MIRA INFORM REPORT

 

 

Report No. :

302120

Report Date :

14.01.2015

 

IDENTIFICATION DETAILS

 

Name :

ACTION BOLT (PTY) LTD

 

 

Formerly Known As :

TROPICAL PARADISE TRADING 291 (PTY) LTD

 

 

Registered Office :

11 Aloefield Crescent, Springfield Park, Durban, Kwazulu Natal

 

 

Country :

South Africa

 

 

Date of Incorporation :

11.01.2005

 

 

Com. Reg. No.:

2005/000810/07 

 

 

Legal Form :

Private Company

 

 

Line of Business :

Subject is engaged in Tool merchants as well as the distribution of industrial fasteners

 

 

No. of Employee :

130 permanent and 15 contract workers

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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 & address:

 

 

COMPANY NAME:                    ACTION BOLT (PTY) LTD

 

Formerly TROPICAL PARADISE TRADING 291 (PTY) LTD, the name having been changed on 9th November 2005.

      

PHYSICAL ADDRESS:  11 Aloefield Crescent

                                                SPRINGFIELD PARK

                                                Durban

                                                Kwazulu Natal

 

POSTAL ADDRESS:                 P O Box 74011

                                                ROCHDALE PARK

                                                4034

 

TELEPHONE NUMBER:            +27 31 579 3161

 

FAX NUMBER:              +27 31 579 2826

 

 

SHAREHOLDERS:

 

100%    WURTH INTERNATIONAL in Germany.

 

The Shareholding was previously 50%  J V PERUMAL and 50%  J N NAICKER having been changed on 1 August 2006.

 

ASSOCIATED AND SUBSIDIARY COMPANIES:

 

Companies within the WURTH INTERNATIONAL group of companies.

 

It was also stated that the property owning company, ACTION BOLT PROPERTIES CC (Registration Certificate Number: 1986/010157/23) from which the property is rented is owned by a former director of the subject. The identity of the director was not available.

 

 

DIRECTORS:

 

J V PERUMAL              ID No.  5905275208051

           

 

BANKERS:

 

ABSA BANK, KZN Business Centre branch, account number 4063587588.  The subject does not require overdraft facilities as credit balances are maintained at the bank.

 

 

DATE REGISTERED:

 

11 January 2005

Registration Certificate Number: 2005/000810/07 

 

The subject utilised a shelf company for registration purposes when the subject took over the assets and operations of ACTION BOLT (PTY) LTD, Registration Certificate Number 1983/009168/07.

 

It was stated that a management buyout occurred and a simultaneous name change occurred when the subject changed its name to ACTION BOLT (PTY) LTD and the original ACTION BOLT (PTY) LTD, Registration Certificate Number 1983/009168/07 changed its name to TROPICAL PARADISE TRADING 291 (PTY) LTD and was subsequently deregistered.

 

VAT NUMBER:              4080223664      

 

TAX NUMBER:              9127921154

 

BEEE STATUS:                        Level 4 contributor

 

 

MAJOR OPERATION: 

 

Tool merchants as well as the distribution of industrial fasteners

 

 

MAJOR SUPPLIERS: 

 

The subject imports approximately 36% of its supplies from China, Taiwan and India.

 

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, industry, railways, refineries and public etc.

 

AREA OF DISTRIBUTION AND SELLING:          South Africa

 

 

EXPORTS:      

 

Small to neighbouring countries e.g. Namibia, Madagascar and the Democratic Republic of Congo.

 

TOTAL EMPLOYEES:   130 permanent and 15 contract workers.

 

OTHER PREMISES: The subject is reported to have branches in East London, Richards Bay, Johannesburg and Port Elizabeth.

 

OWNED OR LEASED:   The premises are reported to be leased

 

 

AUTHORISED SHARE CAPITAL: 

 

R1 000 divided into 1 000 ordinary shares of R1 each

 

ISSUED SHARE CAPITAL:        R100

 

 

FINANCIALS:

 

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

 

STOCK                                                             ±R30 000 000

DEBTORS (varies)                                             R12 000 000 – R16 000 000

FIXED ASSETS                                                            ±R  5 500 000

CREDITORS                                                     R  8 000 000 – R10 000 000

FINANCE FACILITY                                           R  2 800 000

Wurth Finance (overseas group company)

TURNOVER per annum                                      R120 000 000 – R130 000 000

 

The finance facility is stated to be a trading line facility that is between the subject’s bankers in Switzerland and the overseas group company. The account is used for cash flow when importing supplies.

           

AUDITORS: GRANT THORNTON (Merged with ERNST & YOUNG, Durban)          Contact Tel no. +27 31 576 8000

 

YEAR END:      DECEMBER

 

INSURANCE BROKERS:           MARSH

 

 

TRADE REFERENCES – OCTOBER 2006:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                                    PATTERN

 

1.         15 yrs               R50 000            R45 000            30 days                        30 days                            Very good

                                                                                                            2˝%

 

2.         20 yrs               R400 000          declined            60 days                        60 days                             Good

                                                                                                            by arrangement

 

3.         3 yrs                 R400 000          R150 000          35 days                        35 days                              Good         

 

 

TRADE REFERENCES – OCTOBER 2007:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                                    PATTERN

 

1.         1989                 R400 000          R  20 000 -        30 days                        30 days                        Good

                                                            R200 000                                  2.5%

 

2.         1995                 R  15 000          R  15 000          30 days                        30 days                        Good

                                                                                                            2.5%

 

3.         4 yrs                 open                 R500 000          30 days                        37 days                        Excellent

 

 

TRADE REFERENCES – JUNE 2010:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                                    PATTERN

 

1.         10 years+          R30 000            R  2 000 -          30 days                        30 days                        Good

                                                            R30 000

 

2.         10 years+          R1 500 000        R1 000 000        30 days                        30 days                        Very Good

                                                                                    -3%                  -3%

 

3.         15 years            R60 000            R60 000            30 days                        30 days                        Excellent

 

CURRENT TRADE REFERENCES:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT   EXPERIENCE

            OPENED          CREDIT            CREDIT                                    PATTERN

 

1.         Awaiting an emailed trade reference.

                       

2.         Unable to obtain trade reference.

 

3.         15 years            Declined           R5 000              30 days                        30 days                        Very Good

 

4.         Awaiting an emailed trade reference.

 

5.         15/10/1990        R400 000          R100 000-         30 days                        30 days                        Excellent

                                    c/l CGIC            R200 000          Less 2.5%

 

 

NATURE OF GOODS OR SERVICES SUPPLIED:

 

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

 

3.         Bolts and nuts. 

 

5.         Bolts and nuts.

 

 

COMMENTS:

 

This is an established and well-connected company which took over assets and operations of an established company.  The subject is meeting its commitments timeously, and is considered equal to its normal business engagements.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.10

UK Pound

1

Rs.94.09

Euro

1

Rs.73.41

 

INFORMATION DETAILS

 

Analysis Done by :

RSM

 

 

Report Prepared by :

DPT

 

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.