MIRA INFORM REPORT

 

 

Report Date :

22.03.2011

 

IDENTIFICATION DETAILS

 

Name :

PRIME LEATHERS CC

 

 

Registered Office :

Unit 21 Fischer Park Blessing Ninela Road HILLCREST Kwazulu-Natal

 

 

Country :

South Africa

 

 

Date of Incorporation :

13.01.1997

 

 

Com. Reg. No.:

1997/001163/23

 

 

Legal Form :

Close Corporation

 

 

Line of Business :

Leather stockist and leather indent agent

 

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

 

COMPANY NAME

 

PRIME LEATHERS CC

 

 

Address

 

PHYSICAL ADDRESS:

Unit 21

Fischer Park

Blessing Ninela Road

HILLCREST

Kwazulu-Natal

 

POSTAL ADDRESS:    

P O Box 1732

WESTVILLE

3630

 

TELEPHONE NUMBER:             031 765 1874

 

FAX NUMBER:                          031 765 5466

 

CELL NUMBER:                        086 183 7274

 

It was stated that the subject moved from the premises at 90 Haygarth Road, Kloof.

 

 

MEMBERS

 

MS N L BENDERS                                            ID No 6910100147085

 

 

ASSOCIATE COMPANIES

 

None

 

 

BANKERS

 

STANDARD BANK, Pinetown Old Main Road branch, account number 250096153.

 

It was stated that the subject enjoys overdraft facilities to an extent of R550 000, secured by the personal guarantee of the member.  The respondent stated that the overdraft is utilised for working capital purposes. 

 

 

DATE REGISTERED

 

13 January 1997

Registration Certificate Number: 1997/001163/23

 

The subject was commenced as a new business.  The respondent stated that, prior to commencing the subject, MS N L BENDERS was employed at APECO for 8 years,  where she was a director for the last four years.

                                                                                                                       

 

VAT NUMBER    

 

4960164368

 

 

MAJOR OPERATION

 

Leather stockist and leather indent agent.  The subject represents different tanneries.

 

 

MAJOR SUPPLIERS

 

The subject imports 90 % of its supplies from India, Pakistan, Brazil, Bangladesh etc and uses the clearing agents IMPSON FREIGHT in Durban.

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

The shoe, handbag and upholstery industries

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

The subject represents a tannery in Zambia

 

 

TOTAL EMPLOYEES

 

7 permanent employees

 

 

OTHER PREMISES   

 

The subject has branches in Cape Town and Johannesburg.

 

 

OWNED OR LEASED

 

The subject leases the branch in Cape Town.  The heading premises are reported to be leased.

 

The respondent stated that the subject owns the premises at 90 Haygarth Road, Kloof, valued in the region of R2 800 000, bonded in favour of STANDARD BANK for an outstanding amount of R2 000 000.  It was stated that they are currently renting out the latter premises to a third party.

 

 

MEMBERS CONTRIBUTION

 

R100

 

The following estimated financial situation was submitted as at 18 March 2011:

 

STOCK                                                             R1 800 000 – R  2 500 000

DEBTORS                                                         R  2 500 000

CASH ON HAND                                               R     100 000

FIXED ASSETS – net book – excl property          R     550 000

PROPERTY                                                      R  2 800 000

CREDITORS                                                      R  300 000 – R     400 000

LONG TERM LIABILITIES                                   R     120 000

LOAN FROM STANDARD BANK                                    R     200 000

MORTGAGE BONDS                                         R  2 000 000

TURNOVER per annum                                      R15 000 000

 

 

AUDITORS    

 

BRANDFIN, Umhlanga Rocks

 

 

YEAR END    

 

DECEMBER

 

 

INSURANCE BROKERS 

 

G D I SCHOFIELD BROKERS   

                                                                                                                       

 

TRADE REFERENCES – OCTOBER 2008

 

            ACCOUNT        HIGHEST          AVERAGE         TERMS             PAYMENT         EXPERIENCE

            OPENED           CREDIT            CREDIT                                    PATTERN

 

1.         5 years             R400 000          R250 000          30 days             30 days             Good

                                    c/l

 

 

TRADE REFERENCES – MAY 2009

 

            ACCOUNT        HIGHEST          AVERAGE         TERMS             PAYMENT         EXPERIENCE

            OPENED           CREDIT            CREDIT                                    PATTERN

 

1.         4 years R400 000          R200 000 -        30 days 30 days Average

                        c/l         R250 000

 

TRADE REFERENCES – MAY 2009:

 

            ACCOUNT        HIGHEST          AVERAGE         TERMS             PAYMENT         EXPERIENCE

            OPENED           CREDIT            CREDIT                                    PATTERN

 

1.         5 years             R400 000          R100 000 -        30 days             30+ days           Fair

                                    c/l                     R200 000

 

 

CURRENT TRADE REFERENCES

 

            ACCOUNT        HIGHEST          AVERAGE         TERMS             PAYMENT         EXPERIENCE

            OPENED           CREDIT            CREDIT                                    PATTERN

 

1.         2006                 R650 000          R150 000 -        30 days             30 days             Good

                                    Insured              R300 000

 

COMMENTS

 

This is an established business importing most of its supplies.  The subject is meeting its only commitments timeously.  We have not traced dealings to an extent of U$1 000 000 and it is suggested that dealings be to a lesser extent on a spread and secured basis.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.05

UK Pound

1

Rs.73.05

Euro

1

Rs.63.81

 

 

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.