MIRA INFORM REPORT

 

 

Report Date :

27.10.2014

 

IDENTIFICATION DETAILS

 

Name :

TFG APPAREL SUPPLY COMPANY (PTY) LTD

 

 

Formerly Known As :

TFG MANUFACTURING (PTY) LTD

 

 

Registered Office :

11 Hugenaar Street, P O Box 6020, Parow East7501, Cape Town Western Cape

 

 

Country :

South Africa

 

 

Date of Incorporation :

30.12.1982

 

 

Com. Reg. No.:

1982/011894/07

 

 

Legal Form :

Private Company

 

 

Line of Business :

The sourcing and importing of fabrics and clothing from overseas

 

 

No. of Employees :

500 Having increased from 270 in February 2014

 

 

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

 

TFG APPAREL SUPPLY COMPANY (PTY) LTD

 

Formerly: TFG MANUFACTURING (PTY) LTD, the name having been changed on 25 June 1999

Formerly: BURNITA (PTY) LTD, the name having been changed on 30 December 1982

 

 

PHYSICAL ADDRESS

 

11 Hugenaar Street

PAROW EAST

Parow

Cape Town

Western Cape

 

 

POSTAL ADDRESS

 

P O Box 6020

PAROW EAST

7501

 

 

TELEPHONE NUMBER

 

+27 21 938 1911 / 21 937 5560

 

 

FAX NUMBER

 

+27 21 937 4257

 

SHAREHOLDERS

 

100% THE FOSCHINI GROUP LTD (Quoted on the JSE LTD)

Formerly: FOSCHINI LTD, the name having been changed on 16 September 2012

 

 

ASSOCIATE COMPANIES

 

Companies within the FOSCHINI LTD group

 

 

DIRECTORS

 

A D MURRAY                                                   ID No.   5703305223087

R STEIN                                                            ID No.   4906255088001

D SHEARD (Company Secretary)                       ID No.   7307150145086

 

 

BANKERS

 

FIRST NATIONAL BANK, Corporate Cape Town Branch, Branch Code: 204109, Account Number: 62243868645.  It was stated that the subject enjoys group overdraft facilities to an extent of R550 000 000 secured by the holding company.

 

 

DATE REGISTERED

 

30 December 1982

Registration Certificate Number: 1982/011894/07

 

The subject was originally a trading division of FOSCHINI RETAIL GROUP (PTY) LTD for many years and as at end 2009 it became a separate trading company.

 

 

VAT NUMBER

 

4640254092

 

 

TAX NUMBER

 

9189981179

 

 

MAJOR OPERATION

 

The sourcing and importing of fabrics and clothing from overseas

 

 

MAJOR SUPPLIERS

 

The subject imports and deals with the local clearing agents:

 

BERRY AND DONALDSON, Cape Town

ROTEX FABRICS, Cape Town

NATIONAL TRIMMINGS SPECIALISTS

INTERNATIONAL TRIMMINGS

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

Group companies and group divisions

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

It was stated by the respondent that they export raw materials to Lesotho and Swaziland where the garments are manufactured and returned (CMT).

 

 

TOTAL EMPLOYEES

 

500 having increased from 270 in February 2014

 

 

OTHER PREMISES   

 

None however the subject has ±1000 Foschini outlets in the group

 

 

OWNED OR LEASED

 

The premises are owned by the group

 

 

ISSUED SHARE CAPITAL

 

R1

 

FINANCIALS

 

The following financial situation was submitted as at 14 October 2014:

 

STOCK                                                                                                     R  50 000 000

TURNOVER per annum                                                                              R470 000 000

 

 

AUDITORS

 

KPMG, Cape Town,   +27 21 408 7000

 

 

YEAR END

 

MARCH

 

 

INSURANCE BROKERS

 

AON INSURANCE BROKERS

 

 

TRADE REFERENCES – DECEMBER 2009

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    Old acc        R1 500 000    R1 500 000      7 days      7 days          Excellent

 

NB. This trade reference relates to the divisional operation of the subject prior to the registration of the company.

 

 

TRADE REFERENCES – MARCH 2010

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    4 months      R12 000 000   R10 000 000-   7 days      7 days          Very Good

                          c/l                 R12 000 000

 

 

TRADE REFERENCES – JULY 2011

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    5 years         R12 000 000   R   750 000-    7 days      7-15 days     Very Good

                          c/l (insured)    R1 200 000

 

2.    Do not give trade references

 

3.     Do not give trade references

 

4.     Do not give trade references

 

5.     Old Acc        R450 000       R450 000±       30 days    30 days        Excellent

                          c/l

 

 

TRADE REFERENCES – FEBRUARY 2014

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    4 years         R12 000 000   R2 000 000-     7 days      7 days          Very Good

                          Insured:

                          LOMBARD

 

2.    Do not give trade references

 

3.    20 years       R    500 000   R     90 000     30 days    30 days        Good

 

4.    20 years       R    250 000   R   200 000     30 days    30 days        Excellent

                          Insured: CREDIT GUARANTEE

 

 

CURRENT TRADE REFERENCES

                 

                  ACCOUNT    HIGHEST      AVERAGE      TERMS     PAYMENT   EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    Do not give trade references                   

 

2.    2005             R4 800 000    R3 000 000-     60 days     30 days       Excellent

                          c/l                 R5 000 000

 

3.    10 years       R   500 000    R   100 000     30 days     30 days       Excellent

 

 

NATURE OF GOODS OR SERVICES SUPPLIED

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

 

1.    Textiles       

                         

2.    Fabric         

 

3.    Trimmings   

 

 

COMMENTS

 

This is an established and very well-connected company meeting its commitments timeously.  The subject is considered equal to its normal business engagements.

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.24

UK Pound

1

Rs.98.67

Euro

1

Rs.77.97

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

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.