MIRA INFORM REPORT

Report Date :

18.01.2011

IDENTIFICATION DETAILS

Correct Name :	STRIPES INDUSTRIES CC

Registered Office :	7 Potgieter Street, Alrode, Alberton

Country :	South Africa

Date of Incorporation :	17.07.2007

Com. Reg. No.:	2007/134748/23

Legal Form :	Closed Corporation

Line of Business :	Manufacturing of African hair extensions, wigs, braids, curls, weaves and suppliers of accessories, bonding glue, mannequin heads, braid spray, etc. under the brand name “DARLING”

RATING & COMMENTS

MIRA’s Rating :

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

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

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Note:

(The information contained in this report, other than comment by outside authorities, has been voluntarily supplied by officials of the subject):

COMPANY NAME

STRIPES INDUSTRIES CC

PHYSICAL ADDRESS

7 Potgieter Street

Alrode

Alberton

Gauteng

POSTAL ADDRESS

Private Bag X035

Unit 21

Alberton

1450

Telephone Number: 011 903 9400

Fax Number: 011 903 9499

The subject moved from 68 Main Reef Road, Benrose, Johannesburg

MEMBERS

28,75% A HOBALLAH Date of birth: 28 February 1028

28,75% S KHALIL Date of birth: 10 May 1951

15% H A KHALIL Date of birth: 15 November 1954

15% A A SAKSOUK ID No 6303165294184

10% H ZEIDAN ID No 6107075310182

2.5% F SASSO Date of birth: 6 October 1954

ASSOCIATE COMPANIES

· STRATEGIC INDUSTRIES LTD, trading as Stripes Kenya.

· STRIPES MANUFACTURING GHANA LTD

· STRIPES INDUSTRIES MALAWI LTD

· STRIPES TANZANIA LTD

· STRIPES UGANDA LTD

· STRIPES INDUSTRIES LDA - registered in Mozambique

BANKERS

STANDARD BANK, Bedford Gardens branch, account number 22533087.

It was stated that the subject enjoys overdraft facilities to an extent of R7 500 000, secured by personal guarantees of the members. The respondent stated that the overdraft is utilised for working capital purposes.

DATE REGISTERED

17 July 2007

Registration Certificate Number: 2007/134748/23

The subject converted from a private company that originated on 10 February 1995 - Registration Certificate Number: 1995/001183/07.

VAT NUMBER

4660151459

MAJOR OPERATION

Manufacturing of African hair extensions, wigs, braids, curls, weaves and suppliers of accessories, bonding glue, mannequin heads, braid spray, etc. under the brand name “DARLING”

MAJOR SUPPLIERS

The subject imports machine parts and polypropylene from Japan and Korea and deals with the following South African suppliers:

· SAFRIPOL Johannesburg

· DENIS GOURLEY PACKAGING Durban

· BP RANDHART Johannesburg

· SAFCOR PANELPINA

MAJOR CUSTOMERS OR BUSINESS SECTORS

Wholesalers such as CASH AND CARRY, retailers such as PICK ‘N PAY, hair salons and end independent distributors.

AREA OF DISTRIBUTION AND SELLING

South Africa

EXPORTS

Africa

TOTAL EMPLOYEES

600 permanent employees

OTHER PREMISES

None

OWNED OR LEASED

The heading premises are reported to be owned by the subject, purchased for R15 000 000, bonded in favour of STANDARD BANK.

It was stated that the heading premises comprise of 4 factories, 1 warehouse and the administration offices.

MEMBERS CONTRIBUTION

R100

The following estimated financial situation was submitted as at 20 October 2010:

STOCK R 5 000 000

DEBTORS R10 000 000

CREDITORS R 5 000 000

LOANS none

TURNOVER - per annum R40 000 000

AUDITORS

A BISMILLA AND COMPANY. Tel no: 011 403 3209

YEAR END

FEBRUARY

INSURANCE BROKERS

DRAIG INSURANCE BROKERS

TRADE REFERENCES – MAY 2006

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 2001 R 4 000 R 4 000 30 days 30 days Good

sporadic purchases

2. 6 years R125 000 R50 000- 30 days 30 days Good

c/l R60 000

3. Jun 2005 R 20 000 R20 000 30 days 30 days Very good

TRADE REFERENCES – OCTOBER 2007

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 10 years+ R3 500 000 confidential 30 days 30 days Excellent

c/l

2. 7 years± R 100 000 R50 000- 30 days 30 days Very good

c/l R70 000 EFT

3. 2005 R 30 000 R24 000 30 days 30 days Excellent

c/l

TRADE REFERENCES – OCTOBER 2009

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 10+ years R4 000 000 declined 30 days 30 days Excellent

c/l

2. 9+ years R 500 000 R150 000± 30 days 30 days Very good

c/l

(insured – Inform)

3. Nov 2006 declined declined 30 days 30 days Good

4. 5 years R 30 000 R 20 000- 7 days 7 days Excellent

c/l R 25 000

CURRENT TRADE REFERENCES

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. Do not give trade references

2. 2007 R400 000 R100 000 30 days 30 days Excellent

c/l

3. Awaiting a fax trade reference response

4. 20 years large amounts 30 days 30 days Excellent

COMMENTS

This is an established company meeting its commitments timeously. The subject is considered equal its normal business engagements.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.59
UK Pound	1	Rs.72.31
Euro	1	Rs.60.73

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
----	NB	New Business	----

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.