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MIRA
INFORM REPORT
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Report Date : |
15.11.2008 |
IDENTIFICATION
DETAILS
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Name : |
BEARINGS INTERNATIONAL - DIVISION OF HUDACO TRADING (PTY) LTD |
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Formerly Known As : |
HUDACO INDUSTRIAL
HOLDINGS LTD |
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Registered Office : |
Hudaco Park, 190 Barbara Road,
Elandsfontein, Gauteng |
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Country : |
South Africa |
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Date of Incorporation : |
24.05.1984 |
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Com. Reg. No.: |
1984/005432/07 |
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Legal Form : |
Propriety Limited |
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Line of Business : |
Importers and distributors of Diesel Engines and Spares, Components, Bearings, Seals, Belting, Chains, Fuel Power, Measurement and Control Components, Brakes, Transmission Equipment, Related Products and Belting. |
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 : |
Usually Correct |
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Litigation : |
Clear |
COMPANY NAME
BEARINGS
INTERNATIONAL
PHYSICAL ADDRESS
Hudaco Park
190 Barbara Road
Elandsfontein
Gauteng
On investigation it was established that the subject is a division of HUDACO TRADING LTD, the report on which should be consulted.
COMPANY NAME
HUDACO TRADING
(PTY) LTD
The subject
recently converted from HUCACO TRADING LTD; formerly HUDACO INDUSTRIAL HOLDINGS
LTD, the name having been changed on 14 September 2007; formerly HUDACO
INDUSTRIES HOLDINGS (PTY) LTD, the name having been changed on 24 May 1984.
TRADING DIVISIONS
BEARINGS INTERNATIONAL
BAUER GEARBOXES
VARISPEED
POWERMITE
ABES
HBC
BELTING SUPPLIES
BESTOBELL
ALVEY SECURITY
TECHNOLOGIES
BOSWORTH EQUIPMENT
RUTHERFORDS
ERNEST LOWE
ANGUS HAWKINS
ASTORE AFRICA
PHYSICAL ADDRESS
Hudaco Park
190 Barbara Road
Elandsfontein
Gauteng
POSTAL ADDRESS
Private Bag 13
Elandsfontein
1406
Telephone Number: 011
345 8200
Fax
Number: 011 392 2740
SHAREHOLDERS
85% HUDACO
INDUSTRIES LTD (Quoted on the JSE Ltd)
5% THE HUDACO TRADING BEE STAFF EDUCATION
TRUST
5% THE HUDACO BROAD BASED BEE FOUNDATION
5% THE MEMBERS OF THE ULWAZI CONSORTIUM
SUBSIDIARY COMPANIES
HUDACO TRANSMISSIONS (PTY) LTD (formerly B E P BESTOBELL SOUTH AFRICA (PTY) LTD)
D D POWER HOLDINGS
(PTY) LTD (70%)
L V SECURITY TECHNOLOGIES (PTY) LTD (dormant)
HUDACO AUTOMOTIVE SUPPLIES (PTY) LTD (formerly Transportation Motor Spares (Pty) Ltd)
HUDACO SEAL
INVESTMENTS (PTY) LTD (dormant)
Plus other
companies within the HUDACO group of companies
DIRECTORS
P M POOLE
S J CONNELLY
G E GARDINER
MS. Y K N MOLEFI
BANKERS
FIRST NATIONAL BANK, Johannesburg Corporate Branch, NEDBANK, Sandton Corporate Branch and STANDARD BANK. It was reported that the subject enjoys participation in a cash management scheme and controls the group’s cash management scheme at the banks.
DATE REGISTERED
24 May 1984
Registration
Certificate Number: 1984/005432/07
The subject incorporated
the assets and trading operations of HUDACO TRADING LTD (Reg. No.
1965/000588/06) in August 2007 which then changed its name to HUDACO INVESTMENT
COMPANY LTD and is currently dormant.
VAT NUMBER
4740230513 It was stated that each division has its own
VAT number.
MAJOR OPERATION
Importers and distributors of diesel engines and spares, components, bearings, seals, belting, chains, fuel power, measurement and control components, brakes, transmission equipment, related products and belting.
MAJOR CUSTOMERS OR BUSINESS
SECTORS
Mainly manufacturers, agriculture, mining industry, auto aftermarket industry, small to the Government, industry in general and over the counter trade.
MAJOR SUPPLIERS
It was stated that each division does its own purchasing.
The RUTHERFORDS division deals locally with:
BASTOS ENGINEERING
NGK SPARK PLUGS Elandsfontein
AUTOBULD AFRICA Johannesburg
PARKER HANNIFIN Johannesburg
The POWERMITE division deals locally with:
KEWBERG CABLES
ROHLIG / GRINDROD
CBI ALVERN CABLES
The ASTORE AFRICA division deals locally with:
INCLEDON
CONTROLLED IRRIGATION
POLYFLOW
SAFCOR
AREA OF DISTRIBUTION AND SELLING
90% South Africa
EXPORTS
10% to neighbouring
countries, Sub Saharan Africa and Germany
TOTAL EMPLOYEES
2 000 in the
group
OTHER PREMISES
It was stated that the subject has 125 distribution branches countrywide as well as a distribution branch in the UK.
OWNED OR LEASED
The head office premises are leased, while some of the branch premises are leased and some are owned through group companies.
AUTHORISED SHARE CAPITAL
R20 000 divided into 20 000 ordinary shares
of 10 cent each
ISSUED SHARE CAPITAL
20 000 shares
The following estimated financial situation was submitted:
STOCK
R 460 000 000
DEBTORS R 350 000 000
CASH R 100 000 000
FIXED ASSETS net book value R 65 000 000
CREDITORS extended terms R 380 000 000
TURNOVER per annum R2 200 000 000
AUDITORS
GRANT THORNTON
Johannesburg
YEAR END
NOVEMBER
INSURANCE BROKERS
GLENRAND MIB
TRADE REFERENCES – SEPTEMBER
2007: POWERMITE DIVISION
PERIOD HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
CREDIT CREDIT PATTERN
1. 19
yrs R500 000 R150 000 30
days 30 days Very good
c/l 2.5% 2.5%
2. 7
yrs R500 000 R150 000 7 days 7days Good
TRADE
REFERENCES – DECEMBER 2007: RUTHERFORDS DIVISION
PERIOD HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
CREDIT CREDIT PATTERN
1. 08/2005 R60 000 R35
000 - 30 days 30 days Good
R60
000
2. Old
acc R60 000 R50 000 - 30
days 30 days Good
R60
000
3.
Closed for the
Christmas Period
4. Awaiting
a fax trade reference
TRADE
REFERENCES –JUNE 2008 ASTORE
AFRICA DIVISION
PERIOD HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
CREDIT CREDIT PATTERN
1. Old
acc declined declined 30
days 30 days Very good
2. 10
yrs+ R 35 000 R 21 000 30
days 30 days Excellent
c/l
3. 2004 R1 000 000 R600 000 30 days 30 days Very
good
c/l
4. Do
not give trade references.
CURRENT
TRADE REFERENCES: RUTHERFORDS DIVISION
PERIOD HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
CREDIT CREDIT PATTERN
1.
10 yrs R100 000 R
50 000 - 30 days 30 days Excellent
R100
000
2. 3
yrs R 20 000 R 15 000 30
days 30 days Very good
3. 08/2005 R
60 000 R 30 000 - 30
days 30 days Excellent
c/l R 40 000
COMMENTS
This is a well established and connected company meeting its commitments timeously. The subject is considered equal to $1 000 000 over DA terms.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.49.46 |
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UK Pound |
1 |
Rs.73.17 |
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Euro |
1 |
Rs.62.96 |
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%)