MIRA INFORM REPORT

Report Date :

18.03.2008

IDENTIFICATION DETAILS

Name :	WELLINGTON INDUSTRIES (PTY) LTD

Formerly Known As :	Courtex Industries (Pty) Ltd

Registered Office :	2 Blignaut Street, Wellington, Western Cape

Country :	South Africa

Date of Incorporation :	16.09.1963

Com. Reg. No.:	1963/004981/07

Legal Form :	Private Limited Company

Line of Business :	Holding Company

RATING & COMMENTS

MIRA’s Rating :

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

THE FABRIC LIBRARY (PTY) LTD

PHYSICAL ADDRESS

61 Old Pretoria Road

POSTAL ADDRESS

P O Box 912

HALFWAY HOUSE

1685

TELEPHONE NUMBER: 011 265 9000

On investigation it was established that the subject is a trading division of WELLINGTON INDUSTRIES (PTY) LTD, which report should be consulted.

Contact was once again made with respondents at WELLINGTON INDUSTRIES (PTY) LTD who confirmed that THE FABRIC LIBRARY (PTY) LTD (Reg. No. 2001/003094/07) is a dormant company. The assets and operations of the subject were incorporated into WELLINGTON INDUSTRIES (PTY) LTD and now are a trading division of this company, with effect 31 January 2001.

Therefore the legal entity of THE FABRIC LIBRARY (PTY) LTD is dormant and not trading and operations fall under WELLINGTON INDUSTRIES (PTY) LTD, which company is now responsible for all payments of THE FABRIC LIBRARY division.

Please see the attached report on WELLINGTON INDUSTRIES (PTY) LTD.

COMPANY NAME

WELLINGTON INDUSTRIES (PTY) LTD

Formerly Courtex Industries (Pty) Ltd, the name having been changed on 7 November 1995.

TRADING DIVISIONS

HOME FABRICS

FABRIC LIBRARY

PHYSICAL ADDRESS

2 Blignaut Street

WELLINGTON

Western Cape

POSTAL ADDRESS

P O Box 101

WELLINGTON

7654

TELEPHONE NUMBER: 021 864 5000 / 868 3000

FAX NUMBER: 021 873 3513

SHAREHOLDERS

100% COURTHIEL HOLDINGS (PTY) LTD, which in turn is owned 80% by DAUN ET CIE AG, a company in Germany and 20% by BUILMA (PTY) LTD.

ASSOCIATE COMPANIES

Companies within their DAUN ET CIE group including the KAP INTERNATIONAL group of companies

SUBSIDIARY COMPANIES

TABLE BAY SPINNERS (PTY) LTD

BOLAND FINE SPINNERS (PTY) LTD

DIRECTORS

C E DAUN

K WRIGHT

C P J KOTZE

BANKERS

FIRST NATIONAL BANK, Cape Town Corporate Branch, Account Number: 62023134901. It was stated that the group enjoys substantial overdraft facilities, secured by the holding company. Further information regarding banking facilities was not forthcoming from respondents at the subject.

DATE REGISTERED

16 September 1963

Registration Certificate Number: 1963/004981/07

The subject is reported to have taken over operations and assets of a company namely HOMEMAKERS GROUP LTD, which traded under the divisional names of Fabric Library and Home Fabrics, with effect from 31 January 2001.

The subject took over the assets and operations of a company, WELLINGTON INDUSTRIES (PTY) LTD, which was originally commenced in 1953. The latter company changed its name to INDUSTEX WESTERN CAPE (PTY) LTD.

VAT NUMBER

4330103846

It was stated that the divisions have their own VAT numbers

MAJOR OPERATION

The subject is reported to be a holding company. The trading divisions are, however, stated to be involved in the wholesale of materials and there is also reported to be a dye house. It was stated that a group company manufactures textiles, polyester and acrylic yarn.

MAJOR SUPPLIERS

CHT SA Durban

DYSTAR

CLARIANT

FREDISCO DYES

FFS REFINERS

MAJOR CUSTOMERS OR BUSINESS SECTORS

Garment manufacturers and knitting factories.

AREA OF DISTRIBUTION AND SELLING

South Africa

EXPORTS

The subsidiary company, TABLE BAY SPINNERS (PTY) LTD, is reported to export to Mauritius.

TOTAL EMPLOYEES

308 for WELLINGTON INDUSTRIES (PTY) LTD and 200 for the divisions.

OTHER PREMISES

WELLINGTON only has the head office premises where a dyeing plant is situated. The head office of Home Fabrics is situated in Midrand, with a satellite showroom in Kramerville, and showrooms in Cape Town, Durban and Port Elizabeth. The Fabric Library head office is situated in Halfway House, and they have showrooms in Cape Town, Durban and Port Elizabeth.

OWNED OR LEASED

The head office premises are reported to be owned by a group company and the other premises are stated to be leased.

AUTHORISED SHARE CAPITAL

R100 divided into 100 ordinary shares of R1 each

ISSUED SHARE CAPITAL

Full financial information was not forthcoming from respondents at the company, however, it was previously stated that the turnover per month is approximately R25 to R30 million for WELLINGTON INDUSTRIES (PTY) LTD which excludes the two divisions.

AUDITORS

DELOITTE

YEAR END

DECEMBER

INSURANCE BROKERS

ALEXANDER FORBES

TRADE REFERENCES - MARCH 2007

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 25 yrs R1 500 000 R400 000- 60 days 60+ days Fair

R500 000 needs monitoring

2.Old acc R 150 000 R100 000- 60 days 60 days Good

R150 000

TRADE REFERENCES – JULY 2007

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 10 yrs R800 000+ R800 000 - 7 days 7 days+ Slow

R753 000 outstanding

2.1995 R500 000 R200 000 - 30/60 30/60 days Good

R500 000 days discount

3.25 yrs R600 000 R600 000 60 days 70 days Average

Reference on subsidiary: Table Bay Spinners

TRADE REFERENCES – OCTOBER 2007

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 7 yrs R150 000 R 50 000 60 days 60 days Good

2.Old acc R295 000 R100 000 30 days 30 days Good

3.20 yrs R200 000 R 60 000 30 days 30 days Good

CURRENT TRADE REFERENCES

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. Old acc R250 000 R250 000 60 days 60 days Excellent

2. 10 yrs declined R 60 000 60 days 60 days Very good

3. Old acc declined R100 000 60 days 60 days Very good

COMMENTS

This company is part of a large and reputable group and is a very well established company that has taken over assets and operations of two well-established divisions of another company namely, HOMEMAKERS GROUP LTD. The subject is meeting its commitments timeously, however, we have not traced dealings to an extent of $1 000 000 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%)

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