MIRA
INFORM REPORT
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Report Date : |
31.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
TRUWORTHS LTD |
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Registered Office : |
1 Mostert Street, Cape Town, Western Cape |
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Country : |
South Africa |
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Date of Incorporation : |
27.05.1940 |
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Com. Reg. No.: |
1940/013923/06 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Fashion Clothing, Footwear and Accessories Retailers. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
On
investigation contact was made with the Company Secretary who declined to
assist with any information on the subject and requested that an email
questionnaire be forwarded. This was
duly sent and to date no reply has been forthcoming. Nevertheless, please see historical information dated February
2008, which reads as follows:
(The
information contained in this report, other than comment by outside
authorities, has been voluntarily supplied by officials of the subject):
COMPANY NAME
TRUWORTHS LTD
TRADING DIVISION
TRUWORTHS
TRUWORTHS
MAN
DANIEL
HECHTER
TRUWORTHS
FINE JEWELLERY
LTD
IDENTITY
INWEAR
ELEMENTS
YDE
PHYSICAL ADDRESS
1 Mostert Street
Cape
Town
Western
Cape
POSTAL ADDRESS
P O Box 600
Cape
Town
8000
Telephone
Number: 021 460 7911
Fax
Number: 021 461
7641
On
investigation, contact was made with the Financial Manager of the subject who
declined to update information telephonically, therefore, an e-mail
questionnaire with historical information has been forwarded. To date no reply
has been forthcoming.
Nevertheless,
historical information as at August 2006 reads as follows:
SHAREHOLDERS
100% TRUWORTHS INTERNATIONAL LTD (Formerly S R G
LTD, the name having been
changed in about December 1997), (quoted on the JSE Ltd from May 1998)
ASSOCIATE COMPANIES
TRUWORTHS
LTD (registered in Zimbabwe)
TRUWORTHS
(SWAZILAND) LTD
TRUWORTHS
(NAMIBIA) LTD
YOUNG
DESIGNERS EMPORIUM (PTY) LTD
Please
note that the subject sold TOPICS STORES (PTY) LTD in 1997.
DIRECTORS
M
S MARK (Executive Chairman)
W
M VAN DER MERWE
A
J TAYLOR
D
N DARE
R
M WYATT
D
L KOHLER
T
D MURDOCH-COYLE
J
A HOLTZHAUSEN
E
F CHRISTAUDO
BANKERS
STANDARD BANK, Cape Town Branch. Account Number 070295794. It was stated that all the subject’s accounts are managed by a cash management scheme controlled by STANDARD BANK.
DATE REGISTERED
27
May 1940
Registration
certificate number 1940/013923/06
The
subject was commenced as a new business.
VAT NUMBER
4630103754
MAJOR OPERATION
Fashion
clothing, footwear and accessories retailers.
MAJOR SUPPLIERS
UTI Johannesburg
KINROSS
CLOTHING Cape Town
BONWIT Cape Town
BARRIE
CLINE Cape Town
KAZAK Cape Town
MAJOR CUSTOMERS OR BUSINESS
SECTORS
General
public
AREA OF DISTRIBUTION AND SELLING
South
Africa
EXPORTS
Namibia,
Botswana, Bahrain, Dubai, Swaziland, Kenya, Qatar and Lesotho.
TOTAL EMPLOYEES
7
500 permanent, temporary and flexi-time employees.
OTHER PREMISES
330
retail outlets countrywide.
OWNED OR LEASED
It
was stated that the subject’s distribution premises are owned, while the remainder of the branch premises are
reported to be leased.
AUTHORISED SHARE CAPITAL
R3 000 000 divided
into 600 000 000 ordinary shares of 50 cents each.
ISSUED SHARE CAPITAL
R1
581 000
Current
financial details were declined; however, the following estimated financial
situation as at June 2005 was submitted:
STOCK R 262 000 000
DEBTORS R1
144 000 000
CREDITORS R 417 000 000
LOANS Nil
TURNOVER per annum R3 286
000 000
AUDITORS
ERNST
& YOUNG Cape Town
YEAR END
JUNE
INSURANCE BROKERS
UNISON
RISK MANAGEMENT
TRADE REFERENCES – AUGUST 2006
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 15 yrs+ R 5 000 000 R 5 000 000 30
days 30 days Excellent
2½% 2½%
2. 18 yrs+ R20 000 000 R18 000
000- 30 days 30 days Very good
R20
000 000
3.
Do not give trade references
4. 40 yrs R10 000 000 R 4 000 000- 30
days 30 days Very good
R10
000 000 2½% 2½%
TRADE REFERENCES – AUGUST 2007
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 15+
years open acc R2 000 000- 30 days 30 days Excellent
R3
000 000 2.5% 2.5%
2.
Do not give
trade references.
3.
25 years open acc R30
000 000 30 days 30 days Excellent
2.5% 2.5%
4.
40 years open acc R3
300 000 30 days 30 days Excellent
2.5% 2.5%
TRADE REFERENCES
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. Old acc R30
000 000 R30 000 000 30 days 30
days Very good
c/l
2. Do not give trade
references
3. Awaiting a fax trade
reference
4. Do not give trade
references
COMMENTS
This is a very well established company which is one of the largest
clothing retailers in South Africa. The
subject is spoken of highly by suppliers and is considered equal to £59 078 over 30 days. The lack of updated information should be borne in mind. As soon as further information is obtained
the same will be compiled and forwarded to our client.
21 February 2008
CURRENT TRADE REFERENCES
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. Old acc R5
000 000 R3 000 000 30 days 30
days Very good
2. Old acc declined R6 000 000 30 day 30 days Very good
2.5%
3. Do not give trade references
COMMENTS
This is a very well established company which is one of the largest
clothing retailers in South Africa. The
subject is spoken of highly by suppliers and is considered equal to US$1 000 000 over 30 days. The lack of updated information should be
borne in mind. As soon as further
information is available the same will be compiled and forwarded to our client.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.49.25 |
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UK Pound |
1 |
Rs.80.36 |
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Euro |
1 |
Rs.62.84 |
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)