MIRA INFORM REPORT

 

 

Report Date :

19.11.2008

 

IDENTIFICATION DETAILS

 

Correct Name :

EDDELS SHOES (PTY) LTD

 

 

Formerly Known As :

ZAPPA-AWAY TRADING (PTY) LTD

 

 

Registered Office :

440 Victoria Road, Pietermaritzburg, Kwazulu Natal

 

 

Country :

South Africa

 

 

Date of Incorporation :

31.08.2001

 

 

Com. Reg. No.:

2001/020614/07.

 

 

Legal Form :

Propriety Limited

 

 

Line of Business :

Manufacturers of men’s and ladies footwear.

 

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 :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

 

COMPANY NAME

 

CONSHU LTD

 

 

PHYSICAL ADDRESS    

 

400 Victoria Road

Pietermaritzburg

Kwa-Zulu Natal

 

 

POSTAL ADDRESS   

 

P O Box 55

Sandown

3201

Telephone Number:                 33 342 8111

Fax Number:                             33 394 0907

 

On investigation contact was made with a respondent at the heading telephone number who stated that the subject is dormant.  There was a management buy out and the above heading address belongs to EDDELS SHOES (PTY) LTD, which report should be consulted.

 

 

COMPANY NAME

 

EDDELS SHOES (PTY) LTD

 

Formerly ZAPPA-AWAY TRADING (PTY) LTD, the name having been changed.

 

 

PHYSICAL ADDRESS    

 

440 Victoria Road

Pietermaritzburg

Kwazulu Natal

 

 

POSTAL ADDRESS   

 

P O Box 55

Pietermaritzburg

3201

TELEPHONE NUMBER:              033 342 8111

FAX NUMBER:                          033 394 0907

 

The postal address of P O Box 55, Sandown, was not known to respondents at the subject.

 

 

SHAREHOLDERS

 

95%       D G MOODLEY, J M COMLEY, R A STARMER, A CASSIM, M D VENESS, J DEEPNARAIN

 

5%       UNYAWO OLUYAPHAMBILI TRUST of which the trustees are reported to be D G MOODLEY, J M COMLEY and R A STARMER, as well as 2 staff members.

 

 

ASSOCIATE COMPANIES

 

PROPATIQUE CC (property owning company)

 

 

DIRECTORS

 

D G MOODLEY             ID No. 5403235157089

J M COMLEY                ID No. 5904225138008

R A STARMER              ID No. 6302235217084

A CASSIM                    ID No. 5809235078085

M D VENESS                ID No. 6812255265086

J DEEPNARAIN             ID No. 5807205139085

 

BANKERS

 

STANDARD BANK, Longmarket Street Branch, Account Number 252033264.  It was stated that the subject enjoys overdraft facilities to an extent of R15 million, secured by a cession of debtors.  Utilisation is stated to fluctuate.

 

 

DATE REGISTERED

 

31 August 2001

Registration Certificate Number: 2001/020614/07.

 

The subject was commenced to take over the well established EDDELS S.A. division of CONSHU TRADING (PTY) LTD.

 

It was stated that prior to a management buyout, the directors are reported to have been involved in CONSHU LTD for a number of years

 

 

VAT NUMBER    

 

4550196630

 

 

MAJOR OPERATION

 

Manufacturers of men’s and ladies footwear.

 

 

MAJOR SUPPLIERS

 

The subject imports leather from Pakistan, India and Brazil and deals locally with:

 

CHAMBERLAIN Pinetown

MOSSOP WESTERN LEATHER Wellington

APECO Pinetown

IMPSON FREIGHT Durban

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

Retailers, e.g. Woolworths, Edgars, Markhams, Truworths and Shoe City.

 

AREA OF DISTRIBUTION AND SELLING   

 

South Africa

 

 

EXPORTS

 

Namibia, Botswana

 

 

TOTAL EMPLOYEES

 

350

 

 

OTHER PREMISES   

 

None

 

 

OWNED OR LEASED

 

The premises are reported to be owned by the associate property owning company with an insurance value in the region of R45 million, bonded in favour of STANDARD BANK to an extent of R3 million.

 

 

AUTHORISED SHARE CAPITAL

 

R300 divided into 300 ordinary shares of R1 each

 

 

ISSUED SHARE CAPITAL    

 

R300

 

The following estimated financial situation was submitted:

 

STOCK                                                                                 R12 000 000

DEBTORS                                                                             R20 000 000

FIXED ASSETS                                                                     R  4 000 000

CREDITORS                                                                          R  8 000 000

DIRECTOR’S LOANS                                                             R  4 500 000

LOANS from Stannic                                                              R     500 000

OVERDRAFT                                                                        R  8 000 000

TURNOVER per annum                                                          R95 000 000

 

AUDITORS    

 

DELOITTE, Pietermaritzburg

 

 

YEAR END    

 

JUNE

 

 

INSURANCE BROKERS 

 

LEIGHTON MORRIS & ASSOCIATES, Sandton

 

 

TRADE REFERENCES – JUNE 2005

 

      ACCOUNT    HIGHEST      AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT        CREDIT                          PATTERN

 

1.    10 yrs+         R   400 000    R100 000 -      45 days    45 days        Good

                                               R400 000

 

2.    8 yrs            R2 500 000    R500 000 -      60 days    60 days        Good

                          c/l                 R800 000

 

3.    25 yrs           R   150 000    R  50 000 -      60 days    60 days        Good

                                               R150 000

 

 

TRADE REFERENCES – MARCH 2007

 

      ACCOUNT    HIGHEST      AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT        CREDIT                          PATTERN

 

1.    10 yrs          R   200 000    R     70 000     60 days    60 days        Good

 

2.    5 yrs            R2 000 000    R  200 000      60 days    60 days        Very good

 

3.    10-11 yrs      R3 000 000    R1 000 000      60 days    60 days        Good

 

 

CURRENT TRADE REFERENCES

 

      ACCOUNT    HIGHEST      AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT        CREDIT                          PATTERN

 

1.    6 yrs           R   500 000    R   120 000     60 days    60 days        Good

 

2.    Many yrs      declined         declined          60 days    60 days        Very good

 

3.    04/2001        R3 000 000    R   450 000 -   90 days    90 days+      Good

                                               R2 000 000

 

 

COMMENTS

 

This is an established company which took over a well established division of CONSHU TRADING (PTY) LTD.  The subject is meeting its commitments on arranged terms.  The subject is considered equal to $1 000 000 over 180 days.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.49.74

UK Pound

1

Rs.74.37

Euro

1

Rs.62.78

 

 

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