MIRA INFORM REPORT

 

 

 

 

Report Date :

19.02.2011

 

COMPANY NAME

 

PILOT TOOLS (PTY) LTD

 

 

BRAND NAMES  

 

·         PILOT TOOLS

·         POWDER INDUSTRIES

 

 

PHYSICAL ADDRESS    

 

49 - 51 Chrystal Street

Denver

Johannesburg

Gauteng

 

 

POSTAL ADDRESS   

 

P O Box 27420

Benmore

2011

Telephone Number:                  011 607 1800 / 616 8130

Fax Number:                             011 607 1803 / 601 1924

 

Further to our previous historical report, contact was once again made with the Director of the subject, who has declined to assist with information unless the identity of the enquirer and full reason for the enquiry are divulged.  Should our client wish to provide such information, please advise soonest.

 

MIRA INFORM REPORT

 

Report Date :

31.01.2011

 

IDENTIFICATION DETAILS

 

Name :

PILOT TOOLS (PTY) LTD 

 

 

Registered Office :

49 - 51 Chrystal Street, Denver, Johannesburg, Gauteng

 

 

Country :

South Africa

 

 

Date of Incorporation :

01.09.1939

 

 

Com. Reg. No.:

1939/013093/07

 

 

Legal Form :

Private Company

 

 

Line of Business :

Manufacturers of tungsten carbide tipped tools, tungsten carbide components, tungsten carbide indexable inserts and special form tools as well as manufacturers of coal drilling bits and coal picks

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – June 30, 2010

 

Country Name

Previous Rating

                   (01.04.2010)                  

Current Rating

(30.06.2010)

South Africa

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Note:

On investigation contact was made with the director, COLIN MORRISON who apparently is the only person who can update information; however, he declined to assist with information telephonically and requested that an email questionnaire be forwarded.  This was duly sent.  As soon as any further information is forthcoming the same will be compiled and forwarded to our client.

 

Nevertheless please see historical information obtained in October 2008 which reads as follows:

 

 

COMPANY NAME

 

PILOT TOOLS (PTY) LTD

 

 

BRAND NAMES

 

·         PILOT TOOLS

·         POWDER INDUSTRIES

 

 

PHYSICAL ADDRESS

 

49 - 51 Chrystal Street

Denver

Johannesburg

Gauteng

 

 

POSTAL ADDRESS   

 

P O Box 27420

Benmore

2011

Telephone Number:                  011 607 1800 / 616 8130

Fax Number:                             011 607 1803 / 601 1924

 

 

SHAREHOLDERS

 

100%     PILOT TOOLS HOLDINGS (PTY) LTD (Reg. No. 1996/005325/07) which in turn is owned by the J L MORRISON FAMILY TRUST.

 

ASSOCIATE COMPANIES

 

·         POWDER INDUSTRIES (PTY) LTD (dormant)

·         LINMARD INVESTMENTS (PTY) LTD (property owning company)

·         PILOT TOOLS PROPERTIES (PTY) LTD (property owning company)

 

 

DIRECTORS

 

C D MORRISON (Son)   ID No. 7308165030081

D B MORRISON (son)    ID No. 7106225054087

J L MORRISON (son)     ID No. 6907095044087

L D MORRISON (MD)     ID No. 3608305050006

N A MORRISON (son)    ID No. 6302185037003

 

 

BANKERS

 

NEDBANK, Ghandi Square branch, account number 1962000176. The subject has the following foreign currency account numbers US$ 7986018844, € 7927365703 and Japanese Yen 7986160357.

 

It was stated that the subject has a forward exchange contract facility of R150 000, overdraft, letter of credit, foreign currency and short term loan facility of R3 million, an instalment credit facility and revolving credit of R2 million, letter of guarantee facility and a Nedinform facility with a daily limited of R6 million.  Utilisation is stated to fluctuate.

 

It was stated that POWDER INDUSTRIES’ account 1962208044 is dormant and all finances are managed through the main account at NEDBANK.

 

 

DATE REGISTERED

 

1 September 1939

Registration certificate number 1939/013093/07

 

The subject took over the assets and operations of an associate company namely, POWDER INDUSTRIES (PTY) LTD (Reg. No. 1948/031097/07)

 

 

VAT NUMBER    

 

4730108927

 

MAJOR OPERATION

 

Manufacturers of tungsten carbide tipped tools, tungsten carbide components, tungsten carbide indexable inserts and special form tools as well as manufacturers of coal drilling bits and coal picks.

 

 

MAJOR SUPPLIERS

 

The subject imports from Spain, Japan, Germany, Belgium, Israel and the UK and deals locally with:

 

·         AIR PRODUCTS  Johannesburg

·         ROHLIG  Johannesburg

·         STEELDALE  Johannesburg

·         PREMIER FREIGHT

·         SPECIALITY METALS

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

Coal mining and engineering industry as well as the chemical industry e.g. Sasol and the steel industry e.g. Iscor

 

 

AREA OF DISTRIBUTION AND SELLING   

 

South Africa

 

 

EXPORTS

 

Neighbouring countries, Canada, Japan, South America, Australia and Europe.

 

 

TOTAL EMPLOYEES

 

90 waged and 35 salaried.

 

 

OTHER PREMISES   

 

None

 

OWNED OR LEASED

 

The premises consist of a parking lot, which is owned by PILOT TOOLS PROPERTIES (PTY) LTD, an administration block and stores, which are owned by J L MORRISON FAMILY TRUST and a factory, which is owned by LINMARD INVESTMENTS (PTY) LTD.  It was stated that the total replacement value of the property is approximately R13 million.  The property is reported to be free of bond.

 

 

AUTHORISED SHARE CAPITAL

 

R110 000 divided into 10 000 ordinary R2 shares; and 900 preference shares of R100 each

 

The capital increased from R20 000 divided into 10 000 ordinary R2 shares to the present on 11 March 1980.

 

 

ISSUED SHARE CAPITAL    

 

R110 000

 

The following estimated financial situation was submitted:

 

STOCK                                                                                            R20 000 000

DEBTORS                                                                 R12 000 000 – R13 000 000

FIXED ASSETS machines, equipment                                                R90 000 000

CREDITORS local                                                                              R1 000 000

CREDITORS overseas                                                                           fluctuates

SHAREHOLDERS LOANS                                                                R     682 000

TURNOVER per annum                                                                     R70 000 000

 

 

AUDITORS    

 

T P CONNAUGHTON & PARTNERS  Vereeniging

 

 

YEAR END

 

FEBRUARY

 

 

INSURANCE BROKERS

 

D M K C INSURANCE BROKERS

 

TRADE REFERENCES – MAY 2006

 

                  ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT   EXPERIENCE

                  OPENED      CREDIT         CREDIT                          PATTERN

 

1.                Old acc        R500 000       R100 000 -      60 days    60 days       Excellent

                                      c/l                 R150 000

 

2.                April’00         R600 000       R500 000 -      15 days    15 days       Very Good

                                                           R600 000

 

3.                15 yrs           R100 000       R  50 000 -      30 days    30 days       Excellent

                                                           R100 000

 

 

TRADE REFERENCES – JANUARY 2007

 

                  ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

                  OPENED      CREDIT         CREDIT                          PATTERN

 

1.                1999             R505 000       R  50 000 -      30 days    30 days        Good

                                                           R  60 000

 

2.                2000             R500 000       R250 000        7 days      7 days          Good

 

3.                11 yrs           R100 000       R100 000        30 days    30 days        Excellent

 

 

CURRENT TRADE REFERENCES

 

                  ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

                  OPENED      CREDIT         CREDIT                          PATTERN

 

1.                1999             R   505 000    R   100 000 -   60 days    60 days        Good

                                                           R   150 000

 

2.                04/2000        R   500 000    R   300 000 -   14 days    14 days        Very good

                                      c/l                 R   400 000 varies

 

3.                Last purchased in December 2007

 

4.                8 yrs            R1 200 000    R1 100 000      30 days    30 days        Very good

                                      c/l


COMMENTS

 

This is a well established company that took over the assets and operations of one of its associate companies.  The subject is meeting its commitments timeously and is considered equal to £146 000 over 90 days.

 

 

CURRENT TRADE REFERENCES

 

                  ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

                  OPENED      CREDIT         CREDIT                          PATTERN

 

1.                Unable to obtain trade references

 

2.                Unable to obtain trade references

 

3.                    Awaiting a fax trade reference

 

4.                    2004            R300 000       R150 000-       30 days    25-30            Excellent

                                      c/l                 R300 000                        days

 

 

COMMENTS

 

This was an established company that took over the assets and operations of one of its associate companies.  The subject is meeting its one obtainable commitment timeously, however, we have not traced dealings to an extent of US$1 000 000 and it is suggested that dealings to such a large extent be on a fully secured and well spread basis.  The subject is considered equal to a maximum figure of US$70 000 DA.  The lack of updated information should be borne in mind.

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.18

UK Pound

1

Rs.73.04

Euro

1

Rs.61.43

 

 

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

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

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.