MIRA INFORM REPORT

 

 

Report No. :

337975

Report Date :

03.09.2015

 

IDENTIFICATION DETAILS

 

Name :

SANSPAR ENGINEERING SALES (PTY) LTD

 

 

Registered Office :

39 Industry Road Paardeneiland Cape Town Western Cape Town

 

 

Country :

South Africa

 

 

Date of Incorporation :

09.10.1972

 

 

Com. Reg. No.:

1972/010571/07

 

 

Legal Form :

Private Company

 

 

Line of Business :

The subject operates as retailers and wholesalers of various types of valves, caskets, manhole covers, couplings and saddles.

 

 

No. of Employees :

50 permanent employees, having increased from 28 reported in 2012.

 

 

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 :

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 – 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 name and address

 

COMPANY NAME:                    SANSPAR ENGINEERING SALES (PTY) LTD

 

PHYSICAL ADDRESS:              39 Industry Road

PAARDENEILAND

Cape Town

Western Cape

 

POSTAL ADDRESS:                 P O Box 273

PAARDENEILAND

7420

 

TELEPHONE NUMBER:            +27 21 511 0283 / 4

 

FAX NUMBER:                          +27 21 511 6993

 

EMAIL ADDRESS:                    info@sanspar.co.za

 

 

SHAREHOLDERS

 

100%    G C KIRTON

 

The shareholders have changed and were previously:

 

90%      G C KIRTON

10%      N ROSSOUW

 

The shareholding changed in July 2008 having previously been 100% G C KIRTON.

 

 

ASSOCIATE COMPANIES

 

CAMKIR INVESTMENTS (PTY) LTD 

Registration Certificate Number: 1995/009939/07 – property owning company

ERF 17722 PAARDEN EILAND CC 

Registration Certificate Number: 1993/002976/07 – property owning company

 

The percentages for the associate companies were not confirmed. It was stated that the companies are associated through the director G C KIRTON.

 

 

DIRECTORS

 

G C KIRTON      ID No. 4601235058006

BANKERS

 

STANDARD BANK Milnerton branch (code 026509) Account number 071183523. It was stated that the subject enjoys overdraft facilities in excess of R7 500 000, secured by the personal guarantee of the shareholder. Utilisation of the overdraft is nil as normally credit balances are maintained at the bank.

 

 

DATE REGISTERED

 

9 October 1972

Registration Certificate Number: 1972/010571/07

 

SANSPAR ENGINEERING SALES (PTY) LTD was established in October 1972.

 

 

VAT NUMBER    

 

4240103814

 

 

TAX NUMBER

 

9720304030

 

 

BBBEE STATUS 

 

Non-compliant

 

 

MAJOR OPERATION

 

The subject operates as retailers and wholesalers of various types of valves, caskets, manhole covers, couplings and saddles.

 

 

MAJOR SUPPLIERS

 

The subject imports from the East 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

 

Industry in general e.g. industrial building contractors, boilermakers, engineering industry, municipalities, irrigation -  and agricultural industry.

 

 

AREA OF DISTRIBUTION AND SELLING   

 

South Africa

 

 

EXPORTS

 

Occasionally neighbouring countries.

 

 

TOTAL EMPLOYEES

 

50 permanent employees, having increased from 28 reported in 2012.

 

 

OTHER PREMISES   

 

The subject has a branch in Boksburg.

 

 

OTHER PREMISES   

 

The premises are reported to be owned by ERF 17722 CC, market value in the region of R3 300 000, bonded in favour of Standard Bank. It was stated that there is also a property at 7 Bridgewater Street, Paardeneiland owned by CAMKIR INVESTMENTS (PTY) LTD (property holding company).  The branch premises in Boksburg are reported to be leased.

 

 

 

 

FINANCIALS

 

Full financial information was not forthcoming from respondents at the subject and outside authorities were unable to assist in this regard, however, historical information dated 17 August 2012 reads as follows:

 

STOCK R                                  15 000 000

DEBTORS                                R7 000 000 - R  8 000 000

PROPERTY                              R  8 000 000

CREDITORS local                     R     630 000

TURNOVER per annum              ±R35 000 000

 

AUDITORS:      NOLANDS, Cape Town

 

YEAR END:      FEBRUARY

 

INSURANCE BROKERS:           RISK BENEFIT SOLUTIONS INSURANCE BROKERS

 

 

TRADE REFERENCES – JUNE 2006

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         1984                 R200 000          R200 000          30 days            30 days            Good

 

2.         30 years            R20 000            R10 000            30 days            30 days            Excellent

                                    -R20 000

 

3.         15 years            R500 000          R100 000          30 days            30 days            Excellent

                                    -R500 000                     2˝%

 

CURRENT TRADE REFERENCES:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         1983                 R350 000          R60 000            30 days            30 days            Good

 

2.         30 years            Declined           R  10 000 -        30 days            30 days            Good

                                    R600 000

 

3.         2001                 R800 000          R   600 000 -     30 days            7/30 days          Good

                                    c/l         R1 000 000

 

 

TRADE REFERENCES-AUGUST 2012

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         2001     R1 000 000        R100 000-         30 days            30 days            Very Good

                                                R1 000 000

 

2.         4 Years R100 000          R10 000-           30 days            30 days            Very Good

                                                R90 000

 

3.         Awaiting fax trade reference

 

4.         Awaiting fax trade reference

 

 

CURRENT TRADE REFERENCES

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         Unable to obtain trade reference-there is no record of an account.

 

2.         Unable to obtain trade reference-debtor’s clerk is not available.

 

3.         Awaiting emailed trade reference.

 

4.         2010     R120 000          R70 000            30 days            30 days            Good

 

 

 NATURE OF GOODS OR SERVICES SUPPLIED

 

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

 

4.         Pipes

 

 

COMMENTS

 

This is an established business meeting its commitments timeously. The subject is considered equal to its normal business engagements.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.16

UK Pound

1

Rs.101.22

Euro

1

Rs.74.61

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

TRU

 

               

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.