MIRA INFORM REPORT

 

 

Report No. :

340801

Report Date :

21.09.2015

 

IDENTIFICATION DETAILS

 

Name :

AFRO INDIA RECYCLERS (PTY) LTD

 

 

Registered Office :

26 Clark Road Isipingo Rail Kwazulu-Natal P O Box 41712 Rossburgh 4072

 

 

Country :

South Africa

 

 

Year of Incorporation :

2001

 

 

Legal Form :

Private Company

 

 

Line of Business :

Recyclers of ferrous, non-ferrous and other scrap metals.

 

 

No. of Employees :

±65

 

 

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

 

 

COMPANY NAME and address

 

AFRO INDIA RECYCLERS (PTY) LTD

 

PHYSICAL ADDRESS

 

26 Clark Road

ISIPINGO RAIL

KwaZulu-Natal

 

POSTAL ADDRESS

 

P O Box 41712

ROSSBURGH

4072

 

TELEPHONE NUMBER

 

+27 31 902 2546

 

FAX NUMBER

 

+27 86 218 3393

 

The subject moved from 154c Dayal Road, Clairwood in 2012.

 

 

SHAREHOLDERS

 

51%      M SIROHI

49%      A SIROHI

 

 

ASSOCIATE COMPANIES

 

None

 

 

DIRECTORS

 

A SIROHI                      D.O.B.  1973-05-29

M SIROHI                      D.O.B.  1981-01-02

 

 

BANKERS

 

STANDARD BANK, Bluff Branch.  It was stated that the subject does not require overdraft facilities as credit balances are maintained at the bank.

 

 

DATE REGISTERED

 

23 June 2003

Registration Certificate Number:  2003/014166/07

 

AFRO INDIA RECYCLERS CC was established in 2001, Registration Certificate Number: 2001/083507/23. In June 2003 the subject converted to a Private entity.

 

 

VAT NUMBER

 

4670198888      

 

 

TAX NUMBER

 

9200054170      

 

 

BBBEE STATUS

 

Non-compliant

 

 

MAJOR OPERATION

 

Recyclers of ferrous, non-ferrous and other scrap metals

 

 

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

 

Export market, mainly to the foundries

 

 

AREA OF DISTRIBUTION AND SELLING

 

Worldwide

 

 

TOTAL EMPLOYEES

 

±65

 

 

OTHER PREMISES

 

The subject has a branch in Johannesburg and Cape Town

 

 

OWNED OR LEASED

 

The premises are reported to be leased

 

 

FINANCIALS

 

The following estimated financial situation was submitted as at 17 September 2015:

 

STOCK R                                            500 000

DEBTORS                                R  35 000 000

CREDITORS                             R    4 000 000

TURNOVER per annum  ±          R 460 000 000

 

 

AUDITORS

 

MARWICK AND COMPANY INCORPORATED

 

 

FINANCIAL YEAR END

 

FEBRUARY

 

 

INSURANCE BROKERS

 

A C AND E ENGINEERING UNDERWRITING MANAGERS

 

 

CURRENT TRADE REFERENCES

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT   EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         10 years            Declined           R5 000 000        30 days            30 days            Excellent

 

2.         2009     Open    R100 000          30 days            30 days            Excellent

 

3.         8 years Open    R3 000 000        30 days            30 days            Excellent

 

 

NATURE OF GOODS OR SERVICES SUPPLIED:

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

 

1.         Scrap metal

 

2.         Scrap metal

 

3.         Scrap metal

 

 

COMMENTS

 

This is an established business meeting its commitments timeously. The suppliers speak highly of the subject.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.93

UK Pound

1

Rs.102.75

Euro

1

Rs.75.13

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

VNT

 

               

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.