MIRA INFORM REPORT

 

 

Report Date :

15.11.2013

 

IDENTIFICATION DETAILS

 

Name :

SOUTH AFRICAN POLYPROPYLENE YARNS (PTY) LTD

 

 

Formerly Known As :

DELTRADE 6 (PTY) LTD

 

 

Registered Office :

P O Box 109, Hammarsdale, 3700

 

 

Country :

South Africa

 

 

Date of Incorporation :

21.12.1994

 

 

Com. Reg. No.:

1994/010667/07

 

 

Legal Form :

Private Company

 

 

Line of Business :

Manufacture of high tenacity and fine denier multifilament polypropylene yarns and masterbatch

 

 

No. of Employees :

±350

 

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, 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 & address

 

SOUTH AFRICAN POLYPROPYLENE YARNS (PTY) LTD


Formerly:  DELTRADE 6 (PTY) LTD, the name having been changed on the 21 December 1994

 

TRADING NAME           : SAPY

 

PHYSICAL ADDRESS   : SAPY 1

49 Eaton Road

HAMMARSDALE

KwaZulu-Natal

 

SAPY 2

30 Anderson Road

HAMMARSDALE

KwaZulu-Natal

 

POSTAL ADDRESS      : P O Box 109

HAMMARSDALE

3700

 

TELEPHONE NUMBER:+27 31 736 8700

 

FAX NUMBER               : +27 31 736 1589

 

The subject moved from 23 Green Road Hammarsdale KwaZulu-Natal in 2010

 

 

SHAREHOLDERS

 

100%    NINIAN & LESTER HOLDINGS LTD delisted from the JSE LTD.

 

The shareholding changed and was previously:

 

50%      NINIAN & LESTER HOLDINGS LTD delisted from the JSE LTD.

 

50%      Undisclosed company, in the textile, clothing and hosiery industries.

 

 

ASSOCIATE COMPANIES

 

NINIAN & LESTER (PTY) LTD

(100% owned by NINIAN & LESTER HOLDINGS LTD)

(Registration Certificate Number: 1942/015100/07)

 

Plus companies within the NINIAN & LESTER group.

 

DIRECTORS

 

A VERHAGEN                                                   ID No.   BA3054980000

G W RAHMER                                                   ID No.   4901245099184

M ZARREBINI (UK)                                            D.O.B. 451012

M ZARREBINI (Snr) (UK)                                    D.O.B.  740618

N R BALFOUR                                                  Ppt No. 72011085

 

 

BANKERS

 

STANDARD BANK, Hillcrest branch, Account Number: 052018210.  It was stated that the subject enjoys overdraft facilities to an extent of +R5 000 000, secured by the personal guarantees of the Shareholders.  Utilisation of the overdraft is stated to fluctuate.

 

 

DATE REGISTERED

 

21 December 1994

Registration Certificate Number: 1994/010667/07

 

The subject commenced operations in 1996.  The subject is reported to be in deregistration for annual return non-compliance with CIPC.  The respondent stated that this has been sorted out with CIPC, and they are now waiting for the to be changed to “in business” and this, however, has not as yet been finalised.

 

The subject was jointly established in 1995 by PFE INTERNATIONAL and NINIAN & LESTER HOLDINGS LTD (a company which has operated in the clothing and textile sector in South Africa since 1936 and was quoted on the JSE Ltd in 1969 but has subsequently been delisted) in order to produce a range of multi-filament polypropylene yarns.

 

VAT NUMBER:              4510152285

 

TAX NUMBER:              9271757206

 

MAJOR OPERATION

 

Manufacture of high tenacity and fine denier multifilament polypropylene yarns and masterbatch.

 

 

MAJOR SUPPLIERS

 

SAFRIPOL Johannesburg

NAMPAK CORRUGATED BOXES Johannesburg

DUSAKI CORES & TUBES Durban

CLARIANT

SASOL POLYMERS

SPUNCHEM

AFRICAN LOGISTIC SERVICES

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

Webbing industry which are seatbelt manufacturers and travel luggage manufacturers.

 

 

AREA OF DISTRIBUTION AND SELLING:      South Africa

 

EXPORTS                    : Worldwide

 

TOTAL EMPLOYEES    : ±350

 

 

OTHER PREMISES        

 

The subject has a manufacturing plant at 30 Anderson Road, Hammarsdale and a factory at the heading address.

 

OWNED OR LEASED:   Both premises are owned by the subject

 

 

AUTHORISED SHARE CAPITAL

 

R1 000 divided into 1 000 ordinary shares of R1 each

 

ISSUED SHARE CAPITAL:   R1 000

 

 

FINANCIALS

 

Full financial information was not forthcoming from respondents at the subject, however, it was previously stated that the monthly turnover is well in excess of R8 000 000.

 

AUDITORS                   : R S M BETTY AND DICKSON, Durban   

 

YEAR END                   : DECEMBER

           

INSURANCE BROKERS: MARSH INSURANCE BROKERS

 

TRADE REFERENCES - FEBRUARY 2001

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                                    PATTERN

 

1.         Old acc             Declined           Figures             30 days                        30 days                        Good

 

2.         May 2000          R50 000            R50 000            30 days                        35 days                        Very Good

 

3.         2˝ years           R90 000            R60 000-           30 days                        30 days                        Good

                                    R90 000

 

TRADE REFERENCES – OCTOBER 2005:

 

            ACCOUNT        HIGHEST         AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT           CREDIT                                    PATTERN

 

1.         6 years             R200 000          R50 000            30 days                        45 days                        Average

                        c/l                                                         (needs monitoring)

 

2.         Unable to trace account

 

3.         No longer a client

 

4.         No longer a client

 

TRADE REFERENCES -  JANUARY 2007:

 

            ACCOUNT        HIGHEST         AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT           CREDIT                                    PATTERN

 

1.         10 years+          R600 000          R200 000-         30 days                        Declined           Excellent

                        c/l         R300 000

 

2.         No longer a client

 

3.         No longer a client

 

TRADE REFERENCES – JULY 2007:

 

            ACCOUNT        HIGHEST         AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT           CREDIT                                    PATTERN

 

1.         10 years            R200 000          R30 000            30 days                        30 days                        Good

                        c/l                                 sporadic purchases

 

2.         Do not give trade references

 

3.         Unable to obtain a trade reference

 

TRADE REFERENCES – FEBRUARY 2008:

 

            ACCOUNT        HIGHEST         AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT           CREDIT                                    PATTERN

 

1.         8 years             R200 000          R  50 000          30 days                        30 days                        Very Good

 

2.         Do not give trade references

 

3.         Apr 2002           R500 000          R  30 000-         60 days                        60 days                        Very Good

                                                            R100 000

 

TRADE REFERENCES – OCTOBER 2008:

 

            ACCOUNT        HIGHEST         AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT           CREDIT                                    PATTERN

 

1.         3 years                        R2 000 000        declined            30 days                        30 days                        Good

 

2.         Do not give trade references

 

TRADE REFERENCES – JANUARY 2009:

 

            ACCOUNT        HIGHEST         AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT           CREDIT                                    PATTERN

 

1.         20 years+          R2 500 000        Declined           30 days                        30 days                        Excellent

                                    c/l

 

2.         Do not give trade references

 

TRADE REFERENCES – MAY 2009:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                                    PATTERN

 

1.         Old                   R575 000            R200 000        60 days                        60 days                        Very Good

                                    c/l

 

2.         Do not give trade references.

 

3.         6 years             R    400 000      ±R  70 000        30 days                        30 days                        Excellent

 

TRADE REFERENCES – APRIL 2010:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                                    PATTERN

 

1.         12 years +         Declined           R   100 000-      30 days                        30 days                    Good

                                                            R   250 000

 

2.         1999                 R    575 000      R     10 000       60 days                        60 days                    Good

                                    c/l                     minimum

 

3.         10 years +         R15 000 000      R2 500 000        60 days                        60 days                    Good

 

TRADE REFERENCES JUNE 2011:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                                    PATTERN

 

1.         4+ years           R    300 000      R200 000          30 days                        30-35 days        Good

 

2.         15 years            R    200 000+    varies               30 days                        30 days                        Excellent

            It should be noted that the subject buys raw materials from this supplier

 

3.         7 years             R      75 000      varies               60 days                        60-75 days        Fair

                        c/l

 

TRADE REFERENCES – FEBRUARY 2012:

 

ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                                    PATTERN

 

 

1.         20 years            Declined           “large                30 days                        30 days                        Excellent

                                                            amounts”

 

2.         10 years            R    300 000      R200 000-         30 days                        30 days                        Excellent

                                    R300 000

 

3.         +2007               R    575 000      R300 000          60 days                        60 days                        Excellent

 

TRADE REFERENCES – SEPTEMBER 2012:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE  

OPENED          CREDIT            CREDIT                                    PATTERN

 

1.         +20 years          Do not give figures                   30 days                        30 days                        Excellent

 

2.         +8 years           R575 000          ±R300 000-        60 days                        60 days                        Excellent

 

3.         Do not give trade references

 

4.         +10 years          Confidential      ±R30 000          30 days                        30-45 days        Good

 

CURRENT TRADE REFERENCES:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE  

OPENED          CREDIT            CREDIT                                    PATTERN

 

1.         4 years             R   575 000       R 180 000-        60 days                        60 days                        Excellent

                                                            R 300 000

 

2.         Do not give trade references

 

3.         Do not give trade references

 

4.         20 years            Declined           Declined           30 days                        30 days                        Excellent

 

5.         2008                 R1 000 000        Declined           30 days                        30 days                        Very Good

 

COMMENTS

 

This is an established and well-connected company meeting its commitments timeously. The subject is considered equal to its normal business engagements.  The lack of full financial information should be borne in mind.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.06

UK Pound

1

Rs.101.15

Euro

1

Rs.84.95

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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.