MIRA INFORM REPORT

 

 

Report No. :

307276

Report Date :

14.02.2015

 

IDENTIFICATION DETAILS

 

Name :

CLOUD 9 LINEN CC

 

 

Registered Office :

16 Verwey Street  1st Floor Juel House  New Doornfontein  Johannesburg Gauteng, P O Box 603  Benoni 1500

 

 

Country :

South Africa

 

 

Date of Incorporation :

24.04.2003

 

 

Com. Reg. No.:

2003/031390/23

 

 

Legal Form :

Closed Corporation

 

 

Line of Business :

Importers and manufactures of decorative household linen

 

 

No. of Employee :

25

 

 

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

 


 

COMPANY NAME and address

 

CLOUD 9 LINEN CC

 

 

PHYSICAL ADDRESS:              16 Verwey Street

1st Floor Juel House

NEW DOORNFONTEIN

Johannesburg

Gauteng

 

POSTAL ADDRESS:                 P O Box 603

BENONI

1500

 

TELEPHONE NUMBER:            +27 11 402 1455

 

FAX NUMBER:                          +27 11 402 1467

 

MEMBERS:

 

70% S NAIDOO                         ID No. 5204015030086

30% A NAIDOO                         ID No. 5301200004080

 

 

ASSOCIATE COMPANIES

 

None

 

 

BANKERS

 

STANDARD BANK, Rivonia branch. It was stated that the subject enjoys an overdraft facility to an extent of R350 000 which is secured by the guarantees of the members. Utilisation of the overdraft is stated to be partial.

 

 

DATE REGISTERED

 

24 April 2003

Registration Certificate Number: 2003/031390/23

The subject commenced trading as a new business in 2003.

 

 

VAT NUMBER: 4940207451

 

TAX NUMBER: 9043120154

 

BBBEE STATUS:          Level 3 contributor CLOUD 9 LINEN CC Page 2 of 3

 

 

MAJOR OPERATION

 

Importers and manufactures of decorative household linen.

 

 

MAJOR SUPPLIERS

 

It was stated by the respondent that the subject imports ±98% of its supplies from India and deals with one local clearing agent. Dealings are on a preferred COD basis.

 

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

 

Retailers

 

AREA OF DISTRIBUTION AND SELLING:          South Africa

EXPORTS:                                                       None

TOTAL EMPLOYEES:                                       25

OTHER PREMISES:                                          None

OWNED OR LEASED:                                       The premises are reported to be leased

MEMBERS CONTRIBUTION:                             R100

FINANCIALS

 

The following estimated financial situation was submitted as at 9 February 2015:

 

STOCK                                     R1 200 000

DEBTORS                                R 500 000

CREDITORS foreign                  R500 000-R600 000

OVERDRAFT                            R 350 000

TURNOVER per annum R5 000 000

 

 

AUDITORS:                              RAJLUNGCOMIAH

 

YEAR END:                              FEBRUARY

 

INSURANCE BROKERS:           POGIR BASTION

 

 

CURRENT TRADE REFERENCES

 

ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

OPENED          CREDIT            CREDIT                                    PATTERN

1. 4 months       COD                 COD                 COD                 COD                 Good

 

 

NATURE OF GOODS OR SERVICES SUPPLIED

 

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

1. Freight forwarder CLOUD 9 LINEN CC Page 3 of 3

 

 

COMMENTS

 

This is an established small business that is not a general credit seeker that prefers to its freight forwarder on a COD basis but has only been dealing with the current clearing agent for four months. In view of this fact and the small level of operations we are unable suggest a highest credit on the subject and would prefer to see all dealings on a letter of credit basis in view of the relatively high creditors figure.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.14

UK Pound

1

Rs.95.78

Euro

1

Rs.71.05

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.