MIRA INFORM REPORT

Report Date :

04.02.2014

IDENTIFICATION DETAILS

Name :	TROPICAL SKY TRADING 133 CC
Registered Office :	13 Witivoor Street, Brackendowns, Alberton, Gauteng
Country :	South Africa
Date of Incorporation :	20.02.2006
Com. Reg. No.:	2006/026094/23
Legal Form :	Private Company
Line of Business :	· Distributors of industrial and engineering supplies such as piping and hydraulic fittings, as well as graphite special products and graphite electrodes. subject is an agent for graphite electrodes for a company namely GRAPHITE INDIA LTD situated in India.
No. of Employees :	02

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 :	Unknown
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 – december 01, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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. State power supplier 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

TROPICAL SKY TRADING 133 CC

PHYSICAL ADDRESS

13 Witivoor Street

BRACKENDOWNS

Alberton

Gauteng

POSTAL ADDRESS

13 Witivoor Street

BRACKENDOWNS

Alberton

Gauteng

TELEPHONE NUMBER: +27 11 868 4292

CELLPHONE NUMBER: +27 83 752 0398 (E A Munsamy)

+27 83 287 0754 (V Munsamy)

MEMBERS

100% V MUNSAMY ID No. 6806190199087

ASSOCIATE COMPANIES

None

bANKERS

NEDBANK, Alberton Branch, Account Number: 1006829032. The subject does not require an overdraft facility as credit balances are normally maintained at the bank.

DATE REGISTERED

20^th February 2006

Registration Certificate Number: 2006/026094/23

It was stated by the respondent that the subject was dormant and commenced trading in 2010.

VAT NUMBER

The subject is in the process of applying for a VAT number. The subject was not VAT registered previously as the subject’s turnover was less than R1 000 000. It was, however, stated that the business is expanding at present.

TAX NUMBER

9321981152

BEE STATUS

Level 3 contributor

MAJOR OPERATION

Distributors of industrial and engineering supplies such as piping and hydraulic fittings, as well as graphite special products and graphite electrodes. It was stated that the subject is an agent for graphite electrodes for a company namely GRAPHITE INDIA LTD situated in India.

MAJOR SUPPLIERS

The subject deals locally with:

· THE HOSE COMPANY

HYDRO SERVE HYDRAULICS

It was stated that the importing is undertaken by the company in India.

MAJOR CUSTOMERS OR BUSINESS SECTORS

Industrial engineering and mining industry such as SCAW METALS, SAMANCOR and CARBO QUIP.

AREA OF DISTRIBUTION AND SELLING

South Africa

EXPORTS

None

TOTAL EMPLOYEES

2

OTHER PREMISES

None

OWNED OR LEASED

It was stated that the subject operates an office from the home premises of the member which is owned by the member.

MEMBERS CONTRIBUTION

R100

FINANCIALS

The following estimated financial situation was submitted as at 29 January 2014:

STOCK Minimal

DEBTORS Mainly COD ±R 30 000

CREDITORS COD

TURNOVER per annum ±R500 000

It was stated by the respondent that the subject receives commission from the company in India. It was, however, stated by the respondent that the business is starting to trade in its own right and although it will be receiving commission on the graphite electrode part of the business, the subject will also be purchasing graphite special products from the company in India and selling to its customers. It was stated that the subject has received contracts from various companies for graphite special products for the first month of January to the value of US$24 000.

AUDITORS

JO OBERHOLSTER

FINANCIAL YEAR END

FEBRUARY

INSURANCE BROKERS

None at present

CURRENT TRADE REFERENCES

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 1 year R50 000 R15 000- COD/30 COD/30 Very good days days

2. COD

COMMENTS

This is a relatively new business which previously dealt mainly on a commission basis, however, at present we would prefer to see dealings with the subject on a letter of credit basis until a payment pattern is established.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.69
UK Pound	1	Rs.102.97
Euro	1	Rs.84.58

INFORMATION DETAILS

Report Prepared by :

MNL

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%)

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