MIRA INFORM REPORT

 

 

Report No. :

341502

Report Date :

23.09.2015

 

IDENTIFICATION DETAILS

 

Name :

THOMAS ABRASIVES (PTY) LTD

 

 

Registered Office :

P O Box 1461 Germiston 1400

 

 

Country :

South Africa

 

 

Date of Incorporation :

March 1991

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturing of cast steel abrasives, such as steel grit and steel shot.

 

 

No. of Employees :

66

 

 

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:                    THOMAS ABRASIVES (PTY) LTD

 

PHYSICAL ADDRESS:              29 Smits Street

INDUSTRIES WEST

Germiston

Gauteng

 

POSTAL ADDRESS:                 P O Box 1461

GERMISTON

1400

 

TELEPHONE NUMBER:            +27 11 821 2800 / 2810

 

FAX NUMBER:                          +27 11 873 2696

 

 

SHAREHOLDERS

 

100%    TALLERES FABIO MURGA SA (Spain)

 

 

ASSOCIATE COMPANIES

 

The investigator was unable to confirm the existence of associate or subsidiary companies, however, the following company is reported to be affiliated through common directors.

 

THOR FOUNDRY (PTY) LTD

Registration Certificate Number 1960/002344/07

 

 

DIRECTORS

 

P R ARNAUD (France)                                       D.O.B.  1954/12/05

A M MARTINGANO                                            ID No.   6308265108085

J P F ROBERTO                                               ID No.   6701175042081

C P BERTONCELLI                                            Ppt No. 11CR90793

 

It was previously stated that Y G M BARRAQUAND (France), D.O.B.       1960/09/23 was a director, however, this is not currently reflected at CIPC.

 

 

 

BANKERS

 

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

 

 

DATE REGISTERED

 

26 February 1964

Registration Certificate Number: 1964/001307/07

 

THOMAS ABRASIVES (PTY) LTD was established in March 1991 when the assets and operations of a division of THOMAS FOUNDRY (PTY) LTD, which had originally commenced operations in 1984, were incorporated into a dormant company.  Further information was not forthcoming.

 

 

VAT NUMBER    

 

4360101408

 

 

TAX NUMBER    

 

9490285831

 

 

BBBEE STATUS

 

Non-compliant

 

 

MAJOR OPERATION

 

The subject is involved in the manufacturing of cast steel abrasives, such as steel grit and steel shot.

 

 

MAJOR SUPPLIERS

 

The subject imports on a very small scale (about 5%) from France and Brazil as well as sourcing supplies locally.

 

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

 

The steel industry.

 

 

AREA OF DISTRIBUTION AND SELLING   

 

South Africa

 

 

EXPORTS

 

India, Turkey, Australia, Pakistan, Saudi Arabia, Japan, Germany and China as well as small to neighbouring countries.

 

 

TOTAL EMPLOYEES

 

66

 

 

OTHER PREMISES

 

None

 

 

OWNED OR LEASED

 

The premises are stated to be owned by the subject.

 

 

FINANCIALS

 

Full financial information was not forthcoming from respondents at the subject however it was previously stated that the annual turnover as at 4 April 2012 was between R160 000 000 and R170 000 000.

 

 

AUDITORS

 

MARAIS DU PLESSIS (LLOYD DU PLESSIS)

 

 

YEAR END

 

DECEMBER

 

 

INSURANCE BROKERS 

 

WILLIS INSURANCE & GALINCO RISK INSURANCE BROKERS

 

 

TRADE REFERENCES – MARCH 1993

 

            PERIOD            HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

                                    CREDIT            CREDIT                                    PATTERN

 

1.         1 year               R50 000            R40 000            30 days                        30 days                        Very Good

 

2.         1991                 R150 000          R100 000          30 days                        30 days                        Very Good

 

3.         Few years         R45 000            R40 000            30 days                        30 days                        Very Good

 

 

TRADE REFERENCES – FEBRUARY 2008

 

            PERIOD            HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

                                    CREDIT            CREDIT                                    PATTERN

 

1.         15 years            R250 000          R100 000-         30 days                        30 days                        Excellent

                                    c/l                     R200 000

 

2.         Old acc             Declined           Declined           30 days                        30 days                        Very Good

 

3.         March 2007       R150 000          R  50 000-         30 days                        30 days                        Very Good

                                                            R150 000                                  2.5%

 

 

TRADE REFERENCES – FEBRUARY 2009

 

            PERIOD            HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

                                    CREDIT            CREDIT                                    PATTERN

 

1.         Over 10 yrs       R100 000          R100 000          30 days                        30 days                        Very Good

 

2.         15 years            R350 000          R  50 000 -        30 days                        30 days                        Excellent

                                    Unlimited          R200 000

 

3.          Do not give trade references.

 

4.         Do not give trade references

 

5.         10 years            No limit             R200 000 -        30 days                        30 days                        Excellent

 

 

TRADE REFERENCES – APRIL 2012

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                                    PATTERN

 

1.         16 years            R350 000          Declined           30 days                        30 days                        Very Good

                                                                                    -2.5%

 

2.         Old                   Declined           Declined           Declined           Declined           Good

 

3.         35 Years           R2 000 000        R1 000 000-       30 days                        30 days                        Very Good

                                                            R2 000 000

 

4.         Do not give trade references

 

 

TRADE REFERENCES – JUNE 2013

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                                    PATTERN

 

1.         Feb 2010          Open                ±R1 000 000      30 days                        30 days                        Very Good

                                               

2.         Do not give trade references.

 

3.         8 years             R  100 000        R      5 000-       30 days                        30 days                        Good

                                    c/l                     R  200 000

 

4.         Do not give trade references

 

5.          25 years           R2 000 000-       R1 000 000        30 days                        30 days                        Very Good

                                    R3 000 000

                                    c/l

           

 

COMMENTS

 

This is an established business meeting its commitments timeously.  The subject is considered as equal to R200 000 over 30 days. 

 

18 June 2013

 

 

CURRENT TRADE REFERENCES

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS             PAYMENT   EXPERIENCE

            OPENED          CREDIT            CREDIT                                    PATTERN

 

1.         2009                 R100 000          R10 000            30 days                        30 days                        Very Good                   

2.         +25 years          Open                +R1 000 000      30 days                        30 days                        Very Good

 

3.         Feb 2010          Open                R500 000-         30 days                        30 days                        Very Good

                                                            R1 000 000

It was stated that the subject has purchased less frequently over the past year, but has always been a good customer.

 

 

NATURE OF GOODS OR SERVICES SUPPLIED

 

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

 

1.         Tools and safety equipment      

                       

2.         Scrap metal     

 

3.         Scrap metal     

 

 

COMMENTS

 

This is a well-established business which is meeting its commitments on time and is spoken of highly by its suppliers. The subject is considered equal to a maximum figure of €33 000 over 30 days secured in view of the lack of updated company information.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.65.63

UK Pound

1

Rs.101.73

Euro

1

Rs.73.26

 

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.