MIRA INFORM REPORT

Report Date :

21.05.2011

IDENTIFICATION DETAILS

Name :	USABCO INDUSTRIES (PTY) LTD
Formerly Known As :	UNITED SA BRUSH MANUFACTURING CO (PTY) LTD
Registered Office :	Sacks Circle, Bellville, Cape Town, Western Cape
Country :	South Africa
Date of Incorporation :	29.06.1954
Com. Reg. No.:	1954/003526/07 (confirmed at CIPRO)
Legal Form :	Private Company
Line of Business :	Manufacturers and distributors of plasticware, household plastic products, brushware and hardware

RATING & COMMENTS

MIRA’s Rating :

Ba

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 – March 31^st, 2011

Country Name	Previous Rating (31.12.2010)	Current Rating (31.03.2011)
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

USABCO (PTY) LTD

PHYSICAL ADDRESS

Sacks Circle

Bellville South

Western Cape

POSTAL ADDRESS

P O Box 277

Bellville

7530

Telephone Number: (021) 917 2000 / 2111

Fax Number: (021) 917 2001 / 2113

On investigation it was established that the subject is a dormant company that is a non-trading company from a legal entity point of view. The company has an agency agreement with its holding company, USABCO INDUSTRIES (PTY) LTD and all business transactions are conducted as an operating division of the latter company which report should be consulted.

Bottom of Form

Note:

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

COMPANY NAME

USABCO INDUSTRIES (PTY) LTD

Formerly UNITED SA BRUSH MANUFACTURING CO (PTY) LTD, the name having been changed.

TRADING NAME

USABCO

BRAND NAMES

ADDIS

TENACITY

PHYSICAL ADDRESS

Sacks Circle

Bellville

Cape Town

Western Cape

POSTAL ADDRESS

P O Box 277

Bellville

7530

Telephone Number: 021 917 2000 / 2050

Fax Number: 021 917 2001

On investigation contact was made with the Financial Manager who confirmed the following:

SHAREHOLDERS

100% TENACITY INVESTMENTS (PTY) LTD

(Registration Certificate Number: 1916/001477/07), which in turn is owned by E B STERN and J GANTZ.

ASSOCIATE COMPANIES

USABCO (PTY) LTD (Dormant)

(Registration Certificate Number: 1976/003555/07) has an agency agreement with USABCO INDUSTRIES (PTY) LTD

CIRCLE PROPERTIES (PTY) LTD (property-owning company)

(Registration Certificate Number: 1933/005083/07)

DIRECTORS

E B STERN ID No. 4807275176083

J GANTZ (Resident in the USA) D.O.B. 26 January 1947

G VAN NIEKERK ID No. 6907075263087

BANKERS

STANDARD BANK, Bellville branch, Account Number: 071967079.

It was stated that the group enjoys overdraft facilities to an extent of

R20 000 000, secured by bond over property. The respondent stated that the overdraft facility is utilised for working capital purposes.

It was stated that the group is managed by a cash management scheme controlled by the holding company.

DATE REGISTERED

29 June 1954

Registration Certificate Number: 1954/003526/07 (confirmed at CIPRO)

The subject commenced trading in 1918 as a family business. It was stated that E B STERN is the only original family member left in the company and he represents the third generation of this family that has been involved in the subject.

VAT NUMBER

4540109594 (confirmed at SARS)

MAJOR OPERATION

Manufacturers and distributors of plasticware, household plastic products, brushware and hardware.

MAJOR SUPPLIERS

· NAMPAK RECYCLING Cape Town

· BOXES FOR AFRICA Cape Town

· SASOL POLYMERS (Polypropylene)

· MEIHUIZEN FREIGHT Cape Town

· ROHLIG, Cape Town

· TOLL GLOBAL, Cape Town

MAJOR CUSTOMERS OR BUSINESS SECTORS

Retailers, wholesalers and chain stores i.e. Pick 'n Pay

AREA OF DISTRIBUTION AND SELLING

South Africa

EXPORTS

Africa, Mauritius, Reunion, Australia, UK

TOTAL EMPLOYEES

600

OTHER PREMISES

The subject has a manufacturing plant and 2 depots in Cape Town and a distribution warehouse and depot in Johannesburg.

OWNED OR LEASED

The head office premises are reported to be owned by CIRCLE PROPERTIES (PTY) LTD, while the depots

are reported to be leased.

AUTHORISED SHARE CAPITAL

R30 000 divided into 15 000 ordinary R2 shares.

ISSUED SHARE CAPITAL

R30 000

The following estimated financial situation was submitted as at February 2011:

STOCK R55 000 000

DEBTORS R62 000 000

CREDITORS (total) R56 000 000

SHAREHOLDERS’ LOANS subordinated to the bank declined

TURNOVER per month in excess of R35 000 000

AUDITORS

KPMG

YEAR END

DECEMBER

INSURANCE BROKERS

ALEXANDER FORBES

TRADE REFERENCES – JULY 2006

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 6 yrs R300 000 R300 000 30 days 30 days Very Good

2. 7 yrs R 77 111 R 77 111 30 days 30 days Excellent

3. 1996 figures confidential 60 days 60 days Good

TRADE REFERENCES – JANUARY 2007

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 1996 figures confidential 60 days 60 days Very Good

2. 6 yrs R300 000 R300 000 7/30 days 7 days Very Good

Fluctuates

3. 10 yrs R80 000 R80 000 30 days 30 days Excellent

TRADE REFERENCES – OCTOBER 2007

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 10 yrs R79 000 R79 000 30 days 30 days Very Good

2. 1996 figures confidential 60 days 60 days Very Good

3. Old acc R500 000 R250 000 7/14 days 7/14 days Good

c/l fluctuates

TRADE REFERENCES – JANUARY 2008

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 10 yrs+ R79 000 R 50 000 30 days 30 days Good

c/l

2. 11 yrs declined R 76 000 30 days 30 days Excellent

3. 5-6 yrs open acc R 50 000- 14 days 14 days Good

R100 000

TRADE REFERENCES – FEBRUARY 2009

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 12 yrs R200 000 R20 000 60 days 22 days Good

2. Do not give trade references.

3. 6 yrs unlimited R500 000 14 days 14 days Very Good

TRADE REFERENCES – OCTOBER 2010

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 5+ years undisclosed R 50 000 60 days 60 days Very Good

2. Few years R250 000 R200 000 7 days 7 days Very Good

c/l

3. Old declined figures 30 days 30 days Very Good

CURRENT TRADE REFERENCES

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1, 8 years R1 000 000 R500 000 7/14 days 7/14 days Very good

c/l

2. 2009 amounts confidential 30 days 30 days Very good

3. Old acc R1 250 000 R1 000 000 30 days 30 days Excellent

c/l

COMMENTS

This is a well-established and well-regarded company meeting its commitments timeously. The subject is considered equal to an amount US$1 000 000 over 30 days.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.93
UK Pound	1	Rs.72.92
Euro	1	Rs.64.34

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.