MIRA INFORM REPORT

 

 

Report No. :

334910

Report Date :

08.08.2015

 

IDENTIFICATION DETAILS

 

Name :

PREMIER HOUSEWARES CC

 

 

Registered Office :

16 Mopedi Road Sebenza  Edenvale Gauteng, P O Box 10324 Edenglen 1609

 

 

Country :

South Africa

 

 

Date of Incorporation :

07.02.1995

 

 

Com. Reg. No.:

1995/004149/23

 

 

Legal Form :

Closed corporation

 

 

Line of Business :

Importing and distribution of general household products such as plasticware, brushes, scourers, kitchen cleaning and bathroom textiles

 

 

No. of Employee :

24

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 Africa’s largest and among the top 20 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. Economic growth has decelerated in recent years, slowing to just 1.5% in 2014. Unemployment, poverty, and inequality - among the highest in the world - remain a challenge. Official unemployment is roughly 25% of the work force, and runs significantly higher among black youth. Eskom, the state-run power company, is building three new power stations and is installing new power demand management programs to improve power grid reliability. Load shedding and resulting rolling blackouts gripped many parts of South Africa in late 2014 and early 2015 because of electricity supply constraints that resulted from technical problems at some generation units, unavoidable planned maintenance, and an accident at a power station in Mpumalanga province. The rolling black outs were the worst the country faced since 2008. Construction delays at two additional plants, however, mean South Africa will continue to operate on a razor thin margin; economists judge that growth cannot exceed 3% until electrical supply problems are resolved.

South Africa's economic policy has focused on controlling inflation; however, the country faces structural constraints that also limit economic growth, such as skills shortages, declining global competitiveness and frequent work stoppages due to strike action. The current government faces growing pressure from urban constituencies to improve the delivery of basic services to low-income areas and to increase job growth.

 

Source : CIA

 

COMPANY NAME and address

 

PREMIER HOUSEWARES CC

 

 

PHYSICAL ADDRESS

16 Mopedi Road

SEBENZA

Edenvale

Gauteng

 

POSTAL ADDRESS:    

P O Box 10324

edenglen

1609

 

TELEPHONE NUMBER:            +27 11 609 6536

 

FAX NUMBER:                          +27 11 609 6215

 

 

MEMBERS

 

100%    H L KAHN                                             ID No.   5607285053085

 

 

ASSOCIATE COMPANIES

 

None

 

 

BANKERS

 

STANDARD BANK, Edenvale Branch, Account Number: 220125783.  It was stated that the subject enjoys overdraft facilities to an extent of R4 000 000, secured by a cession of debtors.  Utilisation of the overdraft is stated to fluctuate.

 

 

DATE REGISTERED

 

7 February 1995

Registration Certificate Number: 1995/004149/23

 

PREMIER HOUSEWARES CC was registered on 7 February 1995 as new and commenced operations immediately.

 

 

VAT NUMBER    

           

4320149430

 

 

TAX NUMBER

 

9483581840

 

 

BBBEE STATUS

 

Non-compliant

 

 

MAJOR OPERATION

 

The subject is involved in the importing and distribution of general household products such as plasticware, brushes, scourers, kitchen cleaning and bathroom textiles etc.

 

 

MAJOR SUPPLIERS

 

It was stated that the subject imports most of its supplies and also deals with local 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

 

Wholesalers and retailers.

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

Namibia and Botswana.

 

 

TOTAL EMPLOYEES

 

24 permanent employees and approximately 25 casual labourers from brokers.

 

 

OTHER PREMISES

 

None

 

 

OWNED OR LEASED

 

The premises are reported to be leased.

 

 

 

FINANCIALS

 

The following estimated financial situation was submitted as at 6 August 2015:

 

STOCK                                                                                                   R  3 000 000

DEBTORS 30-90 days                                                                            R14 000 000

FIXED ASSETS                                                              net book value R  3 000 000

CREDITORS                                                                                          R  3 000 000

OVERDRAFT                                                                                                        Nil

LONG TERM LIABILITIES                                                                                       Nil

LOANS                                                                                                                 Nil

TURNOVER per annum R60 000 000

 

 

AUDITORS

 

HARALAMBAUS & ASSOCIATES    +27 11 264 0487

 

 

YEAR END

 

FEBRUARY

 

 

INSURANCE BROKERS

 

LIONEL ISAACS INSURANCE BROKERS

 

 

TRADE REFERENCES – NOVEMBER 2006

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    1994             R25 000           R20 000 -      60 days    180 days      Slow

                                                              R25 000

 

2.    10 months  R600 000         R200 000 -      30 days    30 days        Excellent

                   c/l                 R600 000

 

3.    5 years+       R400 000       R200 000        60 days    60 days        Very Good

 

 

TRADE REFERENCES – OCTOBER 2008

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    Old acc        R100 000       R100 000        30 days    30 days        Very Good

 

2.    5 years         declined        R500 000 -      60 days    60 days        Very Good

                                               R700 000

 

3.    July 1994      R  30 000       R    9 500        60 days    60 days        Good

 

 

TRADE REFERENCES – JULY 2010

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    8 years         R550 000       R250 000        30 days    30 days        Excellent

                          c/l

 

2.    11 years       R175 000       R  80 000        30 days    30 days        Excellent

 

3.     Not using account anymore

 

4.     Not traded in 23 months

 

 

TRADE REFERENCES – FEBRUARY 2011

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    Old acc        R50 000         R30 000          30 days    30 days        Good

                          Open account                      -R50 000

 

2.    9 years         R600 000       R300 000        30 days    30 days        Excellent

                          c/l                 -R500 000

 

3.    8 years         R1 500 000    R600 000        30 days    30 days        Excellent

                          c/l

 

TRADE REFERENCES-MARCH 2014

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    10 years       R1 000 000    R500 000-       30 days    30 days        Good

                                               R800 000

 

2.    20 years       R250 000       Declined         30 days    30 days        Excellent

 

3.    +12 years     Open             R600 000-       30 days    30 days        Excellent

                                               R700 000

 

 

CURRENT TRADE REFERENCES

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    2008             R500 000       R50 000-         30 days    30 days        Good

                                               R200 000

 

2.    1999             R350 000       R150 000-       30 days    30 days        Excellent

                                               R250 000

 

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.    Cargo forwarders and logistics

                         

2.    Brooms

 

 

COMMENTS

 

This is an established company meeting its local commitments timeously.  Suppliers speak highly of the subject.  The subject is considered equal to its normal business engagements and a maximum of €70,000 over 30 days.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.81

UK Pound

1

Rs.98.93

Euro

1

Rs.69.66

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

ANK

 


 

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.