MIRA INFORM REPORT

 

 

Report No. :

329071

Report Date :

02.07.2015

 

IDENTIFICATION DETAILS

 

Name :

ACCESSORIES SPARES CENTRE CC

 

 

Formerly Known As :

ACCESSORIES SPARES CENTRE (PTY) LTD

 

 

Registered Office :

17 Travertine Crescent, Briardene, Durban, KwaZulu-Natal

 

 

Country :

South Africa

 

 

Date of Incorporation :

June 1981

 

 

Com. Reg. No.:

1995/020748/23

 

 

Legal Form :

Close Corporation

 

 

Line of Business :

Subject is engaged in import and wholesale of car spares and accessories

 

 

No. of Employee :

120 (October 2012)

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 Africa’s largest and among the top 20 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. Economic growth has decelerated in recent years, slowing to just 1.5% in 2014. Unemployment, poverty, and inequality - among the highest in the world - remain a challenge. Official unemployment is roughly 25% of the work force, and runs significantly higher among black youth. Eskom, the state-run power company, is building three new power stations and is installing new power demand management programs to improve power grid reliability. Load shedding and resulting rolling blackouts gripped many parts of South Africa in late 2014 and early 2015 because of electricity supply constraints that resulted from technical problems at some generation units, unavoidable planned maintenance, and an accident at a power station in Mpumalanga province. The rolling black outs were the worst the country faced since 2008. Construction delays at two additional plants, however, mean South Africa will continue to operate on a razor thin margin; economists judge that growth cannot exceed 3% until electrical supply problems are resolved. South Africa's economic policy has focused on controlling inflation, however, the country faces structural constraints that also limit economic growth, such as skills shortages, declining global competitiveness and frequent work stoppages due to strike action. The current government faces growing pressure from urban constituencies to improve the delivery of basic services to low-income areas and to increase job growth.

 

Source : CIA

 


On investigation contact was made with the respondent at the subject who declined to assist with information, as it was stated that the relevant person is away from office until mid-July 2015. Further investigation will be taken up on said date. Nevertheless please see historical information for the subject dated October 2014 which reads as follows:

 

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

 

 

COMPANY NAME

 

ACCESSORIES SPARES CENTRE CC

 

 

PHYSICAL ADDRESS

 

17 Travertine Crescent

BRIARDENE

Durban

KwaZulu-Natal

 

 

POSTAL ADDRESS

 

P O Box 3093

DURBAN

4000

 

 

TELEPHONE NUMBER

 

+27 31 581 8400

 

 

FAX NUMBER

 

+27 31 581 8414

The subject moved from 54 Bay Terrace, Durban, KwaZulu-Natal in approximately 2006.

 

 


MEMBERS

 

95%      J S ROWAN

5%       S E EGERSDORFER

 

 

 

ASSOCIATE COMPANIES

 

THE JOHN ROWAN PROPERTY TRUST (property owning Trust)

 

It was stated that there are other associate companies, however, further details were not forthcoming from respondents.

 

 

BANKERS

 

STANDARD BANK, Rosetta Road Branch. Branch Code: 042726.  The subject is reported to enjoy overdraft facilities to an extent of R1 000 000.  Utilisation of the overdraft is stated to be seldom.

 

 

DATE REGISTERED

 

23 May 1995

Registration Certificate Number 1995/020748/23

 

ACCESSORIES SPARES CENTRE (PTY) LTD (Registration Certificate Number 1981/006024/07) was established in June 1981. In May of 1995 the subject converted to a Close Corporation.

 

 

MAJOR OPERATION

 

The subject is involved in the import and wholesale of car spares and accessories.

 

 

MAJOR 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:

 

Wholesalers

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

Neighbouring countries.

 

TOTAL EMPLOYEES

 

120 having increased from 106 reported in October 2012.

 

 

OTHER PREMISES

 

None

 

 

OWNED OR LEASED

 

The premises are reported to be leased from the associate property owning Trust.

 

 

FINANCIALS

 

The following estimated financial situation was dated as at 2 October 2014:

 

STOCK                                                                                                     R  47 000 000

DEBTORS                                                                                                 R  15 000 000

CREDITORS                                                                                             R    1 000 000

TURNOVER per annum                                                                              R139 000 000

 

 

AUDITORS

 

PKF, Durban                                                     +27 31 573 5000

 

 

YEAR END

 

JUNE

 

 

INSURANCE BROKERS

 

REID RAETZER                        +27 31 312 1295

 

 

TRADE REFERENCES – JULY 2002

 

PERIOD      HIGHEST     AVERAGE     TERMS           PAYMENT                   EXPERIENCE

      CREDIT        CREDIT                               PATTERN

 

1.10 years   R  20 000      R  15 000 -     30 days          30 days                        Excellent

                                               R  20 000                                           prior to

 

2.Old acc    R  40 000      R  30 000 -     30 days          30 days                        Very Good

                                               R  40 000

 

3.9 years     R600 000      R600 000       COD

 

 

TRADE REFERENCES – AUGUST 2008

 

PERIOD      HIGHEST     AVERAGE     TERMS           PAYMENT                   EXPERIENCE

      CREDIT        CREDIT                               PATTERN

 

1.8 years     open            R  30 000 -     30 days          30 days                        Very Good

                                               R  40 000        5%

 

2.10 years   no dealings for the last two years                                                Very Good

 

3.15 years   declined       R250 000         7 days            7 days                       Good

                                               Usually COD

 

TRADE REFERENCES – OCTOBER 2012

 

ACCOUNT   HIGHEST     AVERAGE     TERMS           PAYMENT   EXPERIENCE

OPENED     CREDIT        CREDIT                               PATTERN

 

1.20 years   R100 000      R    50 000-    30 days          30 days       Excellent

                                        R    70 000

 

2.18 years   Open Acc     R2 000 000    7 days            7 days         Excellent

 

3.Since 2005 Open Acc   R   400 000    30 days          30 days       Excellent

 

 

TRADE REFERENCES-OCTOBER 2014

 

ACCOUNT   HIGHEST     AVERAGE     TERMS           PAYMENT   EXPERIENCE

OPENED     CREDIT        CREDIT                               PATTERN

 

1.Jan 2009  R500 000      R   300 000-   30 days          30 days       Very Good

                    R   400 000    2.5%

 

2.Old          Open            R     50 000    30 days          30 days       Very Good

 

3.21 years   Declined       R1 200 000    C.O.D.            C.O.D.         Very Good

 

 

NATURE OF GOODS OR SERVICES SUPPLIED

 

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

 

1.    Car Care Chemicals

     

2.    Trailer Parts

 

3.    Clearing and Forwarding

 

 


COMMENTS

 

This is a well established business which converted from a private company.  The subject is meeting its commitments timeously and on a COD at times and is spoken of highly by its suppliers. The subject is considered equal to its normal business engagements.

 

 

CURRENT TRADE REFERENCES

 

ACCOUNT   HIGHEST     AVERAGE     TERMS           PAYMENT   EXPERIENCE

OPENED     CREDIT        CREDIT                               PATTERN

 

1. Awaiting emailed trade reference.

 

2.25 years   R100 000      R53 000-        30 days          30 days       Excellent

                                               R54 000

 

3.Account is no longer in use.

 

4.Awaiting emailed trade reference.

 

 

NATURE OF GOODS OR SERVICES SUPPLIED

 

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

 

2.    Spare parts

 

 

COMMENTS

 

This is a well-established business which converted from a private company.  The subject is meeting its one obtainable commitment on time and is spoken of highly by its supplier. The subject is considered equal to €163 795 over 30 days.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.62

UK Pound

1

Rs.99.89

Euro

1

Rs.70.77

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ASH

 

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.