MIRA INFORM REPORT

 

 

Report Date :

02.09.2014              

 

IDENTIFICATION DETAILS

 

Name :

SOL DANKA (PTY) LTD

 

 

Formerly Known As :

PREBENA (PTY) LTD

 

 

Registered Office :

130 Brickfield Road, Overport, Durban, KwaZulu-Natal

 

 

Country :

South Africa

 

 

Date of Incorporation :

18.08.1980

 

 

Com. Reg. No.:

1980/007225/07

 

 

Legal Form :

Private Company

 

 

Line of Business :

Wholesalers of decorative fabrics and trimmings.

 

 

No. of Employees :

85

 

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 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

South Africa

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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

 

SOL DANKA (PTY) LTD

 

Formerly: PREBENA (PTY) LTD, the name having been changed on 29 January 1981

 

 

TRADING NAMES

 

U AND G FABRICS

 

 

PHYSICAL ADDRESS

 

130 Brickfield Road

OVERPORT

Durban

KwaZulu-Natal

 

 

POSTAL ADDRESS   

 

P O Box 70087

OVERPORT

4067

 

TELEPHONE NUMBER: +27 31 275 3100

 

FAX NUMBER:  +27 31 208 9076

 

 

SHAREHOLDERS

 

50%      THE F D TRUST

50%      THE A B D TRUST

 

The Shareholding was previously A B DANKA, S C DANKA (Snr), F DANKA and R F BASSA, having been changed.           


ASSOCIATE COMPANIES

 

CENTENARY PARK INVESTMENTS 1 CC

(Registration Certificate Number: 2008/256506/23)

DONALLEN INVESTMENTS CC

(Registration Certificate Number: 2008/256559/23)

GOLDFORD INVESTMENTS CC

(Registration Certificate Number: 2008/256570/23)

LATINO INVESTMENTS CC

(Registration Certificate Number: 2009/061833/23)

SILVER PEAK INVESTMENTS CC

(Registration Certificate Number: 2008/256544/23)

U AND G CONTRACTS CC

(Registration Certificate Number: 2008/256549/23) – dormant

U AND G FABRICS CC

 

 

DIRECTORS

 

A DANKA                                                          ID No.   5011095048080

F DANKA  (brother)                                            ID No.   6701155175083

 

 

BANKERS

 

FIRST NATIONAL BANK, Overport City Branch.  Branch code: 222826.  Account Number: 54997723960. It was stated that the subject enjoys overdraft facilities to an extent of R5 500 000, secured by the personal guarantees of the directors.  Utilisation is stated to be regular.

 

The subject also banks with HABIB OVERSEAS BANK, Durban branch. It was stated that they enjoy overdraft facilities to an extent of R3 000 000, secured by the personal guarantees of the directors. Utilisation is stated to fluctuate.

 

 

DATE REGISTERED

 

18 August 1980

Registration Certificate Number: 1980/007225/07

 

The subject incorporated the trading operations and assets of an associate company named DANKA AND SONS (PTY) LTD (Registration Certificate Number:  1977/002566/07) in October 2004.

 

 


VAT NUMBER    

 

4240110280

 

 

TAX NUMBER    

 

9278089207

 

 

BEE STATUS 

 

Level 2 contributor

MAJOR OPERATION

 

Wholesalers of decorative fabrics and trimmings

 

 

MAJOR SUPPLIERS

 

The subject imports 80% of its supplies from Europe, China and deals with the 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

 

Corporate, hospitality and residential décor market such as upholsterers, curtain manufacturers and wholesalers

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa


EXPORTS

 

African countries, Kenya, Seychelles, Mozambique, Botswana, Zimbabwe and Namibia

 

 

TOTAL EMPLOYEES

 

85

 

 

OTHER PREMISES

 

It was stated that the subject has showrooms in Durban, Kramerville, Pretoria, Port Elizabeth and two in Cape Town as well an agent in Bloemfontein.   The subject is reported to have opened an office in China.

 

 

OWNED OR LEASED

 

It was stated that the Durban premises are owned by the father of the directors, while the Port Elizabeth showroom premises are owned by DONALLEN INVESTMENTS CC, free of bond.

 

The respondent stated that the Pretoria showroom premises have been bought by U AND G FABRICS CC which is reported to be bonded to ALBARAKA BANK.

 

 

AUTHORISED SHARE CAPITAL

 

R100 divided into 100 ordinary shares of R1 each

 

 

ISSUED SHARE CAPITAL

 

R100

 

 

FINANCIALS

 

The following estimated financial situation was submitted as at 25 August 2014:

 

STOCK                                                                              R 40 000 000 – R  50 000 000

DEBTORS                                                                          R 14 000 000 – R  18 000 000

CREDITORS                                                                                              R  20 000 000

TURNOVER per annum                                                                               R130 000 000

 

 

AUDITORS    

 

DESAI JADWAT AND COMPANY Durban  +27 31 207 7707

 

 

YEAR END

 

DECEMBER

 

 

INSURANCE BROKERS 

 

MARSH INSURANCE BROKERS, Durban

 

 

TRADE REFERENCES

 

TRADE REFERENCES – OCTOBER 2006

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    1989             R250 000       R   150 000     60 days    60 days        Very Good

 

2.    Old acc        R500 000       R     50 000-    30 days    30 days        Very Good

                          c/l                 R   250 000     5%           5%

 

3.    +15 years     R1 000 000    R1 000 000      60 days    60 days        Good

                          c/l

 

TRADE REFERENCES – APRIL 2007:

 

       PERIOD       HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

                          CREDIT         CREDIT                          PATTERN

 

1.    1995             R53 000         R    10 000      30 days    30 days        Excellent

                          c/l

 

2.        Do not give trade references

 

3.        20 years       open              R  500 000      30 days    26 days        Very Good

 

4.        14 years       R2 000 000    R1 000 000      60 days    70 days        Good

                                      c/l

 

TRADE REFERENCES – OCTOBER 2007:

 

       PERIOD       HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

                          CREDIT         CREDIT                          PATTERN

 

1.    18 years       declined         R   150 000-    60 days    30 days        Excellent

                                               R   200 000

 

2.    Feb 2001      R300 000       R   100 000-    30 days    30 days        Very Good

                                               R   150 000

 

3.    1997             R2 000 000    R2 000 000      60 days    70 days        Good

 

TRADE REFERENCES – JANUARY 2008:

 

       PERIOD       HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

       CREDIT        CREDIT                                               PATTERN

 

1.    1989             declined         R   100 000     60 days    30 days        Excellent

                                               R   150 000                     2.5%

 

2.    20 years       R   500 000    varies              30 days    30 days        Excellent

                          c/l

 

3.    +15 years     R2 000 000    R   500 000     60 days    70 days        Good

                          c/l                 R1 500 000

 

TRADE REFERENCES – JULY 2008:

 

       PERIOD       HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

                          CREDIT         CREDIT                          PATTERN

 

1.    Old acc        Declined        Declined          30 days    30 days        Very Good

 

2.    4 years         R300 000       R70 000          30 days    30 days        Very Good

 

3.    8 years         Declined        R300 000        30 days    30 days        Very Good

 

5.        Do not give trade references

 

TRADE REFERENCES – OCTOBER 2009:

 

       PERIOD       HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

                          CREDIT         CREDIT                          PATTERN

 

1.        Awaiting a fax trade reference

 

2.        Awaiting a fax trade reference

 

3.        Do not give trade references

 

4.        Awaiting a fax trade reference

 

5.        7 years         account dormant                   30 days    30 days        Very Good

 

6.        17 years       R4 000 000    R1 800 000      60 days    70 days        Good

 

7.        Awaiting a fax trade reference

 

TRADE REFERENCES – MAY 2011

 

       PERIOD       HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

                          CREDIT         CREDIT                          PATTERN

 

1.    1998             R570 000       R  55 000-       60 days    60 days        Good

                          Not ins           R800 000

 

2.        Awaiting fax response

 

3.        Do not give trade references

 

4.        18 years+     R4 000 000    R1 500 000      60 days    60–70 days   Good

                                                                                                - by arrangement

 

TRADE REFERENCES: NOVEMBER 2011

 

       PERIOD       HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

                          CREDIT         CREDIT                          PATTERN

 

1.    June             R570 000       R100 000        30 days    30 days        Good

       1998

 

2.    Do not give trade references.

 

3.    1997             R6 000 000    R250 000        60 days    60 days        Very Good

 

4.        10+ years             No figures                    60 days    60 days        Good

 

TRADE REFERENCES – MAY 2012:

 

       PERIOD       HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

                          CREDIT         CREDIT                          PATTERN

 

1.    1998-            R750 000       R100 000        60 days    60 days        Very Good

       2010             R80 000         R50 000          30 days    30 days        Very Good

 

2.    Do not give trade references

 

3.    1997             R5 000 000    R700 000        60 days    60 days        Very Good

                                               R1 000 000

 

5.        10 years       No figures      No figures        30 days   30 days        Good

 

TRADE REFERENCES – MAY 2013:

 

       PERIOD       HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

                          CREDIT         CREDIT                          PATTERN

 

1.    ±20 years     Open             R     40 000     30 days    30 days        Very Good

      

2.    Feb 2012      R1 000 000    R   264 000     7 days      7 days          Good

 

3.    10 years       Declined        Declined          30 days    30 days        Good

 

4.    1997             R7 000 000    R   300 000-    60 days    60 days        Good

                          Insured         R1 300 000         

 

TRADE REFERENCES – NOVEMBER 2013:

 

       PERIOD       HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

                          CREDIT         CREDIT                          PATTERN

 

1.    2005             R   500 000    R   100 000-    30 days    30 days        Excellent

                                               R   500 000

      

2.    1997             R7 500 000    R1 400 000-     60/70 days60/70 days   Very Good

                                               R2 200 000      As arranged with management

 

3.    10 years       Open             Declined          30 days    30 days        Good

 

CURRENT TRADE REFERENCES:

 

       PERIOD       HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

                          CREDIT         CREDIT                          PATTERN

 

1.    1997             R9 500 000    R2 500 000-     60 days    60 days        Very Good

                                               R4 000 000

 

2.    10 years       Declined        R     30 000     60 days    60 days        Very Good

 

3.    +10 years     Declined        Declined          30 days    30 days        Very Good

 

NATURE OF GOODS OR SERVICES SUPPLIED:

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

 

1.    Shipper

     

2.    Textiles

 

3.    Industrial supplies

 

COMMENTS

 

This is a well-established company meeting its commitments timeously. 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.47

UK Pound

1

Rs.100.42

Euro

1

Rs.79.39

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

Report Prepared by :

PDT

 

               

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.