MIRA INFORM REPORT

 

 

 

Report Date :

08.10.2008

 

IDENTIFICATION DETAILS

 

Name :

WONDER FLOORING (JOHANNESBURG) (PTY) LTD

 

 

Registered Office :

24 Western Boulevard, City West, Johannesburg, Gauteng

 

 

Country :

South Africa

 

 

Date of Incorporation :

07.02.1994

 

 

Com. Reg. No.:

1994/000658/07

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Distributors of Floor Products e.g. Carpets, Vinyl Tiles etc.

 

 

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

 

WONDER FLOORING (JOHANNESBURG) (PTY) LTD

 

TRADING NAME:          WONDER FLOORING JOHANNESBURG

 

 

PHYSICAL ADDRESS

 

24 Western Boulevard

City West

JOHANNESBURG

Gauteng

 

 

POSTAL ADDRESS   

 

Private Bag X02

FORDSBURG

2033

TELEPHONE NUMBER: 011 298 8000

FAX NUMBER:              011 836 4450

 

 

SHAREHOLDERS

 

100%    THOKAN INVESTMENTS (PTY) LTD, which is in turn owned by the Thokan family.

 

 

ASSOCIATE COMPANIES

 

JOEN INDUSTRIES (PTY) LTD

WONDER FLOORING (PTY) LTD – registration certificate number:  1979/005317/07

WONDER FLOORING (CAPE) (PTY) LTD – registration certificate number:  1992/00713/07

WONDER FLOORING (P E) (PTY) LTD – registration certificate number:  1994/00803/07

WONDERFLOORING (EAST RAND) (PTY) LTD – registration certificate number:  1981/001830/07

WONDERFLOORING (N TVL) (PTY) LTD – registration certificate number:  1983/000516/07

WONDERFLOORING (NATAL) (PTY) LTD – registration certificate number:  1983/000517/07

WONDERFLOORING (O F S) (PTY) LTD – registration certificate number:  1983/000515/07

WONDERFLOORING (VAAL) (PTY) LTD – registration certificate number:  1982/001444/07

WONDERFLOORING (WESTERN TRANSVAAL (PTY) LTD – registration certificate number:  1982/001444/07

WALWATI PROPERTIES (PTY) LTD – registration certificate number:  1979/004534/07 (property owning company)

 

It was stated by respondents at the company that WONDER FLOORING (PTY) LTD is the management, financing and administration company for the group.

 

DIRECTORS

 

A THOKAN

M S THOKAN

M A THOKAN

M THOKAN

N A THOKAN

 

The abovementioned directors are reported to be brothers and cousins.

 

 

BANKERS

 

NEDBANK, Fordsburg Branch, account number 1953229123.  It was stated that the subject enjoys group overdraft facilities, secured by the personal guarantees of the Directors. Utilisation is stated to fluctuate from partial to full at times.

 

 

DATE REGISTERED

 

7 February 1994

Registration Certificate Number: 1994/000658/07

 

The company was registered in February 1994 to take over a partnership, which was originally commenced in 1967 as a new business.

 

 

VAT NUMBER    

 

4910245960

 

 

MAJOR OPERATION

 

Distributors of floor products e.g. carpets, vinyl tiles etc.

 

 

MAJOR SUPPLIERS

 

The subject imports flooring from Europe, the Far and Middle East and deals locally with:

 

BELGOTEX Pietermaritzburg

MARLEY FLOORING

QUALICHEM

RAND FREIGHT

VAN DYCK CARPETS Durban

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

Carpet shops, furniture shops, hyper stores and retailers.

 

 

AREA OF DISTRIBUTION AND SELLING

 

Johannesburg and surrounding areas.  It was stated that the group distributes throughout South Africa

 

 

EXPORTS

 

Africa (Mozambique, Zimbabwe, Zambia and Kenya)

 

 

TOTAL EMPLOYEES

 

Approximately 500 in the group

 

 

OTHER PREMISES   

 

None

 

 

OWNED OR LEASED

 

The premises are stated to be owned by WALWATI PROPERTIES (PTY) LTD, market value in the region of R19 million, free of bond.

 

 

AUTHORISED SHARE CAPITAL

 

R1 000 divided into 1 000 ordinary shares of R1 each

 

 

ISSUED SHARE CAPITAL

 

R100

 

The respondent declined to update financial information on the subject, nevertheless, historical financial information as at May 2005 reads as follows:

 

STOCK                                                 R  13 000 000

DEBTORS                                             R  11 000 000

FIXED ASSETS                                     R    3 500 000

CREDITORS                                          R    7 000 000

TURNOVER per annum                          R  99 717 092

TURNOVER per annum for the Group      R200 000 000

 

 

FINANCIAL ACCOUNTANT

 

MR F THOKAN

 

 

AUDITORS

 

MAJID GANI & ASSOCIATES,  Polokwane

 

 

YEAR END

 

FEBRUARY

 

 

INSURANCE BROKERS

 

ESSOP S BHANA

 

 

TRADE REFERENCES – MARCH 2006

 

ACCOUNT        HIGHEST          AVERAGE         TERMS             PAYMENT         EXPERIENCE

OPENED           CREDIT            CREDIT                                    PATTERN

 

1.         1998                 R   100 000       R     80 000       30 days             30 days             Very good

 

2.         2002                 R     80 000       R     80 000       30 days             30 days             Good

 

3.         15 yrs               R5 000 000        R3 000 000        7 days              7 days              Good

 

 

 

 TRADE REFERENCES – NOVEMBER 2006

 

ACCOUNT        HIGHEST          AVERAGE         TERMS             PAYMENT         EXPERIENCE

OPENED           CREDIT            CREDIT                                    PATTERN

 

1.         1998                 R       35 000     R       35 000     30 days             30 days             Very good

 

2.         10 yrs+             do not disclose figures                30 days             30 days             Excellent

 

3.         10 yrs+             R30 000 000      R30 000 000      90 days             90 days             Very good

 

TRADE REFERENCES – SEPTEMBER 2007

 

ACCOUNT        HIGHEST          AVERAGE         TERMS             PAYMENT         EXPERIENCE

OPENED           CREDIT            CREDIT                                    PATTERN

 

1.         18 yrs               open                 R3 000 000 -      97 days             97 days             Very good

R5 000 000        4%

 

2.         10 yrs               declined            declined            30 days             30 days             Very good

 

3.         9 yrs                 open                 R     50 000 -     30 days             30 days             Very good

R   100 000

 

 

TRADE REFERENCES – APRIL 2008

 

ACCOUNT        HIGHEST          AVERAGE         TERMS             PAYMENT         EXPERIENCE

OPENED           CREDIT            CREDIT                                    PATTERN

 

1.         10 yrs+             R10 mill            R7 mill              120 days           120 days           Very Good

c/l                     -R9 mill

 

2.         Old acc             R200 000          R200 000          60 days             60 days             Very Good

 

3.         10 yrs+             figures               confidential        30 days             30 days             Very Good

4%

 

 

CURRENT TRADE REFERENCES

 

ACCOUNT        HIGHEST          AVERAGE         TERMS             PAYMENT         EXPERIENCE

OPENED           CREDIT            CREDIT                                    PATTERN

 

1.         10 yrs+             R8 000 000        R5 000 000        97 days             97 days             Very Good

Special terms

2.         15 Yrs               R300 000          R200 000          60 days             60 days             Excellent

 

3.         10 yrs+             figures               confidential        30 days             30 days             Very Good

4%

 

 

COMMENTS

 

This is an established company that took over a well-established partnership, which originally commenced operations in 1967. No adverse comments have been heard. The subject is meeting its commitments timeously and is considered equal to its normal business engagements.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.48.01

UK Pound

1

Rs.84.16

Euro

1

Rs.65.20

 

 

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