MIRA INFORM REPORT

 

 

Report Date :

30.01.2008

 

IDENTIFICATION DETAILS

 

Name :

MILLTEX YARNS CC

 

 

Registered Office :

404 Voortrekker Road, Maitland, Cape Town, Western Cape

 

 

Country :

South Africa

 

 

Date of Incorporation :

4 May 2001

 

 

Com. Reg. No.:

2001/027983/23

 

 

Line of Business :

Importers and Wholesalers of Various Textile Goods

 

 

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

 

MILLTEX YARNS CC

 

 

PHYSICAL ADDRESS

 

404 Voortrekker Road

MAITLAND

Cape Town

Western Cape

 

 

POSTAL ADDRESS

 

PostNet Suite 14

Private Bag X21

HOWARD PLACE

7450

TELEPHONE NUMBER: 021 510 1166

FAX NUMBER:  021 510 7382

 

 

MEMBERS

 

50%      M G HUGHES               I D No:  4103165057082

50%      J F G GAUD                  I D No:  5404155095085

 

 

ASSOCIATE COMPANIES

 

None

 

 

BANKERS

 

STANDARD BANK, Rondebosch Branch, account number 071464433. It was stated that the subject enjoys overdraft to an extent of R210 000, unsecured. Utilisation is stated to be partial.

 

 

DATE REGISTERED

 

4 May 2001

Registration Certificate Number: 2001/027983/23

 

 

VAT NUMBER

 

4480193731

 

 

MAJOR OPERATION

 

Importers and wholesalers of various textile goods

 

 

MAJOR SUPPLIERS

 

The subject imports and deals locally with:

 

PRATIBHA-SYNTEX LIMITED  India

HANGERPRO  Cape Town

PACKPRO  Cape Town

ABC PACKAGING  Cape Town

VISCONTI  Cape Town

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS:

 

The large clothing retailers, e g WOOLWORTHS, CAPE UNION MART

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

None

 

 

TOTAL EMPLOYEES

 

6

 

 

OTHER PREMISES

 

None

 

 

OWNED OR LEASED

 

The premises are reported to be leased.

 

 

MEMBERS CONTRIBUTION

 

R200

 

The following estimated financial situation was submitted:

 

STOCK                         R 1 600 000

DEBTORS                     R    120 000

FIXED ASSETS             R      40 000

CREDITORS                  R 1 500 000

LONG TERM LIABILITIES           Nil

OVERDRAFT                R     100 000

TURNOVER per annum  R20 000 000

 

 

AUDITORS

 

R WILSON ACCOUNTING SERVICES CC

 

 

YEAR END

 

FEBRUARY

 

 

INSURANCE BROKERS

 

KATZ BRESKAL INSURANCE BROKERS (PTY) LTD

 

 

TRADE REFERENCES

 

PERIOD            HIGHEST          AVERAGE         TERMS             PAYMENT         EXPERIENCE

CREDIT            CREDIT                                    PATTERN

 

1. Old acc         R120 000          R100 000          60 days             90 days+           Currently slow

 

2. 3 yrs+           R100 000          R100 000          30 days             0 days  Good

 

3. Few yrs         R500 000          Fluctuates         30 days             30 days Good

c/l                                             10%                  10%

 

 

COMMENTS

 

This is an established business meeting its commitments slowly at times. It was stated by two suppliers that the subject has advised them that one of their clients has not as yet met their commitment therefore cash flow is tight at present. We have not traced dealings to an extent of $1 000 000 DA terms and would prefer to see dealings on a letter of credit basis until the cash flow improves.

 

           

 

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