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Report Date : |
18.02.2014 |
IDENTIFICATION DETAILS
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Name : |
CGM INDUSTRIAL (PTY) LTD. |
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Registered Office : |
Site 14-16 Thetsane Industrial Area Maseru 100 |
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Country : |
Lesotho |
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Year of Establishments: |
1983 |
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Legal Form : |
Limited Corporation |
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Line of Business : |
manufacturer and exporter of garments |
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No. of Employees : |
4280 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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) |
|
Lesotho |
b2 |
B2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Lesotho ECONOMIC OVERVIEW
Small,
mountainous, and completely landlocked by South Africa, Lesotho is a least developed
country in which about three-fourths of the people live in rural areas and
engage in subsistence agriculture. Lesotho produces less than 20% of the
nation's demand for food. Rain-fed agriculture is vulnerable to weather and
climate variability; an estimated 725,500 people will require food assistance
in 2012/13. The distribution of income in Lesotho remains inequitable. Lesotho
relies on South Africa for much of its economic activity. Lesotho imports 90%
of the goods it consumes from South Africa, including most agricultural inputs.
Households depend heavily on remittances from family members working in South
Africa, in mines, on farms and as domestic workers, though mining employment
has declined substantially since the 1990s. Government revenue depends heavily
on transfers from South Africa. Customs duties from the Southern Africa Customs
Union accounted for 44% of government revenue in 2012. The South African
Government also pays royalties for water transferred to South Africa from a dam
and reservoir system in Lesotho. However, the government continues to
strengthen its tax system to reduce dependency on customs duties and other
transfers. Access to credit remains a problem for the private sector. The
government maintains a large presence in the economy - public expenditures
accounted for 55% of GDP in 2010 and the government remains Lesotho's largest
employer. Lesotho's largest private employer is the textile and garment
industry - approximately 36,000 Basotho, mainly women, work in factories producing
garments for export to South Africa and the US. Diamond mining in Lesotho has
grown in recent years and may contribute 8.5% to GDP by 2015, according to
current forecasts. Lesotho's $362.5 million Millennium Challenge Account
Compact, which focused on strengthening the healthcare system, developing the
private sector, and providing access to improved water supplies and sanitation
facilities, will end in September 2013. Despite the 2008/09 global economic
crisis, the economy has recovered strongly with growth averaging nearly 5% per
year since 2010.
|
Source
: CIA |
Registered Name: CGM INDUSTRIAL (PTY) LTD.
Requested Name: CGM
INDUSTRIAL (PTY) LTD.
Other Names: None
Physical Address: Site 14-16 Thetsane Industrial Area Maseru 100
Lesotho
Postal Address: Site 14-16 Thetsane Industrial Area,
Maseru 100
Country: Lesotho
Phone: 266-317736/310499/22326452
Fax: 266-22326458/310449/310207
Email: dalvi@cgmgroup.co.ls
Website: None
Financial Index as of December 2013 shows subject firm with a medium
risk of credit. However, bank and credit information obtained reveal a history
of prompt payments.
Legal Form: Limited Corporation
Date Incorporated: 1983
Reg. Number: Lesotho
Nominal Capital LSL. 10,000
Subscribed Capital LSL. 10,000
Subscribed Capital is Subscribed in the following form:
Position Shares
Mr. Dalvi Madhav CEO
Mr. Adrian Chan Director
Mr. Jason F. Manager
CGM Group Holding Co. 100%
CGM GROUP Parent company.
None Subsidiary company.
PRESITEX ENTERPRISES (PTY) LTD Affiliated company.
None Shareholder of subject firm.
In South Africa Branches of the firm
Registered to operate as manufacturer and exporter of garments
Imports: Asia
Exports: USA,
South Africa
Trademarks: None
Terms of sale: Cash
(40%) and 25-90 days (60%), invoices.
Main Customers: Stores,
outlets, distributors etc
Employees: 4280
employees.
Vehicles: Several
motor vehicles.
Territory of
sales: Lesotho
Location: Owned
premises, 25,000 square meters,
Auditors: Information not available.
Insurance
Brokers: Information not available.
Currency Reported: Lesotho Loti (LSL.)
Approx. Ex. Rate: 1 US Dollar = 10.86 Lesotho Loti
Fiscal
Year End: December 31, 2013
Inflation: According to
information given by independent sources, the
inflation
at December 31st, 2013 was of 13%.
Financial
Information not Submitted
Profit and Loss (expressed in LSL.)
2013
Sales 410,000,000
Bank Name: First National Bank
Branch: Lesotho
Comments: None
Experiences: Good
None
This information was obtained from outside sources other than the
subject company itself and confirmed the above subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.95 |
|
|
1 |
Rs.104.02 |
|
Euro |
1 |
Rs.84.95 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.