MIRA INFORM REPORT

 

 

Report Date :

11.10.2014

 

IDENTIFICATION DETAILS

 

Name :

BARKER FOOTWEAR (PTY) LTD

 

 

Formerly Known As :

TRIFECTA TRADING 112 (PTY) LTD

 

 

Registered Office :

Losack Avenue, Epping Industria 2, Cape Town, Western Cape

 

 

Country :

South Africa

 

 

Date of Incorporation :

25.02.2002

 

 

Legal Form :

Private Company

 

 

Line of Business :

Manufacture of mainly men’s footwear as well as ladies footwear to a small degree. 

 

 

No of Employees :

375 Waged, 51 Salaried

 

 

RATING & COMMENTS

 

MIRA’s Rating :

C

 

RATING

STATUS

PROPOSED CREDIT LINE

<10

C

Absolute credit risk exists. Caution needed to be exercised

Credit not recommended

 

Status :

Merger Under Process

Payment Behaviour :

--

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


Note

 

On investigation contact was made with Debbie, the financial manager at the subject who stated that the assets and operations of the subject are in the process of being incorporated into BOLTON FOOTWEAR (PTY) LTD as a division.  The subject will then become a dormant company.  This is still in the process of taking place and it is expected to be finalised within the next month or two.  It was therefore deemed immaterial to divulge current company information.  Please see historical information dated 23 October 2013.

 

 

COMPANY NAME

 

BARKER FOOTWEAR (PTY) LTD

 

Formerly: TRIFECTA TRADING 112 (PTY) LTD, the name having been changed on 23 September 2002.

 

 

POSTAL ADDRESS

 

Losack Avenue

EPPING INDUSTRIA 2

Cape Town

Western Cape

 

 

POSTAL ADDRESS

 

P O Box 85

EPPINDUST

7475

 

 

TELEPHONE NUMBER

 

+27 21 534 3531

 

 

FAX NUMBER

 

+27 21 534 7725

 

SHAREHOLDERS

 

100%    BOLTON FOOTWEAR (PTY) LTD

(Registration Certificate Number: 1949/035036/07)

 

The shareholding change took place on 1 March 2013 and was previously:

 

R M DURRBAUM

M C M ROLFE

F D L SANTOS

S  E VAN AARDE

 

 

ASSOCIATE COMPANIES

 

ORION PROPERTIES 25 (PTY) LTD

 

 

DIRECTORS

 

R M DURRBAUM (MD)                                      ID No.   5001055078003

M C M ROLFE (FD)                                           ID No.   4705075121087

F D L SANTOS                                                  ID No.   5309095179107

S E VAN AARDE                                              ID No.   6501015190011

G D BOLTON                                                    ID No.   5511155016000

M J BOLTON (Brother)                                       ID No.   5709065046006

H A FLEETWOOD                                             ID No.   5811195013003

J P KRIEL                                                         ID No.   5807095153089

M J LOUW                                                        ID No.   5106105065007

 

It was stated by the respondent that the two directors R M DURRBAUM and M C M ROLFE will be retiring soon, however, cannot state at which date this will be actioned.

 

The following directors are currently listed at CIPC:

 

J P KRIEL                                                         ID No.   5807095153089

H A FLEETWOOD                                             ID No.   5811195013003

S E VAN AARDE                                              ID No.   6501015190011

 

 

BANKERS

 

STANDARD BANK, Parow Branch, branch code 031110 Account Number 072766522.  It was stated that the subject enjoys overdraft facilities to an extent of R6 000 000, secured by the guarantee of the Shareholder.  Utilisation is stated to be partial.  The respondent stated that the subject has money on call at the bank.

HISTORICAL

 

On 8 July 2011 the bank gave a code “C” on R1 000 000 over 30 days.

 

 

DATE REGISTERED

 

25 February 2002

Registration Certificate Number 2002/004243/07

 

The subject commenced active operations in August 2002.  It was stated that there was a management buyout of the BARKER FOOTWEAR division of a well-established company named CONSHU TRADING (PTY) LTD and the assets and operations of the division were incorporated into the subject.  It was stated that the takeover was backdated to January 2002.

 

It was established that R M DURRBAUM was a director of CONSHU TRADING (PTY) LTD, M C ROLFE was reported to be the Financial Manager, and F D L SANTOS was the Designer Manager of the Barker Footwear division.

 

 

VAT NUMBER

 

4670202656

 

 

TAX NUMBER

 

9637149148

 

 

BEE STATUS

 

Not available

 

 

MAJOR OPERATION

 

The manufacture of mainly men’s footwear as well as ladies footwear to a small degree.  Although the subject previously manufactured children’s footwear, they no longer do so.


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

 

Retail chain stores, shoe retailers etc.

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa, however, mainly the Gauteng Province

 

 

EXPORTS

 

Namibia and Swaziland

 

 

TOTAL EMPLOYEES

 

375 waged, 51 salaried

 

 

OTHER PREMISES

 

None

 

 

OWNED OR LEASED

 

The premises are reported to be leased

 


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 2 November 2012:

 

STOCK             Unknown

DEBTORS        R30 000 000

CREDITORS     R2 000 000 – R3  000 000

TURNOVER per month  R20 000 000

 

AUDITORS:      LOUBSER DU PLESSIS INC, Stellenbosch

 

YEAR END:      FEBRUARY

 

INSURANCE BROKERS:           MARSH INSURANCE BROKERS

 

TRADE REFERENCES – MAY 2006:

 

            PERIOD            HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

                        CREDIT            CREDIT                                    PATTERN

 

1.         5 years R50 000            R  50 000          60 days            60 days            Very good

 

2.         4 years R100 000          R100 000          30 days            30 days            Excellent

 

3.         4 years R200 000          R100 000          30 days            30 days            Excellent          

 

 

TRADE REFERENCES – MAY 2008

 

            PERIOD            HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

                        CREDIT            CREDIT                                    PATTERN

 

1.         10 years            open     R50 000            30 days            30 days            Excellent

 

2.         Old acc R500 000          declined            30 days            30 days            Very good

 

3.         10 years            open     declined            30 days            30 days            Very good

                                                5%       5%

 

TRADE REFERENCES – JULY 2011:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         5 years undisclosed figures       30 days            30 days            Very Good

 

2.         C O D account being opened

 

3.         10 Years           R20 000            R  10 000          30 days            30 days            Very Good

 

4.         12 Years           R200 000          R  10 000          30 days            30 days            Very Good

 

5.         22 Years           R300 000          R150 000          30 days            30 days            Excellent

 

TRADE REFERENCES – NOVEMBER 2012:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         Since 2009        Open Acc         R50 000-           30 days            30 days            Good

                                    R60 000

 

2.         +7 years           Open Acc         R30 000            60 days            60 days            Very good

 

3.         +10 years          Open Acc         R30 000-           30 days            30 days            Very good

                                    R50 000

 

TRADE REFERENCES – OCTOBER 2013:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         6 years declined              R  30 000        60 days            60 days            Good

 

2.         2002     R250 000            R  10 000-       60 days            60 days            Good

                                      R150 000

 

3.         23 years            R250 000          ±R100 000         30 days            30 days            Excellent

 

 

COMMENTS

 

This is an established company that was subject to a management buyout in 2002 of a division of CONSHU TRADING (PTY) LTD.  The subject is meeting its commitments timeously as per arranged terms and no adverse comments have been heard.  The subject is considered as equal to its normal business engagements. 


CURRENT TRADE REFERENCES:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT   EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         +10 years          Declined           R40 000-           60 days            60 days            Very Good       

                                    R50 000

           

2.         +10 years          R400 000          R300 000-         30 days            30 days            Very Good

                                    R400 000

 

3.         Awaiting email trade reference

 

4.         Awaiting email trade reference

 

NATURE OF GOODS OR SERVICES SUPPLIED:

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

 

1.         Freight forwarding        

                       

2.         Shoe components such as heels

 

 

COMMENTS

 

This is a well established business which is in the process of its assets and operations being incorporated into another well established business and operating as a division of that business.  The subject will become a dormant company within a short period of time.  In view of this, it is suggested that all dealings with the subject be suspended and a further investigation should be requested on BOLTON FOOTWEAR (PTY) LTD the company of which the subject will become a division. 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.16

UK Pound

1

Rs.98.62

Euro

1

Rs.77.67

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

TPT

 


 

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.