MIRA INFORM REPORT

Report Date :

10.11.2014

IDENTIFICATION DETAILS

Name :	BRITS BAG MANUFACTURERS (PTY) LTD
Registered Office :	35 Piet Rautenbach Street, Brits North West P O Box 1135, 0250
Country :	South Africa
Date of Incorporation :	24.08.1995
Com. Reg. No.:	1995/008895/07
Legal Form :	Private Company
Line of Business :	Manufacturing of polypropylene bags, shade netting and vegetable bags.
No. of Employees :	600-700

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

BRITS BAG MANUFACTURERS (PTY) LTD

PHYSICAL ADDRESS

35 Piet Rautenbach Street

BRITS

North West

POSTAL ADDRESS

P O Box 1135

BRITS

0250

TELEPHONE NUMBER

+27 12 250 0120

FAX NUMBER

+27 12 250 0114

SHAREHOLDERS

75% M I TAYOB

25% B J PRETORIUS

ASSOCIATE COMPANIES

LANDPAK (PTY) LTD (property owning company)

(Registration Certificate Number: 1983/070287/07)

INTERNATIONAL BAG BUYERS (PTY) LTD

(Registration Certificate Number: 1986/002707/07)

DIRECTORS

B J PRETORIUS ID No. 5404175184083

M I TAYOB ID No. 5212295110056

N TAYOB ID No. 8504020040088

BANKERS

FIRST NATIONAL BANK, Corporate Branch. Branch Code: 251445, Account Number: 51420094751. It was stated that the subject enjoys a group overdraft facility to an extent of R2 000 000. The respondent stated that the overdraft is utilised for working capital purposes.

DATE REGISTERED

24 August 1995

Registration Certificate Number: 1995/008895/07

The subject was commenced as a new business.

VAT NUMBER

4940152731

TAX NUMBER

9051187640

BEE STATUS

Level 3 contributor

MAJOR OPERATION

Manufacturing of polypropylene bags, shade netting and vegetable bags

MAJOR SUPPLIERS

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

Agricultural sector such as farmers and cooperatives

AREA OF DISTRIBUTION AND SELLING

South Africa

EXPORTS

Botswana

TOTAL EMPLOYEES

600-700

OTHER PREMISES

None

It was stated that the heading premises comprise of administration offices and manufacturing facilities.

OWNED OR LEASED

The premises are reported to be leased from the associate property owning company, LANDPAK (PTY) LTD.

AUTHORISED SHARE CAPITAL

R1 000 divided into 1 000 ordinary shares of R1 each

ISSUED SHARE CAPITAL

R100

FINANCIALS

The following estimated financial situation was submitted as at 6 November 2014:

STOCK R15 000 000

DEBTORS R12 000 000

CREDITORS R4 500 000

TURNOVER per month R11 000 000

AUDITORS

FAITZ CHARTERED ACCOUNTANTS INC Houghton +27 11 646 4125

YEAR END

FEBRUARY

INSURANCE BROKERS

SOLID INSURANCE BROKERS

TRADE REFERENCES – JANUARY 2007

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 4 years R100 000 R30 000 30 days 45 days Slow

c/l

2. 5 years declined declined 30 days 40 days Fair

3. 5 years declined declined 30 days 30 days Very Good

4. 6 years declined declined 60 days +60 days Fair

TRADE REFERENCES – FEBRUARY 2008

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 4 years declined declined 30 days 30 days Good

2. 1996 declined declined 30 days 30 days Good

3. 5 years R150 000 R20 000- 30 days 45 days Slow

R50 000

TRADE REFERENCES – FEBRUARY 2010

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. Have not purchased since 2008

2. 2002 R2 000 000 30 days 30 days Very Good

3. 10 Years R150 000 R 20 000 30 days 30 days+ Slow

c/l

4. Old acc declined R 50 000 30 days 30 days Very Good

TRADE REFERENCES – FEBRUARY 2011

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 15 Years figures confidential 30 days 45 days Average

Needs monitoring

2. Old acc R150 000 R10 000 30 days 40/45 days Average

c/l -R20 000 Needs monitoring

3. Awaiting a fax trade reference response

TRADE REFERENCES – FEBRUARY 2012

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 10 years No figures No figures 30 days 30 days Very Good

2. 4-5 years R400 000 R100 000- 30 days 30 days Good

R200 000

3. Do not give trade references

4. Do not give trade references

TRADE REFERENCES – JUNE 2013

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 2002 Declined R4 000 000 30 days 50 days Good

2. 10 years Declined Declined 60 days 60 days Very Good

3. Do not give trade references

4. +10 years Declined Declined 30 days 30 days Excellent

5. Unable to obtain

TRADE REFERENCES-DECEMBER 2013

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 2002 Declined R6 000 000 60 days 50 days Very Good

Pay early

2. 1996 Declined Declined 60 days 60 days Very Good

3. Unable to trace the account

4. 10 years Declined Declined 30 days 30 days Excellent

CURRENT TRADE REFERENCES

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 2002 Declined Declined 50 days 50 days Good

Insured:COFACE

2. 2011 Declined ±R20 000 30 days 30 days Good

3. 1996 Declined Declined 60 days 60 days Good

Insured:CGIC

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. Polyethylene

2. Plastics

3. Master batches

COMMENTS

This is a very well-established business meeting its commitments timeously as per arranged terms and is spoken of highly by its suppliers.

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 :	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.