|
Report Date : |
04.03.2014 |
IDENTIFICATION DETAILS
|
Name : |
TRUWORTHS LTD |
|
|
|
|
Registered Office : |
1 Mostert Street, Cape Town, Western Cape |
|
|
|
|
Country : |
South Africa |
|
|
|
|
Date of Incorporation : |
27.05.1940 |
|
|
|
|
Com. Reg. No.: |
1940/013923/06 |
|
|
|
|
Legal Form : |
Limited Company |
|
|
|
|
Line of Business : |
Retailers of Fashion clothing, Footwear and Accessories |
|
|
|
|
No. of Employees |
9475 |
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 – 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 |
Note:
(The
information contained in this report, other than statutory data and comment by
outside authorities, has been voluntarily supplied by officials of the
subject):
On investigation contact was made with the Company
Secretary who declined to assist with information telephonically and requested
that an email questionnaire be forwarded.
This was duly sent and as soon as further information is forthcoming the
same will be compiled and forwarded to our client. In the meantime please see historical
information dated September 2013:
TRUWORTHS LTD
TRUWORTHS
TRUWORTHS MAN
DANIEL HECHTER
TRUWORTHS FINE JEWELLERY
LTD
IDENTITY
INWEAR
TRUWORTHS ELEMENTS
UZZI
TRUWORTHS LIVING
YDE
1 Mostert Street
CAPE TOWN
Western Cape
P O Box 600
CAPE TOWN
8000
TELEPHONE NUMBER: +27 21 460 7911
FAX NUMBER: +27 21 461 7641 / +27 21 460 7132
The postal box of 4775 Cape Town, 8000 that was supplied by our client was stated to be the credit services department, which is used by the customers and is actually not a direct postal number for the subject.
100% TRUWORTHS INTERNATIONAL LTD (Formerly S R G LTD, the name having been changed in about December 1997), (quoted on the JSE Ltd from May 1998)
TRUWORTHS LTD (registered in
TRUWORTHS (SWAZILAND) LTD
TRUWORTHS (NAMIBIA) LTD
YOUNG DESIGNERS EMPORIUM (PTY) LTD
Please note that the subject sold TOPICS STORES (PTY) LTD in 1997.
M S MARK (Executive Chairman) ID No. 5211285097083
D N DARE ID No. 6105245763082
D L KOHLER ID No. 5301225128088
J A HOLTZHAUSEN ID No. 5209015069083
E F CHRISTAUDO ID No. 5904035078086
STANDARD BANK, Cape Town Branch. Account Number: 070295794. It was stated that all the subject’s accounts are managed by a cash management scheme controlled by STANDARD BANK.
27 May 1940
Registration Certificate Number: 1940/013923/06
The subject was commenced as a new business.
4630103754
9375147718
Fashion clothing, footwear and accessories retailers
UTI Cape Town
REDSEALCLOTHING Cape Town
BONWIT Cape Town
BARRIE CLINE Cape Town
KAZAK Cape Town
General
public
South Africa
Namibia, Botswana, Bahrain, Dubai, Swaziland, Kenya, Qatar and Lesotho.
9475
approximately 600 retail outlets countrywide
It was stated that the subject’s distribution premises are owned, while the remainder of the branch premises are reported to be leased.
R3 000 000 divided into 600 000 000 ordinary shares
of 50 cents each.
R1 581 000 plus R22 302 000 share
premium
The following estimated financial situation was
submitted for the year ending 1 July 2012:
INVENTORY R 454 195 000
DEBTORS R 2 239 754 000
CREDITORS R 674 765 000
LOANS Nil
TURNOVER per annum R6 757 000 000
See attached the latest group results for the holding company TRUWORTHS INTERNATIONAL LTD interim December 2012 and 30 June 2012.
ERNST & YOUNG Cape Town
JUNE
UNISON RISK MANAGEMENT
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 15 years+ R 5
000 000 R 5 000 000 30 days 30
days Excellent
2½% 2½%
2. 18 years+ R20 000 000 R18
000 000- 30 days 30 days Very Good
R20
000 000
3. Do not give trade references
4. 40 years R10 000 000 R 4 000 000- 30 days 30
days Very Good
R10
000 000 2½% 2½%
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 15+
years open acc R 2 000 000- 30 days 30
days Excellent
R 3 000 000 2.5% 2.5%
2.
Do not
give trade references.
3.
25
years open acc R30 000 000 30 days 30 days Excellent
2.5% 2.5%
4.
40
years open acc R 3 300 000 30 days 30
days Excellent
2.5% 2.5%
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. Old acc R30
000 000 R30 000 000 30 days 30
days Very Good
c/l
2.
Do not give trade references
3.
Awaiting a fax trade reference
4.
Do not give trade references
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. Old acc R5
000 000 R3 000 000 30 days 30
days Very Good
2. Old acc Declined R6 000 000 30 day 30 days Very Good
2.5%
3. Do not give trade references
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. Old acc R5
000 000 R3 000 000 30 days 30
days Very Good
2. Old acc Declined R6 000 000 30 day 30 days Very Good
2.5%
3. Do not give trade references
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. +16
years no limit ±R1 000 000 7 days 7 days Very
Good
2. Do
not give trade references, but states it’s a good account.
3. ±20
years no limit R 3 000 000 30 days 30
days Very Good
4. ±30
years R3 500 000 R 1
500 000 60 days 60 days Very Good
no
limit
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 18 years Open ±R400 000 7 days 7
days Very Good
2. ±40 years Open ±R3 000 000 30 days 30
days Very Good
-2,5% -2,5%
3. ±20
years Open ±R1 000 000 30
days 30 days Very Good
-2,5% -2,5%
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. ±19 years Open R
1 500 000 7 days 7 days Excellent
2. ±45 years Open R 4 000 000- 30 days 30 days Excellent
R 5 000 000
3. ±20
years Open R30 000 000- 30
days 30 days Excellent
R36 000
000
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. Do not give trade references
2. +20 years Open ±R 700 000 90 days 90
days Excellent
3. ±20
years Open R25 000 000- 30
days 30 days Excellent
R34 000 000
4. 1978 Open R
6 000 000- 30 days 30 days Excellent
R 7 000 000 -2.5% -2.5%
This is a very well-established company which is one of the largest clothing retailers in South Africa. The subject is meeting its commitments timeously as per arranged terms and is spoken of highly by its suppliers. In view of the standing of the subject (please see attached financials as at June 2013), the subject is considered equal to its normal business engagements.
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. No
longer deal with the subject
2. Have
not dealt with in a while, however, excellent account
3. Unable
to obtain a trade reference
4
No
longer in business
5.
Unable
to obtain trade reference
This is a very well-established company which is one of the largest clothing retailers in South Africa. The subject is considered equal to its normal business engagements, however, the lack of general updated information and the lack of a payment pattern should be borne in mind.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.86 |
|
|
1 |
Rs.103.52 |
|
Euro |
1 |
Rs.85.31 |
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.