MIRA INFORM REPORT

Report No. :	345631
Report Date :	24.10.2015

IDENTIFICATION DETAILS

Name :	DELTA COLOURS (PTY) LTD
Formerly Known As :	SHELF-LINE 165 (2009/05/13);
Registered Office :	3 High Street Rosenpark Bellville 7530
Country :	South Africa
Date of Incorporation :	03.09.2009
Com. Reg. No.:	2009/004675/07
Legal Form :	Private Company (Pty) Ltd
Line of Business :	Import and distribution of colour pigments.
No. of Employee :	14

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)
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 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. Economic growth has decelerated in recent years, slowing to just 1.5% in 2014. 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, is building three new power stations and is installing 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 and early 2015 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 electrical supply problems are resolved.

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 due to strike action. The current government faces growing pressure from urban constituencies to improve the delivery of basic services to low-income areas and to increase job growth.

Source : CIA

COMPANY INFORMATION

OVERVIEW

History	DELTA COLOURS (PTY) LTD was established in May 2009, when a shelf company, styled SHELF-LINE 165 (PTY) LTD was utilised to incorporate the assets and operations of NUBIOLA SA (PTY) LTD, Registration Certificate Number 2006/020919/07 into the subject. The name was changed in May 2009 to the current name, and the original entity was made dormant.
Major Operations or Business Sectors	Import and distribution of colour pigments.
Industry	Distributors of colour pigments.
SIC Code(s)	6149(Wholesale Trade In Other Intermediate Products, Waste And Scrap)

STATUTORY INFORMATION

Registered Name	DELTA COLOURS (PTY) LTD
Previous Names	SHELF-LINE 165 (2009/05/13);
Registration Number	2009/004675/07
Type of Company	Private Company (Pty) Ltd
Registration Date	03/09/2009
Date Commenced Trading	05/01/2009
Commercial Status	In Business

CONTACT DETAILS

Contact Number +27 21 876 4167
Fax Number +27 21 876 3201
Website www.deltacolours.com
Social Media Presence	Linked In
Registered Physical Address	3 HIGH STREET ROSENPARK BELLVILLE 7530
Trading Physical Address	71 Village Artisan, Cabriere Street Franschhoek CAPE TOWN Western Cape 7690
Postal Address	P O Box 7690 FRANSCHHOEK Western Cape 7690

TAX INFORMATION

Income Tax Number 9405656167

VAT Number 4750253306

AUDITORS INFORMATION

Name BOSHOFF VISSER BELL INC

INSURANCE BROKER INFORMATION

Insurance Broker Name INDWE INSURANCE BROKERS

Contact Person Karina Mouton

OWNERSHIP STRUCTURE

Shareholders/Members	Share/Interest (%)
THE ABE LOUW FAMILY TRUST	67.67
SCHEEPERS AZAR TRUST	33.33

PRINCIPAL INFORMATION PRINCIPAL

DETAILS

Full Name	ID No.	Designation	Status	Date of Appoint- ment	Active Interests	Prev. Interests	Judg- ments	Fraud Listing
SCHEEPERS, HENDRIK PETRUS	7412135088086		Active	01/09/2013	1	0	0	0
LOUW, STEPHANUS ABRAHAM CLOETE	6406125118086		Active	29/04/2009	3	2	0	0
SAAYMAN, CHARLENE	8211240196084		Resigned	22/02/2013	1	0	0	0
DU PLESSIS, CATHERINA DORA	5212200167084		Resigned	09/03/2009	0	0	0	0

ACTIVE BUSINESS INTERESTS: STEPHANUS ABRAHAM CLOETE LOUW

Company Name	Registration No.	Business Status	Principle Status	Judgments
NUBIOLA SOUTH AFRICA	2006/020919/07	In Business	Active	0
SUMMERLANE TRADING 146	2006/184990/23	AR Final deregistration	Active	0

PREVIOUS BUSINESS INTERESTS: STEPHANUS ABRAHAM CLOETE LOUW

Company Name	Registration No.	Business Status	Principle Status	Judgments
EAT KAROO BUTCHERY	2010/050797/23	AR Deregistration Process	Resigned	0
MEAT OF ORIGIN KAROO	2012/078056/08	In Business	Resigned	0

BBBEE

Certificate No

GENERAL COMMENTS

Comments The subject is currently BBBee Non-Compliant.

BANK ACCOUNT VERIFICATION

Verified	Yes
Bank Name	FIRST NATIONAL BANK
Branch Code	200110
Account Holder	DELTA COLOURS (PTY) LTD
Account Number	62225809625

OPERATIONS

MAJOR OPERATIONS

Major Business Activities	Importers and distributors of colour pigments.
Foreign Trade Activities	The subject imports 99% of its supplies from Spain, Columbia, China, India and the USA. The subject exports to Southern Africa countries.
Major Suppliers	The subject deals locally on a small scale with the following companies: SEABOARD Cape Town SKYLINE CHEMTRADE
Major Customers	Manufacturers of plastics, coatings and inks.
Major Brands	No main brand names carried.

BRANCH & PREMISES INFORMATION

Area of Distribution South Africa

Location	Description/Type	Size (m²)	# of Staff	Rented or Owned	If rented: Lease Expiry Date
Cape Town	Warehouse			Owned	n/a
Durban	Warehouse			Owned	n/a
Johannesburg	Warehouse			Owned	n/a

EMPLOYEES

Salaried Employees	14
Waged Employees	0
Total Permanent Employees	14
Casual Employees	0
Contracted Employees	0

Comments Fleet details were not made available

FINANCING TERMS

Sales Terms	30 days,
Overdraft	It was stated that the subject enjoys overdraft facilities to an extent of R2 400 000, secured by a cession of debtors and stock inventory. Utilisation is stated to be 80% at present.
Sureties	No sureties have been signed.
Debtors Ceded	The overdraft facility is secured by a Cession of Debtors and Stock Inventory.
Debtors Factored	The debtors are not factored.
Bonds	Undisclosed.
Date Obtained	21/10/2015
Year End	February

FINANCIAL FIGURES

Currency	ZAR
Actual numbers, 000' or mio	Actual Numbers
Source	Charlene Saayman - Financial Manager

INCOME STATEMENT

	Current Financial Year (est)	Previous Financial Year	Prior Financial Year
Turnover/Revenue	55,000,000

BALANCE SHEET

	Current Financial Year (est)	Previous Financial Year
Assets
--Inventory/Stock	28,000,000
--Accounts Receivable/Debtors	18,000,000
Fixed Assets/Investments
--Property, Plant and Equipment	3,625,000
Liabilities
Current Liabilities
--Accounts Payable/Creditors	15,000,000
--Overdraft	5,900,000
Long Term Liabilities	1,500,000
Equity	21,300,000

Comment Projected turnover for February 2016 is estimated at ZAR100,000,000

TRADE REFERENCES

TRADE REFERENCE ANALYTICS

# of Trade Refs in the last 3 years	Overall Trade Score	Average Usage of Terms	Average Monthly Purchase	Average Usage of Credit Limit
3	50%	100%	1,100,000.00 ZAR	800%

TRADE REFERENCES

Trade Ref #	Date	Trade Score 2 = best 0 = worst	Terms Given (Taken) in days	Monthly Limit Given (Taken)	Account Opened years	Payment Trend (prev. 3 years)			Acc. Insured	Notes
Ref 1	21/10/2015	1	30 (30)	150,000 ZAR (1,200,000 ZAR)	5	1	-	-	Unknown	It was stated that the subject purchases on indent, buying direct from the supplier and paying a commission amount to the clearing agent.
Ref 2	21/10/2015	1	30 (30)	Declined (1,000,000 ZAR)	Unknown	1	-	-	Unknown	The supplier offers a clearing facility.
Ref 3	21/10/2015	N/A	see notes (see notes)	()		-	-	-	Unknown	It is against company policy to divulge trade reference information.
Ref 4		N/A	see notes (see notes)	()		-	-	-	Unknown	It is against company policy to divulge trade reference information.

ADMIN DETAILS

INTERVIEWEE

Contact Person Charlene Saayman
Position	Financial Manager
Company Tel No.	+27 21 876 4167
Email	charlene.saayman@deltacolours.com

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.64.88
UK Pound	1	Rs.99.89
Euro	1	Rs.72.06

INFORMATION DETAILS

Analysis Done by :	KIN
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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.