MIRA
INFORM REPORT
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Report Date : |
09.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
VARUN IMPORT EXPORT CC |
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Registered Office : |
38 Houghton Drive,
Houghton, Gauteng |
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Country : |
South Africa |
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Date of Incorporation : |
19.03.1993 |
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Com. Reg. No.: |
1993/007034/23 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importing and
Exporting of Garments |
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 |
COMPANY NAME
VARUN IMPORT EXPORT CC
PHYSICAL ADDRESS
38 Houghton Drive
HOUGHTON
Gauteng
POSTAL ADDRESS
P O Box 1797
HOUGHTON
2041
TELEPHONE NUMBER: 011 728 6740
FAX NUMBER: 011 483 3577
MEMBERS
85% R K SETH ID
No. 5403295155189
15% V SETH ID
No. 8404115771186
The Membership was
previously 100% R K SETH, having changed
ASSOCIATE COMPANIES
None
BANKERS
NEDBANK, Germiston
branch, account number: 1918363943. It
was stated that the subject enjoys overdraft facilities to an extent of R1.5 million,
secured by a pledge of property and the personal guarantees of the
Members. Utilisation is stated to
fluctuate from nil to full at times.
DATE REGISTERED
19 March 1993
Registration Certificate
Number: 1993/007034/23
It was stated that R K
SETH was previously involved in a company in Durban named A & M
EXPORT/IMPORT (PTY) LTD for approximately 4 years, which he sold in December
1992. He was also previously involved
in a retail clothing store in Swaziland which he sold in December 1992.
MAJOR OPERATION
Importing and exporting
of garments
MAJOR SUPPLIERS
The subject deals with
all suppliers on a COD basis
MAJOR CUSTOMERS OR BUSINESS
SECTORS
Retail stores such as
Truworths, Markhams, etc
AREA OF DISTRIBUTION AND SELLING
South Africa
EXPORTS
None
TOTAL EMPLOYEES
5
OTHER PREMISES
The subject is reported
to have 11 properties in Cape Town and Johannesburg
OWNED OR LEASED
The head office premises
are reported to be owned by Mrs Seth, whilst the branch premises are leased.
MEMBERS CONTRIBUTION
R100
The following estimated
financial situation was submitted:
STOCK R4 000 000
DEBTORS COD
FIXED ASSETS R15 000 000
CREDITORS COD
OVERDRAFT fluctuates
LOANS R 500 000
TURNOVER per annum R18 000 000
AUDITORS
K R B CHARTERED
ACCOUNTANTS
YEAR END
FEBRUARY
INSURANCE BROKERS
REID RAETZER
TRADE REFERENCES
NOT APPLICABLE
COMMENTS
This is an established business which deals with its suppliers on a COD basis. In view of the lack of a payment pattern we would prefer to see dealings to an extent of US$1 000 000 on a letter of credit basis.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.44.89 |
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UK Pound |
1 |
Rs.78.86 |
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Euro |
1 |
Rs.63.33 |
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%)