MIRA INFORM REPORT

 

 

Report Date :

02.12.2014

 

IDENTIFICATION DETAILS

 

Name :

NETTEX (PTY) LTD

 

 

Registered Office :

Philippi Street, Sacks Circle, Bellville South Cape Town Western Cape Private Bag X5, Kasselsvlei, 7533

 

 

Country :

South Africa

 

 

Date of Incorporation :

18.05.1967

 

 

Com. Reg. No.:

1967/005210/07

 

 

Legal Form :

Private Company

 

 

Line of Business :

Curtain material and textile manufacturers as well as allied products

 

 

No. of Employees :

450 Unconfirmed

 

 

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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 16th largest in the world. Even though the country's modern infrastructure supports a relatively efficient distribution of goods to major urban centers throughout the region, unstable electricity supplies retard growth. The global financial crisis reduced commodity prices and world demand. GDP fell nearly 2% in 2009 but has recovered since then, albeit slowly with 2014 growth projected at about 2%. Unemployment, poverty, and inequality - among the highest in the world - remain a challenge. Official unemployment is at nearly 25% of the work force, and runs significantly higher among black youth. Eskom, the state-run power company, has built two new power stations and installed new power demand management programs to improve power grid reliability. Construction delays at two additional plants, however, mean South Africa is operating on a razor thin margin; economists judge that growth cannot exceed 3% until those plants come on line. 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

 

NETTEX (PTY) LTD

 

 

PHYSICAL ADDRESS

 

Philippi Street

Sacks Circle

BELLVILLE SOUTH

Cape Town

Western Cape

 

 

POSTAL ADDRESS        

 

Private Bag X5

KASSELSVLEI

7533

 

 

TELEPHONE NUMBER   

 

021 951 1205

 

 

FAX NUMBER     

 

021 951 1597

 

 

SHAREHOLDERS

 

Respondents at the subject declined to assist with information regarding the shareholding.

 

 

ASSOCIATE COMPANIES

 

None

 

 

DIRECTORS

 

E THOMAS       ID No:  5503255159087

A LEE               ID No:  6003075026086

 

The shareholding previously changed in early 2005 and it was stated that formerly E B SONNENSCHEIN, M SONNENSCHEIN, B SCHAPIRO AND J L HEUVEL were also directors of the company.

 

 

BANKERS

 

STANDARD BANK, Tyger Manor branch, Account number 071944443.  It was stated that the subject enjoys overdraft facilities to an extent of  R17 000 000, secured by shareholders’ guarantees. Utilisation of the overdraft is stated to be nil at present.

 

 

DATE REGISTERED

 

18 May 1967

Registration certificate number 1967/005210/07.

 

The subject commenced as a new business.

 

 

VAT NUMBER

 

4610102123

 

 

TAX NUMBER

 

9425139715

 

 

MAJOR OPERATION

 

Curtain material and textile manufacturers as well as allied products

 

 

MAJOR SUPPLIERS

 

The subject imports textiles and yarn from the Far East (Indonesia, Japan, Korea etc.)

 

Previously, we have divulged the names of the major suppliers in our reports.  We have discontinued this practice to protect our valuable sources of trade information.  This has become necessary because we now give a description of the goods or services to which the trade references relate. This gives our client       the ability to assess whether the purchases are vital to the subject’s operation and whether we have only been given their essential suppliers that must be paid promptly for the subject to maintain its operation.

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

Curtain textile industry (wholesalers and retailers)

 

 

AREA OF DISTRIBUTION AND SELLING

 

90% South Africa

 

 

EXPORTS  

 

UK and USA

 

 

TOTAL EMPLOYEES

 

450 unconfirmed

 

 

OTHER PREMISES:  

 

None

 

 

OWNED OR LEASED

 

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

 

 

AUTHORISED SHARE CAPITAL 

 

3 600 000 no par value shares

 

Full financial information was not forthcoming from respondents at the subject         and outside authorities were unable to assist in this regard, however, historical             information dated December 2008 reads as follows:

 

STOCK                                                                              R  50 000 000

DEBTORS                                                    R30 000 000 - R  40 000 000

CREDITORS local                                                              R    2 500 000

CREDITORS the majority of overseas creditors are on a letter of credit basis

TURNOVER per annum                                                       R145 000 000

 

 

AUDITORS

 

GRANT THORNTON

 

 

YEAR END

 

FEBRUARY

 

 

INSURANCE BROKERS

 

ASSOCIATED INSURANCE BROKERS (AIB)

 

 

TRADE REFERENCES – DECEMBER 2005

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    Few yrs       R  50 000       R  50 000        30 days    30 days        Good

 

2.    Old acc        R  60 000       R  50 000        30 days    30 days        Very Good

                                                                                    2½%

 

3.    3 yrs            R100 000       R  50 000 -      7 days      7 days          Good

                                               R100 000

 

TRADE REFERENCES – DECEMBER 2006

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    2002             R   250 000    R   150 000     30 days    30 days        Very good

 

2.    Do not give trade references

 

3.    20 yrs           R1 500 000    R   700 000 -   30 days    30 days        Very good

                                               R1 000 000

 

4.    10 yrs           R     85 000    R     40 000-    30 days    30 days        Very good

                                               R     50 000

 

 

TRADE REFERENCES – DECEMBER 2012

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.       2002             R100 000       R100 000        30 days    7days           Excellent

                          c/l

 

2.       5 yrs            R450 000       R150 000        30 days    30 days        Excellent

                          c/l

 

3.       10 yrs           R25 000         sporadic          30 days    30 days        Good

                                      c/l                 purchases

 

 

CURRENT TRADE REFERENCES

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT   EXPERIENCE

      OPENED      CREDIT         CREDIT                           PATTERN

 

1.    13 years       Open             R 500 000       7 days       7 days         Excellent              

2.    Do not give trade references                     

 

3.    10 years       R250 000       R150 000-       30 days     30 days        Very Good

                                               R180 000

 

4.    Do not give trade references                     

 

 

NATURE OF GOODS OR SERVICES SUPPLIED

(These descriptions relate respectively by number to the above current trade transactions):

 

1.    Shipper        

                         

3.    Chemicals   

 

 

COMMENTS

 

This is a very well established company meeting its obtainable commitments timeously. The lack of updated financial information should be borne in mind.

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.14

UK Pound

1

Rs.97.05

Euro

1

Rs.77.37

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

               

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.