MIRA INFORM REPORT

 

 

Report No. :

306449

Report Date :

11.02.2015

 

IDENTIFICATION DETAILS

 

Name :

MEGACORP TRADING CC

 

 

Registered Office :

Flat 40 Marine Sands, 281 Marine Drive, Durban, KwaZulu-Natal

 

 

Country :

South Africa

 

 

Date of Incorporation :

29.06.2006

 

 

Com. Reg. No.:

2006/107757/23

 

 

Legal Form :

Private Company

 

 

Line of Business :

Engaged in Import and export, as well as distribution of Food Products such as Rice, Beans, Wheat, Biscuits & Noodles

 

[We tried to confirm / obtain the detailed activity but the same is not available from any sources.]

 

 

No of Employees :

Not Available

 

[We tried to confirm the number of employees but no one is ready to part any information from the company management.]

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Unknown

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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

 


Note:

(The information contained in this report, other than statutory data and comment by outside authorities, has been voluntarily supplied by Officials of the subject):

 

On investigation contact was made with the respondent at the subject who declined to assist with company information stating that he is currently out of the country and will not return to South Africa until the second week of February 2015. Further investigation will be taken upon said date.

 

Nevertheless please see Historical information dated July 2014:

 

 

COMPANY NAME

 

MEGACORP TRADING CC

 

 

PHYSICAL ADDRESS

 

Flat 40 Marine Sands

281 Marine Drive

Durban

KwaZulu-Natal

 

 

POSTAL ADDRESS   

 

P O Box 5085

Durban

4000

 

CELL PHONE NUMBER:           +27 72 673 6006 

FAX NUMBER:                          +27 86 649 8505

 

 

MEMBERS

 

100%    S P SADHWANI                                                D.O.B.  880125

                                                                                    Ppt No. L6451728

 

It was stated that the member is not a South African citizen but is a permanent resident of South Africa

 

 

ASSOCIATE COMPANIES

 

It was stated that the subject does not have any associate companies in South Africa, however, S P SADHWANI stated that he has a number of property owning companies, as well as property in Mauritius, India and the Philippines and a company named MONOJ TRADING (PTY) LTD, a clothing business which opened in 2008 in Mauritius

 

 

BANKERS

 

NEDBANK, Argyle Road Branch, Durban.  Branch Code: 131426.  Account Number: 1314110543.  The subject does not have overdraft facilities at this bank, however, the subject has investment accounts and has credit balances at the bank. 

 

FIRST NATIONAL BANK, Davenport.  Branch Code: 220226.  Account Number: 62203542908. 

 

HBZ BANK LTD, Qualbert Branch.  Branch Code: 570126. Account Number: 11901163128.

 

 

DATE REGISTERED

 

29 June 2006

Registration Certificate Number:  2006/107757/23

 

The subject commenced as a new business in 2006.  It was stated that S P SADHWANI previously owned a company in the Philippines for 19 years prior to moving to South Africa.

 

 

VAT NUMBER          

 

4510234059

 

 

TAX NUMBER

 

9533755154

 

 

BEE STATUS

 

Non-compliant

 

 

MAJOR OPERATION

 

Engaged in Import and export, as well as distribution of Food Products such as Rice, Beans, Wheat, Biscuits & Noodles

 

MAJOR SUPPLIERS

           

Shippers KEUHNE & NAGEL

           

The subject is not a general credit seeker locally and imports from countries such as China, India, Vietnam, Philippines, Indonesia and Thailand. 

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

           

SHOPRITE, CHECKERS, SPAR, MAKRO and PICK ‘n PAY (Vendor No. 1000004443.

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

African Countries as well as PICK ‘n PAY branches in Zambia where the subject has 24 PICK ‘n PAY stores and 8 in Zimbabwe.  Three stores are being opened in the near future.

 

 

TOTAL EMPLOYEES

 

N/A

 

 

OTHER PREMISES

 

The subject is reported to have a warehouse in Umbilo, Durban.  The subject intends setting up offices in Zambia.  The subject is also looking into exporting to Ruanda and opening an office in Ruanda, but talks are still ongoing at present.

 

 

OWNED OR LEASED

 

The premises are reported to be leased

 

 


MEMBERS CONTRIBUTION

 

R100

 

 

FINANCIALs

 

The following estimated financial situation was submitted as at 11 July 2014:

 

STOCK                                                                                 R  500 000 – R       700 000

DEBTORS (Blue Chip Clients)                                                                    R       200 000

CASH                                                                                   R    50 000 – R         80 000

CREDITORS                                                                                             R       200 000

LOANS                                                                                                                      Nil

TURNOVER per month                                                          R1 300 000 – R    1 600 000

TURNOVER per annum                                                                                R19 000 000

 

 

AUDITORS    

 

SAVENDRA NAIDOO ACCOUNTING CORPORATION

 

 

FINANCIAL YEAR END

 

FEBRUARY

 

 

INSURANCE BROKERS

 

NEDBANK INSURANCE BROKERS

 

 

CURRENT TRADE REFERENCES

 

                  ACCOUNT    HIGHEST      AVERAGE      TERMS     PAYMENT   EXPERIENCE

                  OPENED      CREDIT         CREDIT                          PATTERN

 

1.                Not dealt with the shipper for more than six months

 

COMMENTS

 

This is an established business that is not a general credit seeker locally.  In view of the lack of trade references, the lack of recent trading with the shipper and the inability to verify the substance of the member, regarding his property holdings in Mauritius, we would rather recommend that dealings be undertaken on a letter of credit basis in the absence of a payment record. The fact that the member is not an SA citizen should be borne in mind.

 

Notwithstanding the above we have received copies of letters from the subject’s bankers, which we have verified as authentic, that state the following:

 

NEDBANK ARGYLE ROAD, DURBAN – 8 JULY 2014

 

The account is conducted in a satisfactory manner with no unpaid cheques or returned debits.

 

FNB DAVENPORT BRANCH – 9 JULY 2014

 

This letter serves to confirm the above mentioned account is held in our books since 10/11/2008. The account is maintained satisfactorily and there is no unpaid on record.

 

HBZ BANK LIMITED QUALBERT DURBAN – 9 JULY 2014

 

We hereby confirm that the following account is maintained in our books since 7 July 2006. The account is maintained in a very satisfactory manner since inception. We further confirm that there are no unpaid cheques or debit orders on the account since inception.

 

Attempts to obtain further information from the bankers proved unsuccessful as it is against bank policy to do so.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.96

UK Pound

1

Rs.94.41

Euro

1

Rs.70.20

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

MNL

 

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.