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Report Date : |
16.10.2012 |
IDENTIFICATION DETAILS
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Name : |
CGM INDUSTRIAL (PTY) LTD. |
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Registered Office : |
Garment Manifacturer - Lesotho Site 14-16 Thetsane Industrial Area Maseru 100 |
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Country : |
Lesotho |
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Year of Establishment : |
1983 |
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Legal Form : |
Limited Corporation |
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Line of Business : |
Manufacturer and exporter of garments |
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No. of Employees : |
4200 employees. |
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RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 30th, 2012
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Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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Lesotho |
B2 |
B2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LESOTHO - ECONOMIC OVERVIEW
small, landlocked, and mountainous,
Lesotho relies on remittances from Basotho employed in South Africa, customs
duties from the Southern Africa Customs Union (SACU), and export revenue for
the majority of government revenue. However, the government has recently
strengthened its tax system to reduce dependency on customs duties. Completion
of a major hydropower facility in January 1998 permitted the sale of water to
South Africa and generated royalties for Lesotho. Lesotho produces about 90% of
its own electrical power needs. As the number of mineworkers has declined
steadily over the past several years, a small manufacturing base has developed
based on farm products that support the milling, canning, leather, and jute
industries, as well as an apparel-assembly sector. Despite Lesotho's
market-based economy being heavily tied to its neighbor South Africa, the US is
an important trade partner because of the export sector''s heavy dependence on
apparel exports. Exports have grown significantly because of the trade benefits
contained in the Africa Growth and Opportunity Act. Most of the labor force is
engaged in subsistence agriculture, especially livestock herding, although
drought has decreased agricultural activity. The extreme inequality in the
distribution of income remains a major drawback. Lesotho has signed an Interim
Poverty Reduction and Growth Facility with the IMF. In July 2007, Lesotho
signed a Millennium Challenge Account Compact with the US worth $362.5 million.
Economic growth dropped in 2009, due mainly to the effects of the global
economic crisis as demand for the country''s exports declined and SACU revenue
fell precipitously when South Africa - the primary contributor to the SACU
revenue pool - went into recession, but growth returned to 3.6% in 2010 and
5.2% in 2011.
Source
: CIA
Registered Name: CGM INDUSTRIAL (PTY) LTD.
Requested Name: CGM
INDUSTRIAL (PTY) LTD.
Other Names: None
Physical Address: Garment Manifacturer - Lesotho
Site
14-16 Thetsane Industrial Area Maseru 100 Lesotho
Postal Address: Site 14-16 Thetsane Industrial Area,
Maseru 100
Country: Lesotho
Phone: 266-317736/310499/22326452
Fax: 266-22326458
Email: None
Website: None
Financial Index as of December 2011 shows subject firm with a medium
risk of credit. However, bank and credit information obtained reveal a history
of prompt payments.
Legal Form: Limited Corporation
Date Incorporated: 1983
Reg. Number: Lesotho
Nominal Capital LSL. 10,000
Subscribed Capital LSL. 10,000
Subscribed Capital is Subscribed in the
following form:
Position Shares
Mr. Dalvi Madhav CEO
Mr. Jason F. Manager
CGM Group Holding Co.
CGM Group Parent company.
None Subsidiary company.
PRESITEX ENTERPRISES (PTY) LTD Affiliated company.
None Shareholder of subject firm.
In South Africa Branches of the firm
Registered to operate as manufacturer and exporter of garments
Imports: Asia
Exports: USA,
South Africa
Trademarks: None
Terms of sale: Cash
(40%) and 25-90 days (60%), invoices.
Main Customers: Stores,
outlets, distributors etc
Employees: 4200
employees.
Vehicles: Several
motor vehicles.
Territory of
sales: Lesotho
Location: Owned
premises, 23,400 square meters,
Auditors: Information not available.
Insurance Brokers: Information not available.
Currency Reported: Lesotho Loti (LSL.)
Approx. Ex. Rate: 1 US Dollar = 8.79 Lesotho Loti
Fiscal Year End: December
31, 2011
Inflation:
According
to information given by independent sources, the inflation at December
31st, 2011 was of 13%.
Financial Information not Submitted
Profit and Loss (expressed in LSL.)
2010 2011
Sales 345,150,000 349,500,000
Bank Name: First National Bank
Branch: Lesotho
Comments: None
Experiences: Good
None
This information was obtained from outside sources other than the
subject company itself and confirmed the above subject.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.53.12 |
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1 |
Rs.85.14 |
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Euro |
1 |
Rs.68.60 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.