MIRA INFORM REPORT

 

 

Report No. :

329381

Report Date :

04.07.2015

 

IDENTIFICATION DETAILS

 

Name :            

TIMBER AND BORDS EXPRESS CC

 

 

Registered Office :

33 15th Street, Eastgate Gardens (off Marlboro Drive) Sandton Gauteng

 

 

Country :

South Africa

 

 

Date of Incorporation :

13.04.2007

 

 

Com. Reg. No.:

2007/073332/23

 

 

Legal Form :

Closed Corporation

 

 

Line of Business :

Manufacturers of melamines on a small scale, as well as distributors of timber and boards.

 

 

No. of Employees :

80

 

 

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 Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

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


Company name & address

 

COMPANY NAME:                    TIMBER AND BORDS EXPRESS CC

 

TRADING NAME:                      WOOD CENTRE           

 

PHYSICAL ADDRESS:              33 15th Street

EASTGATE GARDENS (off Marlboro Drive)

Sandton

Gauteng

 

POSTAL ADDRESS:                 P O Box 103

BERGVLEI

2012

 

TELEPHONE NUMBER:            +27 11 262 2662

 

FAX NUMBER:                          +27 11 262 2184

 

            It was stated by the respondent at the company that the address of 33 – 41 Fifteenth Street, Eastgate Gardens Commercial Park Marlboro Drive Sandton  submitted by our client, is not the correct address of the subject, and that Eastgate Gardens is in fact the suburb in which the subject is situated and they only utilise no 33 15th Street.  The suburb Eastgate Gardens is just off Marlboro Drive in Sandton.

 

 

MEMBERS

 

60%      P C BROUGHILL-DOWLING (MD)           ID No. 5803145066082

30%      C B PEPPER    ID No. 6703315052087

  5%     J R POWELL     ID No. 8002125110088

  5%     G D HEUER      ID No. 7011285185088

 

 

ASSOCIATE COMPANIES

 

EXPS BORDS AND TIMBER CC

(Registration Certificate Number:  2000/060080/23)

MAJELLA TRADING CC

(Registration Certificate Number:  1997/008823/23)

KWIKCORP 3 CC

(Registration Certificate Number: 2004/033650/23)

CHANSON TRADING 1103 CC

(Registration Certificate Number: 2009/100866/23)

EPPENDORF PROPERTIES (PTY) LTD

(Registration Certificate Number: 1996/009439/07)

 

The above close corporations are associated by means of the members of the subject.

 

 

BANKERS

 

FIRST NATIONAL BANK, Woodmead Branch, Branch Code: 250955, Account Number: 62081156278.  It was stated that the subject enjoys overdraft facilities to an extent of R10 000 000, secured by the shareholders guarantees.  Utilisation is stated to be partial.

 

 

DATE REGISTERED

 

13 April 2007

Registration certificate number:  2007/073332/23

 

TIMBER AND BORDS EXPRESS (PTY) LTD (Registration Certificate Number: 1993/007848/07) was established in 1993.   In April 2007 the subject converted to a Private Company.

 

It was stated that prior to commencing the subject Messrs P C BROUGHILL-DOWLING and C B PEPPER worked for P G WOOD for approximately 7 - 8 years.  P C BROUGHILL-DOWLING was the General Manager for the Johannesburg region where he ran approximately 4 - 5 branches and C B PEPPER was a Sales Representative. 

 

 

VAT NUMBER    

 

4950141707

 

 

TAX NUMBER    

 

9597619841

 

 

BBBEE STATUS       

 

Non-compliant

 

 

MAJOR OPERATION

 

Manufacturers of melamines on a small scale, as well as distributors of timber and boards.

 

MAJOR SUPPLIERS

 

The subject imports most of its supplies and deals locally with 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

 

Kitchen cupboard and furniture manufacturers and shopfitters

 

 

AREA OF DISTRIBUTION AND SELLING   

 

Gauteng & surrounds

 

 

EXPORTS

 

Occasionally to Namibia, Mozambique and Zimbabwe

 

 

TOTAL EMPLOYEES

 

80 having increased from 70 reported in 2013.

 

 

OTHER PREMISES   

 

None

 

 

OWNED OR LEASED

 

The premises are reported to be owned by 3 associate businesses in the group named CHANSON TRADING1103 CC, EPPENDORF PROPERTIES (PTY) LTD and MAJELLA TRADING CC.  The property is reported to be valued in the region of R35 000 000 and bonded to FNB for R6 000 000.

FINANCIALS

 

The following financial situation was submitted as at the 1st July 2015:

 

STOCK                                     R  25 400 000

DEBTORS                                R  15 000 000

CREDITORS                             R  25 000 000

MEMBERS LOANS                   R       500 000

TURNOVER per annum             R130 000 000

 

 

AUDITORS

 

DRYSDALE & ASSOCIATES Randburg  

 

 

YEAR END         

 

FEBRUARY

 

 

INSURANCE BROKERS 

 

RICHARD DEHRMAN INSURANCE BROKERS (MUTUAL & FEDERAL)

 

 

TRADE REFERENCES – APRIL 2006:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                                    PATTERN

 

1.         Dec 2003          R800 000          R100 000          30 days                        30 days            Very     Good

 

2.         Apr 1998           R  60 000          R  22 000          30 days                        30 days            Very     Good

 

3.         3 Years             open                 R  50 000          30 days                        30 days                        Good

 

 

TRADE REFERENCES – APRIL 2011:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                                    PATTERN

 

1.         June 06             amounts           confidential       30 days                        30 days                        Very Good

 

Do not give trade references

 

Do not give trade references

 

Do not give trade references

 

Dormant account

           

 

TRADE REFERENCES – MARCH 2012:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                                    PATTERN

 

1.         2 Years             declined            declined            30 days                        30 days                        Very Good

 

2.         2009                 R700 000          R300 000          30/60 days        30/60 days        Good

 

3.         Do not give trade references

 

 

TRADE REFERENCES – MARCH 2012:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                                    PATTERN

 

1.         2 Years             declined            declined            30 days                        30 days                        Very Good

 

2.         2009                 R700 000          R300 000          30/60 days        30/60 days        Good

 

3.         Do not give trade references

 

 

TRADE REFERENCES – FEBRUARY 2013:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                                    PATTERN

 

1.         Do not give trade references

 

2.         Do not give trade references

 

3.         3 years             declined            declined            30 days                        30 days                        Very Good

 

 

TRADE REFERENCES - MAY 2013:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                                    PATTERN

 

1.         Do not give trade references

 

2.         Do not give trade references

 

3.         July 2009          R1 200 000        R 200 000         45 days                        45 days                        Very Good

                                    c/l                     R 600 000         By arrangement

 

 

CURRENT TRADE REFERENCES:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                                    PATTERN

 

1.         Many Yrs          R1 500 000        R    500 000      30 days                        30 days                        Good

                                     c/l

 

2.         Do not give trade references

 

3.         1994                 R25 000 000      R6  000 000       90 days                        90 days                        Very Good

                                    c/l                    

 

NATURE OF GOODS OR SERVICES SUPPLIED

 

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

 

1.         Logistics

 

3.         Board and timber

 

                                   

COMMENTS

 

This is an established business meeting its larger commitments on extended terms.   Suppliers speak highly of the subject and the subject is considered equal disproportionately high creditors figure.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 63.39

UK Pound

1

Rs. 98.94

Euro

1

Rs. 70.33

 

INFORMATION DETAILS

 

Analysis Done by :

KRN

 

 

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.