MIRA INFORM REPORT

 

 

Report Date :

29.09.2014

 

IDENTIFICATION DETAILS

 

Name :

TUBES AND METALS TRADING (PTY) LTD

 

 

Formerly Known As :

DRYDEN STEEL (PTY) LTD

 

 

Registered Office :

99 Langenhoven Road, Park Rand, Boksburg, Gauteng , P O Box 18939, Sunward Park 1470

 

 

Country :

South Africa

 

 

Date of Incorporation :

01.08.1958

 

 

Com. Reg. No.:

1958/002592/07

 

 

Legal Form :

Private Company

 

 

Line of Business :

Import Agents for Steel Mill Merchants

 

 

No. of Employees :

5 having reduced from 6 reported in March 2012

 

 

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 :

Slow but correct

 

 

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:         DRYDEN STEEL (PTY) LTD      

 

PHYSICAL ADDRESS:  Langenhoven Road

PARK RAND

Boksburg

                                                

TELEPHONE NUMBER:+27 11 913 4250

 

On investigation it was established that the subject underwent a name-change to TUBES ANDMETALS TRADING (PTY) LTD, which report should be consulted.

 

 

Company Name and Address

 

COMPANY NAME:         TUBES AND METALS TRADING (PTY) LTD

 

Formerly: DRYDEN STEEL (PTY) LTD the name having been changed on 8 June 2010

Formerly: THE DRYDEN STEEL COMPANY (PTY) LTD the name having been changed on 1 August 1958

 

 

TRADING DIVISION:     TUBES & METALS

 

PHYSICAL ADDRESS:  99 Langenhoven Road

Park Rand

BOKSBURG

Gauteng

 

POSTAL ADDRESS:     P O Box 18939

SUNWARD PARK

1470

 

TELEPHONE NUMBER: +27 11 913 4250

 

FAX NUMBER:              +27 11 913 4257

 

 

SHAREHOLDERS

 

100%    BENMORE HOLDINGS (PTY) LTD (Reg. No. 1940/013949/07), in which company G J DALTON is the 100% Shareholder.

 

 


ASSOCIATE COMPANIES

 

ERF 282 PARK RAND CC (property-owning company)

BENMORE TRADING (PTY) LTD (dormant)

 

 

DIRECTORS

 

G J DALTON (Sole Director)                    ID No: 5804295101830

 

 

BANKERS

 

FIRST NATIONAL BANK, Sunward Park branch, Account Number: 56050020027.  It was stated that the subject enjoys overdraft facilities to an extent of R1 300 000, secured by a cession of debtors and the personal guarantee of the Director.  Utilisation is stated to fluctuate.

 

 

DATE REGISTERED

 

1 August 1958

Registration Certificate Number: 1958/002592/07

 

In October 1998 the subject’s merchandising operation closed and the subject took over the assets and operations of a company namely TUBES & METALS (PTY) LTD.  The latter company became dormant.

 

Respondents at the company are aware of their deregistration at CIPRO for non compliance of annual returns and stated that they are attending to the problem and will rectify it immediately.

 

 

VAT NUMBER

 

4840119905

 

 

TAX NUMBER

           

9100053835

 

 


MAJOR OPERATION

 

Import agents for steel mill merchants in Europe, Far East, UK and USA.

 

 

MAJOR SUPPLIERS

 

The subject imports all of its supplies 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

 

Steel merchants and large end users

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa.

 

 

EXPORTS

Occasionally but not very recent to Lion Match (Pvt) Ltd in Zimbabwe

 

 

TOTAL EMPLOYEES

 

5 having reduced from 6 reported in March 2012

 

 

OTHER PREMISES

 

None

 

 

OWNED OR LEASED

 

The premises are reported to be owned by the associate property owning company and valued in the region of R1 300 000, bonded in favour of FIRST NATIONAL BANK PRIVATE BANK for less than R500 000.

 

 

AUTHORISED SHARE CAPITAL

 

R100 000 divided into 100 000 ordinary R1 shares.

 

 

ISSUED SHARE CAPITAL

 

R100 000.

 

 

FINANCIALS

 

The following estimated financial situation was submitted as 23 September 2014:

 

STOCK                                                                                                       R  2 500 000

DEBTORS                                                                                                + R  3 000 000

FIXED ASSETS comprises of 4 cars and 1 building                                         R  1 300 000

CREDITORS local                                                                                        R  2 000 000

CREDITORS International Fluctuates                                                           ±R  1 000 000

LOANS                                                                                                                      Nil

TURNOVER incl. commissions earned, per annum                                        ±R15 000 000

 

The turnover per annum reduced from R30 000 000 reported in March 2012 to R15 000 000 per annum at present.  It was stated by the respondent that the decrease in turnover is due to the recent strikes in the steel and mining industry.

 

 

AUDITORS

 

H L B BARNETT AND CHOWN INC (Tel No. 011 856 5300)

 

 

YEAR END

 

SEPTEMBER

 

 

INSURANCE BROKERS

 

ROWLAN NATIONAL BROKERS & INVESTORS

 

 

TRADE REFERENCES – MARCH 2005

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    June 2004     R500 000       +R500 000      30 days    30 days        Very good

 

 

TRADE REFERENCES – FEBRUARY 2007

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS      PAYMENT   EXPERIENCE

      OPENED      CREDIT         CREDIT                           PATTERN

 

1.    2004             R500 000       R100 000 -      30 days      30 days       Excellent

                                               R300 000

 

 

TRADE REFERENCES – SEPTEMBER 2007

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS      PAYMENT   EXPERIENCE

      OPENED      CREDIT         CREDIT                           PATTERN

 

1.    2004             R650 000       R200 000 -      30 days      30 days       Excellent

                                               R600 000

 

TRADE REFERENCES – APRIL 2008

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS      PAYMENT   EXPERIENCE

      OPENED      CREDIT         CREDIT                           PATTERN

 

1.    Jan 2008       R  57 000       R       300 -      COD          COD           Good

                                               R  57 000

 

2.    June 2004     R400 000       R300 000        30 days      30 days       Excellent

                                               R400 000

 

 

TRADE REFERENCES – MARCH 2009

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS      PAYMENT   EXPERIENCE

      OPENED      CREDIT         CREDIT                           PATTERN

 

1.    2008             Confidential    R  80 000        30 days      30 days       Good

 

2.    4-5 years      Open             R400 000 –      30 days      30 days       Excellent

                                               R500 000

 

 

TRADE REFERENCES – FEBRUARY 2010

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    C.O.D

 

2.    ±5 years       ±R300 000     ±R200 000       30 days    30 days        Very Good

 

3.    Oct 2008      declined         ±R    1 000      30 days    30 days        Very Good

 

4.       Unable to obtain trade references

 

 

TRADE REFERENCES – MARCH 2010

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    Deals on a C.O.D basis

 

2.    Do not give trade references

 

3.    2008             declined         ±R  1  000       30 days    30 days        Very Good

 

4.    5 years         declined           R300 000-     30 days    30 days        Very Good

                                                 R400 000

 

 

TRADE REFERENCES – FEBRUARY 2011

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    Few years     undisclosed    R80 000±        Deals on a C.O.D basis Good

 

2.    8+ years       R100 000       R70 000-         60 days    60 days        Very Good

                                               R80 000

 

3.    2009             R1 000 000    R   700 000-    30 days    30 days        Very Good

                          c/l                 R1 000 000

 

4.    Do not give trade references

 

 

TRADE REFERENCES – MARCH 2012

 

       ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

       OPENED      CREDIT         CREDIT                          PATTERN

 

1.        Awaiting faxed trade reference.

 

2.        6 years         R   200 000    R    50 000      30 days    30 days        Very Good

 

3.        Dec 2009      R2 000 000    R1 000 000 –   30 days    30-90 days    Good

                                               R1 500 000

 

 

CURRENT TRADE REFERENCES

 

       ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

       OPENED      CREDIT         CREDIT                          PATTERN

 

1.    12 years       Open             R   150 000     30 days    30 days        Very Good

 

2.    2009             R  500 000     R   250 000     60 days    +60 days      Slow

 

3.    Do not give trade references

 

 

NATURE OF GOODS OR SERVICES SUPPLIED

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

 

1.                Logistics

     

2.                Shipper

 

 

COMMENTS

 

This is an established company that imports supplies.  The subject is meeting one of its commitments slowly.  This account may require monitoring.  The subject is considered equal to its normal business engagements, however, the recent strike in the steel and mining industry, which resulted in a decrease in turnover, should be borne in mind.  When larger dealings are contemplated it would be prudent to obtain security.

 

 


 

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.