MIRA INFORM REPORT

 

 

Report Date :           

28.05.2011

 

IDENTIFICATION DETAILS

 

Name :

SHOPRITE CHECKERS (PTY) LTD

 

 

Formerly Known As :

OK BAZAARS (1929) LTD

 

 

Registered Office :

Cnr William Dobbs and Old Paarl Road, Brackenfell, Cape Town, Western Cape

 

 

Country :

South Africa

 

 

Date of Incorporation :

05.09.1929

 

 

Com. Reg. No.:

1929/001817/07.

 

 

Legal Form :

Private Company

 

 

Line of Business :

Large Retail Chain Store

 

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 :

No Complaints

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 31st, 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

 

 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

 

SHOPRITE CHECKERS (PTY) LTD

 

Formerly OK BAZAARS (1929) LTD, the name having been changed on 2 November 1998.

 

 

TRADING DIVISIONS

 

·         HYPERAMA

·         MEAT MARKETS

·         OK FURNITURE

·         RAINBOW FINANCE

·         SENTRA

·         VALUE

·         MEGASAVE

·         OK FOODS

·         FRESHMARK

·         PROPERTY DIVISION

·         U-SAVE

·         HUNGRY LION (Fast food store)

·         SHOPRITE

·         CHECKERS

·         HOUSE & HOME

·         OK POWER EXPRESS

·         OK FRANCHISE

 

Plus other divisions within the group.

 

 

PHYSICAL ADDRESS          

 

Head Office:

Cnr William Dobbs and Old Paarl Road

Brackenfell

Cape Town

Western Cape

 

 

POSTAL ADDRESS

 

P O Box 215

Brackenfell

7561

Telephone Number:     021 980 4000

Fax Number:                021 980 4468

           

 

SHAREHOLDERS

 

100%    SHOPRITE HOLDINGS LTD

            (Registration Certificate Number: 1936/007721/06),

            quoted on the JSE LTD, Namibian and Zambian Stock Exchanges.

 

 

ASSOCIATE COMPANIES

 

There are reported to be a number of companies within the SHOPRITE CHECKERS group of companies.

 

 

DIRECTORS

 

J W BASSON                                        ID No. 4601085024009

C G GOOSEN                                       ID No. 5306075042008

S B BRAUDE                                        ID No. 5606095017009

E L NEL                                                ID No. 4907135009001

A E KARP                                             ID No. 5810285045081

B R WEYERS                                       ID No. 5112175585080

P B VAN DER MERWE                         ID No. 6009185062085

S SCHIFF                                             ID No. 4104095074007

C J C DE WET BURGER                        ID No. 5702035023007

B HARISUNKER                                    ID No. 5112095026058

G G KRIEL                                            ID No. 5304185068005

J M ALBERTS                                       ID No. 6009165072005

P TZELLIOS                                          ID No. 5907265132101

D HALLALE                                           ID No. 4909255199083

M BOSMAN                                          ID No. 5706015072009

J J ZWENNIS                                        ID No. 5211175059003

J FOURIE                                              ID No. 5501115140008

J G VAN DEVENTER                             ID No. 5912205025001

H J VAN ROOYEN                                 ID No. 5309015132087

P C ENGELBRECHT                              ID No. 6905295032084

G FRITZ                                                ID No. 6004245053083

G M P MENTZ                                       ID No. 7201315009081

G J ACKERMAN                                    ID No. 6910135331084

A J DE SWART                                     ID No. 6304035122084

D L P DIEMONT                                                ID No. 6705195043086

P J MALAN                                           ID No. 6902020101735

(MRS) A C VOSLOO                              ID No. 4811010102081

(MRS ) A GOUWS                                 ID No. 5704250058007

A B GARDENER                                   ID No. 6203135063083

(MRS) A JANSE VAN RENSBURG         ID No. 5412310007085

(MRS) S M VISSER                               ID No. 6905280276084

J A L BASSON                                      ID No. 7602155022086

A M HOWARD                                      ID No. 6008195081085

F K G MULLER                                     ID No. 6401065078085

N L SCHREUDER                                  ID No. 8012055087081

P G DU PREEZ                                     ID No. 6611265138089

G HAYES                                             ID No. 7505195045084

 

 

ALTERNATIVE DIRECTORS

 

J V R BRONN                                        ID No.   7704215046087

A DE BRUYN                                        ID No.   7109285207082

S G GOUWS                                         ID No.   6901215226005

W J HUNLUN                                        ID No.   6408145250089

D H JACOBS                                         ID No.   6301095068082

M G JOUBERT                                      ID No.   5911155101085

D G MOLLER                                        ID No.   6005205106084

V P SCHOELER                                    ID No.   6206245147084

P G VAN BREDA                                  ID No.   6503095085087

J J VAN ZYL                                          ID No.   6201035005089

A WAGENAAR                                      ID No.   7203175050080

G MOLLER                                           ID No.   7007315019081

 

 

BANKERS

 

ABSA BANK LTD, FIRST NATIONAL BANK, NEDBANK, STANDARD BANK, COMMERCIAL BANK, CITIBANK AND INVESTEC.

 

It was stated that FRESHMARK banks with STANDARD BANK, Brackenfell Branch. Branch Code:  050410, Account Number:  272343811.  It was stated that the subject enjoys overdraft facilities.  Utilisation of the overdraft is nil as credit balances are normally maintained at the bank.

 

 

DATE REGISTERED

 

5 September 1929

Registration Certificate Number: 1929/001817/07.

 

The subject converted from a public company to a private company inMay 2001.

 

The operations and assets of SHOPRITE CHECKERS (PTY) LTD were incorporated into OK BAZAARS (1929) LTD with effect from the 1st November 1997 and at that stage SHOPRITE CHECKERS (PTY) LTD became dormant.  There was a simultaneous name change in 1998 when OK BAZAARS (1929) LTD changed its name to SHOPRITE CHECKERS LTD and the previous SHOPRITE CHECKERS (PTY) LTD, (Registration Certificate Number: 05/34105/07 – old format of Registration Number) changed its name to OK BAZAARS (1998) (PTY) LTD.

 

 

VAT NUMBER

 

4420106777      

 

 

TAX NUMBER

 

9175085712

 

 

MAJOR OPERATION

 

The subject is a very large retail chain store and is involved in mainly fresh and frozen foods, groceries, small kitchenware, garden equipment, furniture, etc. 

 

The Shoprite group of companies is Africa’s largest food retailer, which operates 886 corporate outlets in 17 countries across Africa, the Indian Ocean Islands and Southern Asia.

 

The fresh produce division of the SHOPRITE GROUP, FRESHMARK, procures and distributes fresh produce from nine distribution centres located in the main cities of South Africa.  A fleet of 120 refrigerated trucks deliver produce directly to more than 440 CHECKERS and SHOPRITE supermarkets, and CHECKERS HYPER stores.  It was stated that FRESHMARK also imports fruit and vegetables.

 

 

MAJOR SUPPLIERS

 

It was stated by the respondent that the divisions do not purchase supplies under their names but under the name of SHOPRITE CHECKERS.

 

The FRESHMARK division purchases from the following suppliers:

 

PENINSULA PACKAGING, Cape Town

REDFERN, Cape Town

VERSAPAK, Cape Town

TOYOTA SAFICON, Cape Town

 

The CHECKERS division purchases from the following suppliers:

 

COLD CHAIN, Johannesburg

CLOVER, Johannesburg

NESTLE, Johannesburg

VECTOR LOGISTICS, Johannesburg

UNILEVER, Durban

 

It was stated that each division has its own suppliers.

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

The public on a cash basis.

 

 

AREA OF DISTRIBUTION AND SELLING

 

Southern Africa

 

 

EXPORTS

 

Neighbouring countries, eg. Namibia, Botswana, Zambia, Mozambique, Swaziland, Egypt, Uganda, Tanzania, Malawi, Zimbabwe, Lesotho, Madagascar, Mauritius and Angola.

 

 

TOTAL EMPLOYEES

 

 ±37 000 Waged and 21 500 Salaried: 

 

 

OTHER PREMISES   

 

The subject is reported to have approximately 704 branches countrywide.

 

 

OWNED OR LEASED

 

Some of the premises are reported to be owned and some are leased by the company.  It was stated that the heading premises are owned by SHOPRITE CHECKERS PROPERTIES LTD.

 

 

AUTHORISED SHARE CAPITAL

 

R757 000 000 divided into 1 514 000 000 ordinary shares of 50 cents each.

 

ISSUED SHARE CAPITAL    

 

R756 411 000

 

Please see latest Statement of Financial Position for year ended June 2010 attached on the Holding Company.

 

 

AUDITORS

 

PRICEWATERHOUSECOOPERS           Tel no.  021 529 2000

 

 

YEAR ENd

 

JUNE

 

 

INSURANCE BROKERS

 

GLENRAND MIB

 

 

TRADE REFERENCES – MARCH 2007

 

      ACCOUNT    HIGHEST       AVERAGE   TERMS        PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT       PATTERN

 

1.    5 years         R  30 000       R20 000 -    30 days        30 days        Excellent

                                               R30 000 2.5%

 

2.    7 years+       R385 000       R60 000 -    30 days        30 days        Very Good

                          c/l                 R70 000

 

3.    Old acc        R200 000       R70 000 30 days              30 days        Very Good

                          c/l

 

4.    Old acc        R  30 000       R20 000 -    30 days        25 days        Excellent

                                               R30 000 2.5%

 

TRADE REFERENCES – OCTOBER 2007

 

      ACCOUNT    HIGHEST       AVERAGE   TERMS        PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT       PATTERN

 

1.    Sep 2004      R  50 000       R    9 000 -  30 days        30 days        Very Good

                          c/l                 R  81 000    2.5%

 

2.    Aug 2004      R200 000       R100 000     30 days        30 days        Good

                          c/l                           2.5%

 

3.    5 years+       R325 000       R  70 000 -  30 days        30 days        Very Good

                          c/l                 R100 000     2.5%

 

 

TRADE REFERENCES – OCTOBER 2007

 

      ACCOUNT    HIGHEST       AVERAGE   TERMS        PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT       PATTERN

 

1.    Do not give trade references.

 

2.    Old acc        declined         varies 30 days                  30 days        Good

 

3.    5 years+       R   643 000    R  50 000-   30 days        30 days        Excellent

                          c/l                 R150 000     2.5%            2.5%

 

4.    10 years+     R1 600 000    R100 000-    30 days        25 days        Excellent

                                               R500 000

 

 

TRADE REFERENCES – AUGUST 2009

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    2004             R128 000       R    1 000 -      30 days    30 days        Good

                                               R  75 000        2.5%

 

2.    6 years+       R643 000       R100 000        30 days    30 days        Very Good

                          c/l                                       15%

 

3.    5 years         R115 000       Undisclosed    30 days    30 days        Very Good

                          (c/l of R50 000)

 

TRADE REFERENCES – NOVEMBER 2009

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    2004             R   128 000    R   100 000     30 days    30 days        Very Good

                                                                     2.5%        2.5%

 

2.    9 years         R7 000 000    R3 000 000+    30 days    30 days        Excellent

                          c/l                                       2.5%        2.5%

 

3.    1996             R   100 000    R     50 000-    30 days    30 days        Very Good

                          c/l                 R   100 000

 

 

TRADE REFERENCES – MAY 2010

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    12 years       declined         figures             30 days    30 days        Very Good

 

2.    10+ years     declined         R8 000 000      30 days    30 days        Very Good

 

3.    1996             declined         R   400 000-    30 days    30 days        Excellent

                                               R1 000 000

 

 

TRADE REFERENCES – OCTOBER 2010

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    Sep 2004      R50 000         ±R115 000       30 days    30 days        Very Good

                          c/l                                       -2,5%       -2,5%

 

2.    4 years +      R325 000       ±R50 000        30 days    30 days        Very Good

                          c/l                                       -15%        -15%

 

3.    1996             R100 000       ±R20 000-       30 days    25 days        Excellent

                          c/l                 R60 000

 

CURRENT TRADE REFERENCES

 

      ACCOUNT   HIGHEST            AVERAGE         TERMS     PAYMENT   EXPERIENCE

      OPENED     CREDIT              CREDIT                             PATTERN

 

1.    Old Acc       R300 000 000±    R200 000 000±   30 days    30 days       Excellent

 

2.    Old Acc       R210 000 000±    R200 000 000±   30 days    30 days       Excellent

 

3.       Do not give trade references

 

4.       Do not give trade references

 

5.       March 2000 R250 000 000      R250 000 000±   30 days    30 days       Good

                         c/l

 

 

COMMENTS

 

This is a well established and well connected company. The division: CHECKERS is meeting commitments timeously and is considered equal to US$1 500 000 against DA terms.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.21

UK Pound

1

Rs.74.31

Euro

1

Rs.64.40

 

 

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.