MIRA INFORM REPORT

 

 

Report No. :

311924

Report Date :

20.03.2015

 

IDENTIFICATION DETAILS

 

Name :

EHRENBERG SA CC

 

 

Registered Office :

55 - 61 Booysens Road, Booysens Johannesburg Gauteng, P O Box 38078, 2016

 

 

Country :

South Africa

 

 

Date of Incorporation :

16.03.2001

 

 

Com. Reg. No.:

2001/017163/23

 

 

Legal Form :

Private Company

 

 

Line of Business :

Importers and Wholesalers of Electrical.

 

 

No. of Employees :

35

 

 

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 :

Slow but correct

 

 

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

 

 

COMPANY NAME

 

EHRENBERG SA CC

 

 

TRADING NAME      

 

ELECTRO CONTACT

                       

EHRENBERG ENGINEERING

 

 

Company Address

 

 

PHYSICAL ADDRESS:              55 - 61 Booysens Road

                                    BOOYSENS

                                    Johannesburg

                                    Gauteng

 

POSTAL ADDRESS:                 P O Box 38078

                                    BOOYSENS

                                    2016

 

 

TELEPHONE NUMBER   

 

+27 11 493 6280

 

 

FAX NUMBER          

 

+27 11 493 1677

 

 

MEMBERS

 

25% MRS G VON EHRENBERG            ID No:  2310100011007 - mother

25% H B EHRENBERG                          ID No:  4803225097008 - son

25% O J KERR                                     ID No:  4709225091083

25% MRS. A L KERR                            ID No:  5204170080082 - wife

 

 

ASSOCIATE COMPANIES

 

EHRENBERG ENGINEERING CC - dormant

(Registration Certificate Number: 2001/017158/23)

ELECTRO CONTACT CC – dormant

(Registration Certificate Number: 2001/017160/23)

 

The assets and operations of the above mentioned businesses, were incorporated into the subject.

 

EHRENBERG INVESTMENTS CC (property owning company)

 

 

BANKERS

 

FIRST NATIONAL BANK Southdale, each division is reported to have its own separate account.  Account for division ELECTRO CONTACT is 50441440000. Overdraft facilities are available, secured by property.  Utilisation is stated to be partial.

 

 

DATE REGISTERED

                       

16 March 2001

Registration certificate number 2001/017163/23

 

The subject converted from EHRENBERG SA (PTY) LTD – registration certificate number:  1965/006232/07.  The assets and operations of two of the associate businesses namely, ELECTRO CONTACT CC and EHRENBERG ENGINEERING CC were incorporated into the subject.   The latter two business converted from established private companies.

 

 

VAT NUMBER    

 

4900116809      

 

 

TAX NUMBER    

 

9184058841

 

 

BBBEE STATUS 

 

Level 4 contributor

 

 

MAJOR OPERATION

 

Electrical importers and wholesalers

 

 

MAJOR SUPPLIERS

 

The subject imports most of its supplies and also deals with local 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

 

Various industries i.e. mining industry as well as wholesalers

 

 

AREA OF DISTRIBUTION AND SELLING

 

Southern Africa

 

EXPORTS

 

Zimbabwe, Malawi, Botswana and small to Namibia

 

 

TOTAL EMPLOYEES

 

 35

 

 

OTHER PREMISES

 

None

 

 

OWNED OR LEASED

 

The premises are reported to be owned by EHRENBERG INVESTMENTS CC, valued in the region of R9 000 000, free of bond. 

 

 

FINANCIALS

 

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

 

 

AUDITORS

 

HOWARD JOEL & CO, Johannesburg

Telephone number:  +27 11 483-0097

 

 

FINANCIAL YEAR END

 

 FEBRUARY

 

 

INSURANCE BROKERS

 

POGIR BASTION INSURANCE BROKERS

 

 

TRADE REFERENCES - AUGUST 2006

 

             ACCOUNT   HIGHEST    AVERAGE   TERMS   PAYMENT    EXPERIENCE

             OPENED     CREDIT      CREDIT                      PATTERN

 

1.          12 yrs         R250 000     R250 000      30 days   30 days        Good

 

2.          Old acc.      R400 000     R400 000      30 days   30 days        Good

 

3.          4 yrs           R500 000     R500 000      30 days   30 days        Excellent

 

 

TRADE REFERENCES – MARCH 2007

 

             ACCOUNT   HIGHEST    AVERAGE   TERMS   PAYMENT    EXPERIENCE

             OPENED     CREDIT      CREDIT                      PATTERN

 

1.          15+ Yrs       R120 000     R100 000-     30days    30 days        Excellent

                                                 R120 000

 

2.          +/- 13 Yrs    R300 000     R30 500-      30/60      60 days        Slow

                               c/l               R75 000       days                          

 

3.          07/04/2000  R400 000     +/-R200 000  60 days   60 days        Very good

                               c/l               R300 000      less 2 ˝

 

 

TRADE REFERENCES-NOVEMBER 2008

 

             ACCOUNT   HIGHEST    AVERAGE   TERMS   PAYMENT    EXPERIENCE

             OPENED     CREDIT      CREDIT                      PATTERN

 

1.          1997           R1.8 mill      R600 000      60 days   60 days        Very Good

                               c/l               -R700 000

 

2.          2006           R1 mill        R800 000      30 days   30 days        Good

             Sporadic purchases       - R1 mill – fluctuates depending on project

 

3.          20 yrs         R800 000     R180 000      30 days   30 days        Very Good

                                                 -R800 000 fluctuates   5%

 

 

CURRENT TRADE REFERENCES

 

             ACCOUNT   HIGHEST    AVERAGE   TERMS   PAYMENT    EXPERIENCE

             OPENED     CREDIT      CREDIT                      PATTERN

 

1.          Unable to obtain trade reference

 

2.          +10 years    R750 000     R250 000-     30 days   25 days        Excellent

                                                 R350 000

 

3.          No longer deals with the subject

 

NATURE OF GOODS OR SERVICES SUPPLIED

 

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

 

2.                Metal sheets

 

 

COMMENTS

 

This is an established company that was formed from the operations and assets of two well-established companies.  The subject is meeting its one obtainable commitment before terms. The supplier regards the subject highly and is considered equal to its normal business engagements, however, the lack of financial information and a proper payment pattern should be borne in mind.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.42

UK Pound

1

Rs.92.99

Euro

1

Rs.67.29

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.