MIRA INFORM REPORT

Report Date :

12.11.2013

IDENTIFICATION DETAILS

Name :	TILE PLACE (PTY) LTD
Registered Office :	134 Intersite Avenue, Umgeni Business Park, Durban, KwaZulu-Natal
Country :	South Africa
Date of Incorporation :	18.05.2009
Com. Reg. No.:	2009/009462/07
Legal Form :	Private Company
Line of Business :	Import and retail of tiles and natural stone (sand stone) as well as related products.
No. of Employees :	29 Permanent Employees

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, 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
South Africa	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

SOUTH AFRICA - ECONOMIC OVERVIEW

South Africa is a middle-income, emerging market with an abundant supply of natural resources; well-developed financial, legal, communications, energy, and transport sectors and a stock exchange that is the 15th largest in the world. Even though the country possesses modern infrastructure that support a relatively efficient distribution of goods to major urban centers throughout the region, some components retard growth. The economy began to slow in the second half of 2007 due to an electricity crisis. State power supplier Eskom encountered problems with aging plants and meeting electricity demand necessitating "load-shedding" cuts in 2007 and 2008 to residents and businesses in the major cities. Subsequently, the global financial crisis reduced commodity prices and world demand. GDP fell nearly 2% in 2009 but has recovered since then. Unemployment, poverty, and inequality remain a challenge, with official unemployment at nearly 25% of the work force. Eskom has built two new power stations and installed new power demand management programs to improve power grid reliability. South Africa's economic policy has focused on controlling inflation, however, the country has had significant budget deficits that restrict its ability to deal with pressing economic problems. The current government faces growing pressure from special interest groups to use state-owned enterprises to deliver basic services to low-income areas and to increase job growth.

Source : CIA

COMPANY NAME and Address

TILE PLACE (PTY) LTD

TRADING NAME: DURATILE DESIGN

PHYSICAL ADDRESS: 134 Intersite Avenue

Umgeni Business Park

DURBAN, KwaZulu-Natal

POSTAL ADDRESS: P O Box 174

UMGENI BUSINESS PARK

4098

TELEPHONE NUMBER: +27 31 263 1192

FAX NUMBER: +27 31 263 1193

The respondent stated that 37 Percy Osborne, Stamford Hill, Durban is the registered address of the subject and that DURBAN TILING SERVICES (PTY) LTD was previously situated at the latter premises.

SHAREHOLDERS

100% OPAL RUBY HOLDINGS 16 (PTY) LTD

(Registration Certificate Number: 2010/017776/07).

The previous shareholding was 40% D B HOPKINS, 40% A HOPKINS and 20% M E SALTON.

ASSOCIATE COMPANIES

DURBAN TILING SERVICES (PTY) LTD

(Registration Certificate Number: 2009/08782/07),

LOT 422 UMGENI PARK (PTY) LTD

(Registration Certificate Number: 1998/055571/07)

37 PERCY OSBORNE ROAD CC

(Registration Certificate Number: 1995/029407/23)

IKHWEZI TILING CONTRACTORS CC

(Registration Certificate Number: 1997/046221/23)

DURATILE (PTY) LTD in Australia

FELLOW SUBSIDIARIES

MAZISTA TILES (PTY) LTD

(Registration Certificate Number: 2003/020644/07)

MAZISTA CAPE (PTY) LTD

(Registration Certificate Number: 2003/015646/07)

DIRECTORS

D B HOPKINS ID No: 4402058500300

A HOPKINS (resident in Australia) ID No: 7009185155086

M E SALTON ID No: 6110245041083

M J TULLY ID No: 7010175104084

BANKERS

STANDARD BANK, Windermere, Durban, account number 051321726.

The subject is reported to enjoy overdraft facilities to an extent of R1 500 000, secured by the cession of debtors of the associate company DURBAN TILING SERVICES (PTY) LTD. Utilisation of the overdraft is stated to be partial.

DATE REGISTERED

18 May 2009

Registration Certificate Number 2009/009462/07

The subject converted from TILE PLACE CC (Registration Certificate Number: 2001/035667/23)

It was stated that all the members are involved in the associate company.

VAT NUMBER

4170194015

TAX NUMBER

9295254149

MAJOR OPERATION

Import and retail of tiles and natural stone (sand stone) as well as related products.

MAJOR SUPPLIERS

The subject imports most of its supplies from South America, China, Europe and Indonesia. The subject deals with the following South African suppliers:

MALLS TILES Durban

TAL ADHESIVES Johannesburg

MAZISTA SLATE Johannesburg

JOHNSONS TILES Johannesburg

SPECIALISED FREIGHT

MAJOR CUSTOMERS OR BUSINESS SECTORS

The subject supplies to the associate business, DURBAN TILING SERVICES (PTY) LTD and also to contractors, dealers and the general public.

AREA OF DISTRIBUTION AND SELLING

Mainly KwaZulu-Natal. The respondent stated that the subject distributes throughout South Africa via the associate company DURBAN TILING SERVICES (PTY) LTD.

EXPORTS

Occasionally to Australia

TOTAL EMPLOYEES

29 permanent employees

OTHER PREMISES

None

OWNED OR LEASED

The premises are reported to be owned by LOT 422 UMGENI PARK (PTY) LTD, bonded in favour of Nedbank.

MEMBERS CONTRIBUTION

R100

FINANCIALS

The following estimated financial situation was submitted as at 1 November 2013:

STOCK R 8 000 000

DEBTORS R 5 000 000

CREDITORS R 4 000 000 – R 5 000 000

LOANS (previously stated) Durban Tiling Services CC R 200 000

TURNOVER per annum ±R50 000 000

AUDITORS

E LUIZ & ASSOCIATES Durban

YEAR END

FEBRUARY

INSURANCE BROKERS

ROBSONS INSURANCE BROKERS

TRADE REFERENCES – FEBRUARY 2006

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. Do not give trade references

2. 6 years R400 000 R350 000 30 days 30 days Very good

3. +5 years R150 000 R150 000 30 days 30 days Excellent

TRADE REFERENCES – JANUARY 2009

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. Old acc R1 000 000 R300 000- 30 days 30 days Good

c/l R400 000 2½%

2. Do not give trade references

3. Old acc R 800 000 R200 000 30 days 30 days Excellent

c/l

4. Awaiting a fax trade reference

TRADE REFERENCES – JANUARY 2011

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 10 years R1 000 000 R500 000 30 days 30 days Very good

c/l 2½%

2. 10 years R800 000 R 50 000 30 days 30 days Very good

c/l 2½%

3. Old acc R200 000 R 50 000- 30 days 30 days Good

c/l R160 000

TRADE REFERENCES – OCTOBER 2012

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. Do not give trade references

2. ±10 years R1 000 000 R500 000 30 days 30 days Very Good

-2.5%

3. ±10 years R800 000 R100 000 30 days 30 days Very Good

-2.5%

CURRENT TRADE REFERENCES

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. Oct 2002 R800 000 R400 000 30 days 30 days Good

2. 15 years R1 000 000 R500 000 30 days 30 days Excellent

Less 2.5%

3. Do not give trade references

COMMENTS

This is an established business meeting its commitments timeously.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.30
UK Pound	1	Rs.101.36
Euro	1	Rs.84.60

INFORMATION DETAILS

Report Prepared by :

NIT

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.