MIRA INFORM REPORT

 

 

Report No. :

331527

Report Date :

17.07.2015

 

IDENTIFICATION DETAILS

 

Name :

API SOLUTIONS SA (PTY) LTD

 

 

Registered Office :

116 Melacca Road, Unit 1, Northgate Park, Durban North, KwaZulu-Natal

 

 

Country :

South Africa

 

 

Year of Establishment :

2008

 

 

Com. Reg. No.:

2014/246399/07

 

 

Legal Form :

Private Company

 

 

Line of Business :

Subject is imports and distributes industrial parts utilised in sugar mills.

 

 

No. of Employees :

10

 

 

RATING & COMMENTS

 

MIRA’s Rating :

NB

 

RATING

STATUS

PROPOSED CREDIT LINE

 

--

NB

New Business

 

--

 

Status :

New Business

 

 

Payment Behaviour :

Unknown

 

 

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

 

 

 

COMPANY NAM

 

API SOLUTIONS SA (PTY) LTD

 

 

ADDRESS

 

116 Melacca Road

Unit 1, Northgate Park

DURBAN NORTH

KwaZulu-Natal

 

 

POSTAL ADDRESS

 

P O Box 40188

RED HILL

4071

 

 

TELEPHONE NUMBER

 

+27 31 902 6244

 

 

SHAREHOLDERS

 

S BALCHUND

S BENNETT

 

The percentage of shareholding was unknown by respondents at the subject.

 

 

ASSOCIATE COMPANIES

 

None

 

 

DIRECTORS

 

S BALCHUND                                       ID No.   7110125171082

S BENNETT                                          ID No.   Not available

 

S BENNETT was confirmed as a director at the subject, however, is not reflected at CIPC.

 

 

BANKERS

 

STANDARD BANK, Prospecton Branch. Further banking information was declined, however, it was stated that the subject does not require overdraft facilities as credit balances are maintained at the bank.

 

 

DATE REGISTERED

 

11 November 2014

Registration Certificate Number:  2014/246399/07

 

API SOLUTIONS SA (PTY) LTD was established in 2008 as Close Corporation, BNC INDUSTRIAL SERVICES CC (Registration Certificate Number 2008/258816/23), which underwent a name change to its current name and converted to a Private Company in November 2014.

 

 

VAT NUMBER

 

4490258250

 

 

TAX NUMBER

 

9257154220

 

 

BBBEE STATUS

 

Level 1 contributor

 

 

MAJOR OPERATION

 

The subject imports and distributes industrial parts utilised in sugar mills.

 

 


MAJOR SUPPLIERS

 

The subject is reported to import as well as source its supplies locally.

 

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

           

Specifically the sugar mill industry.

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

Swaziland

 

 

TOTAL EMPLOYEES

 

10

 

 

OTHER PREMISES

 

None

 

 

OWNED OR LEASED

 

The premises are reported to be leased.

 

 

FINANCIALS

 

 

Full financial information was not forthcoming from respondents at the subject, however, it was stated that the estimated monthly turnover is R800 000. Value of stock and other financial information was not forthcoming.

 

 

AUDITORS

 

PKF DURBAN, Avishkar Harriparsad   +27 31 573 5000

 

 

FINANCIAL YEAR END

 

FEBRUARY

 

 

INSURANCE BROKERS

 

HOLLARD INSURANCE BROKERS

 

 

TRADE REFERENCES – APRIL 2015

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS     PAYMENT   EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    +5 years       Open             Up to              30 days     30 days       Excellent

                                               R20 000

                         

2.    May 2012     Open             R4 500            30 days     30 days       Good

 

3.    Awaiting email trade reference.

 

4.    Against company policy to divulge trade reference information.

 

 

CURRENT TRADE REFERENCES

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS     PAYMENT   EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    +5 years       Open             ±R15 000        30 days     ±30 days      Excellent

                         

2.    Oct 2011      R5 000           Up to              30 days     ±30 days      Good

                                               R7 000

It was stated that the subject exceeds the credit limit with the suppliers authorisation, however, there is a current amount of R4 000 outstanding which has never happened before

 

3.    May 2012     Declined        R7 500            30 days     30 days       Good

 

It was stated by all suppliers that they have dealt with the subject since before the name change and conversion to a Private Company.

 

 

NATURE OF GOODS OR SERVICES SUPPLIED

 

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

 

1.    Heat treatment and engineering services.

                         

2.    Bearings, seals, O-rings and related spares.             

 

3.    Balancing and servicing of industrial parts.              

 

 

COMMENTS

 

This is a newly established business which underwent a conversion from an established Close Corporation registered in 2008.  The subject is meeting its obtainable small to moderate commitments mostly timeously, however, one supplier has stated that the subject has a small amount currently outstanding. The subject is considered equal to €7 324 over 30 days, preferably secured in view of the apparent financial stress, turnover figure and lack of full financial information.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.50

UK Pound

1

Rs.99.17

Euro

1

Rs.69.39

 

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.