MIRA INFORM REPORT

 

 

Report Date :

13.03.2008

 

IDENTIFICATION DETAILS

 

Name :

J G TRAIN & COMPANY (PTY) LTD

 

 

Registered Office :

37 Commerce Crescent, Eastgate Ext. 12, Eastgate, Sandton, Gauteng

 

 

Country :

South Africa

 

 

Date of Incorporation :

22.12.1950

 

 

Com. Reg. No.:

1950/039759/07

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Representatives for Textile Manufacturers as well as Purchasers and Distributors of Goods E.G. Fabric, Thread, etc for the Manufacturers whom they represent

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

 

 

 

COMPANY NAME

 

J G TRAIN & COMPANY (PTY) LTD

 

 

PHYSICAL ADDRESS

 

37 Commerce Crescent

Eastgate Ext. 12

Eastgate

SANDTON

Gauteng

 

 

POSTAL ADDRESS

 

P O Box 68

CRAMERVIEW

2060

TELEPHONE NUMBER: 011 262 2666

FAX NUMBER:  011 262 3171

 

 

SHAREHOLDERS

 

42%      J M REEDER

38%      BLYTH & GRETA TRAIN FAMILY TRUST

15%      J B K TRAIN

  5%     G TRAIN

 

The Shareholding was previously J B K TRAIN, J M REEDER, G TRAIN and J L TRAIN having been changed.

 

 

ASSOCIATE COMPANIES

 

TRAIN PROPERTIES CC

 

 

DIRECTORS

 

J B K TRAIN

J M REEDER (Mrs) (daughter)

R VAN DYK

 

 

 

 

BANKERS

 

NEDBANK, Commercial North Rand Branch, Account Number 1469000792.  It was stated that the subject enjoys overdraft facilities to an extent of R4 million, secured by a cession of debtors.  Utilisation is stated to fluctuate to partial at times.

 

 

DATE REGISTERED

 

22 December 1950

Registration Certificate Number: 1950/039759/07

 

The subject commenced as a new business in 1934 as a partnership which was taken over by the registered company when it was registered in 1950.

 

 

MAJOR OPERATION

 

Representatives for textile manufacturers as well as purchasers and distributors of goods e.g. fabric, thread, etc for the manufacturers whom they represent.  The subject also represents digital sign board fabrics.  The subject recently commenced importing, marketing and distribution of solar geysers.

 

 

MAJOR SUPPLIERS

 

The subject imports 85% of its textiles from Taiwan, China, India, Korea, Indonesia, Zimbabwe, Germany and Spain and deals locally with:

           

SUNTEX MILLS East London

UTI Johannesburg

OU TEXTILES Bloemfontein

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

Clothing and tent manufacturing industries and at present the subject is selling solar geysers direct to the public but they have registered with Eskom to distribute these through Eskom.

 

 

AREA OF DISTRIBUTION AND SELLING   

 

South Africa

 

 

EXPORTS

 

Small to Zimbabwe, Botswana and neighbouring states

 

 

 

TOTAL EMPLOYEES

 

20

 

 

OTHER PREMISES

 

The subject is reported to have a branch in Durban and an office and warehouse in Cape Town.

 

 

OWNED OR LEASED

 

The heading premises are reported to be owned by the associate property owning company and valued in the region of R6.5 million, bonded in favour of NEDBANK to an extent of R0.  The subject only has a bond to enable them to increase the bond for finance if necessary.  The warehouse in Cape Town is leased and the Durban branch is owned by the subject’s agents to which commission is paid.  

 

 

AUTHORISED SHARE CAPITAL

 

R11 000 divided into 5 500 ordinary shares of R2 each

 

 

ISSUED SHARE CAPITAL

 

R11 000

 

The following estimated financial situation was submitted:

 

STOCK                                                R13 000 000

DEBTORS                                             R  8 000 000

CREDITORS local & foreign                    R  1 500 000

SHAREHOLDERS LOANS                     R  3 000 000

TURNOVER sales per annum                 R32 000 000

TURNOVER commission per annum        R12 000 000

 

 

AUDITORS

 

NEIL WHITECROSS INC, Johannesburg

 

 

YEAR END

 

JUNE

 

 

 

 

INSURANCE BROKERS

 

GENESIS

 

 

TRADE REFERENCES – JANUARY 2006

 

            ACCOUNT        HIGHEST         AVERAGE         TERMS             PAYMENT         EXPERIENCE

            OPENED           CREDIT           CREDIT                                    PATTERN

 

1.         1998                R250 000          R10 000 -          60 days             30/60 days        Very good

                                     c/l                    R100 000

 

2.         Do not give trade references

 

3.         Closed for Christmas holidays

 

 

TRADE REFERENCES – MARCH 2007

 

            ACCOUNT        HIGHEST         AVERAGE         TERMS             PAYMENT         EXPERIENCE

            OPENED           CREDIT           CREDIT                                    PATTERN

 

1.         1998                 R250 000          R55 000            30 days             30 days             Very good

 

2.         2 yrs                 declined            R10 000            30 days             30 days             Good

 

3.         Do not give trade references

 

 

CURRENT TRADE REFERENCES

 

            ACCOUNT         HIGHEST         AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                         PATTERN

 

1.         8 yrs                R100 000          R80 000            30 days             30 days             Very good

 

2.         02/1998             R250 000          R30 000 -          60 days             30 days             Very good

                                                            R40 000                                    1.5%

 

3.         Do not give trade references

 

 

COMMENTS

 

This is a well established business that imports substantially.  No adverse comments have been heard.  The subject is meeting its obtainable commitments timeously.  The subject is considered equal to its normal business engagements, however, we have not traced dealings to an extent of US$1 000 000 DA and it is suggested that dealings to a lesser extent be contemplated.

 

 

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