MIRA INFORM REPORT

 

 

Report No. :

309033

Report Date :

11.03.2015

 

IDENTIFICATION DETAILS

 

Name :

CORICRAFT GROUP (PTY) LTD

 

 

Formerly Known As :

ASHERTON INVESTMENTS (PTY) LTD

 

 

Registered Office :

Cape Town Head Office, 28 Christian Avenue, Epping, Cape Town, Western Cape

 

 

Country :

South Africa

 

 

Date of Incorporation :

10.05.2005

 

 

Com. Reg. No.:

2005/014198/07

 

 

Legal Form :

Private Company

 

 

Line of Business :

·         Engaged as Importers, manufacturers and retailers of Lounge Suites, Dining Room Suites and Bedroom Suites. 

·         subject specialises in its own CORICRAFT brand name

·         Subject product range includes Dining Tables and Chairs, Coffee Tables, Plasma Units, Side Tables, Servers, Cabinets and Barstools

 

 

No of Employees :

±2 500 Employees, having increased from 900 reported in 2011

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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 the 16th largest 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. The global financial crisis reduced commodity prices and world demand. GDP fell nearly 2% in 2009 but has recovered since then, albeit slowly with 2014 growth projected at about 2%. Unemployment, poverty, and inequality - among the highest in the world - remain a challenge. Official unemployment is at nearly 25% of the work force, and runs significantly higher among black youth. Eskom, the state-run power company, has built two new power stations and installed new power demand management programs to improve power grid reliability. Construction delays at two additional plants, however, mean South Africa is operating on a razor thin margin; economists judge that growth cannot exceed 3% until those plants come on line. South Africa's economic policy has focused on controlling inflation, however, the country has had significant budget deficits that restrict its ability to deal with pressing economic problems. The current government faces growing pressure from special interest groups to use state-owned enterprises to deliver basic services to low-income areas and to increase job growth.

 

Source : CIA

 

Note:

(The information contained in this report, other than statutory data and comment by outside authorities, has been voluntarily supplied by officials of the subject):

 

 

COMPANY NAME

 

CORICRAFT GROUP (PTY) LTD

 

Formerly ASHERTON INVESTMENTS (PTY) LTD, the name having been changed on 4 November 2005.

 

 

PHYSICAL ADDRESS

 

Cape Town Head Office

28 Christian Avenue

Epping

CAPE TOWN

Western Cape

 

 

POSTAL ADDRESS

 

P O Box 115

EPPINDUST

7475

 

TELEPHONE NUMBER: +27 21 508 5200

 

It was stated that the subject also has a head office situated  at 1 Friedlander Street, Stormill, Gauteng, telephone number +27 11 611 8700.

 

 

SHAREHOLDERS

 

97%  WESTBROOK INVESTMENT (PTY) LTD

 

The remaining 3% shareholding was declined as there are stated to be numerous small shareholders.

 

The shareholding changed and was previously:

 

48,3%  WESTBROOK INVESTMENT (PTY) LTD

44.9%  CAP WEST LTD

6.8%  D G JACOBSON

 


ASSOCIATE COMPANIES

 

None

 

 

DIRECTORS

 

K M UTIAN                                                        ID No.   6809285263081

MS L M REICHMAN                                           ID No.   6803280137085

M H SACKS                                                      ID No.   7002075038082

C P SCHNEEBERGER                                      ID No.   7410165255088

M MATISONN                                                    ID No.   7503055021089

 

BANKERS

 

ABSA BANK, CAPE TOWN, however, further information regarding banking facilities was not forthcoming from respondents at the company.

 

 

DATE REGISTERED

 

10 May 2005

Registration Certificate Number 2005/014198/07

 

The subject was registered to take over the assets and operations of CORICRAFT GROUP (PTY) LTD Registration Certificate Number 2000/018486/07.  The latter company changed its name to ASHERTON INVESTMENTS (PTY) LTD simultaneously with that of the subject on the 4th November 2005. 

 

The company ASHERTON INVESTMENTS (PTY) LTD (formerly Coricraft Group (Pty) Ltd) (Registration certificate number 2000/018486/07) was registered to take over assets and operations of CORICRAFT (PTY) LTD (Reg. No. 1967/001208/07).  The latter company was purchased as a dormant company and changed its name and commenced operations on 8 March 1995.

 

 

MAJOR OPERATION

 

Importers, manufacturers and retailers of lounge suites, dining room suites and bedroom suites.  The subject specialises in its own CORICRAFT brand name.

 

Subject product range includes Dining Tables and Chairs, Coffee Tables, Plasma Units, Side Tables, Servers, Cabinets and Barstools


MAJOR SUPPLIERS

 

The subject imports fabric from Italy, leather from Argentina, accessories and furniture from Singapore, India and China and Indonesia. The subject also purchases from companies within South Africa.

 

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

 

General public

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

 

EXPORTS

 

Belgium, Namibia, Spain, Germany and UK.

 

 

TOTAL EMPLOYEES

 

±2 500 Employees, having increased from 900 reported in 2011.

 

 

OTHER PREMISES 

 

The subject has stores in Johannesburg, Cape Town, Bloemfontein, Rustenburg, Nelspruit, Durban and Port Elizabeth.

 

 

OWNED OR LEASED

 

The premises are reported to be leased.

 


FINANCIALS

 

The following estimated financial situation was submitted as at 20 February 2015 for the group of companies:

 

STOCK                         R120 000 000

DEBTORS                    Only C.O.D

FIXED ASSETS                        R100 000 000

CREDITORS                 R115 000 000

TURNOVER per month  R120 000 000

 

 

AUDITORS

 

MAZARS  Cape Town

 

 

YEAR END

 

FEBRUARY

 

 

INSURANCE BROKERS

 

A I B INSURANCE BROKERS

 

 

TRADE REFERENCES – OCTOBER 2005

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                                    PATTERN

 

Old acc             R100 000+        R100 000+        7 days              7 days              Very Good

 

            10 years            R300 000          R200 000          60 days                        60 days                        Good

                                                            -R300 000

 

3 years             R4 000 000        R1 500 000        30 days                        30 days                        Good

                                    c/l                     -R4 000 000

 

 


TRADE REFERENCES – JUNE 2011

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.a) 2005             R2 300 000    R1 000 000      30 days    30 days        Very Good

                          c/l

 

1.b) 2005             R2 200 000    R   700 000     30 days    30 days        Very Good

                          c/l

 

2.    10 years       declined        R   500 000     60 days    60 days        Very Good           

 

3.    5 years+       R2 000 000    R2 000 000      60 days    60 days        Excellent

                          c/l

 

 

CURRENT TRADE REFERENCES

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS     PAYMENT   EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1a). 2010             R1 700 000    R300 000-       60 days     60 days       Very Good           

                                               R600 000                         -5%

     

2b). 2009             R1 700 000    R300 000-       60 days     60 days       Very Good

                                               R500 000                         -5%

 

3.    Feb 2007      R35 000 000   ±R11 300 000  30 days     30 days       Very Good

      It was stated that the subject has utilised the full R35 000 000 limit on occasion.

 

 

NATURE OF GOODS OR SERVICES SUPPLIED

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

 

1.    Foam          

                         

2.    Fibre           

 

3.    Import financing               

 


COMMENTS

 

This is an established company that has undergone numerous changes.  The subject is meeting its commitments on arranged terms and is spoken of highly by its suppliers.   

 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.70

UK Pound

1

Rs.94.55

Euro

1

Rs.67.66

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

MNL

 

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.