MIRA INFORM REPORT

 

 

Report Date :

18.09.2013

 

IDENTIFICATION DETAILS

 

Name :

SMILEYS FOOTWEAR (PTY) LTD 

 

 

Registered Office :

38 Brooklyn Road  Jacobs  KwaZulu-Natal

 

 

Country :

South Africa

 

 

Date of Incorporation :

15.08.2006

 

 

Com. Reg. No.:

2006/025126/07

 

 

Legal Form :

Private Company

 

 

Line of Business :

Manufacturing and distribution of footwear

 

 

No. of Employees :

180

 

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

 

SMILEYS FOOTWEAR (PTY) LTD

 

 

PHYSICAL ADDRESS

 

38 Brooklyn Road

JACOBS

KwaZulu-Natal

 

 

POSTAL ADDRESS

 

P O Box 33268

MONTCLAIR

4061

 

 

TELEPHONE NUMBER

 

+27 31 468 5586

 

 

FAX NUMBER

 

+27 31 468 5594

 

 

SHAREHOLDRS

 

100% V RISHIDAW

 

 

ASSOCIATE COMPANIES:

 

None

 

 

DIRECTORS

 

V RISHIDAW ID No. 7106215129089

 

 

BANKERS

 

NEDBANK, Durban branch (164826), Account Number: 1648119832. It was stated that the subject does not utilise overdraft facilities as credit balances are maintained at the bank.

 

 

DATE REGISTERED

 

15 August 2006

Registration Certificate Number 2006/025126/07

V RISHIDAW is reported to have taken over his father’s business, which was started in 1990. In 1996, V RISHIDAW took over the sole proprietorship and converted it to a close corporation in 1999 and in 2006 converted to a private company SMILEYS FOOTWEAR (PTY) LTD

 

 

VAT NUMBER

 

4110187095

 

 

TAX NUMBER

 

9092236208

 

 

BEE STATUS

 

Level 2 contributor

 

 

MAJOR OPERATION

 

Manufacturing and distribution of footwear.

 

 

MAJOR SUPPLIERS

 

JOHN WITTEL Durban

ACE SHOE COMPONENTS Durban

A GREENAWAYS

A L S

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

Chain stores

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

None

 

 

TOTAL EMPLOYEES

 

±180

 

 

OTHER PREMISES

 

None

 

 

OWNED OR LEASED

 

The premises are reported to be owned by the Director, valued at R3 million, bonded in favour of ITHALA BANK.

 

 

AUTHORISED SHARE CAPITAL

 

R1000 divided into 1000 ordinary shares of R1 each

 

 

ISSUED SHARE CAPITAL

 

R100

Full financial information was not forthcoming from respondents at the subject and outside authorities were unable to assist in this regard.

 

 

AUDITORS

 

P K F

 

 

YEAR END

 

FEBRUARY

 

 

INSURANCE BROKERS

 

G D I BROKERS

 

 

TRADE REFERENCES – SEPTEMBER 2002

 

PERIOD            HIGHEST          AVERAGE         TERMS             PAYMENT         EXPERIENCE

CREDIT            CREDIT                                    PATTERN

 

4 years                         R200 000          R 60 000           60 days             60 days            Excellent

2. 6 - 7 years     R300 000          R 50 000-          60 days             60 days             Very good

R100 000

3. ±5 years        R200 000          R150 000          60 days             60 days             Very good

 

 

TRADE REFERENCES – NOVEMBER 2008

 

PERIOD            HIGHEST          AVERAGE         TERMS             PAYMENT         EXPERIENCE

CREDIT            CREDIT                                    PATTERN

1. 7 years          R600 000          R80 000            60 days             30 days             Excellent

2. declined        R250 000          declined            60 days             60 days             Good

3. 8 years          R300 000          R18 000            30 days             30 days             Excellent

 

TRADE REFERENCES – JULY 2010

 

PERIOD            HIGHEST          AVERAGE         TERMS             PAYMENT         EXPERIENCE

CREDIT            CREDIT                                    PATTERN

1. 10 years+      R1 000 000        R200 000          30 days             30 days             Good

c/l

2. 8 years+        R300 000          R40 000            60 days             30 days             Excellent

c/l

3. 8 years+        R300 000          R10 000-           30 days             30 days             Very Good

c/l                     R15 000            -2,5%                -2,5%

4. Do not give trade references

 

 

CURRENT TRADE REFERENCES

 

PERIOD            HIGHEST          AVERAGE         TERMS             PAYMENT         EXPERIENCE

CREDIT            CREDIT                                    PATTERN

 

1. +5 years        Declined            Declined            30 days             30 days             Good

 

2. 12-16 years   R500 000-         R 50 000-          30 days             30 days             Excellent

R700 000          R 80 000

 

3. ±12 years      R250 000          R100 000          60 days             30 days             Very good

 

4. ±5 years        Declined            ±R300 000         30 days             30 days             Good

 

 

COMMENTS

 

This is an established business which converted from a close corporation. The subject is meeting its commitments timeously and is considered equal to its normal business engagements.


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.38

UK Pound

1

Rs.100.86

Euro

1

Rs.84.60

 

 

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.