MIRA INFORM REPORT

 

 

Report Date :

25.09.2014

 

IDENTIFICATION DETAILS

 

Name :

DELTA COLOURS (PTY) LTD

 

 

Formerly Known As :

SHELF-LINE 165 (PTY) LTD

 

 

Registered Office :

71 Village Artisan, Cabriere Street, Franschhoek, Western Cape

 

 

Country :

South Africa

 

 

Date of Incorporation :

09.03.2009

 

 

Legal Form :

Private Company

 

 

Line of Business :

Importer and Distributors of Colour Pigments.

 

 

No of Employees :

12

 

 

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

 

DELTA COLOURS (PTY) LTD

 

Formerly: SHELF-LINE 165 (PTY) LTD, the name having changed on 13 May 2009

 

 

PHYSICAL ADDRESS    

 

71 Village Artisan

Cabriere Street

Franschhoek

Western Cape

 

 

POSTAL ADDRESS

 

P O Box 7690

FRANSCHHOEK

7690

 

 

TELEPHONE NUMBER

 

+27 21 876 4167

 

 

FAX NUMBER

 

+27 21 876 3201

 

 

SHAREHOLDERS

 

67.67% THE ABE LOUW FAMILY TRUST

33.33% SCHEEPERS AZAR TRUST

 

The shareholding changed and was previously:

 

67%      THE LOUW FAMILY TRUST

33%      H P SCHEEPERS

 

The shareholding changed and was previously 100% THE ABE LOUW FAMILY TRUST.

ASSOCIATE COMPANIES

 

None

 

 

DIRECTORS

 

S A C LOUW                                                     ID No.   6406125118086

H P SCHEEPERS                                             ID No.   7412135088086

 

 

BANKERS

 

FIRST NATIONAL BANK, Paarl Branch.  Branch Code: 200110.  Account Number: 62225809625.  It was stated that the subject enjoys overdraft facilities to an extent of R7 500 000, secured by a cession of debtors and stock inventory.  Utilisation of the overdraft is stated to be full at present.

 

 

DATE REGISTERED

 

9 March 2009

Registration Certificate Number: 2009/004675/07

 

It was stated that the subject was registered to take over the assets and operations of an existing company NUBIOLA SA (PTY) LTD (dormant) Registration Certificate Number: 2006/020919/07, when the management of the company bought the shareholders out.

 

 

VAT NUMBER

 

4750253306

 

 

TAX NUMBER

 

9405656167

 

 

BEE STATUS

 

It was stated that the subject is in the process of applying for their BEE certification.

MAJOR OPERATION

 

Importers and distributors of colour pigments.

 

 

MAJOR SUPPLIERS

 

The subject imports 100% of its supplies from Spain, Columbia, China, USA and India and deals locally with 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

 

Manufacturing sectors of plastics, coatings, construction and inks

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

Sub-Saharan Africa

 

 

TOTAL EMPLOYEES

 

12 having increased from 11 reported in 2013

 

 

OTHER PREMISES

 

The subject has warehouses in Cape Town, Johannesburg and Durban

 


OWNED OR LEASED

 

The premises are reported to be owned by the subject with an outstanding bond of R1 800 000 and a market value estimated at R3 500 000.

 

 

AUTHORISED SHARE CAPITAL

 

R1 000 divided into 1 000 ordinary shares of R1 each

 

 

ISSUED SHARE CAPITAL

 

R120

 

 

FINANCIALS

 

The following estimated financial situation was submitted as at 22 September 2014:

 

STOCK R21 000 000

DEBTORS         R11 000 000

CREDITORS      R10 000 000

OVERDRAFT    R  3 300 000

TURNOVER per annum R80 000 000

 

 

AUDITORS

 

BOSSOF VISSER Bellville                                 +27 21 914 9604

 

 

YEAR END

 

FEBRUARY

 

 

INSURANCE BROKERS

 

DUX SOLUTIONS INSURANCE BROKERS

TRADE REFERENCES – AUGUST 2009

 

            ACCOUNT        HIGHEST          AVERAGE         TERMS PAYMENT         EXPERIENCE

            OPENED           CREDIT            CREDIT                        PATTERN

 

1.         4 years R1 200 000        ±R800 000         30 days 7-15 days          Excellent

 

 

TRADE REFERENCES – OCTOBER 2011

 

            ACCOUNT        HIGHEST          AVERAGE         TERMS PAYMENT         EXPERIENCE

            OPENED           CREDIT            CREDIT                        PATTERN

 

1.         Jan 2011           R600 000          R504 000          7 days  12 days Very Good

 

2.         Unable to obtain

 

 

TRADE REFERENCES – NOVEMBER 2013

 

            ACCOUNT        HIGHEST          AVERAGE         TERMS PAYMENT         EXPERIENCE

            OPENED           CREDIT            CREDIT                        PATTERN

 

1.         3 years             Open    R500 000-         30 days 30 days Excellent

                                    R700 000

 

2.         Do not give trade references

 

3.         2 years R300 000          R 55 000           30 days 30 days Good

                        Insured: LOMBARD

 

 

TRADE REFERENCES – MARCH 2014

 

            ACCOUNT        HIGHEST          AVERAGE         TERMS PAYMENT         EXPERIENCE

            OPENED           CREDIT            CREDIT                        PATTERN

 

1.         Do not give trade references

 

2.         Do not give trade references

 

3.         2 years R300 000          ±70 000 30 days 30 days Good

                        Insured: Lombard

 

CURRENT TRADE REFERENCES

 

            ACCOUNT        HIGHEST          AVERAGE         TERMS PAYMENT         EXPERIENCE

            OPENED           CREDIT            CREDIT                        PATTERN

 

1.         Do not give trade references

 

2.         Dec 2011          R 300 000         R 100 000         30 days 30 days Excellent

 

3.         Do not give trade references

 

NATURE OF GOODS OR SERVICES SUPPLIED:

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

 

2.         Freight Forwarder

 

 

COMMENTS

 

This is an established company that took over the assets and operations of an established business. The subject is meeting its one local obtainable commitment timeously.  The subject is considered equal to its normal business engagements.

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.03

UK Pound

1

Rs.99.99

Euro

1

Rs.78.37

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.