MIRA INFORM REPORT

 

 

Report No. :

327108

Report Date :

22.06.2015

 

IDENTIFICATION DETAILS

 

Name :

EQUITY PHARMACEUTICALS (PTY) LTD

 

 

Registered Office :

100 Sovereign Drive Route 21 Corporate Park Nellmapius Irene Pretoria Gauteng

 

 

Country :

South Africa

 

 

Date of Incorporation :

26.06.1997

 

 

Com. Reg. No.:

1997/009942/07

 

 

Legal Form :

Private Company

 

 

Line of Business :

Warehousing and distribution of pharmaceutical products.

 

 

No. of Employee :

23

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

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 NAME

 

EQUITY PHARMACEUTICALS (PTY) LTD

 

 

Address

 

PHYSICAL ADDRESS

 

100 Sovereign Drive

Route 21 Corporate Park

Nellmapius

IRENE

Pretoria

Gauteng

 

POSTAL ADDRESS

 

P O Box 60964

PIERRE VAN RYNEVELD

0045

 

TELEPHONE NUMBER

+27 12 345 1747

 

FAX NUMBER

+27 12 345 1412

 

 

SHAREHOLDERS

 

100%    EQUITY PHARMA HOLDINGS (PTY) LTD.

(Registration Certificate Number: 2007/028921/07).

 

 

ASSOCIATE COMPANIES

 

EQUITY DENTAL (PTY) LTD

EQUITY MEDICAL TECHNOLOGIES (PTY) LTD

EQUIPHARM SPECIALISED DISTRIBUTION (PTY) LTD

LAVENDER SKY INVESTMENTS 31 (PTY) LTD (Property owning company)

 

The respondent stated to have the above associate companies, however, the shareholding was not disclosed.

 

DIRECTORS

 

R J ROOS                                                         ID No. 6807315133084

J WILLEMSE                                                     ID No. 6811105262087

 

 

BANKERS

 

ABSA BANK, Hillcrest Branch.  The subject is under a cash management scheme controlled by the holding company.

 

 

DATE REGISTERED

 

26 June 1997

Registration Certificate Number:1997/009942/07

 

EQUITY PHARMACEUTICALS CC was established in 1992, (Registration Certificate Number: 1992/025430/23), and in 1997 converted to a Private Company.

 

 

VAT NUMBER

 

4650137096      

 

 

TAX NUMBER

 

9019004820

 

 

BBBEE STATUS

 

Not applicable

 

 

MAJOR OPERATION

 

Warehousing and distribution of pharmaceutical products.

 

 

MAJOR SUPPLIERS

 

The subject imports 95% of its supplies and only deals with one local clearing agent.

 

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

 

The pharmacies and wholesalers.

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

None

 

 

TOTAL EMPLOYEES

 

23, having increased from 18 reported in 2013.

 

 

OTHER PREMISES

 

None


OWNED OR LEASED

 

The premises are reported to be owned by the associate property owning company.

 

 

FINANCIALS

 

Full financial information was not forthcoming from respondents at the subject and outside authorities were unable to assist in this regard.

 

 

AUDITORS

 

MAZARS

 

 

FINANCIAL YEAR END

 

MARCH

 

 

INSURANCE BROKERS

 

EPIC INSURANCE BROKERS

 

 

TRADE REFERENCES-APRIL 2013

 

                  ACCOUNT    HIGHEST      AVERAGE      TERMS     PAYMENT   EXPERIENCE

                  OPENED      CREDIT         CREDIT                          PATTERN

 

1.                4 years         Declined        Declined         30 days     30 days       Very Good

 

CURRENT TRADE REFERENCES

 

                  ACCOUNT    HIGHEST      AVERAGE      TERMS     PAYMENT   EXPERIENCE

                  OPENED      CREDIT         CREDIT                          PATTERN

1.                2010             R400 000       R100 000-       30 days     30 days       Good

                                                           R350 000

 

NATURE OF GOODS OR SERVICES SUPPLIED

 

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

 

1.             Logistics

 

 

COMMENTS

 

This is an established company meeting its only local commitment timeously.  In the absence of key financial information and an established payment pattern


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.82

UK Pound

1

Rs.101.26

Euro

1

Rs.72.36

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

ANK

 


 

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.