MIRA INFORM REPORT

 

 

Report Date :           

18.03.2011

 

 

 

Tel. No.:

031 717 6800

Fax No.:

031 717 6868

IDENTIFICATION DETAILS

 

Name :

L AND G TOOL AND MACHINERY DISTRIBUTORS LTD

 

 

Registered Office :

6 Kyalami Road, Westmead, Durban, Kwa-Zulu Natal

 

 

Country :

South Africa

 

 

Date of Incorporation :

18.10.1973

 

 

Com. Reg. No.:

1973/012834/06

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Importers and wholesale distributors of hardware, bathroom accessories, brackets, boards, tools, garden equipment and garage equipment

 

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 – December 31, 2010

 

Country Name

Previous Rating

                   (30.09.2010)                  

Current Rating

(31.12.2010)

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:

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

 

COMPANY NAME

 

L AND G TOOL AND MACHINERY DISTRIBUTORS LTD

 

 

PHYSICAL ADDRESS    

 

6 Kyalami Road

Westmead

Durban

Kwa-Zulu Natal

 

 

POSTAL ADDRESS   

 

P O Box 15313

Westmead

3608

Telephone Number:                  031 717 6800

Fax Number:                             031 717 6868

 

 

SHAREHOLDERS

 

50.5%   MONTEAGLE MERCHANT GROUP SOUTHERN HOLDINGS LTD,

(Registration Certificate Number 2001/003762/06) - which in turn is owned by MONTEAGLE SOCIÉTÉ ANONYME – registered in Luxembourg (quoted on the JSE LTD)

49.5%   DES LYLE FAMILY HOLDINGS (PTY) LTD,

(Registration Certificate Number 1996/008383/07) - which is in turn owned by DES LYLE FAMILY TRUST.

 

 

SUBSIDIARY COMPANIES

 

AIRSTREAM COMPRESSORS SA (PTY) LTD

(Registration Certificate Number 1999/002362/07) – 80%

 

ELECTRONIC WELDING SOLUTIONS (PTY) LTD

(Registration Certificate Number 2007/026983/07) – 50%

 

COMPOPAK DISTRIBUTORS (PTY) LTD

(Registration Certificate Number 2007/029636/07) – 55%

 

JUST TOOLS PINETOWN (PTY) LTD

(Registration Certificate Number 2007/019310/07) – 70%

 

 

DIRECTORS

 

I AHMED                                                           ID No 7006125054080

D C MARSHALL                                                ID No 4407255014089

W H MARSHALL                                               ID No 7002135113081

A V NAIDOO                                                     ID No 5603185135056

R I SAWKINS                                                    ID No 5805135053004

G K VACY-LYLE                                               ID No 6002175102003

 

 

BANKERS

 

FIRST NATIONAL BANK, Kloof branch, account number 6000041342 (current account) and 62012496164 (debtors finance account).

 

It was stated that the subject enjoys a combined facility to an extent of

R49 500 000 of which R11 500 000 is for overdraft, which is secured by property, debtors and stock.  It was stated that the subject factors its book with First Factors to an extent of R48 000 000.

 

 

DATE REGISTERED

 

18 October 1973

Registration certificate number:  1973/012834/06

 

The present owners bought the subject as a going concern in 1978.

 

 

VAT NUMBER          

 

4400103265

 

MAJOR OPERATION

 

Importers and wholesale distributors of hardware, bathroom accessories, brackets, boards, tools, garden equipment and garage equipment e.g. compressors, machinery, pneumatic tools, automotive accessories and welders

 

 

MAJOR SUPPLIERS

 

The subject imports mainly tools and machinery from China and deals with the local forwarding and clearing agent, UTI in Johannesburg.  The subject was previously reported in 2009 to be purchasing from THE WOODMASTER,  LASHER TOOLS, LUMEX CLIPSAL, CHISA WELDING and SUN COURIERS, but is now stated to import virtually all of its supplies.  See comments from previous suppliers in TRADE REFERENCE section.

 

The respondent stated that the subject undertakes its own clearing in-house.

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

The retail chains such as MASSMART GROUP, MICA GROUP and on a smaller scale to the independent retailers.

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

Africa, Botswana, Malawi and Namibia

 

 

TOTAL EMPLOYEES

 

250 permanent employees

 

OTHER PREMISES

 

It was reported that the subject has sales offices in Midrand, (Gauteng).

 

 

OWNED OR LEASED

 

The heading premises are reported to be owned by the subject, with a market value in the region of R22 000 000, bonded to an extent of R7 100 000 with GRINDROD BANK.

 

 

AUTHORISED SHARE CAPITAL

 

R200 000 divided into 200 000 ordinary shares of R1 each

 

 

 ISSUED SHARE CAPITAL   

 

R200 000

 

The following estimated financial situation was submitted as at 11 March 2011:

 

STOCK                                                                                                    ±R  83 000 000

TRADE DEBTORS                                                                                     R  70 000 000

FIXED ASSETS excluding property                                                              R    4 900 000

PROPERTY                                                                                               R  26 000 000

CURRENT LIABILITIES                                                                               R  86 000 000

NON-CURRENT LIABILITIES                                                                       R  17 000 000

TURNOVER per annum                                                                               R274 000 000

 

 

AUDITORS    

 

RSM BETTY AND DICKSON

 

 

YEAR END    

 

SEPTEMBER

 

INSURANCE BROKERS 

 

MARcH

 

 

TRADE REFERENCES – APRIL 2006

 

      PERIOD       HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

                          CREDIT         CREDIT                          PATTERN

 

1.    1992             R150 000       R20 000          60 days    60 days        Very good

 

2.    2001             R159 000       R70 000          30 days    30 days        Very good

 

3.    11 yrs           R50 000         R20 000          30 days    30 days        Very good

 

 

TRADE REFERENCES – DECEMBER 2006

 

      PERIOD       HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

                          CREDIT         CREDIT                          PATTERN

 

1.    10 yrs           R100 000       R100 000        30 days    30 days        Very good

 

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

 

3.    7 yrs            R938 000       R350 000 -      30 days    30 days        Very good

                                               R650 000        - 2.5%     

 

 

TRADE REFERENCES – JULY 2007

 

      PERIOD       HIGHEST       AVERAGE       TERMS      PAYMENT   EXPERIENCE

                          CREDIT         CREDIT                           PATTERN

 

1.    10 yrs+         R300 000       R     30 000-    30 days      30 days       Good

                                               R     50 000                     

 

2.    ±4 yrs           R1 500 000    R1 500 000      30 days      30 days       Good

 

3.    ±7 yrs           R   350 000    R   574 000     30 days      30 days       Good

                                                                     - 2.5%        - 2.5%

 

4.    01/2001        R   140 000    R       6 000     30 days      30 days       Good

                          c/l

 

TRADE REFERENCES – MARCH 2008

 

      PERIOD       HIGHEST       AVERAGE       TERMS      PAYMENT   EXPERIENCE

                          CREDIT         CREDIT                           PATTERN

 

1.    Old acc        open              R1 200 000 -    30 days      30 days       Very good

                                               R2 000 000

 

2.    6 yrs            R350 000       R   545 000     30 days      30 days       Good

                                                                     - 2.5%       

 

3.    10 yrs           open              varies              30 days      30 days       Good

 

4.    Last purchased a year ago                                                           Good

 

5.    Do not give trade references

 

 

TRADE REFERENCES – MARCH 2009

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    ±5 yrs           no limit          R800 000 -      30 days    30 days        Excellent

                      (R1 800 000)      R1 200 000      - 2.5%     

 

2.    1992       R2 586 115.01     R100 000        30 days    30 days        Good

                                                                     - 2.5%     

 

3.       Haven’t bought since 2007

 

4.       10 yrs           R100 000       ±R50 000        30 days    30 days        Excellent

                                      c/l

 

 

CURRENT TRADE REFERENCES

 

                  ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

                  OPENED      CREDIT         CREDIT                          PATTERN

 

1.       Do not give trade references (shippers)

 

2.       Unable to obtain a trade reference

 

3.       Was a good account

 

4.       Was a good account

 

5.       Was a good account

 

6.       Do not give trade references

 

 

COMMENTS

 

This is an established company, which imports most of its supplies.  In view of the lack of a payment pattern, it is suggested that dealings to an extent of US$1 000 000 be on a spread and secured basis.  The fact that the debtors book is stated to be factored should be borne in mind as a cautionary indication.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.24

UK Pound

1

Rs.72.57

Euro

1

Rs.63.00

 

 

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.