWNED OR LEASED

 

The Durban, Isipingo, Germiston and head office premises are reported to be owned by group companies and the subject and the remainder of the branches are leased.  It was stated that the heading premises comprise of a foundry, sales division and administration offices.

 

 

AUTHORISED SHARE CAPITAL

 

R40 000 divided into 40 000 ordinary shares of R1 each

 

 

ISSUED SHARE CAPITAL

 

R30 000

 

The following estimated financial situation was submitted:

 

STOCK                                     R200 000 000

DEBTORS                                 R140 000 000

CREDITORS (all creditors)          R  55 000 000

FIXED ASSETS                         R  85 000 000

LONG TERM LIABILITIES           R  25 000 000

TURNOVER per annum              R650 000 000

 

 

AUDITORS

 

GRANT THORNTON KESSEL FEINSTEIN, Durban

 

 

YEAR END

 

DECEMBER

 

 

INSURANCE BROKERS

 

ALEXANDER FORBES

 

 

TRADE REFERENCES – MAY 2006:

 

ACCOUNT        HIGHEST          AVERAGE         TERMS             PAYMENT         EXPERIENCE

OPENED           CREDIT            CREDIT                                    PATTERN

 

1.         Old acc             R200 000          R100 000          30 days             30 days             Good

 

2.         Old acc             R250 000                                  30 days             30 days ery good

2½%

 

3.         Account has been dormant for a couple of years.

 

 

 

TRADE REFERENCES – MAY 2007

 

ACCOUNT        HIGHEST          AVERAGE         TERMS             PAYMENT         EXPERIENCE

OPENED           CREDIT            CREDIT                                    PATTERN

 

1.         14 yrs              R     100 000     R    10 000 -      30 days             30 days             Good

c/l                     R    20 000

 

2.         10 yrs               R       10 000     R     20 000 -     30 days             30 days             Very Good

c/l                     R     50 000       2.5%                 2.5%

 

3.         1999                 R11 000 000      R1 500 000 -      30 days             30 days             Very Good

c/l         R          6 500 000

 

4.         Do not give trade references

 

 

 CURRENT TRADE REFERENCES:

 

ACCOUNT        HIGHEST          AVERAGE         TERMS             PAYMENT         EXPERIENCE

OPENED           CREDIT            CREDIT                                    PATTERN

 

1.         Old acc            R       11 000     declined            30 days             30 days             Good

c/l

 

 

 

                       

2.         5 yrs+               R     100 000     R       10 000 -   30 days             30 days             Very good

c/l                     R       50 000

 

3.         1999                 R19 500 000      R  1 500 000 -    30 days             30 days             Excellent

c/l                     R10 000 000

 

4.         Do not give trade references.

 

 

COMMENTS

 

This is a very well established company meeting commitments timeously. The subject is effecting a substantial turnover and is considered equal to US$1 000 000 over 30 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