MIRA INFORM REPORT

Report Date :

12.09.2014

IDENTIFICATION DETAILS

Name :	NATAL IRON AND BRASS FOUNDRY CC
Registered Office :	No 5 Hayworth Road, Mkondeni, Pietermaritzburg, KwaZulu-Natal
Country :	South Africa
Date of Incorporation :	17.08.1987
Com. Reg. No.:	1987/018590/23
Legal Form :	Close corporation
Line of Business :	The subject manufactures manhole covers and frames
No. of Employees :	±12

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Unknown
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

NATAL IRON AND BRASS FOUNDRY CC

PHYSICAL ADDRESS

No 5 Hayworth Road

MKONDENI

Pietermaritzburg

KwaZulu-Natal

POSTAL ADDRESS

P O Box 22

LUXMI

3207

TELEPHONE NUMBER: +27 33 386 6572

FAX NUMBER: +27 33 386 7001

MEMBERS

50% S RAJKUMAR

50% R RAJKUMAR

ASSOCIATE COMPANIES

None

BANKERS

The subject banks with NEDBANK KZN Business Branch. The subject does not require overdraft facilities as overdraft facilities are maintained at the bank.

DATE REGISTERED

17 August 1987

Registration Certificate Number: 1987/018590/23

The subject commenced trading as a new business in 1987.

VAT NUMBER

4310105855

TAX NUMBER

9440065218

BEE STATUS

Level 2 contributor

MAJOR OPERATION

The subject manufactures manhole covers and frames

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.

When asked for contact numbers of the subject’s local suppliers to contact them for trade reference purposes, the respondent declined to assist.

MAJOR CUSTOMERS OR BUSINESS SECTORS

Plumbing industry

AREA OF DISTRIBUTION AND SELLING

South Africa

EXPORTS

None

TOTAL EMPLOYEES

±12

OTHER PREMISES

None

OWNED OR LEASED

The premises are stated to be owned by the members.

MEMBERS CONTRIBUTION

R100

FINANCIALS

Full financial information was not forthcoming from respondents at the subject and outside authorities were unable to assist in this regard.

AUDITORS

PWC

YEAR END

FEBRUARY

INSURANCE BROKERS

MOOSA ALLI

CURRENT TRADE REFERENCES

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. Awaiting trade reference

2. Buys from the subject

3. No account traced

4. No account traced

COMMENTS

This business appears to be established but in the absence of a payment history and financial information the reluctance of the respondent to provide elementary information should be borne in mind. We would prefer to see dealings on a letter of credit basis only, as both members were only appointed in 2007 and no history of the business is available.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.19
UK Pound	1	Rs.98.65
Euro	1	Rs.78.63

INFORMATION DETAILS

Analysis Done by :	SUB
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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.