MIRA INFORM REPORT

 

 

Report Date :

20.09.2013

 

IDENTIFICATION DETAILS

 

Name :

SETON SOUTH AFRICA (PTY) LTD

 

 

Formerly Known As :

CLIDET NO 153 (PTY) LTD

 

 

Registered Office :

15, 2nd Avenue VORSTERSKROON Nigel Gauteng P O Box 537 Nigel 1490

 

 

Country :

South Africa

 

 

Financials (as on) :

December 2008

 

 

Date of Incorporation :

30.08.1996

 

 

Com. Reg. No.:

1996/011683/07

 

 

Legal Form :

Not Available

 

 

Line of Business :

Subject is engaged in Tanners and finishers of motor vehicle leather upholstery.

 

 

No. of Employees :

950

 

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

 

SETON SOUTH AFRICA (PTY) LTD

Formerly: CLIDET NO 153 (PTY) LTD the name having

been changed on 17 February 1997

 

 

PHYSICAL ADDRESS

 

15, 2nd Avenue

VORSTERSKROON

Nigel

Gauteng

 

 

POSTAL ADDRESS

 

P O Box 537

NIGEL

1490

 

 

TELEPHONE NUMBER

 

: +27 11360 7500

 

 

FAX NUMBER

 

+27 11 814 6402

 

 

SHAREHOLDERS

 

100% GST AUTO LEATHER (registered in Michigan, USA)

The shareholding changed and was previously 100% SETON COMPANY in the

USA.

The Shareholding was previously 75% SETON CO in the USA and 25% FOODCORP

OPERATIONS LTD, having changed in September 1998


 

ASSOCIATED COMPANIES

 

SETON AUTOLEATHER (Registered in Europe)

OTHER COMPANIES IN GST INC group.

 

 

DIRECTORS

 

E S EVANS (CEO) S                             D.O.B.                          561010

SEWNANDAN (MD) D E                        ID No.                           7503175210083

HILLER (USA)                                       D.O.B.                          540602

L L F PAN (Hong Kong)                         D.O.B.                          760527

 

D E HILLER, is president and chief executive officer of GST AUTO LEATHER (USA) and is responsible for the daily operations of each division of the company, including all operations, finance, business development, global sourcing, and human resources. He joined GST AUTOLEATHER (USA) in 2004 after a nearly 30 year career in the automotive components industry, including 25 years with COLLINS AND AIKMAN, and most recently as chief executive officer of GUIDE CORPORATION and president and CEO of AUTOMOTIVE COMPONENT SYSTEMS.

 

His vast experience at COLLINS & AIKMAN includes being president of NORTH AMERICAN AUTOMOTIVE INTERIOR SYSTEMS, president of the CARPET AND ACOUSTICS GROUP and president of COLLINS & AIKMAN ACCESSORY MATS.

 

 

BANKERS

 

STANDARD BANK, Nigel branch, current account numbers: 021992835 and

022004556. It was stated that the subject enjoys a total facility to an extent of R40 000

000, secured by a letter of comfort from the holding company. Utilisation is stated to

Fluctuate.

 

 

DATE REGISTERED

 

30 August 1996

Registration Certificate Number: 1996/011683/07

 

The subject was registered to take over a division of FOODCORP

OPERATIONS LTD, namely HANNI LEATHERS, which had been established

for many years.

 


 

VAT NUMBER

 

4550167730

 

 

TAX NUMBER

 

9010161843

 

 

BEE STATUS

 

Level 6 contributor

 

 

MAJOR OPERATION

 

Tanners and finishers of motor vehicle leather upholstery

 

 

MAJOR SUPPLIERS

 

The subject imports chemicals mainly from Germany and the USA and deals locally

with:

 

BASF, Johannesburg

CAPE PRODUCE CO, Port Elizabeth

PWM NORTH WEST (Professional Water Management), North West

 

Contact was made with a respondent at AFRICAN GAMESKIN TRADING in Bellville who stated that they are only an importing arm of a company in Brazil and they do not directly invoice the subject, so a trade reference could not be obtained.

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

Sewing plants e.g. SA Trim & Leather, Johnson Controls Automotive Trim, who in turn supply to the automotive industry e.g. Mercedes


 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

Hungary, Germany and Czech Republic

 

 

TOTAL EMPLOYEES

 

In 2012 the subject was stated to have ± 800 waged and 150 on salaries. In July, August

and September 2011 approximately 200 staff members were retrenched.

 

 

OTHER PREMISES

 

The subject has a factory on the same premises as the heading address OWNED OR

 

 

LEASED

 

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

 

 

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 the respondent at the subject and

outside authorities were unable to assist in this regard, however please see previous

historical financials submitted in December 2008:

 

CURRENT ASSETS                               R200 000 000

FIXED ASSETS                                    R104 000 000

CURRENT LIABILITIES               R 2 000 000

LONG TERM LIABILITIES                       R 10 000 000

TURNOVER per annum              R680 000 000

 

 

AUDITORS

 

DELOITTES

 

 

YEAR END

 

DECEMBER

 

 

INSURANCE BROKERS

 

MARSH INSURANCE BROKERS

 

 

TRADE REFERENCES - DECEMBER 2005

 

ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

OPENED          CREDIT            CREDIT                                    PATTERN

 

1. Old acc         R3 000 000        R2 000 000-       30 days            30 days            Very Good

R3 000 000

2. Old acc         R millions          R millions          7 days              7 days              Very Good

3. Old acc         R400 000          R 300 000-        30 days            30 days            Very Good

R 400 000


 

TRADE REFERENCES - AUGUST 2006

 

ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

OPENED          CREDIT            CREDIT                                    PATTERN

 

1. 7 years          R2 500 000        R2 000 000        30 days            30 days            Excellent

2. 10 years        R2 000 000        R2 000 000        30 days            30 days            Very Good

3. 10 years        R4 000 000        R4 000 000        14 days            14 days            Very Good

 

 

TRADE REFERENCES - AUGUST 2007

 

ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

OPENED          CREDIT            CREDIT                                    PATTERN

 

1. 1997             +R3 000 000      R3 000 000        30 days            30 days            Very Good

fluctuates

2. Old acc         +R3 000 000      +R3 000 000      cash against     invoice 7           Excellent

 

days

3. Old acc         +R2 000 000      +R2 000 000      30 days            30 days            Very Good

 

 

TRADE REFERENCES - JUNE 2008

 

ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

OPENED          CREDIT            CREDIT                                    PATTERN

 

1. Do not give trade references

2. Old Open      R1 000000         -R3 000000        7 days              7 days              Very Good

3. Old               Open                R 500 000         30 days            30 days            Very Good

4. Old               declined            declined            30 days            30 days            Very Good

 

 

TRADE REFERENCES - MARCH 2009

 

ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

OPENED          CREDIT            CREDIT                                    PATTERN

 

1. 6 years          Open                R 300 000-        30 days 3          0/45 days          Was good nowproblematic

R500 000

2.                     unknown           R1 000 000        7 days              7 days              Good

3. 1997             R6 000 000        varies               30 days            30 days            Good

4. Many years   Open                R8 000 000        30 days            30 days            Very Good


 

TRADE REFERENCES - JUNE 2009

 

ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

OPENED          CREDIT            CREDIT                                    PATTERN

 

1. 10+ years      R3 000 000        R1 000 000-       7 days              7 days              Very Good

R3 000 000

2. Old               R 950 000         R 500 000         30 days            30 days            Good

3. Do not give trade references

4. 1997             R1 000 000        R1 000 000        30 days            30 days            Very Good

c/l                                             up to

 

TRADE REFERENCES - JANUARY 2010

 

ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

OPENED          CREDIT            CREDIT                                    PATTERN

 

1. 2009             R6 000 000        ±R3 000 000      30 days            30 days            Very Good

c/l

2. ±11 years      undisclosed      ±R 350 000        30 days            30 days            Very Good

3. Strictly          C.O.D   - invoices from R3 000 000 - R6 000 000                         Excellent

4. -                   undisclosed     undisclosed      30 days            30 days            Very Good

5. Do not give trade references

 

 

TRADE REFERENCES - JULY 2010

 

ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

OPENED          CREDIT            CREDIT                                    PATTERN

 

1. Old               Undisclosed      R1 000 000-       14 days            14 days            Excellent

R3 000 000

2. 10 years        Open                R 300 000-        30 days            30 days            Very Good

R 500 000

3. Old               R10 000 000 ±   R2 000 000        30 days            30 days            Good

c/l

 

 

TRADE REFERENCES - DECEMBER 2010

 

ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

OPENED          CREDIT            CREDIT                                    PATTERN

 

1. 10 years +     R3 000 000        R1 000 000-       14/21 days        14/21 days        Very Good

R3 000 000

2. 10 years +     R500 000          R 300 000-        36 days            36 days            Very Good

R 500 000         as per arrangement

3. Do not give trade references

4. 1997             R2 000 000        Large                30 days            30 days            Good

c/l

 

 

TRADE REFERENCES - JUNE 2011

 

ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

OPENED          CREDIT            CREDIT                                    PATTERN

1. Do not give trade references

2. 20 years        R3 000 000        R2 000 000-       30 days            30 days            Excellent

c/l                     R5 000 000

3. Do not give trade references

 

4. 1997             R2 000 000        Large               30 days            30 days            Good

c/f

 

TRADE REFERENCES – OCTOBER 2011

 

ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

OPENED          CREDIT            CREDIT                                    PATTERN

 

1. 14 Years       Open                R3 000 000        21 days            21 days            Very Good

2. 2008             R100 000          Declined           30 days            30 days            Very Good

3. Apr 2010       R9 900 000        R4 000 000        30 days            30 days            Very Good

 

 

 

TRADE REFERENCES – OCTOBER 2012

 

ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

OPENED          CREDIT            CREDIT                                    PATTERN

 

1. Do not give trade reference

2. +10 Years     No limit             +R5 000 000      21 days           21 days            Excellent

3. No longer trade with

4. June             2005     R7 000 000        ±R2 000 000      30 days            30 days                        Good

 


 

 

TRADE REFERENCES - APRIL 2013

 

ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

OPENED          CREDIT            CREDIT                                    PATTERN

1. Do not give trade references.

2. Old acc         Open                R1 000 000-       21 days                        21 days           Excellent

R3 000 000

3. No longer have an account.

4. No longer purchases from them.

 

CURRENT TRADE REFERENCES

 

ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

OPENED          CREDIT            CREDIT                                    PATTERN

 

1. Do not give trade references

2. +33 years      Open Acc         R1 000 000-       21 days            21 days            Excellent

R3 000 000

3. ±5 years        Declined           R 50 000-          30 days            30 days            Good

R 60 000

 

COMMENTS

 

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


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.75

UK Pound

1

Rs.99.56

Euro

1

Rs.83.55

 

 

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.