MIRA INFORM REPORT

 

 

Report Date :

27.09.2014

 

IDENTIFICATION DETAILS

 

Name :

EUREKA D I Y SOLUTIONS (PTY) LTD

 

 

Registered Office :

53 Renico Crescent, Lea Glen X2, Roodepoort, Gauteng

 

 

Country :

South Africa

 

 

Date of Incorporation :

30.12.1997

 

 

Com. Reg. No.:

1997/022545/07

 

 

Legal Form :

Private company

 

 

Line of Business :

The manufacturing and distribution of pre-packed hardware goods to hardware shops and chain stores

 

 

No. of Employees :

±280

 

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

 

EUREKA D I Y SOLUTIONS (PTY) LTD

 

 

PHYSICAL ADDRESS

 

53 Renico Crescent

Lea Glen X2

ROODEPOORT

Gauteng

 

POSTAL ADDRESS:    

 

Private Bag X9

FLORIDA HILLS

1716

 

TELEPHONE NUMBER:             +27 11 471 0800

 

FAX NUMBER:                          +27 11 471 0847

 

The subject moved from 289 Hebbard Road, Robertville, Gauteng in 2007.

 

 

SHAREHOLDERS

 

It was stated that the shareholding changed and was previously 100% H D MARAIS, however, further information regarding shareholding information was not forthcoming from the respondent at the subject.

 

 

ASSOCIATE COMPANIES

 

FORUM HOMINI HOTEL CC

 

 

DIRECTORS

 

H D MARAIS                                                     ID No.   4505065035002

W DU TOIT MARAIS                                          ID No.   7501165263088

A I MARAIS                                                       ID No.   7206010191084

E COETZEE                                                      ID No.   5602275065082

J VAN RENSBURG                                            ID No.   6302215208087

 

BANKERS

 

FIRST NATIONAL BANK, Westgate Branch, Account Number 62116393208.  It was stated that the subject enjoys overdraft facilities in excess of
R18 000 000, secured by a cession of debtors.  Utilisation of the overdraft is stated to fluctuate.

 

The subject also has a smaller account with STANDARD BANK, Westgate Branch where they do not require overdraft facilities as credit balances are maintained at the bank.

 

 

DATE REGISTERED

 

30 December 1997

Registration Certificate Number: 1997/022545/07

 

 

VAT NUMBER    

 

4660115975

 

 

TAX NUMBER

 

9200190842

 

 

BEE STATUS 

 

Level 4 contributor.  The subject is in the process of updating their BEE level

 

 

MAJOR OPERATION

 

The manufacturing and distribution of pre-packed hardware goods to hardware shops and chain stores.

 

 

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.

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

Wholesale to the hardware stores and chain stores

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

EXPORTS:        Southern Africa

 

 

TOTAL EMPLOYEES

 

±280

 

 

OTHER PREMISES   

 

It was stated that the subject has two warehouses in Stormill, Roodepoort.

 

 

OWNED OR LEASED

 

The premises are owned by the subject

 

 

FINANCIALS

 

Full financial information was not forthcoming from the respondent at the subject and outside authorities were unable to assist in this regard.  However, please see historical financial information dated 14 November 2011.

 

STOCK Declined

DEBTORS                     R20 000 000

CREDITORS                  R  3 000 000 – R  4 000 000

TURNOVER local           R12 000 000

 

AUDITORS    

 

HORWARTH LEVETON BONER

 

YEAR END:                               APRIL

 

INSURANCE BROKERS:            REEF INSURANCE BROKERS

 

 

TRADE REFERENCES – APRIL 2001

 

       PERIOD       HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

                          CREDIT         CREDIT                          PATTERN

 

1.    10 years       R200 000       R30 000 -        60 days    60 days        Good

                                               R40 000

 

2.    10 years       R  40 000       R30 000 -        60 days    60 days        Good

                                               R40 000

 

3.    April 1997     R  80 000       R10 000 -        30 days    30 days        Good

                                               R80 000          2.5%

 

TRADE REFERENCES – FEBRUARY 2007:

 

       PERIOD       HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

                          CREDIT         CREDIT                          PATTERN

 

1.    2003             R2 000 000    R1 500 000      30 days    30 days        Good

 

2.    8 years         Open             R     40 000     30 days    30 days        Very Good

 

3.    15 years+     R   200 000    R     11 000 -   30 days    30 days        Very Good

                                               R     50 000     2.5%

 

TRADE REFERENCES – NOVEMBER 2011:

 

       PERIOD       HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

                          CREDIT         CREDIT                          PATTERN

 

1.    Nov 2003     R5 000 000    Declined          30 days    30 days        Excellent

 

2.    11 June        Declined        Declined          30 days    30 days       

 

3.    Do not give trade references

 

4.    Do not give trade references

 

CURRENT TRADE REFERENCES:

 

       PERIOD       HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

                          CREDIT         CREDIT                          PATTERN

 

1.    2003             R5 000 000    R1 000 000-     30 days    30 days        Good

                                               R2 000 000

 

2.    +1 year         Declined        Declined          30 days    30 days        Very Good

                          Large account

 

3.    Unable to obtain trade reference

 

4.    Awaiting email trade reference

 

NATURE OF GOODS OR SERVICES SUPPLIED:

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

 

1.    Logistics

     

2.    Fasteners

 

 

COMMENTS

 

This is an established company meeting its commitments timeously.  No adverse comments have been heard.  .

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.57

UK Pound

1

Rs.100.42

Euro

1

Rs.78.44

 

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%)

 

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.