MIRA INFORM REPORT

 

 

 

 

Report Date :

15.11.2008

 

IDENTIFICATION DETAILS

 

Name :

TRUWORTHS LTD

 

 

Registered Office :

SRG House, 1 Mostert Street, Cape Town, Western Cape

 

 

Country :

South Africa

 

 

Date of Incorporation :

27.05.1940

 

 

Com. Reg. No.:

1940/013923/06

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Fashion Clothing, Footwear and Accessories Retailers.

 

 

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 :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

 

COMPANY NAME     

 

TRUWORTHS LTD

 

 

TRADING DIVISION

 

TRUWORTHS

TRUWORTHS MAN

DANIEL HECHTER

TRUWORTHS FINE JEWELLERY

LTD

IDENTITY

INWEAR

ELEMENTS

UZZI

 

 

PHYSICAL ADDRESS

 

SRG House

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

 

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)            ID. No. 5211285097083

W M VAN DER MERWE                        ID. No. 5803295244083

A J TAYLOR                                          ID. No. 4706155085085

D N DARE                                             ID. No. 6105245763082

D L KOHLER                                         ID. No. 5301225128088

J A HOLTZHAUSEN                               ID. No. 5209015069083

E F CHRISTAUDO                                 ID. No. 5904035078086

 

 

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   

 

450 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

 

The following estimated financial situation was submitted:

 

STOCK                                     R     389 462 000

DEBTORS                                 R2 042 9444 000

CREDITORS                              R     632 739 000

LOANS Nil

TURNOVER per annum R  6 105 384 000

 

 

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

                                                                                                            2˝%                 2˝%

 

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      2˝%                 2˝%    

 

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 – FEBRUARY 2008

 

      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

 

 

TRADE REFERENCES - OCTOBER 2008

 

      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

 

 

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.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.49.46

UK Pound

1

Rs.73.17

Euro

1

Rs.62.96

 

 

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