MIRA INFORM REPORT

Report No. :	321640
Report Date :	27.05.2015

IDENTIFICATION DETAILS

Name :	NICOLA-J FLAVOURS AND FRAGRANCES (PTY) LTD

Registered Office :	Unit B, Stand 64 Capital Hill Business Park Le Roux Street Midrand Gauteng

Country :	South Africa

Date of Incorporation :	May 1996

Com. Reg. No.:	2001/005451/07

Legal Form :	Private Company

Line of Business :	Manufacturers of non-branded flavours and colorants.

No. of Employee :	±25

RATING & COMMENTS

MIRA’s Rating :

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 – December 31, 2014

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

South Africa

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. The global financial crisis reduced commodity prices and world demand, and GDP fell nearly 2% in 2009 but has recovered since then, albeit slowly, with 2014 growth less than 2%. 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, has built two new power stations and installed 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 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 those plants come on line. 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. 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

NICOLA-J FLAVOURS AND FRAGRANCES (PTY) LTD

Address

PHYSICAL ADDRESS

Unit B, Stand 64

Capital Hill Business Park

Le Roux Street

MIDRAND

Gauteng

POSTAL ADDRESS

P O Box 6837

HALFWAY HOUSE

1635

TELEPHONE NUMBER: +27 11 315 6582

FAX NUMBER: +27 11 805 4536

The subject moved from Unit 4, Coventry Park, Old Pretoria Main Road, Midrand a few years ago.

SHAREHOLDERS

J VLANTIS

N VLANTIS

G BOAST

The percentage of shareholding was declined by the respondent.

ASSOCIATE COMPANIES

None

DIRECTORS

J VLANTIS ID No. 6002155012008

N VLANTIS ID No. 6505120071008

G BOAST ID No. 5801195123084

BANKERS

STANDARD BANK, Sandton Branch, Account Number: 023259310. It was stated that the subject does not require overdraft facilities as credit balances are maintained at the bank.

DATE REGISTERED

12 March 2001

Registration Certificate Number: 2001/005451/07

NICOLA-J FLAVOURS AND FRAGRANCES CC (Registration Certificate Number 1996/025431/23) was established in May 1996. In March 2001 the subject converted from a Close Corporation to a Private Company.

VAT NUMBER

4090158363

TAX NUMBER

9281375841

BBBEE STATUS

Non-compliant

MAJOR OPERATION

Manufacturers of non-branded flavours and colorants.

MAJOR 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

Food manufacturing industry.

AREA OF DISTRIBUTION AND SELLING

South Africa

EXPORTS

Africa

TOTAL EMPLOYEES

±25

OTHER PREMISES

None

OWNED OR LEASED

The premises are reported to be owned by the subject, however, further information was declined.

FINANCIALS

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

AUDITORS

ELLIS G

YEAR END

FEBRUARY

INSURANCE BROKERS

MELLVO INSURANCE BROKERS

TRADE REFERENCES – OCTOBER 2008

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 2004 Declined declined 30 days 30 days Very good

2. 4 years Open R 30 000 - 30 days 30 days Very good

R 60 000

3. 5 years Declined R200 000 30 days 30 days Very good

TRADE REFERENCES – MARCH 2013

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 2008 Declined ±R80 000 30 days 30 days Very Good

2. 10 years Open ±R20 000 30 days 30 days Excellent

3. 2007 R50 000 Declined 30 days 30 days Good

CURRENT TRADE REFERENCES

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. June 2010 R600 000 R300 000- 30 days 30 days Excellent

Insured CGIC R500 000

2. June 1997 Declined Declined 30 days 30 days Good

The supplier has been supplying the subject from when the company was registered as a Close Corporation.

3. Against company policy to divulge trade references.

NATURE OF GOODS OR SERVICES SUPPLIED

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

1. Forwarding and clearing

2. Food chemicals

COMMENTS

This is an established business meeting its commitments timeously and is spoken of highly by its suppliers. In view of the lack of financial information, we are only able to recommend dealings to a maximum figure of €27 000 over 30 days.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.84
UK Pound	1	Rs.98.38
Euro	1	Rs.69.64

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%)

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