MIRA INFORM REPORT

 

 

Report Date :

18.11.2014

 

IDENTIFICATION DETAILS

 

Name :

MULTI FABRICS CC

 

 

Formerly Known As :

A M FASHION ENTERPRISES CC

 

 

Registered Office :

27 Telford Road Industria Johannesburg Gauteng

 

 

Country :

South Africa

 

 

Date of Incorporation :

28.04.1989

 

 

Com. Reg. No.:

1989/013365/23

 

 

Legal Form :

Closed Corporation

 

 

Line of Business :

Importers and processors of fabric

 

 

No. of Employees :

10 having increased from 8 reported in 2013

 

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:                                MULTI FABRICS CC

 

Formerly:  A M FASHION ENTERPRISES CC, the name having been changed on 28 April 1989.

 

PHYSICAL ADDRESS:              27 Telford Road

                                                  INDUSTRIA

                                                  Johannesburg

                                                  Gauteng

 

POSTAL ADDRESS:                             P O Box 42966

                                                 FORDSBURG

                                                 2033

TELEPHONE NUMBER:                        +27 11 474 0755

FAX NUMBER:                          +27 86 556 4512

CELLPHONE NUMBER:                        +27 82 783 1223 (Reza Mottiar)

 

 

MEMBERS

 

50%      A H MOTTIAR                                        ID No. 3303155959053

50%      M R A H MOTTIAR (Son)                        ID No. 6403185228087

 

 

ASSOCIATE COMPANIES

 

TDF DISTRIBUTORS CC

BALTIMORE TRADING CC (dormant)

 

 

BANKERS

 

HABIB OVERSEAS BANK, Fordsburg Branch and FIRST NATIONAL BANK, Industria Branch.  The subject does not require overdraft facilities as credit balances are maintained at the bank.

 

 

DATE REGISTERED

 

28 April 1989

 

Registration Certificate Number:  1989/013365/23

 

The subject commenced trading in 1989

 

VAT NUMBER:              4320185574

 

TAX NUMBER:              9002410844

 

BEE STATUS:              Non-compliant

 

 

MAJOR OPERATIOn

 

Importers and processors of fabric

 

 

MAJOR SUPPLIERS

 

The subject imports 90% of its supplies and has local 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

 

Textile wholesalers

 

 

AREA OF DISTRIBUTION AND SELLING   

 

South Africa

 

 

EXPORTS

 

None

 

 

TOTAL EMPLOYEES

 

10 having increased from 8 reported in 2013

 

 

OTHER PREMISES   

 

None

 

 

OWNED OR LEASED

 

The premises are reported to be leased

 

 

MEMBERS CONTRIBUTION

 

R100

 

 

FINANCIALS

 

Full financial information was not forthcoming from respondents at the subject, nevertheless, it was stated that the turnover per annum is approximately +R100 000 000 and their stock is estimated in the region of ±R100 000-R200 000.

 

 

AUDITORS    

 

INFINITY ACCOUNTING SERVICES

 

 

FINANCIAL YEAR END  

 

FEBRUARY

 

 

INSURANCE BROKERS 

 

ZURICH INSURANCE BROKERS

 

 

 

TRADE REFERENCES-SEPTEMBER 2013

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS     PAYMENT   EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.                Jan 2012      Open Acc      R2 000 000      30 days     30 days       Very good            

2.                Awaiting fax trade reference

 

3.                2009             Open Acc      ±R1 000 000    7/21/30        7/21/30        Very good

                          Insured: CGIC                      days            days

 

 

CURRENT TRADE REFERENCES

 

                  ACCOUNT    HIGHEST      AVERAGE      TERMS     PAYMENT   EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.                5 years         Open             R3 500 000-     30 days     30 days       Excellent

                                               R4 000 000

     

2.                2008             R3 000 000    R2 000 000-     30 days    30 days          Excellent

                                               R3 000 000

 

 

3.                Old account. No longer in use

 

It was stated that that trade reference No. 1 is the subject’s major credit granter locally.

 

NATURE OF GOODS OR SERVICES SUPPLIED:

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

 

1.                Clearing and forwarding    

                         

2.                Shipping and customs

 

 

COMMENTS

 

This is an established business that is not a general credit seeker locally.  The subject is meeting its local commitments timeously and is considered equal to its normal business engagements. The lack of full financial information should be borne in mind.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.68

UK Pound

1

Rs.96.94

Euro

1

Rs.77.36

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

SDA

 

               

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.