MIRA INFORM REPORT

 

 

Report Date :

27.09.2014

 

IDENTIFICATION DETAILS

 

Name :

CAPE PRODUCE COMPANY (PTY) LTD

 

 

Registered Office :

113 Grahamstown Road, North End, P O Box 278, Port Elizabeth 6000, Eastern Cape

 

 

Country :

South Africa

 

 

Date of Incorporation :

11.09.1937

 

 

Com. Reg. No.:

1937/010149/07

 

 

Legal Form :

Private Company

 

 

Line of Business :

Exporting of Hides and Skins.

 

 

No. of Employees :

260

 

 

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 and Address

 

COMPANY NAME:                                 CAPE PRODUCE COMPANY (PTY) LTD

 

TRADING NAME:                                  PELTS PRODUCTS

                                                 SOUTH AFRICAN WOOL & SKINS

 

PHYSICAL ADDRESS:                          113 Grahamstown Road

NORTH END

Port Elizabeth

Eastern Cape

 

POSTAL ADDRESS:                             P O Box 278

PORT ELIZABETH

6000

 

TELEPHONE NUMBER:                         +27 41 484 4591

 

FAX NUMBER:                                      +27 41 484 6575

 

PHYSICAL ADDRESS:                          Pelts Products Div. (Factory)

                                                 Studebaker Street

MARKMAN INDUSTRIAL

Port Elizabeth

Eastern Cape

 

POSTAL ADDRESS:                             Pelts Products Div.

                                                 P O Box 278

PORT ELIZABETH

6000

 

TELEPHONE NUMBER:                         Pelts Products Div.

                                                 +27 41 461 1515

 

 

SHAREHOLDERS

 

83.74% THE BENJY LAPINER CHILDREN’S TRUST, in which B B LAPINER is a trustee and his children are the beneficiaries

12.7%   RONELLE LAPINER CHILDRENS TRUST

1.73%   BENJAMIN BARRY LAPINER FAMILY TRUST

1.73%   RONELLE NORMA LAPINER FAMILY TRUST


SHAREHOLDERS: continued

 

The shareholding changed and was previously:

 

100%    THE BENJY LAPINER CHILDREN’S TRUST, in which B B LAPINER is a trustee and his children are the beneficiaries.

It was stated that the majority shares were previously held by L LAPINER, the father of B B LAPINER, who died in September 2001

 

 

ASSOCIATE COMPANIES

 

CROSSING ESTATES (PTY) LTD (property owning company)

 

 

DIRECTORS

 

B B LAPINER (sole director)                               ID No.  4908145002002

 

 

BANKERS

 

NEDBANK, Main Street Port Elizabeth Branch.  Account Number: 1212001869.  It was stated that the subject enjoys overdraft facilities to an extent of R40 000 000 secured by an insurance policy of B B LAPINER.  Utilisation of the overdraft is stated to fluctuate from nil to partial at times.

 

 

DATE REGISTERED

 

11 September 1937

Registration Certificate Number: 1937/010149/07

 

 

VAT NUMBER

 

4450113073

 

 

TAX NUMBER

 

9775221717

 

 

BEE STATUS

 

Non-compliant

           

 

MAJOR OPERATION

 

Exporting of hides and skins.  PELTS PRODUCTS DIV. is a tannery.

 

 

MAJOR SUPPLIERS

 

The subject imports hides from neighbouring countries 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

 

Leather industry

 

 

AREA OF DISTRIBUTION AND SELLING

 

5% South Africa and 95% Worldwide

 

 

EXPORTS

 

95% Worldwide

 

 

TOTAL EMPLOYEES

 

260 having increased from 230 reported in May 2010

 

 

OTHER PREMISES

 

Tannery division situated in Markman Township

 

 

OWNED OR LEASED:

 

The head office premises are reported to be owned by an associate company called CROSSING ESTATES (PTY) LTD, free of bond, while the Markman Township premises are reported to be owned by the subject, free of bond.

 

 

AUTHORISED SHARE CAPITAL

 

R160 000 divided into 40 000 “A” ordinary shares of R2 each; 40 000 “B” ordinary shares of R2 each.

 

 

ISSUED SHARE CAPITAL

 

R124 416

 

 

FINANCIALS

 

The following estimated financial situation was submitted as at 17 September 2014:

 

STOCK                                                                                                  R     98 000 000

DEBTORS  - fluctuates                                                                            R   140 000 000

FIXED ASSETS  - book value                                                                   R     50 000 000

CREDITORS                                                                                           R     45 000 000

OVERDRAFT                                                                                          R     40 000 000

SHAREHOLDERS LOANS                                                                       R   105 000 000

TURNOVER per annum                                                                            R1 000 000 000

 

 

AUDITORS

 

MOZARS MOORES ROWLAND, Port Elizabeth    +27 41 521 660

 

 

YEAR END

 

JUNE

 

INSURANCE BROKERS

 

HOUTBAY INSURANCE BROKERS

 

 

TRADE REFERENCES – APRIL 2005

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    5 years         R100 000       R100 000        C.O.D       C.O.D           Very Good

 

2.    4 years         R100 000       R50 000-         25 days    25 days        Good

                                               R100 000       

 

3.    5 years         R35 000         ±R40 000        25 days    25 days        Good

 

 

TRADE REFERENCES – MAY 2010

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    1982             declined         R500 000        30 days    30 days        Excellent

 

2.    10 years       R20 000         various            30 days    30 days        Very Good

 

 

CURRENT TRADE REFERENCES

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    +7 years       Open             R   150 000     30 days    30 days        Excellent

 

2.    ±10 years     Open             R   800 000-    30 days    30 days        Very Good

                                               R1 000 000

 

 

NATURE OF GOODS OR SERVICES SUPPLIED

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

 

1.                Salt

     

2.                Transport of skins

 

 

COMMENTS

 

This is an established company which is affecting a substantial turnover.  The subject is meeting its local commitments timeously and is considered equal to its normal business engagements.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.57

UK Pound

1

Rs.100.42

Euro

1

Rs.78.45

 

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.