MIRA INFORM REPORT

 

 

Report No. :

308226

Report Date :

27.02.2015

 

IDENTIFICATION DETAILS

 

Name :

POLYOAK PACKAGING (PTY) LTD

 

 

Formerly Known As :

POLYOAK (PTY) LTD

 

POLYOAK PRODUCTS (PTY) LIMITED

 

 

Registered Office :

Waterford House, 3 Waterford Road, Diep River, Cape Town, Western Cape, P O Box 125, Plumstead, 7800

 

 

Country :

South Africa

 

 

Date of Incorporation :

14.03.1974

 

 

Legal Form :

Private Company

 

 

Line of Business :

The design and manufacture of injection and blow moulded rigid plastic packaging. 

 

 

No. of Employees :

2200

 

 

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 – 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

 

POLYOAK PACKAGING (PTY) LTD

 

Formerly: POLYOAK (PTY) LTD, the name having been changed in June 2003

Formerly: POLYOAK PRODUCTS (PTY) LIMITED the name having been changed in 1991

 

 

TRADING NAMES

 

DAIRYPACK TUBS

BLOWPACK

DAIRYPACK

POLYPET

AFRICAN CLOSURES

DESIGN FIRST

CONTAN BUCKETS & PAILS

VISCONTI GARMENT HANGERS

 

 

PHYSICAL ADDRESS

 

Waterford House

3 Waterford Road

Diep River

Cape Town

Western Cape

 

 

POSTAL ADDRESS

 

P O Box 125

PLUMSTEAD

7800

 

 

TELEPHONE NUMBER

 

+27 21 710 9200

 

 

FAX NUMBER

 

+27 21 712 1342

 

It was stated that the address of 17 Aeroton Road, Aeroton, Johannesburg, Gauteng, and the telephone number +27 11 247 6000 supplied by our client is that of the DAIRY PACK TUBS division situated in Aeroton.

 

 

SHAREHOLDERS

 

100%    POLYOAK PACKAGING GROUP (PTY) LTD (Registration Certificate Number:  2008/023208/07) (formerly COLUMBIA HOLDINGS (PTY) LIMITED), which is in turn owned by certain of the directors of the subject.

 

 

ASSOCIATE COMPANIES

 

HANGERMAN (PTY) LTD

(Registration Certificate Number:  1972/002589/07)

POLYOAK MANAGEMENT SERVICES (PTY) LTD

(Registration Certificate Number:  1998/000552/07)

POLYOAK PROPERTIES (PTY) LTD

(Registration Certificate Number:  1973/014628/07)

POLYOAK BUSINESS SCHOOL (PTY) LTD

(Registration Certificate Number:  2007/022124/07)

 

 

DIRECTORS

                       

H J LOUW (Chairman)                                        ID No. 4503055053002

J L K MACKINTOSH (MD)                                  ID No. 5608275158009

G E HAIRD                                                       ID No. 6103255009082

D RIDGARD                                                      ID No. 6509155044005

B J F RASSON (FD)                                          ID No. 5711215089084

MRS. L I LOUW                                                 D.O.B. 460613

 

 

BANKERS

 

STANDARD BANK, Blue Route, Account Number: 270043888.  It was stated that the group enjoys overdraft facilities, secured by various assets.  The respondent stated that the overdraft facility is utilised for working capital purposes.

 

 

DATE REGISTERED

 

14 March 1974

Registration Certificate Number: 1974/000190/07

 

It was stated that the subject was originally established in 1970.  It was stated that the present shareholders bought the company in 1981 and changed its name.

 

 

VAT NUMBER

 

4800106892

 

 

BEE RATING

 

Level 4 contributor

 

 

MAJOR OPERATION

 

The design and manufacture of injection and blow moulded rigid plastic packaging.  It was stated that the trading names are the subject’s brand names.

 

Dairypack: Manufacturers of plastic packaging for milk, dairy beverages, juices and opaque beer (sorghum).

Dairypack Tubs: Manufacturers of thin-walled containers for ice-cream, yoghurt, cheese, butter, spreads and other food markets.

Blowpack: Manufacturers of plastic containers for the industrial, chemical and food markets.

Polypet: Manufacturers of PET containers and preforms for the beverage, food and wine markets.

African Closures: Manufacturers of plastic closures for dairy, beverage, food, chemical and industrial applications.

Design First: In house research, development and design service for Polyoak Packaging.

Lubripack is a manufacturer and supplier of decorated plastic containers and closures to the motor oil industry offering a one stop packaging solution.

 

MAJOR SUPPLIERS

 

The subject imports raw materials from Israel and machinery from Europe.  The subject deals with the following South African 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

 

Large companies such as dairy companies, oil companies, container and bottling companies, food and beverage manufacturing companies as well as garment hanger manufacturers.

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

Small to African countries, USA, Mauritius and Madagascar

 

 

TOTAL EMPLOYEES

 

Approximately 2 200 employees

 

 

OTHER PREMISES

 

Manufacturing operations and distribution centres are in Cape Town, Durban, Johannesburg, East London.


All injection moulded manufacturing takes place at the Head Office in Cape Town.


Sales and distribution centres are in all other major South African cities and towns: - Bloemfontein, Middelburg, Nelspruit, Polokwane, Worcester, George and Port Elizabeth.

 

 

OWNED OR LEASED

 

It was stated that the majority of the premises is owned by POLYOAK PROPERTIES (PTY) LTD. 

 

 

AUTHORISED SHARE CAPITAL

 

R100 000 divided into 100 000 ordinary shares of R1 each

 

ISSUED SHARE CAPITAL

 

R100 000

 

 

FINANCIALS

 

Full financial information was not forthcoming from respondents at the company and outside authorities were unable to assist in this regard.

 

 

AUDITORS

 

GREENWOODS, Cape Town     +27 21 421 4510

 

 

YEAR END

 

MARCH

 

 

INSURANCE BROKERS

 

AON INSURANCE BROKERS

 

TRADE REFERENCES – FEBRUARY 2006: 

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         1998     do not disclose figures  30 days            30 days            Good

 

2.         5 yrs     R      50 000      R    50 000        30 days            30 days            Very Good

 

3.         10 yrs   US$800 000 US$700 000            30 days            30 days            Excellent          

 

TRADE REFERENCES – OCTOBER 2007:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         Old acc            R15 000 000      declined            30 days            30 days            Excellent

 

2.         1998     declined            declined            30 days            30 days            Very Good

 

3a.        2002     R  2 000 000      R2 000 000          7 days              7 days            Excellent

 

3b.       2002     R  1 800 000      R   300 000 -     30 days            30 days            Very Good

                                    R1 800 000

 

TRADE REFERENCES – JANUARY 2009

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         20 yrs   declined            R1 600 000        30 days            30 days            Excellent

 

2.         1992     R   530 000       R   380 000       30 days            30 days            Excellent

 

3.         Do not give trade references

 

4.         5 yrs     R5 000 000        R   600 000         7 days              7 days            Excellent

                        c/l         varies

 

5.         5 yrs     R5 00 000         R   300 000       30 days            30 days            Excellent

 

TRADE REFERENCES – MARCH 2009:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         20 years+          R5 000 000        Declined           30 days            30 days            Excellent

                        c/l

 

2.         15 years            Declined           ±R120 000         30 days            30 days            Excellent

                        (bank guarantee)

 

3.         10 years+          Undisclosed      Undisclosed      30 days            30 days            Very Good

 

Do not give trade references

 

TRADE REFERENCES – MAY 2010:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         10 years            figures  confidential       30 days            30 days            Excellent

 

2.         Aug’92  R540 000          R540 000          30 days            30 days            Excellent

 

3.         11 months         R800 000          R400 000          30 days            30 days            Good

                        c/l

 

4.         Do not give trade references

 

TRADE REFERENCES - SEPTEMBER 2010:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         Old       declined            figures  30 days            30 days            Excellent

 

2.         Old       declined            figures  30 days            30 days            Very Good

 

3.         1 year   declined            R400 000±         30 days            30 days            Very Good

 

TRADE REFERENCES – JANUARY 2012:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         10 years            Declined           Declined           30 days            30 days            Very Good

 

2.         Old acc Declined           Declined           30 days            30 days            Very Good

 

3.         Do not give trade references.

 

TRADE REFERENCES – NOVEMBER 2012:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         +20 years          Declined           Declined           30 days            30 days            Excellent

 

2.         Since 2006        Open Acc         R    90 000-       30 days            30 days            Good

                                    R  105 000

 

3.         Do not give trade references

 

4.         Since 1998        Open Acc         R5 000 000-       30 days            30 days            Excellent

                                    R6 000 000

 

TRADE REFERENCES – MAY 2013:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         25 years            Declined           Declined           30 days            30 days            Excellent

 

2.         2000     Open Acc         R200 000-         30 days            30 days            Very Good

                                    R230 000

 

3.         Do not give trade references

 

4.         Do not give trade references

 

 

TRADE REFERENCES – AUGUST 2013

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         +20 years          R30 000 000      R25 000 000      30 days            30 days            Very good

 

2.         Need permission from the subject to give a trade ref

 

3.         Do not give trade references

 

4.         Do not give trade references

 

TRADE REFERENCES – APRIL 2014:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         +20 years          Declined           Declined           30 days            30 days            Excellent

 

2.         1992     Declined           ±R400 000         30 days            30 days            Very Good

 

3.         ±30 years          R3 000 000        +R1 000 000      30 days            30 days            Very Good

 

CURRENT TRADE REFERENCES:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT   EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         +30 years          Millions Millions 30 days            30 days            Excellent                      

2.         +10 years          Declined           R700 000          30 days            30 days            Very Good

 

3.         Against company policy to divulge trade reference information.

 

 

NATURE OF GOODS OR SERVICES SUPPLIED

 

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

 

1.         Raw materials   

                       

2.         Fuel     

 

 

COMMENTS

 

This is a very well-established company which is well known in South Africa. The subject is meeting its commitments timeously and is spoken of highly by its suppliers.  The subject is considered equal to its normal business engagements; however, the lack of financial information should be borne in mind. It is regarded as equal to a maximum figure of €1 500 000 over 30 days.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.94

UK Pound

1

Rs.96.24

Euro

1

Rs.70.38

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

TPT

 

               


 

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.