MIRA INFORM REPORT

 

 

Report No. :

343307

Report Date :

06.10.2015

 

IDENTIFICATION DETAILS

 

Name :

CGM INDUSTRIAL (PTY) LTD.

 

 

Registered Office :

Site 14-16 Thetsane Industrial Area, Maseru 100

 

 

Country :

Lesotho

 

 

Date of Incorporation :

11.06.1983

 

 

Legal Form :

Limited Corporation 

 

 

Line of Business :

Subject is manufacturer of garments

 

 

No. of Employee :

4,200

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Lesotho

B2

B2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

LESOTHO - ECONOMIC OVERVIEW

 

Small, mountainous, and completely landlocked by South Africa, Lesotho depends on a narrow economic base of textile manufacturing, agriculture, remittances, and regional customs revenue. About three-fourths of the people live in rural areas and engage in animal herding and subsistence agriculture, although Lesotho produces less than 20% of the nation's demand for food. Rain-fed agriculture is vulnerable to weather and climate variability. Lesotho relies on South Africa for much of its economic activity; Lesotho imports 90% of the goods it consumes from South Africa, including most agricultural inputs. Households depend heavily on remittances from family members working in South Africa, in mines, on farms and as domestic workers, though mining employment has declined substantially since the 1990s. Lesotho is a member of the Southern Africa Customs Union (SACU), and revenues from SACU accounted for roughly 44% of total government revenue in 2014. The South African Government also pays royalties for water transferred to South Africa from a dam and reservoir system in Lesotho. However, the government continues to strengthen its tax system to reduce dependency on customs duties and other transfers. Access to credit remains a problem for the private sector. The government maintains a large presence in the economy - government consumption accounted for 37% of GDP in 2014 and the government remains Lesotho's largest employer. Lesotho's largest private employer is the textile and garment industry - approximately 36,000 Basotho, mainly women, work in factories producing garments for export to South Africa and the US. Diamond mining in Lesotho has grown in recent years and may contribute 8.5% to GDP by 2015, according to current forecasts.

 

Source : CIA

 

 

SUBJECT'S NAME

 

 

Registered Name:

CGM INDUSTRIAL (PTY) LTD.

Requested Name:

CGM INDUSTRIAL (PTY) LTD.

Other Names:

None

 

 

ADDRESS AND TELECOMMUNICATION

 

Physical Address:

Site 14-16 Thetsane Industrial Area,

 

Maseru 100,

Country:

Lesotho

Phone:

266-317736/22326452/317736

Fax:

266-22326458/310449

Email:

dalvi@cgmgroup.co.ls

Website:

None

 

 

CREDIT OPINION

 

 

Financial Index as of December 2014 shows subject firm with a high risk of credit.

 

 

LEGAL

 

 

Legal Form:

Limited Corporation 

Date Incorporated:

11-June-1983

Reg. Number:

Lesotho

Nominal Capital

LSL. 10,000

Subscribed Capital

LSL. 10,000

Subscribed Capital is Subscribed in the following form:

 

Position

Shares

Mr. Madhav Dalvi

MD

 

Mr. Adrian Chan

Director

 

Mr. Suresh Dharumadurai

Manager

 

Mr. Jitesh John Babu

Manager

 

CGM Group

Holding Co.

100%

 

 

RELATED COMPANIES

 

 

CGM Group

Parent company.

None

Subsidiary company.

Presitex Enterprises (Pty) Ltd

Affiliated company.

None

Shareholder of subject firm.

None

Branches of the firm

 

 

OPERATIONS

 

Registered to operate as manufacturer of garments

Imports:

Asia

Exports:

Worldwide

Trademarks:

None

Terms of sale:

Cash (40%) and 25-90 days (60%), invoices.

 

 

Main Customers:

firms and organizations  such as Levi Strauss, Wal-Mart, K-Mart, Jones Apparel, Squeeze, Paco and Pepe, Woolworths, Edgars, Mr Price, Ackermans and Pep

Employees:

4,200 employees.

Vehicles:

Several motor vehicles.

Territory of sales:

Lesotho

Location:

Leased premises, 10,000 square feet,

 

 

AUDITORS AND INSURANCE

 

Auditors:

Information not available.

Insurance Brokers:

Information not available.

 

 

 

FINANCE

 

 

Currency Reported:

Lesothon Loti (LSL.)

Approx. Ex. Rate:

1 US Dollar = 13.95 Lesothon Loti

Fiscal Year End:

December 31, 2014

Inflation:

According to information given by independent sources, the inflation at December 31st, 2014 was of 13%.

 

Financial Information not Submitted

 

 

 

 

 

Profit and Loss (expressed in LSL.)

 

 

2014

Sales

 

65,000,000

 

 

BANK

 

 

Bank Name:

Nedbank

Branch:

Lesotho

Comments:

None

 

 

 

COMMENTS / ADDITIONAL INFORMATION

 

This information was obtained from outside sources other than the subject company itself and confirmed the above subject.

Commercial morality of Subject is questionable.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.65.29

UK Pound

1

Rs.99.31

Euro

1

Rs.54.39

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ASH

 

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.