MIRA INFORM REPORT

 

 

Report No. :

331512

Report Date :

17.07.2015

 

IDENTIFICATION DETAILS

 

Name :

SNEAKER SNACKS CC

 

 

Registered Office :

9 Repens Road, Heriotdale, Johannesburg, Gauteng

 

 

Country :

South Africa

 

 

Date of Incorporation :

19.08.1997

 

 

Com. Reg. No.:

1997/044788/23

 

 

Legal Form :

Closed Corporation

 

 

Line of Business :

Manufacturing of Potato Chips and a variety of Snacks.

 

 

No. of Employees :

300

 

 

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

 

Company name and address

 

COMPANY NAME:                     SNEAKER SNACKS CC

 

PHYSICAL ADDRESS:               9 Repens Road

                                                 HERIOTDALE

                                                 Johannesburg

                                                 Gauteng

 

POSTAL ADDRESS:                 P O Box 91118

                                                AUCKLAND PARK

                                                2006

 

TELEPHONE NUMBER:             +27 11 626-1660

 

FAX NUMBER:                           +27 11 626-1698

 

 

MEMBERS

 

50%      G MAIN                                                ID No.  6805235213085

50%      B POPAVIC                                          ID No.  6308125045089

 

 

ASSOCIATE COMPANIES         

 

None, however, it was stated that the members are also shareholders in the following company, in addition to an associated property owning company, however, the registered name of the company is unknown.

 

SORGI FOODS (PTY) LTD

Registration Certificate Number 2002/008681/07

 

 

BANKERS

 

FIRST NATIONAL BANK, Parktown. Account Number 62003807362. It was stated that the subject does not require overdraft facilities as credit balances are maintained.

 

 

DATE REGISTERED

 

19 August 1997

Registration Certificate Number:  1997/044788/23

 

SNEAKER SNACKS CC was established in August 1997.

 

VAT NUMBER

 

 4180176630

           

 

TAX NUMBER

 

9569257844

 

 

BBBEE STATUS

 

Non-compliant

 

 

MAJOR OPERATION

 

The subject is involved in the manufacturing of potato chips and a variety of snacks.

 

 

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

 

Retailers

 

 

AREA OF DISTRIBUTION AND SELLING

 

 South Africa

 

 

EXPORTS

 

Botswana and Swaziland

 

 

TOTAL EMPLOYEES

 

300

 

 

OTHER PREMISES

 

None

 

 

OWNED OR LEASED

 

The premises are reported to be leased from an associated property owning company.

 

 

FINANCIALS

           

The following estimated financial situation was submitted as at 14 July 2015:

 

STOCK                                                    plus work in progress R4 000 000 – R6 000 000

DEBTORS                                                                                R7 000 000 – R8 000 000

FIXED ASSETS                                                                        R3 000 000 – R4 000 000

CREDITORS                                                                                                 R6 000 000

LONG TERM LIABILITIES                                                                               R2 000 000

TURNOVER per month                                                              R7 000 000 – R7 500 000

 

 

AUDITORS

 

MASSYNS INCORPORATED

 

 

FINANCIAL YEAR END

 

FEBRUARY

 

 

INSURANCE BROKERS 

 

S A EAGLE INSURANCE BROKERS

 

 

TRADE REFERENCES – AUGUST 2006

 

       PERIOD        HIGHEST     AVERAGE      TERMS    PAYMENT    EXPERIENCE

                           CREDIT        CREDIT                          PATTERN

 

1.    8 years          R1 500 000   R800 000 -      30 days    30 days        Very good

                                               R1 000 000

 

2.    2 years          R200 000      R130 000        30 days    30 days        Very good

 

3.    6 years          R1 000 000   R500 000        30 days    30 days        Very good

 

 

CURRENT TRADE REFERENCES

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS     PAYMENT   EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    +10 years     R750 000       R750 000        30 days     30 days       Very Good           

It was stated that the subject occasionally purchases in excess of the credit limit with the suppliers approval.

     

2.    2007             Open             R1 500 000-     30 days     30 days       Very Good

                                               R2 000 000

 

3.    Against company policy to divulge trade reference information but good account.

 

4.    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.    Plastic bags

                         

2.    Food flavouring and colorants                

 

3.    Oil               

 

 

COMMENTS

 

This is a well-established business which is commitments on time and the subject is spoken of highly by its suppliers.

 


 

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 :

NIT

 

 

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.