MIRA INFORM REPORT

 

 

Report Date :

15.10.2013

 

IDENTIFICATION DETAILS

 

Name :

SEARDEL GROUP TRADING (PTY) LTD

 

 

Formerly Known As :

DESIREE CLOTHING MANUFACTURERS (PTY) LTD

 

 

Registered Office :

1 Moorsom Avenue Cnr Bofors Circle Epping Industria 11  Cape Town  Western Cape

 

 

Country :

South Africa

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

20.08.1968

 

 

Com. Reg. No.:

1968/009480/07

 

 

Legal Form :

Private Company

 

 

Line of Business :

Manufacturers of textiles, non woven textiles, clothing and apparel.

 

 

No. of Employees :

9000

 

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 :

Regular

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

 

SEARDEL GROUP TRADING (PTY) LTD

Formerly: DESIREE CLOTHING MANUFACTURERS (PTY) LTD, the name having been changed on 15 May 1985.

 

 

TRADING DIVISIONS

 

SEARDEL APPAREL

BIBETTE

BONWIT

PRESTIGE APPAREL

MONVISO

SACI LADIES

LITTLE NUMBER

DERMAR DESIGNS

BRAND IDENTITY

SPEEDO

46664 RANGE

TEXTILE

BERGRIVER TEXTILES

BRITS NON WOVENS

HEXTEX

KNITTING

FRAME KNITTING MANUFACTURERS

FRAME POLYPROPYLENE

NON WOVEN

FRAME FIBRES

CLOTHING AND FACTORY SHOPS

EASYWEAR

HOUSEHOLD TEXTILES

ROMATEX HOME TEXTILES

SEARDEL GROUP PROPERTIES

SEARDEL MANAGEMENT SERVICES

 

 

PHYSICAL ADDRESS    

 

1 Moorsom Avenue

Cnr Bofors Circle

Epping Industria 11

CAPE TOWN

Western Cape

 

POSTAL ADDRESS:                 P O Box 524

EPPINDUST

7475 SEARDEL GROUP TRADING (PTY) LTD

 

 

TELEPHONE NUMBER   

 

+27 21 505 5261

 

 

FAX NUMBER     

 

+27 21 535 0045

 

 

SHAREHOLDERS

 

100% SEARDEL INVESTMENT CORPORATION LIMITED (Registration Certificate Number 1968/011249/06) listed on the JSE LTD

 

 

ASSOCIATE COMPANIES

 

BRITS AUTOMOTIVE SYSTEMS (PTY) LTD

CONSOLIDATED TEXTILES (PTY) LTD (dormant)

FRAME INDUSTRIALS (PTY) LTD

HARVEN MANUFACTURING CO. (PVT) LTD (Registered Zimbabwe)

NYENYE CLOTHING MANUFACTURERS (PTY) LTD (registered in Lesotho)

OCEANAIR TRAVEL (PTY) LTD

PRIMA TOY AND LEISURE GROUP (PTY) LTD

SEARDEL NUMBER 16 (PTY) LTD (dormant)

SEARDEL NUMBER 17 (PTY) LTD dormant)

SEARDEL SPORTS (PTY) LTD (dormant)

SEARTEC (PTY) LTD

SEARTEC TRADING (PTY) LTD

WAL HAU ET CIE (PTY) LTD

SEARTEC INDUSTRIES (PTY) LTD

 

 

DIRECTORS

 

S A QUEEN (CEO) ID. No. 7205085306080

G DU T WEGE ID. No. 7404225053088

D DUNCAN ID. No. 5503215178185

 

 

BANKERS

 

The subject’s main bank is ABSA BANK, Heerengracht branch. The subject also banks with STANDARD BANK and NEDBANK. It was stated that the subject enjoys an overdraft facility and that each trading division operates its own bank account. Further information regarding banking details was not forthcoming from the respondent.

 

 

DATE REGISTERED

 

20 August 1968

Registration Certificate Number: 1968/009480/07

The subject is reported to have taken over the assets and operations of various companies in the ROMATEX LTD and FRAME TEXTILE CORPORATION LTD groups together with subsidiary companies.

 

 

VAT NUMBER

 

4540103605 (It was stated that each division has its own VAT No.)

4770208223 (Brand Identity)

4830158806 (Seardel Apparel)

 

 

MAJOR OPERATION

 

Manufacturers of textiles, non woven textiles, clothing and apparel. The subject is also a property investment company. SEARDEL GROUP TRADING (PTY) LTD

 

 

MAJOR SUPPLIERS

 

It was stated that each division has its own suppliers as each division has different operations.

The HEXTEX DIVISION deals locally with:

HOSAF FIBRES Cape Town

DYSTAR SA

TIOXIDE

CHT SOUTH AFRICA

LANXESS

The CHARMFIT DIVISION deals locally with:

APPAREL COMPONENTS

INTERNATIONAL TRIMMING

BERGRIVIER TEXTILES

ZA TRANS

The FRAME DENIM DIVISION deals locally with:

DYESTAR Pietermaritzburg

PROTEA CHEMICALS Durban

CREST CHEMICALS Durban

CHEMAY Durban

VENKPAC Verulam

The ROMATEX HOME TEXTILES DIVISION deals locally with:

HOSAF FIBRES

STANDERTON MILLS

DERLON TEXTILES

CGS TRANSPORT

SOLO PACK

The FRAME KNITTING MANUFACTURES imports supplies and deals locally with:

BOYD BOSS FREIGHT

PRILLA 2000

TAIYAN TEXTILES

COTTON RANGE WAREHOUSE

The BRAND IDENTITY DIVISION (incorporating SPEEDO):

It was stated that the subject imports most of its supplies from SPEEDO INTERNATIONAL in the UK and uses shippers, BOSSFREIGHT, Cape Town.

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

Major chain stores (e.g. Woolworths and Edgars), retailers and sport shops etc.

 

 

AREA OF DISTRIBUTION AND SELLING

 

 South Africa

 

 

EXPORTS

 

Europe, UK and Australia.

 

 

TOTAL EMPLOYEES

 

±9000 SEARDEL GROUP TRADING (PTY) LTD

 

 

OTHER PREMISES

 

The subject has divisional premises countrywide.

It was stated that PRESTIGE APPAREL is situated at 195 Leicester Road, Mobeni (KwaZulu-Natal).

It was established that BERGRIVER is situated in Paarl (Western Cape), FRAME FIBRES and FRAME KNITTING are situated in Durban, ROMATEX is situated in Cape Town, HEXTEX is situated in Worcester (Western Cape), BONWIT is situated in Athlone (Western Cape) and MONVISO is situated in Epping Industria (Western Cape).

 

 

OWNED OR LEASED

 

Most premises are reported to be owned by the property division and valued in the region of R600 000 000 and bonded to an extent of ±R600 000 000 with all 3 banks.

 

 

AUTHORISED SHARE CAPITAL

 

R5 038 976 divided into:

100 000 Ordinary shares of R50 each,

12 000 Redeemable cumulative preference shares of R1 each,

20 000 “A” redeemable cumulative preference shares of R1 each, and

6976 Redeemable cumulative preference shares of R1 each.

 

 

ISSUED SHARE CAPITAL

 

R2 506 976 Divided into 50 000 ordinary shares of R50 each and 6976 redeemable cumulative preference shares of R1 each.

 

 

SHARE PREMIUM

 

R94 450 000

 

 

FINANCIALS

 

Please see attached the group financial statements for the period ended 31 March 2012 on SEARDEL INVESTMENT CORPORATION LTD.

 

 

AUDITORS

 

KPMG Cape Town +27 21 408 7000

 

 

YEAR END

 

MARCH

 

 

INSURANCE BROKERS

 

MARSH INSURANCE BROKERS

 

 

TRADE REFERENCES – APRIL 2005

 

PERIOD            HIGHEST          AVERAGE         TERMS            PAYMENT         EXPERIENCE

CREDIT            CREDIT                                    PATTERN

 

1. +20 years      R 300 000         R 300 000         60 days             60 days             Excellent

2. +5 years        Do not disclose figures               60 days             60 days            Very Good

3. +5 years        R1 000 000        R1 000 000        30 days             30 days             Very Good                                

 

 

TRADE REFERENCES – AUGUST 2007

 

PERIOD            HIGHEST          AVERAGE         TERMS            PAYMENT         EXPERIENCE

CREDIT            CREDIT                                    PATTERN

 

1. Old acc         Declined            R300 000          60 days             60 days             Excellent

2. 10 years        R583 000          R144 000          30 days            30 days             Very Good

3%

3. Do not give trade references

4. 20 years        R 50 000           R 25 000           30 days            30 days             Excellent

5. Do not give trade references

 

 

TRADE REFERENCES – JANUARY 2008

 

HEXTEX DIVISION

 

PERIOD            HIGHEST          AVERAGE         TERMS            PAYMENT         EXPERIENCE

CREDIT            CREDIT                                    PATTERN

1. 25 years        Declined            R300 000          60 days             60 days             Very Good

2. Old acc         R 30 000           R 20 000           30 days             30 days             Very Good

3. 5 years          R500 000          R500 000          30 days             30 days             Excellent

 

 

TRADE REFERENCES – NOVEMBER 2008

 

ROMATEX HOME TEXTILES

 

PERIOD            HIGHEST          AVERAGE         TERMS            PAYMENT         EXPERIENCE

CREDIT            CREDIT                                    PATTERN

1. Old acc         Declined           R2 000 000-       60 days             60 days+           Good

R3 000 000

2. Do not give trade references

3. 1997             1 000 000          R 300 000        60 days             60 days             Very Good

 

 

TRADE REFERENCES – JULY 2008 CHARMFIT

 

PERIOD            HIGHEST          AVERAGE         TERMS            PAYMENT         EXPERIENCE

CREDIT            CREDIT                                    PATTERN

 

1. 2002             R2 500 000        R 900 000-        30 days             30 days             Very Good

c/l                     R1 500 000                                2.5%

2. 1985            R 850 000         R 300 000-        30 days             30 days Very Good

c/l                     R 800 000

3. Group company

4. Old acc         R2 000 000 R    500 000-           30 days             30 days Excellent

c/l                     R1 200 000

 

 

TRADE REFERENCES – APRIL 2009

CYGNET MANUFACTURING CO

 

PERIOD            HIGHEST          AVERAGE         TERMS            PAYMENT         EXPERIENCE

CREDIT            CREDIT                                    PATTERN

1. Do not give trade references

2. Have not bought for a while Very Good

3. 10 years        R30 000            R25 000            60 days             60 days             Good

c/l

 

 

TRADE REFERENCES – APRIL 2009

GOLD REEF SPECIALITY CHEMICALS

 

PERIOD            HIGHEST          AVERAGE         TERMS            PAYMENT         EXPERIENCE

CREDIT            CREDIT                                    PATTERN

1 Do not give trade references

2. Do not give trade references

3. Do not give trade references

4. 1999             R350 000          R300 000          30 day              30 days             Excellent

5. Do not give trade references

 

 

TRADE REFERENCES – AUGUST 2010 

 

GOLD REEF SPECIALITY CHEMICALS

 

PERIOD            HIGHEST          AVERAGE         TERMS            PAYMENT         EXPERIENCE

CREDIT            CREDIT                                    PATTERN

1. 1+ year         R2 000 000        R1 000 000-       30 days             30 days             Very Good

R2 000 000

2. Do not give trade references

3. Do not give trade references

4. Do not give trade references

 

5. Awaiting a fax trade reference

 

 

TRADE REFERENCES – JANUARY 2011

 

BERG RIVER TEXTILES

 

PERIOD            HIGHEST          AVERAGE         TERMS            PAYMENT         EXPERIENCE

CREDIT            CREDIT                                    PATTERN

1. ±35 years      R2 000 000        R2 000 000        30 days             30 days             Very Good

c/l 2.5% 2.5%

2. Old acc         open acc           R 200 000         60 days             60 days             Excellent

EFT

3. +5 years        R 600 000         R 250 000-        60 days            60 days             Very Good

c/l CGIC            R 300 000

 

 

TRADE REFERENCES – NOVEMBER 2011

 

PERIOD            HIGHEST          AVERAGE         TERMS            PAYMENT         EXPERIENCE

CREDIT            CREDIT                                    PATTERN

 

1. 35 years        R2 000 000        R2 000 000        30 days             30 days             Excellent

For the group

2. 2 years          R5 000 000        R5 000 000        60 days             60 days             Very Good

3. 5 years          R300 000          R120 000          30 days             30 days             Excellent

c/l                     -R150 000

 

 

TRADE REFERENCES – MARCH 2012

 

PERIOD            HIGHEST          AVERAGE         TERMS            PAYMENT         EXPERIENCE

CREDIT            CREDIT                                    PATTERN

1. Old               declined            R4 000 000        60 days            60 days             Excellent

2. 1992             R900 000 +      R 300 000         60 days             60 days             Good

3. +5 years         R500 000         R 50 000-          30 days             30 days             Good

R 100 000

4. Do not give trade references

 

 

TRADE REFERENCES – NOVEMBER 2012

 

PERIOD            HIGHEST          AVERAGE         TERMS            PAYMENT         EXPERIENCE

CREDIT            CREDIT                                    PATTERN

 

1. 2-3 years       R15 000 000      R30 000 000-     30 days             30 days             Excellent

R60 000 000

2. 18-20 years   Declined            R 250 000-        60 days             60 days             Good

Insured CGIC     R 300 000

3. +20 years      R 1 000 000      R 200 000         60 days            60 days             Very Good

4. 2-3 years       Open                R 30 000           30 days            30 days             Good

 

 

CURRENT TRADE REFERENCES

 

PERIOD            HIGHEST          AVERAGE         TERMS            PAYMENT         EXPERIENCE

CREDIT            CREDIT                                    PATTERN

1. +5 years        R18 000 000      R3 000 000        30 days             30 days             Very Good

2. Do not give trade references

3. 8 years          R 4 500 000      R2 500 000        60 days             60 days             Very Good

 

 

COMMENTS

 

This is a very well established and well-connected company, meeting its commitments timeously. The subject is considered as equal to its normal business engagements and to a maximum figure of €1 000 000 over 30 days.


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.30

UK Pound

1

Rs.97.99

Euro

1

Rs.83.15

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.