MIRA INFORM REPORT

 

 

Report No. :

339417

Report Date :

09.09.2015

           

IDENTIFICATION DETAILS

 

Name :

E AKHALWAYA AND SONS CC

 

 

Registered Office :

13 Central Road (Main Entrance), Fordsburg, Johannesburg, Gauteng

 

 

Country :

South Africa

 

 

Date of Incorporation :

16.03.1995

 

 

Com. Reg. No.:

1995/010867/23

 

 

Legal Form :

Close Corporation

 

 

Line of Business :

Subject is wholesalers and retailers of spices, rice and various Eastern foods

 

 

No. of Employee :

±32

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

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 – 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

 


NOTE:

 

On investigation it was established that the correct registered name of the company is E AKHALWAYA AND SONS CC trading as E AKHALWAYA AND CO, which report should be consulted.

 

 

COMPANY NAME

 

E AKHALWAYA AND SONS CC

 

Formerly: NASHRAH IMPORT AND EXPORT CC, the name having been changed on 15 July 1997.

 

 

TRADING NAME

 

AKHALWAYA AND CO

 

 

PHYSICAL ADDRESS

 

13 Central Road (Main Entrance)

FORDSBURG

Johannesburg

Gauteng

           

 

POSTAL ADDRESS

 

P O Box 42469

FORDSBURG

2033

 

 

TELEPHONE NUMBER

 

+27 11 833 1068

 

 

FAX NUMBER

 

+27 11 838 1315

 

It was reported by the respondent at the subject that they also utilise No. 10 Central Road which is the same property however, it has a separate entrance.

 

 

MEMBERS

 

33.34%                             M E AKHALWAYA (son)                    ID No.   7210285056089

33.33%                             F E AKHALWAYA (son)                     ID No.   7506045155081

33.33%                             R AKHALWAYA (son)                        ID No.   8901315436080

 

It was stated that E I AKHALWAYA (snr) resigned in 2014 and his shares have been divided equally between the remaining members.  The at CIPC have not been updated to reflect this yet.

 

The shareholding was previously:

51.00%                             E I AKHALWAYA (snr)                       ID No.   5010105619088

16.34%                             M E AKHALWAYA (son)                    ID No.   7210285056089

16.33%                             F E AKHALWAYA (son)                     ID No.   7506045155081

16.33%                             R AKHALWAYA (son)                        ID No.   8901315436080

 

 

ASSOCIATE COMPANIES    

 

None, however, the members are reported to be involved in various other companies in their personal capacities, such as the following property owning company.

 

FRAM PROPERTIES CC, a property owning company

Registration Certificate Number: 1989/016772/23

 

 

BANKERS

 

NEDBANK, Booysens branch, Account Number: 198307199.  It was stated that the subject enjoys overdraft facilities, secured by a cession of debtors.  Utilisation of the overdraft is usually nil as credit balances are maintained at the bank.

 

 

DATE REGISTERED

 

16 March 1995

Registration Certificate Number 1995/010867/23

 

E AKHALWAYA AND SONS CC was established in March 1995 as NASHRAH IMPORT AND EXPORT CC, to incorporate the assets and operations of an existing Sole Proprietorship, previously established by E I AKHALWAYA approximately 20 years previously. The name of the company was changed in July 1997 to the current name.

 

VAT NUMBER:              4510118146

 

TAX NUMBER:              9408623842

 

BBBEE STATUS:          Non-compliant

 

 

MAJOR OPERATION

 

Wholesalers and retailers of spices, rice and various Eastern foods.  It was stated that no specific name brands are carried by the subject.

 

 

MAJOR SUPPLIERS

 

The subject imports most of its supplies from India and China and deals on a small scale 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

 

Retailers (Account and C.O.D basis)

 

 

AREA OF DISTRIBUTION AND SELLING

 

Mainly Gauteng

 

 

EXPORTS

 

On occasion to Sub Saharan African countries

 

 

TOTAL EMPLOYEES

 

±32

 

 

OTHER PREMISES

 

None

 

 

OWNED OR LEASED

 

The premises are reported to be owned by the associate business.

 

 

FINANCIALS

 

The following estimated financial situation was submitted 3 September 2015.  It should be noted that the same figures were supplied in August 2014, and it was stated that the figures have mainly remained the same in the last year.

 

STOCK                                                                                                  ±R2 000 000

DEBTORS                                                                         ±R2 000 000 – R3 000 000

CASH ON HAND                                                                                    ±R   500 000

CREDITORS (weekly)                                                                              ±R   500 000

TURNOVER per month                                                                            ±R3 500 000

 

 

AUDITORS

 

N HAMID & CO (Lenasia)

 

 

YEAR END

 

FEBRUARY

 

 


INSURANCE BROKERS

 

RELIANCE INSURANCE BROKERS

 

 

TRADE REFERENCES

 

TRADE REFERENCES- SEPTEMBER 2009

 

 

       ACCOUNT   HIGHEST       AVERAGE     TERMS     PAYMENT   EXPERIENCE

       OPENED     CREDIT         CREDIT                          PATTERN

 

            1.     May 2005     R480 000        R250 000        30 days     30 days       Very Good

 

2.     Dec 2005     R  20 000       R  20 000       14 days     14 days       Good

 

3.     3 years        R150 000        R150 000        60 days     60 days       Good

                                                                     by arrangement

 

TRADE REFERENCES – AUGUST 2014:

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS     PAYMENT   EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.     +30 years     Open             R   500 000-    30 days     30 days       Excellent

                                               R1 000 000

 

2.    +30 years     Open             R      5 000-     30 days     30 days       Very Good

                                               R   500 000

 

3.    ±10 years     Open             R   100 000-    60 days     60 days       Good

                                               R   150 000

 

CURRENT TRADE REFERENCES

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS     PAYMENT   EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    +5 years       Open             R300 000        30 days     30 days       Very Good                       

2.    ±30 years     Open             +R1 000 000    30 days     30 days       Excellent

 

3.    Against company policy to divulge trade reference information.

 

4.    Not on the system yet.

 

 

NATURE OF GOODS OR SERVICES SUPPLIED

 

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

 

1.    Groceries

     

2.    Groceries & spices

 

 

COMMENTS

 

This is a very well-established business that is meeting its commitments timeously.  The subject is spoken of highly by its suppliers.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.61

UK Pound

1

Rs.102.30

Euro

1

Rs.74.61

 

INFORMATION DETAILS

 

Analysis Done by :

TRI

 

 

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.