MIRA INFORM REPORT

Report No. :	331977
Report Date :	18.07.2015

IDENTIFICATION DETAILS

Name :	ELANGENI SOAPS (PTY) LTD
Formerly Known As :	ELANGENI OIL AND CAKE MILLS (PTY) LTD
Registered Office :	17 Buro Crescent, Mayville, Durban, KwaZulu-Natal
Country :	South Africa
Date of Incorporation :	22.03.1984
Com. Reg. No.:	1984/002972/07
Legal Form :	Private Company
Line of Business :	Subject is engaged in manufacturing beauty soaps, and carries and laundry soaps, carrying
No. of Employee :	210

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

ELANGENI SOAPS (PTY) LTD

Formerly: ELANGENI OIL AND SOAPS (PTY) LTD, the name having been changed on 29 July 2013.

Formerly: ELANGENI OIL AND CAKE MILLS (PTY) LTD, the name having been changed on 22 March 1984.

PHYSICAL ADDRESS

17 Buro Crescent

MAYVILLE

Durban

KwaZulu-Natal

POSTAL ADDRESS

P O Box 51317

MUSGRAVE

4091

TELEPHONE NUMBER

+27 31 203 5000

FAX NUMBER

+27 31 208 2676

It was established that the supplied address of 8 Red Street, Isithebe, KwaZulu-Natal is that of the factory for the subject.

SHAREHOLDERS

100% ELANGENI HOLDINGS (PTY) LTD

Registration Certificate Number 1944/017617/07

ASSOCIATE COMPANIES

None, however, it was stated that the following companies are sister companies with a common Holding Company.

ELSO INVESTMENTS (PTY) LTD (property owning company)

Registration Certificate Number 2001/010415/07

CHURSTON INVESTMENTS (PTY) LTD (property owning company)

Registration Certificate Number 2003/002419/07

ELANGENI OIL (PTY) LTD

Registration Certificate Number 2012/010863/07

DIRECTORS

I M PARUK ID No. 4411105130053

E Y PARUK (nephew) ID No. 7806305121082

C Y PARUK (nephew) ID No. 7903265202083

M Y LAKHI ID No. 5804055050082

BANKERS

NEDBANK, Durban Main Branch. It was stated that the subject enjoys overdraft facilities secured by a cession of debtors. Utilisation of the overdraft is stated to fluctuate.

DATE REGISTERED

22 March 1984

Registration Certificate Number: 1984/002972/07

ELANGENI SOAPS (PTY) LTD was established in March 1984, and has undergone two name changes, the last being from ELANGENI OIL AND SOAPS (PTY) LTD to the current name in July 2013 when the Oil manufacturing division was sold to a sister company, ELANGENI OIL (PTY) LTD, Registration Certificate Number 2012/010863/07

VAT NUMBER

4210102614

TAX NUMBER

9082079204

BBBEE STATUS

Level 4 contributor

MAJOR OPERATION

The subject is involved in manufacturing beauty soaps, and carries the brand names FRUIT SCENE and TRUE ESSENTIALS, as well as laundry soaps, carrying the brand names PEARLS and RAVE.

MAJOR SUPPLIERS

It was stated that the subject imports 70% of its supplies as well as sourcing products 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

Wholesalers, retailers and supermarkets such as SPAR, PICK ‘N PAY and SHOPRITE.

AREA OF DISTRIBUTION AND SELLING

South Africa

EXPORTS

Southern Africa

TOTAL EMPLOYEES

210

OTHER PREMISES

It was stated that the subject has a factory in Isethebe.

OWNED OR LEASED

The head office premises are reported to be owned by CHURSTON INVESTMENTS (PTY) LTD and the factory premises are stated to be owned by ELSO INVESTMENTS (PTY) LTD.

FINANCIALS

Full financial information was declined, however, the following figures were submitted as at 16 July 2015:

STOCK R 40 000 000

TURNOVER per annum R250 000 000 – R300 000 000

It was stated that the turnover has decreased from the figure of R3 500 000 to R400 000 000 supplied in December 2013 due the oil manufacturing section of the company being incorporated into a sister company.

AUDITORS

DESAI JADWAT & CO

YEAR END

DECEMBER

INSURANCE BROKERS

PETER CHRISTY INSURANCE BROKERS

TRADE REFERENCES FEBRUARY 2011

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 8 years R750 000 R 500 000- 30 days 30 days Very Good

c/l R 600 000

2. 8 years undisclosed R1 200 000 30 days 30 days Very Good

3. Do not give trade references

TRADE REFERENCES – NOVEMBER 2012

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. ±7 years Open Acc ±R1 000 000 30 days 30 days Very Good

Less 2.5%

2. Do not give trade references

3. +5 years R900 000 R 300 000- 60 days 60 days Very Good

R 900 000

TRADE REFERENCES – DECEMBER 2013

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 10 years Open Acc R2 000 000 30 days 30 days Very good

2. Do not give trade references

3. Do not give trade references

CURRENT TRADE REFERENCES

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 8 years Declined R50 000 30 days 30 days Excellent

Minimum

2. +10 years R2 000 000 R1 000 000 30 days 30 days Very Good

3. Against company policy to divulge trade reference information.

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. Packaging

2. Vegetable oils and fats

COMMENTS

This is an established business meeting its obtainable commitments timeously, and is spoken of highly by its suppliers.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.49
UK Pound	1	Rs.99.43
Euro	1	Rs.69.14

INFORMATION DETAILS

Analysis Done by :	RAS
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.