MIRA INFORM REPORT

 

 

Report Date :

13.03.2008

 

 

IDENTIFICATION DETAILS

 

Name :

FABRIC CORPORATION (PTY) LTD

 

 

Formerly Known as :

MARY-LOU (PTY) LTD

 

 

Registered Office :

Site 53, Cnr Andwe & Woodpecker Streets, Fort Jackson, Eastern Cape

 

 

Country :

South Africa

 

 

Date of Incorporation :

04.01.1994

 

 

Com. Reg. No.:

1994/092554/07

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Design, Wholesale and Distribution of their own Decorative Textile Ranges as well as Manufacturers, Wholesalers and Retailers of Pillows as well as the Importing of Textile Ranges.

 

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 :

Small Company

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

 

 

COMPANY NAME

 

FABRIC CORPORATION (PTY) LTD

 

Formerly MARY-LOU (PTY) LTD, the name having been changed at the end of 1996.

 

 

TRADING NAME

 

FABRICOR

 

 

PHYSICAL ADDRESS

 

Site 53

Cnr Andwe & Woodpecker Streets

FORT JACKSON

Eastern Cape

 

 

POSTAL ADDRESS

 

P O Box 2525

BEACON BAY

5205

TELEPHONE NUMBER: 043 763 1476

FAX NUMBER:  043 763 5071

 

 

SHAREHOLDERS

 

100%    PIET ELBIE TRUST, in which P A VAN NIEKERK and E VAN NIEKERK are Trustees.

 

 

ASSOCIATE COMPANIES

 

None

 

 

DIRECTORS

 

P A VAN NIEKERK        ID No. 5008055063000

 

 

 

 

 

 

BANKERS

 

FIRST NATIONAL BANK, East London Oxford Street branch, account number 52120077708 and account number 52125676521.  It was stated that the subject enjoys joint overdraft facilities to an extent of R500 000, secured by a cession of debtors.  Utilisation is stated to fluctuate.

 

 

 DATE REGISTERED

 

4 January 1994

Registration certificate number 1994/092554/07

 

It was stated that the subject originally commenced in August 1982 as a partnership operating as a retail outlet.  The manufacturing operation was commenced in 1986 and in approx. 1992 the operations of the partnership were transferred into the private company. The subject restructured again as of 1994.

 

 

MAJOR OPERATION

 

Design, wholesale and distribution of their own decorative textile ranges as well as manufacturers, wholesalers and retailers of pillows as well as the importing of textile ranges.

 

 

MAJOR SUPPLIERS

 

The subject imports fabric from the Far East and Europe (Belgium) and deals locally with:

 

TOGA LININGS Standerton

SNOOZY CURL  Johannesburg

GEM INSTANT PRINT  East London

TWK ZIPPER  East London

COATS

PACKLINE PACKAGING

CROSS CAPE

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

Retailers and overseas wholesalers

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

Occasionally to Swaziland, Botswana and Belgium.

 

TOTAL EMPLOYEES

 

30

 

 

OTHER PREMISES

 

None

 

 

OWNED OR LEASED

 

The premises are reported to be owned by the company valued at R1 million, free of bond.

 

 

ISSUED SHARE CAPITAL

 

R 100

 

The following estimated financial situation was submitted:

 

STOCK                                     R6 500 000

DEBTORS                                 R2 900 000

FIXED ASSETS                         R   400 000

CREDITORS local                      R   300 000

CREDITORS foreign fluctuates    R   300 000

SHAREHOLDERS LOANS         R2 000 000

TURNOVER per annum              R7 000 000

 

 

AUDITORS

 

PRETORIUS DONDASHE  East London

 

 

 YEAR END

 

FEBRUARY

 

 

INSURANCE BROKERS

 

GLENRAND M I B

 

 

 

 

 

TRADE REFERENCES – OCTOBER 2005

 

            ACCOUNT        HIGHEST          AVERAGE         TERMS             PAYMENT         EXPERIENCE

            OPENED           CREDIT            CREDIT                                    PATTERN

 

1.         Old acc.                        R50 000            R50 000            7 days              7 days              Very good

 

2.         5 yrs                 R50 000            R20 000            30 days /           30 days /           Good

                                                                                    COD                 COD

 

3.         Old acc.            R5 000  R5 000  30 days 30 days Very good

 

 

CURRENT TRADE REFERENCES

 

            ACCOUNT        HIGHEST          AVERAGE         TERMS             PAYMENT         EXPERIENCE

            OPENED           CREDIT            CREDIT                                    PATTERN

 

1.         June 1998         R45 000            R  7 000-           30 days             30 days             Good

                                    c/l                     R14 000

                                                            (varies)

 

2.         10 yrs               open acc           R60 000-           15 days             15 days             Excellent

                                                            R70 000

 

3.         Old acc open acc                       R12 000            30 days             30 days             Excellent

 

4.         6 years+           R500 000          R  3 000            30 days             30 days             Good

 

 

COMMENTS

 

This is a well established company meeting moderate commitments timeously.  We have not traced dealings to an extent of $1 000 000 over DA terms and would prefer to see a far lesser amount 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