MIRA INFORM REPORT

 

 

Report Date :

14.02.2008

 

IDENTIFICATION DETAILS

 

Name :

SOUTH AFRICAN POLYPROPYLENE YARNS (PTY) LTD

 

 

Registered Office :

SAPY 1, 23 Green Road, Hammarsdale, KwaZulu-Natal

 

 

Country :

South Africa

 

 

Date of Incorporation :

21.12.1994

 

 

Com. Reg. No.:

1994/010667/07

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacture of high tenacity and fine denier multifilament polypropylene yarns

 

 

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

 

SOUTH AFRICAN POLYPROPYLENE YARNS (PTY) LTD

 

 

TRADING NAME

 

APY

 

 

PHYSICAL ADDRESS

 

SAPY 1

23 Green Road

HAMMARSDALE

KwaZulu-Natal

 

SAPY 2

30 Anderson Road

HAMMARSDALE

KwaZulu-Natal

 

 

POSTAL ADDRESS

 

P O Box 109

HAMMARSDALE

3700

TELEPHONE NUMBER: 031 736 1030

FAX NUMBER:  031 736 1589

 

 

SHAREHOLDERS

 

50%      NINIAN & LESTER HOLDINGS LTD delisted from the JSE LTD South Africa

50%      Undisclosed company, in the textile, clothing and hosiery industries.

 

 

ASSOCIATE COMPANIES

 

NINIAN & LESTER (PTY) LTD

LASER SCREEN (PTY) LTD

MAXMORE KNITTING MILLS (PTY) LTD (dormant)

 

Plus companies within the NINIAN & LESTER group.

 

 

 

DIRECTORS

 

M ZARREBINI

J FLEMING

 

 

 BANKERS

 

STANDARD BANK, Hillcrest branch, Account Number 052018210.  It was previously stated in 2007 that the subject enjoyed overdraft facilities to an extent of R3 million, secured by the personal guarantees of the Shareholders.  Utilisation is stated to fluctuate.

 

 

DATE REGISTERED

 

21 December 1994

Registration certificate number 1994/010667/07

 

The subject commenced operations in 1996.

 

The subject was jointly established in 1995 by PFE INTERNATIONAL and NINIAN & LESTER HOLDINGS LTD (a company which has operated in the clothing and textile sector in South Africa since 1936 and has been quoted on the JSE Ltd since 1969) in order to produce a range of multi-filament polypropylene yarns.

 

 

VAT NUMBER

 

4510152285

 

 

MAJOR OPERATION

 

Manufacture of high tenacity and fine denier multifilament polypropylene yarns.

 

 

MAJOR SUPPLIERS

 

CLARIANT

SAFRIPOL Johannesburg

NAMPAK CORRUGATED Durban

 

Further trade references were declined.

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS:

 

Webbing industry

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

Worldwide

 

 

TOTAL EMPLOYEES

 

350

 

 

OTHER PREMISES

 

The subject has a manufacturing plant at 30 Anderson Road, Hammarsdale and a factory at the heading address.

 

 

OWNED OR LEASED

 

The premises are reported to be leased

 

 

AUTHORISED SHARE CAPITAL

 

R1 000 divided into 1 000 ordinary shares of R1 each

 

 

 ISSUED SHARE CAPITAL

 

R1 000

 

Current financial details were declined, however, the following estimated financial situation as at October 2005 was submitted:

 

STOCK R   900 000

DEBTORS         R4 000 000

CREDITORS      R   800 000

TURNOVER per annum  R3 000 000

 

 

AUDITORS

 

R S M BETTY AND DICKSON   

 

 

 

YEAR END

 

DECEMBER

 

 

INSURANCE BROKERS

 

GLENRAND MIB

 

 

TRADE REFERENCES - FEBRUARY 2001

 

            ACCOUNT        HIGHEST          AVERAGE         TERMS             PAYMENT         EXPERIENCE

            OPENED           CREDIT            CREDIT                                    PATTERN

 

1.         Old acc             declined            figures               30 days             30 days             Good

 

2.         May’00              R50 000            R50 000            30 days             35 days             Very Good

 

3.         2½ yrs              R90 000            R60 000 -          30 days             30 days             Good

                                                            R90 000

 

 

TRADE REFERENCES – OCTOBER 2005

 

            ACCOUNT        HIGHEST         AVERAGE         TERMS             PAYMENT         EXPERIENCE

            OPENED           CREDIT           CREDIT                                    PATTERN

 

1.         6 yrs                 R200 000          R50 000            30 days             45 days             Average

                                    c/l                                             (needs monitoring)

 

2.         Unable to trace account

 

3.         No longer a client

 

No longer a client

 

 

TRADE REFERENCES -  JANUARY 2007

 

            ACCOUNT        HIGHEST         AVERAGE         TERMS             PAYMENT         EXPERIENCE

            OPENED           CREDIT           CREDIT                                    PATTERN

 

1.         10 yrs+             R600 000          R200 000 -        30 days             declined            Excellent

                                    c/l         R300 000

 

No longer a client

 

3.         No longer a client

 

TRADE REFERENCES – JULY 2007:

 

            ACCOUNT        HIGHEST         AVERAGE         TERMS             PAYMENT         EXPERIENCE

            OPENED           CREDIT           CREDIT                                    PATTERN

 

1.         10 yrs               R200 000          R30 000            30 days             30 days             Good

                                    c/l                     sporadic purchases

 

2.         Do not give trade references

 

Unable to obtain a trade reference

 

 

CURRENT TRADE REFERENCES

 

            ACCOUNT        HIGHEST         AVERAGE         TERMS             PAYMENT         EXPERIENCE

            OPENED           CREDIT           CREDIT                                    PATTERN

 

1.         8 yrs                 R200 000          R  50 000          30 days             30 days             Very good

 

2.         Do not give trade references

 

3.         04/2002 R500 000          R  30 000 -        60 days             60 days             Very good

                                    R100 000

 

 

COMMENTS

 

This is an established and well connected company.  The subject is meeting its commitments timeously.  We have not traced dealings to an extent of US$1 000 000 and would prefer to see a lesser figure well spread and secured.

 

 

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