MIRA INFORM REPORT

 

 

Report No. :

313568

Report Date :

30.03.2015

 

IDENTIFICATION DETAILS

 

Name :

STANDERTON MILLS (PTY) LTD

 

 

Registered Office :

Steyn Street, Industrial Area Standerton, Mpumalanga, P O Box 36, Standerton 2430

 

 

Country :

South Africa

 

 

Date of Incorporation :

29.08.1962

 

 

Legal Form :

Private Company

 

 

Line of Business :

Spinning and Weaving Company

 

 

No. of Employees :

±539

 

 

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 :

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

 

COMPANY NAME

 

STANDERTON MILLS (PTY) LTD

 

 

PHYSICAL ADDRESS

 

Steyn Street

Industrial Area

Standerton

Mpumalanga

 

 

POSTAL ADDRESS

 

P O Box 36

Standerton

2430

 

 

TELEPHONE NUMBER

 

+27 17 712 2315

 

 

FAX NUMBER

 

+27 17 712 5804

 

 

SHAREHOLDERS

 

100%    ST HELENA INVESTMENT COMPANY (PTY) LTD

(Registration Certificate Number 1948/032053/07)

 

The shareholding was previously:

 

 20% B DUFOUR

 20% J J LEWIS

 20% B A DUFOUR (brother)

 20% P G LAMBERT

 20% F DUFOUR

 

ASSOCIATE COMPANIES    

 

TROY TEXTILES (PTY) LTD

(Registration Certificate Number 1951/000525/07)

PAPYRUS CORPORATION (PTY) LTD

(Registration Certificate Number 1947/027358/07)

DISLER INVESTMENTS (PTY) LTD

(Registration Certificate Number 1975/002919/07)

TOGA LININGS (PTY) LTD

(Registration Certificate Number 1952/000732/07)

RICH REWARDS TRADING 148 (PTY) LTD

(Registration Certificate Number 2005/019529/07)

`          

The subject was previously associated to NIGEL TEXTILE WORKS (PTY) LTD but this business has since been sold.

 

 

DIRECTORS

 

B A DUFOUR    ID No 5809295032006

 

 

BANKERS

 

FIRST NATIONAL BANK, Standerton branch, account number 61372921366. 

It was stated that the subject does not require overdraft facilities as credit balances are normally maintained at the bank.

 

 

DATE REGISTERED

 

29 August 1962

Registration Certificate Number: 1962/003235/07

 

STANDERTON MILLS (PTY) LTD was established in August 1962.

 

 

VAT NUMBER

 

4280109416


TAX NUMBER

 

9625212718

 

 

BBBEE STATUS

 

Level 8 Contributor

 

 

MAJOR OPERATION

 

Spinning and weaving company

 

 

MAJOR SUPPLIERS

 

The subject imports cotton from India, Zimbabwe and Botswana 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

 

Carpet, fabric and yarn manufacturing industry e.g. ROMATEX.

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

Zimbabwe, Canada, the United Kingdom and Australia

 

TOTAL EMPLOYEES

 

±539 permanent employees

 

 

OTHER PREMISES

 

None

 

 

OWNED OR LEASED

 

The Head Office premises on which the subject is situated are reported to be owned by the subject, free of bond.

 

 

FINANCIALS

 

Full financial information was not forthcoming from respondents as they stated that this is confidential and outside authorities were unable to assist in this regard.

 

 

AUDITORS

 

VAN DER MERWE AUDITORS

 

 

YEAR END

 

FEBRUARY

 

 

INSURANCE BROKERS

 

HERITAGE INSURANCE BROKERS (AON)

 

TRADE REFERENCES – JUNE 2004

 

            ACCOUNT        HIGHEST         AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT           CREDIT                        PATTERN

 

1.         20 years            R1 000 000        R600 000          30 days            30 days            Excellent

                        c/l

 

2.         10 years+          R500 000          R500 000+        30 days            30 days            Excellent

 

3.         13 years            R500 000          R100 000          30 days            30 days            Very Good

 

TRADE REFERENCES – MARCH 2006

 

            ACCOUNT        HIGHEST         AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT           CREDIT                        PATTERN

 

1.         10 years            R   500 000       R   300 000       30 days            30 days            Excellent

 

2.         01/1994 R2 000 000        R2 000 000        30 days            30 days            Excellent

 

3.         6 years R2 000 000        R1 000 000        30 days            30 days            Good

 

TRADE REFERENCES – SEPTEMBER 2008:

 

            ACCOUNT        HIGHEST         AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT           CREDIT                        PATTERN

 

1.         15 years            R2 000 000        R1 500 000        30 days            30 days            Good

 

2.         1992     declined            R1 300 000        30 days            15 days            Excellent

                                                            -2.5%

           

3.         1991     R1 000 000        R100 000 -        30 days            30 days            Good

                                    R360 000         

 

TRADE REFERENCES – MARCH 2008:

 

            ACCOUNT        HIGHEST         AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT           CREDIT                        PATTERN

 

1.         13 years           R2 000 000        R2 000 000        30 days            30 days            Very Good

 

2.         1994     declined            R2 000 000+      30 days            30 days            Very Good

 

3.         Old acc declined            declined            30 days            30 days            Good

 

 

TRADE REFERENCES – SEPTEMBER 2008:

 

            ACCOUNT        HIGHEST         AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT           CREDIT                        PATTERN

 

1.         15 years           R750 000          declined            30 days            30 days            Good

                        c/l

 

2.         1992     declined            R2 000 000 -      30 days            15 days            Excellent

                                    R3 000 000

 

3.         Do not give trade references

 

4.         Awaiting a fax trade reference

 

TRADE REFERENCES – MARCH 2009:

 

            ACCOUNT        HIGHEST         AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT           CREDIT                        PATTERN

 

1.         1996     R750 000          R600 000 -        30 days            30 days            Good

                        c/l (CGIC)          R650 000

 

2.         1992     undisclosed      R1 000 000 -      30 days            15 days            Excellent

                                    R3 000 000                    2.5%

 

3.         1991     R1 500 000        R500 000 -        30 days            30 days            Good

                        c/l         R1 000 000

 

TRADE REFERENCES – MARCH 2011:

 

            ACCOUNT        HIGHEST         AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT           CREDIT                        PATTERN

 

1.         10 years+          do not disclose details  30 days            30 days            Excellent

 

2.         27 years            declined            declined            30 days            30 days            Excellent

 

3          May 1991          do not disclose details  30 days            30 days            Excellent

                        - insured with CGIC

 

TRADE REFERENCES – JUNE 2012:

 

            ACCOUNT        HIGHEST         AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT           CREDIT                        PATTERN

 

1.         15 Years +        Declined           R500 000          30 days            30 days            Very Good

 

2.         ±10 Years         Declined           Declined           30 days            30 days            Excellent

 

3.         20 Years           R1 500 000        R1 100 000        30 days            30 days            Very Good

 

TRADE REFERENCES – 10 APRIL 2013:

 

            ACCOUNT        HIGHEST         AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT           CREDIT                        PATTERN

 

1.         2001     R 500 000         R 110 000         30 days            30 days            Very Good

 

2.         20 years            Declined           R 400 000-        30 days            30 days            Excellent

                                    R 500 000         (Insured CGIC)

 

3.         +5 years           Declined           Declined           30 days            30 days            Very Good

CURRENT TRADE REFERENCES:

 

            ACCOUNT        HIGHEST         AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT           CREDIT                        PATTERN

 

1.         The supplier stated that the client hadn’t traded with them in over 2 years, the account remains open

 

2.         2001     R 500 000         R 200 000         30 days            30 days            Excellent

 

3.         Unable to reach supplier as the numbers no longer exist.

 

 

NATURE OF GOODS OR SERVICES SUPPLIED

 

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

 

            2.         Logistics

 

 

COMMENTS

 

This is an established business meeting its commitments timeously.  The subject is considered equal to a maximum figure of €150 000 over 30 days.  The lack of financial information and the apparent reduced level of purchases should be borne in mind.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.61

UK Pound

1

Rs.92.95

Euro

1

Rs.68.15

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 

               


 

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.