MIRA INFORM REPORT

 

 

Report Date :

10.11.2014

 

IDENTIFICATION DETAILS

 

Name :

NAMPAK PRODUCTS LTD

 

 

Formerly Known As :

NATIONAL PACKAGING COMPANY LTD

 

 

Registered Office :

114 Dennis Road Atholl Gardens Johannesburg Gauteng

 

 

Country :

South Africa

 

 

Date of Incorporation :

24.08.1963

 

 

Legal Form :

Private Company

 

 

Line of Business :

Manufacture, marketing and servicing of primary packaging, secondary packaging and printing and paper-related products, industrial packaging as well as the manufacturing of beer and carbonated soft drink products.

 

 

No. of Employees :

8,000 to 10,000

 

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 – 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 and address

 

COMPANY NAME:        NAMPAK PRODUCTS LTD

 

Formerly:                      NATIONAL PACKAGING COMPANY LTD, the name having been changed on 4 July 1980.

 

The subject has 4 major divisional groupings known as:

 

PAPER FLEXIBLES

METALS

GLASS

PLASTICS

 

The divisions are segmented into the following:

 

TRADING DIVISIONS:   NAMPAK GLASS

NAMPAK POLYCYCLERS

PETPAK

MEGAPAK

NAMPAK LIQUID PACKAGING

BEVCAN

NAMPAK CARTONS & LABELS

NAMPAK CLOSURES

NAMPAK CORRUGATED

NAMPAK PAPER ROSSLYN

DIVFOOD

NAMPAK FLEXIBLES

I AND CS

RESEARCH AND DEVELOPMENT

NAMPAK RECYCLING

NAMPAK SACKS

NAMPAK MANAGEMENT SERVICES

NAMPAK TISSUE

NAMPAK TUBES

 

PHYSICAL ADDRESS:  114 Dennis Road

ATHOLL GARDENS

Johannesburg

Gauteng

 

POSTAL ADDRESS:     P O Box 784324

SANDTON

2146

 


TELEPHONE:                +27 11 719 6300

 

FAX NUMBER:              +27 11 444 4794 / 444 6212

 

It was stated that the DIVFOOD division is situated at 3 Noble Boulevard Vanderbijlpark and P O Box 120 Vanderbijlpark 1900.  Telephone number +27 16 950 3000 and Fax number +27 16 950 3400.

 

NAMPAX FLEXIBLES KZN can be contacted on +27 31 719 6333 and is situated at 88 Wiltshire Road, Southmead Industrial Park, Pinetown, KwaZulu-Natal.

 

It was stated that the supplied address of 39E Hendrik Van Eck Street, Rosslyn, Pretoria, Telephone Number: +27 12 521 1700 is that of a sub division NAMPAK PAPER ROSSLYN.

 

 

SHAREHOLDERS

 

100%    NAMPAK LTD (quoted on the JSE LTD)

(Registration Certificate Number: 1968/008070/06)

 

 

ASSOCIATE AND SUBSIDIARY COMPANIES

 

ANGOLATA LDA (registered in Angola)

BLOWMOCAN HOLDINGS LTD (registered in the UK)

CARTONAGENS DE MOCAMBIQUE LDA (registered in Mozambique)

CROWN CORK CO ZAMBIA LTD

DISAKI CORES AND TUBES (PTY) LTD (registered in South Africa)

INTERNATIONAL CARTONS AND PACKAGING LTD (registered in Zambia)

INTERPAK BOOKS (PTY) LTD (registered in South Africa)

MALBAK LTD (registered in South Africa)

NAMPAK CARTONS BV (registered in the Netherlands)

NAMPAK CARTONS NIGERIA LTD

NAMPAK CORRUGATED (SWAZILAND) LTD

NAMPAK HOLDINGS (UK) PLC

NAMPAK HOLDINGS LTD (registered in Mauritius)

NAMPAK INTERNATIONAL LTD (registered Isle of Man)

NAMPAK LIQUID BOTSWANA (PTY) LTD

NAMPAK NIGERIA PLC

NAMPAK PAPER HOLDINGS LTD (registered in the UK)

NAMPAK PROPERTIES (ISLE OF MAN) LTD

NAMPAK PROPERTIES NIGERIA LTD

NAMPAK SOUTHERN AFRICA HOLDINGS LTD (registered in Mauritius)

NAMPAK TANZANIA LTD

NAMPAK TECHNICAL SERVICES LTD (registered Isle of Man)

NAMPAK ZAMBIA LTD

PACKAGING INDUSTRIES MALAWI LTD

PRINTECH SYSTEMS BV (registered in the Netherlands)

STOREY EVANS HOLDINGS LTD (registered in the UK)

STOREY EVANS AND COMPANY LTD (registered in the UK)

TEKNOL BV (registered in the Netherlands)

BULLPAK LTD (registered in Kenya)

CROWN CORK COMPANY (MOZAMBIQUE) LTD

ELOPAK SOUTH AFRICA (PTY) LTD

NAMPAK GLASS (PTY) LTD (formerly: NAMPAK WIEGAND GLASS (PTY) LTD (Registration Certificate Number: 2004/035080/07)

SANCELLA SOUTH AFRICA (PTY) LTD

COLLECT-A-CAN (PTY) LTD (registered in South Africa)

GROUP RISK HOLDINGS (PTY) LTD (registered in South Africa)

 

The subject has an agency agreement with NAMPAK GLASS (PTY) LTD and incorporated the operations and assets into the subject as a division with effect from April 2012.

 

 

DIRECTORS

 

P A DE WEERDT          ID No.   5403175053082

R G MORRIS     ID No.   6112285082084

G GRIFFITHS    ID No.   5303305068085

S E MSANE      ID No.   6209035684084

E E SMUTS      ID No.   7003305029081

F V TSHIQI        ID No.   5406195689082

A M DE RUYTER          ID No.   Not available

C BURMEISTER            ID No.   Not available

 

 

BANKERS

 

The subject uses various banks, e.g. FIRST NATIONAL BANK, NEDBANK and STANDARD BANK.  It was stated that STANDARD BANK is the main banker of the group.  The head office account is held at STANDARD BANK, Sandton branch.

 

It was stated that the subject enjoys substantial overdraft facilities.  It was stated that each division has its own account and there are approximately 500 banking accounts countrywide for the subject and its divisions.

 

 

DATE REGISTERED

 

24 August 1963

Registration Certificate Number: 1963/004547/06

 

VAT NUMBER:              4230113039

 

It was reported that NAMPAK FLEXIBLES utilise the same VAT number as the subject.

 

TAX NUMBER:              9900081713

 

 

MAJOR OPERATION

 

The operation of the company is the manufacture, marketing and servicing of primary packaging, secondary packaging and printing and paper-related products, industrial packaging as well as the manufacturing of beer and carbonated soft drink products.

 

 

MAJOR SUPPLIERS

 

The division NAMPAK FLEXIBLES deals with the following supplies:

 

EAGLE INK SYSTEMS Cape Town

SASOL POLYMERS Johannesburg

CONRO PRECISION Cape Town

BARRIER FILM CONVERTORS Durban

 

The NAMPAK CARTONS & LABELS division deals with the following suppliers:

 

MONDI PAPER

PETERS PAPERS

SAPPI

BESWICK

COATES BROTHERS

 

The BEVCAN division deals with the following suppliers:

 

ARCELLOR MITTAL

HULAMIN

 

MAJOR SUPPLIERS: continued

 

The NAMPAK TISSUE division deals with the following suppliers:

 

SAPPI FINE PAPER

UTI

SAFEPAK

HENKEL

TRANSMAN

 

The CORRUGATED division deals with the following suppliers:

 

IMPERIAL TRUCK Johannesburg

ABB SOUTH AFRICA

SAPPI

MONDI

TOW GRANT HULLETS STARCH Johannesburg

 

The NAMPAK LIQUID division deals with the following suppliers:

 

UNIPRINT Durban

SAFRIPOL Johannesburg

NORTH SAFETY PRODUCTS Durban (The Boomerang

ROTOCOR Durban

 

The NAMPAK GLASS division imports most of its supplies and deals locally with the following suppliers:

 

SAMQUARZ Delmas

CAPE LIME Vredendal

SILICIA SAND Delmas

CHC Johannesburg

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

Industry and commerce in general, including the Government

 

 

AREA OF DISTRIBUTION AND SELLING   

 

South Africa

 

 

EXPORTS

 

Worldwide

 

 

TOTAL EMPLOYEES

 

±16 200 in the group, 8 000 - 10 000 in South Africa, while the remainder are in the rest of Africa and Europe

 

 

OTHER PREMISES

 

The subject has branches throughout the country

 

 

OWNED OR LEASED

 

The head office premises are stated to be leased.

 

However, it was stated that certain divisional premises of NAMPAK PRODUCTS LTD are either owned by the company or by subsidiary companies.

 

The industrial manufacturing buildings are owned by the subject.

 

 

AUTHORISED SHARE CAPITAL

 

R3 554 500 divided into 7 109 000 ordinary shares of R0, 50 cents each.

 

 

ISSUED SHARE CAPITAL

 

R3 528 641

 

 

FINANCIALS

 

Please see attached the extracts from the JSE LTD handbook on the Holding Company and financial statements for the year ended 30 September 2013.

 

 

AUDITORS

 

DELOITTE & TOUCHE Johannesburg  +27 11 806 5000

 

 

YEAR END    

 

SEPTEMBER

 

 

INSURANCE BROKERS

 

WILLIS FABER INSURANCE BROKERS Johannesburg

 

 

 

TRADE REFERENCES – 6 OCTOBER 2009

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    +10 years     undisclosed   undisclosed    30 days    30 days        Excellent

                          (Over R1 000 000)

 

2.    40 years       undisclosed   undisclosed    30 days    30 days        Very Good

                          (Over R1 000 000)

 

 

TRADE REFERENCES – DECEMBER 2009

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    +17 years     ±R3 000 000   +R3 000 000    30 days    30 days        Excellent

                          open acc                             2.5%

 

2.    2006               R   250 000  Undisclosed    7 days      30 days        Good

                          (No longer deals with them)

 

3.     Do not give trade references

 

4.     Do not give trade references

 

 

TRADE REFERENCES – MARCH 2010

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    Old acc        declined        R3 700 000      30 days    30 days        Very Good

 

2.    10 years       R2 000 000    R1 500 000      30 days    30 days        Very Good

 

3.     Do not give trade references

 

4.     Do not give trade references

 


TRADE REFERENCES – AUGUST 2010

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    25 years       R5 000 000    R3 000 000      60 days    45 days        Excellent

 

2.    ±9 years       declined        R     50 000-    30 days    30 days        Very Good

                                               R   300 000                     2.5%           

 

3.    Do not give trade references

 

 

TRADE REFERENCES – NOVEMBER 2010

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    Old              +R1 000 000  +R1 000 000    60 days    60 days        Excellent

 

2.    +10 years       R4 000 000    R3 000 000    30 days    30 days        Excellent

                                                                     2,5%        2,5%

 

3.     Do not give trade references

 

4.     2008             R2 000 000    R    600 000-   30 days    30 days        Excellent

                                      c/l                 R    700 000

 

 

TRADE REFERENCES – MAY 2011

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.     Do not give trade references

 

2.    Oct’ 05         R1 000 000    R  20 000-       30 days    30 days        Excellent

                          c/l                 R  25 000

 

3.    5 years         R    500 000   R  50 000-       60 days    60 days        Good

                          c/l                 R500 000

 

4.    10 years       amounts        confidential     30 days    30 days        Excellent

 

5.     +5 years       R    250 000   R100 000        30 days    30 days        Good

 

TRADE REFERENCES (NAMPAK TISSUE) – AUGUST 2012

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    Do not give trade references

 

2.    17 years       Declined        R2 500 000-     30 days    30 days        Excellent

                          c/l                 R3 000 000      Less 2,5%

 

3.    Do not give trade references

 

4.    Old acc        R    400 000   R   200 000     7 days      7 days          Very Good

                                               (Per week)

 

6.     Do not give trade reference

 


TRADE REFERENCES (NAMPAK GLASS)  DECEMBER 2012

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.     1999            No limit          R    400 000-   30 days    30 days        Very Good

                                               R    500 000

 

2.     Closed for Christmas holidays

 

3.     Unable to obtain a trade reference

 

4.     Close for Christmas holidays

 

 

TRADE REFERENCES (NAMPAK FLEXIBLES) – APRIL 2013

 

       ACCOUNT   HIGHEST       AVERAGE     TERMS     PAYMENT   EXPERIENCE

       OPENED     CREDIT         CREDIT                          PATTERN

 

1.     ±15 years      Declined        Declined        30 days     30 days       Excellent

 

2.     Do not give trade references

 

3.     Unable to obtain trade reference

 

4.     2009             R1 500 000     ±R     10 000-  30 days     30 days       Very Good

 R1 000 000

                  

 

TRADE REFERENCES – JUNE 2013 (NAMPAK GLASS)

 

       ACCOUNT   HIGHEST       AVERAGE     TERMS     PAYMENT   EXPERIENCE

       OPENED     CREDIT         CREDIT                          PATTERN

 

1.     1999             Open             R1 500 000-    30 days     30 days       Excellent

                          Contract         R2 200 000

 

2.     ±12 years      R    800 000    R   100 000     30 days     30 days       Very Good

 

3.     Do not give trade references

 

4.     Awaiting email trade references

 

 

TRADE REFERENCES – FEBRUARY 2014

 

       ACCOUNT   HIGHEST       AVERAGE     TERMS     PAYMENT   EXPERIENCE

       OPENED     CREDIT         CREDIT                          PATTERN

 

1.     1999             R1 500 000     R1 500 000     30 days     30 days       Excellent

 

2.     10 years        R   800 000     R   100 000     30 days     30 days       Excellent

 

3.     June 2010     R2 000 000     R1 000 000-    30 days     25 days       Excellent

                          Insured CGIC  R1 500 000

 

 

TRADE REFERENCES – MAY 2014

 

       ACCOUNT   HIGHEST       AVERAGE     TERMS     PAYMENT   EXPERIENCE

       OPENED     CREDIT         CREDIT                          PATTERN

 

1.     +8 years      Very high       ±R2 000 000   30 days     30 days       Very Good

                          c/l

 

2.     2009            R3 000 000     R1 100 000-   30 days     30 days       Good

                          c/l                  R1 500 000

 

3.     +10 years    R3 000 000     R1 500 000-   30 days     30 days       Excellent

                          c/l                  R3 000 000    2.5% discount

 

 

CURRENT TRADE REFERENCES

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS     PAYMENT   EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    +8 years       Open             R7 500 000      45 days     45 days       Very Good                       

2.    2009             R3 000 000    R500 000-       30 days     35 days       Good

                                               R1 500 000

 

3.    Do not give trade references

 

 

 

NATURE OF GOODS OR SERVICES SUPPLIED

 

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

 

1.    Suppliers of printing ink.   

                         

2.    Plastic packaging products                     

 

 

COMMENTS

 

This is a well-established and well-connected division of a well-connected business.  The subject is meeting its commitments timeously. 

 


 

COMPANY NAME

 

NAMPAK CLOSURES

 

On investigation it was established that NAMPAK CLOSURES is a trading division of NAMPAK PRODUCTS which report should be consulted.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.52

UK Pound

1

Rs.97.39

Euro

1

Rs.76.16

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.