MIRA INFORM REPORT

 

 

Report Date :

12.10.2013

 

IDENTIFICATION DETAILS

 

Name :

SOUTH BAKELS (PTY) LTD

 

 

Registered Office :

235 Main Road Martindale Johannesburg Gauteng

 

 

Country :

South Africa

 

 

Date of Incorporation :

10.12.1948

 

 

Com. Reg. No.:

1948/032124/07

 

 

Legal Form :

Private Company

 

 

Line of Business :

Manufacturers of pre-mixed ingredients for bakeries and confectioners.

 

 

No. of Employees :

210 permanent – It was stated that the subject also employs approximately 350 contract employees from 2 labour brokers.

 

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 AND ADDRESS  

 

SOUTH BAKELS (PTY) LTD

 

PHYSICAL ADDRESS:  235 Main Road

MARTINDALE

Johannesburg

Gauteng

 

POSTAL ADDRESS:     P O Box 9583

JOHANNESBURG

2000

 

TELEPHONE NUMBER:            +27 11 673 2100

 

FAX NUMBER:                          +27 11 477 9073

 

 

SHAREHOLDERS

 

96.4%   EMU AG of Switzerland

  3.6%   GOTHA (PTY) LTD

(Registration Certificate Number: 1957/000633/07)

 

The Shareholding was previously 99.99% EMU AG of Switzerland and 0.01% GOTHA (PTY) LTD.

 

 

ASSOCIATE COMPANIES

 

BAKELS CISKEI (PTY) LTD (dormant)

INDEPENDENT FEED MILLS (PTY) LTD (dormant)

 

The assets and operations of the above mentioned companies were incorporated into the subject.

 

 

DIRECTORS

 

J H F KLOSTA (Managing Director)        ID No.   5007305029001

A ULRICH – Switzerland             D.O.B.  490503

G M GROBBELAAR                              ID No.   6311155096089

 

 

BANKERS

 

NEDBANK, Fox Street branch, account number 1908698004. It was stated that the subject has various accounts at NEDBANK. It was stated that the subject enjoys a total facility to an extent of R12 000 000, secured by the holding company guarantee and fixed assets. Utilisation is stated to be nil at present.  The respondent stated that the subject is cash positive at present. 

 

 

DATE REGISTERED

 

10 December 1948

Registration Certificate Number: 1948/032124/07

 

The subject was commenced as a new business.

 

VAT NUMBER:              4650102041

 

TAX NUMBER:              9575210712

 

 

MAJOR OPERATION

 

Manufacturers of pre-mixed ingredients for bakeries and confectioners.

 

 

MAJOR SUPPLIERS

 

The subject imports raw materials from Australia, New Zealand and Switzerland and deals locally with:

 

SIAMEX Durban

HULETTS STARCH (previously AFRICAN PRODUCTS) Johannesburg

C J PETROW CHEMICALS Johannesburg

TRADING HOSPITALITY Cape Town

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORs

 

The food industry e.g. bakeries and retail group and chain stores e.g. Spar, Pick ‘n Pay, Shoprite Checkers

 

AREA OF DISTRIBUTION AND SELLING:          South Africa

 

EXPORTS:                                                       Neighbouring countries and Indian Ocean Islands

 

 

TOTAL EMPLOYEES

 

210 permanent – It was stated that the subject also employs approximately 350 contract employees from 2 labour brokers.

 

 

OTHER PREMISES

 

The subject has branches and depots countrywide and has 4 factories:  one in East London, one in Johannesburg, one in Cape Town and one in Pietermaritzburg.  The subject also has a warehouse in Port Elizabeth

 

OWNED OR LEASED

 

The respondent stated that all the factory premises are owned by the subject.  It was stated that the East London factory premises are bonded in favour of NEDBANK.

           

 

AUTHORISED SHARE CAPITAL

 

R2 000 000 divided into 200 000 "A" ordinary shares of R1 each; 1 600 000 "B" ordinary R1 shares; 200 000 6% cumulative preference shares of R1 each.

 

ISSUED SHARE CAPITAL:        R1 400 000

 

 

FINANCIALS

 

The following estimated financial situation was submitted as at 11 October 2013:

 

STOCK                                     R  80 000 000

DEBTORS                                R120 000 000

FIXED ASSETS net book value  R  84 000 000

CREDITORS                             R  86 000 000

OVERDRAFT                            Nil

SHAREHOLDERS LOANS         R    1 300 000

TURNOVER per annum              R745 000 000

 

AUDITORS:      RSM BETTY & DICKSON Randburg +27 11 329 6000

 

YEAR END:      DECEMBER

 

 

INSURANCE BROKERS 

 

Previously GLENRAND MIB.  The new insurance brokers are unknown to the respondent

 

 

 

TRADE REFERENCES

 

SEPTEMBER 2006:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                                    PATTERN

 

1.         11 Years           R1 000 000        R500 000          30 days                        30 days                        Good

 

2.         1986                 R   300 000       R200 000-         30 days                        30 days                        Good

                                                            R250 000

 

3.         Unable to obtain trade reference

 

Do not give trade references

 

TRADE REFERENCES – FEBRUARY 2007:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                                    PATTERN

 

1.         2004     R50 000            R  50 000                      30 days                        30 days                        Very good

                        c/l

 

2.         2002     R100 000          R150 000                      30 days                        30 days                        Very good

                        c/l

 

3.         20 years            R100 000          R  50 000          30 days                        30 days                        Excellent

                        c/l

 

TRADE REFERENCES – NOVEMBER 2007:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                                    PATTERN

 

1.         1995                 R6 000 000        R6 000 000        30 days                        25 days                        Excellent

           

2.         18 Years           R   300 000       R   280 000       30 days                        30 days                        Excellent

                        c/l

 

3.         Old acc             R1 000 000+      R   800 000 -     30 days                        30 days                        Very Good

                                                            R1 000 000+

 

TRADE REFERENCES – FEBRUARY 2008:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                                    PATTERN

 

1.         Old acc open                             R   800 000       30 days                        25 days                        Excellent

 

2.         10 Years           declined            R   150 000       30 days                        30 days                        Good

 

3.         Dec 1995          open                 R6 000 000        30 days            3          0 days              Excellent

 

TRADE REFERENCES – OCTOBER 2008:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                                    PATTERN

 

1.         Old acc R1 000 000        R   500 000 -                 30 days                        30 days                        Very good

                                                R1 000 000       

 

2.         Do not give trade references

 

3.         10 Years           declined            R   500 000       30 days                        30 days                        Good

 

4.         Old acc R3 000 000        R1 000 000                    30 days                        30 days                        Very good

 

TRADE REFERENCES – MARCH 2009:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                                    PATTERN

 

1.         ±9 Years           Unlimited          R1 000 000+      14 days                        14 days                        Very Good

                                    (per month)

 

2.         20 Years           R800 000          ±R800 000         30 days                        30 days                        Very Good

 

3.         10 Years           Unlimited          ±R3 000 000      30 days                        30 days                        Excellent

 

TRADE REFERENCES – NOVEMBER 2009

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                                    PATTERN

 

1.         10 Years           R1 200 000        R1 000 000        30 days                        30 days                                    Excellent

                        c/l                                 Not insured

 

2.         20 Years           declined            R1 000 000        Payment on      5th and 20th of each       

                                                                                    month.                                                  Excellent

 

3.         15 Years           R1 300 000        R900 000 -        30 days                        30 days                                    Excellent

                        c/l         R1 000 000

 

TRADE REFERENCES – MARCH 2010:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS       PAYMENT      EXPERIENCE

            OPENED          CREDIT            CREDIT                                                      PATTERN

 

1.         ±22 years                                  R1 000 000+      14 days            14 days                        Excellent

 

2.         15 years+          R1 200 000        ±R300 000-        30 days                        30 days                        Very Good

                                                c/l           R500 000

 

Unable to obtain trade references

 

Unable to obtain trade references

 

TRADE REFERENCES – NOVEMBER 2010:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         Old                   R1 000 000        R   300 000-      30 days            30 days                        Very Good

                                    c/l                     R   400 000

 

2.         10 years            R1 000 000        R   200 000-      30 days            30 days                        Very Good

                                    R1 000 000       

 

3.         10 years            R1 000 000        R   200 000-      30 days            30 days                        Very Good

                                    R   300 000

 

TRADE REFERENCES – FEBRUARY 2012:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         ± 15 Years        R1 200 000        ±R500 000         30 days            30 days                        Excellent

 

2.         10 Years           R1 000 000+      R400 000-         30 days            30 days                        Very Good

                                    R1 000 000

 

3.         10 Years           open     R1 200 000        30 days            30 days            Excellent

 

TRADE REFERENCES-JUNE 2012

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         15 Years           R1 200 000        R500 000          30 days            30 days                        Excellent

 

2.         +10 Years         R1 000 000        +R300 000        30 days            30 days                        Very Good

 

3.         10 Years           R1 000 000        R1 000 000        30 days            30 days                        Very Good

 


CURRENT TRADE REFERENCES:

 

ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

OPENED          CREDIT            CREDIT                        PATTERN

 

+10 years          R1 200 000        ±R   600 000      30 days            30 days                        Excellent

 

+12 years          Open Acc           R   400 000-    30 days            30 days                        Excellent

                                                  R2 000 000

 

+10 years          Open Acc           R   900 000-    30 days            30 days                        Excellent

                                                  R1 000 000

 

Unable to obtain trade reference

 

 

COMMENTS

 

This is a well-established and well-connected business meeting its commitments timeously.  The subject is considered equal to a maximum amount of €1 000 000 over 30 days.

 

11 October 2013

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.16

UK Pound

1

Rs.97.77

Euro

1

Rs.82.78

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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.