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Report No. : |
307276 |
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Report Date : |
14.02.2015 |
IDENTIFICATION DETAILS
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Name : |
CLOUD 9 LINEN CC |
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Registered Office : |
16 Verwey Street 1st Floor Juel
House New Doornfontein Johannesburg Gauteng, P O Box 603 Benoni 1500 |
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Country : |
South Africa |
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Date of Incorporation : |
24.04.2003 |
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Com. Reg. No.: |
2003/031390/23 |
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Legal Form : |
Closed Corporation |
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Line of Business : |
Importers and manufactures of decorative household linen |
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No. of Employee : |
25 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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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) |
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South Africa |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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.
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Source
: CIA |
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
None
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.
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
Importers and manufactures of decorative household linen.
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.
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
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT
EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 4 months COD COD COD COD
Good
(These descriptions relate respectively by number to the above current
trade transactions):
1. Freight forwarder CLOUD 9 LINEN CC Page 3 of 3
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
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Indian Rupees |
|
US Dollar |
1 |
Rs.62.14 |
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1 |
Rs.95.78 |
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Euro |
1 |
Rs.71.05 |
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
ANK |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.