MIRA INFORM REPORT

 

 

Report Date :

04.10.2013

 

IDENTIFICATION DETAILS

 

Name :

G M ASSOCIATES CC 

 

 

Registered Office :

1157 Anvil Road, Robertville, Florida, Gauteng

 

 

Country :

South Africa

 

 

Date of Incorporation :

23.07.1986

 

 

Com. Reg. No.:

1986/013477/23 

 

 

Legal Form :

Close Corporation

 

 

Line of Business :

Manufacturers of specialised chemicals for the mining industry and importation of GUAR GUM which is utilised to thicken sauces, ice creams.

 

 

No. of Employees :

17

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

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. State power supplier 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

 

G M ASSOCIATES CC

 

PHYSICAL ADDRESS

 

1157 Anvil Road

ROBERTVILLE

Florida

Gauteng

 

 

POSTAL ADDRESS

 

P O Box 261

LINMEYER

2105

TELEPHONE NUMBER:            +27 11 672 2666

FAX NUMBER:                          +27 11 672 2616

 

MEMBERS

 

95% G J NEILSON

5% B WATSON

 

 

ASSOCIATE COMPANIES

 

None

 

 

BANKERS

 

FIRST NATIONAL BANK, Carlton Centre Branch, Account Number: 50380798891. It was stated that the subject does not require overdraft facilities as credit balances are maintained at the bank.

 

DATE REGISTERED

 

23 July 1986

 

Registration Certificate Number: 1986/013477/23

 

The subject was commenced as a new business. It was stated that both Members are qualified Engineers and have been involved in the same type of industry for many years.

 

 

VAT NUMBER

 

4390110668

 

 

MAJOR OPERATION

 

Manufacturers of specialised chemicals for the mining industry and importation of GUAR GUM which is utilised to thicken sauces, ice creams.

 

 

MAJOR SUPPLIERS

 

The subject imports most food grade products namely, Guar Gum from India and deals locally with:

BARLOWORLD LOGISTICS

SCHALK SNYMAN TRANSPORT Vereeniging

ALL BAGS / BULK BAGS Johannesburg

DHL Johannesburg

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

Mining sector and on a small scale to the food industry.

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

Worldwide

 

 

TOTAL EMPLOYEES

 

17

 

OTHER PREMISES

 

None

 

 

OWNED OR LEASED

 

The premises are reported to be owned by the subject, free of bond

 

 

MEMBERS CONTRIBUTION

 

R100

 

 

FINANCIALS

 

The following estimated financial situation was submitted as at September 2013 :

STOCK                                                 ±R5 000 000 – R 6 000 000

DEBTORS                                            ±R 8 000 000

CREDITORS local and foreign               ±R 5 000 000

LOANS                                                 Nil

TURNOVER per month                          +R10 000 000

 

 

AUDITORS

 

OMNIUM TAX AND ACCOUNTING


YEAR END

 

FEBRUARY

 

 

INSURANCE BROKERS

 

D A B BROKING INSURANCE BROKERS

 

TRADE REFERENCES – JANUARY 2006

 

ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

OPENED          CREDIT            CREDIT                                    PATTERN

1. 1999             R300 000          R200 000          30 days            30 days            Very Good

c/l

2. 1996             Open                R120 000         30 days            28-30 days        Excellent

 

3. Do not give trade references

 

TRADE REFERENCES – JANUARY 2008

 

ACCOUNT                    HIGHEST                     AVERAGE        TERMS             PAYMENT        EXPERIENCE

OPENED                      CREDIT                        CREDIT                                    PATTERN

1. 1999                         R 800 000                    declined            30 days                        30 days            Good

c/l

2. Do not give trade references

 

3. 1988                         R10 000 000                  R5 000 000        30 days            30 days                        Excellent

 

4. Do not give trade references.

 

TRADE REFERENCES – JANUARY 2011

 

ACCOUNT                    HIGHEST                      AVERAGE        TERMS             PAYMENT       EXPERIENCE

OPENED                      CREDIT                        CREDIT                                    PATTERN

 

1. Do not give trade references

 

2. Do not give trade references

 

3. 20 years                    R100 000                      R100 000          30 days            30 days            Excellent

 

4. Unable to obtain


CURRENT TRADE REFERENCES

 

ACCOUNT                    HIGHEST          AVERAGE                    TERMS             PAYMENT        EXPERIENCE

OPENED                      CREDIT            CREDIT                                                PATTERN

1. 1990                         Open                R 60 000-                      30 days            30 days            Excellent

R120 000

 

2. Do not give trade references

 

3. Do not give trade references

 

COMMENTS

 

This is an established business meeting its one obtainable commitment timeously, however, we have not traced any dealings to an extent of US$150 000 recently, and would prefer to see this amount spread over 60 days.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.93

UK Pound

1

Rs.100.44

Euro

1

Rs.84.24

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.