MIRA INFORM REPORT

 

Report Date :

24th February, 2007

 

IDENTIFICATION DETAILS

 

Name :

LAKE INTERNATIONAL TECHNOLOGIES (PTY) LTD

 

 

Formerly Known As :

CHEMSERVE TECHNICAL PRODUCTS PTY) LTD,

 

 

Registered Office :

12 Gemini Street, Linbro Business Park, Sandton, Gauteng

 

 

Country :

South Africa

 

 

Date of Incorporation :

07.11.1946

 

 

Com. Reg. No.:

1946/023685/07

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Agent for specialty chemicals and they also manufacture chemical products.

 

 

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 :

Usually Correct

 

 

Litigation :

Clear

 

 

COMPANY NAME

 

LAKE INTERNATIONAL TECHNOLOGIES (PTY) LTD

 

Formerly CHEMSERVE TECHNICAL PRODUCTS PTY) LTD, the name having been changed on 1 September 2003.

 

 

INTERNAL TRADING DIVISION

 

LAKE FOOD & EQUIPMENT (Formerly DARLEON)

COATINGS

EXPLOSIVES

LAKE GENERAL CHEMICALS

SPECIALITIES

 

Plus various other divisions.

 

 

PHYSICAL ADDRESS

 

12 Gemini Street

Linbro Business Park

Sandton

Gauteng

 

 

POSTAL ADDRESS

 

Private Bag X4137

BRYANSTON

2021

 

 

TELEPHONE NUMBER

 

(011) 458-8000

 

 

FAX NUMBER

 

(011) 608-2345

 

 

SHAREHOLDERS

 

100%    CHEMICAL SERVICES LTD – delisted from the JSE Ltd, which is in

 

turn owned 100% by AECI LTD – 1924/002590/06 – Quoted on the JSE Ltd.

 

 

ASSOCIATE COMPANIES

 

AKULU-MARCHON (PTY) LTD

CHEMSERVE POLYMER SCIENCES (PTY) LTD

CREST CHEMICALS (PTY) LTD

 

Plus other companies within the AECI group.

 

 

DIRECTORS

 

T A STREET (Chairman)

J F VAN HEERDEN

F BAKER

D MURRAY (MD)

T LOUW

 

 

BANKERS

 

FIRST NATIONAL BANK, Johannesburg Branch, Account Number 58860880617.  It was stated that the subject is managed by a cash management scheme controlled by the holding company.

 

 

DATE REGISTERED

 

7 November 1946

Registration certificate number 1946/023685/07

 

It was stated that the subject bought and incorporated the coatings operations of JLM INDUSTRIES (SA) (PTY) LTD into the Coating and Lake General Chemicals divisions on 1 July 2005.

 

It was stated that the subject bought the assets and operations of a business namely, DARLEON CC (Registration Certificate Number 1985/008889/23) and incorporated it as a division into the subject.

 

 

VAT NUMBER

 

4230103154

 

 

MAJOR OPERATION

 

The subject is an agent for speciality chemicals and they also manufacture chemical products

 

 

 

MAJOR SUPPLIERS

 

The subject imports chemicals (colourants etc.) from Europe, Australia and deals locally with the following suppliers:

 

UTI

TANKER SERVICES  Johannesburg

SHELL CHEMICALS

LUBRIZOL

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

Industry in general i.e. mining, painting, glass, chemical and detergent industries.

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

USA, Northern Africa, Far East and on a small basis to Hong Kong.

 

 

TOTAL EMPLOYEES

 

±100

 

 

OTHER PREMISES

 

The subject has a plant in Umbogintwini (Durban), Natalspruit (Alberton). a laboratory in Chloorkop, an office in Cape Town and a division is situated in Linbro Park (Johannesburg).

 

 

OWNED OR LEASED

 

The head office and plant premises are reported to be owned by a group property owning company.

 

 

AUTHORISED SHARE CAPITAL

 

R36 000 divided into 18 000 ordinary shares of

R2 each

 

 

ISSUED SHARE CAPITAL

 

R34 290

 

The following estimated financial situation was submitted:

 

STOCK                                                                                                        R  22 000 000

DEBTORS                                                                                                    R  30 000 000

FIXED ASSETS net book                                                                               R  25 000 000

CREDITORS                                                                                                 R  26 000 000

SHAREHOLDERS LOANS                                                                                             Nil

TURNOVER per annum                                                                                 R150 000 000

 

 

AUDITORS

 

PRICEWATERHOUSECOOPERS

 

 

YEAR END

 

DECEMBER

 

 

INSURANCE BROKERS

 

ALEXANDER FORBES

                       

 

TRADE REFERENCES – SEPTEMBER 2006

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    11/2001        R3 000 000    R500 000        30 days    30 days        Very good

                          c/l

 

2.    Do not give trade references

 

3.       Do not give trade references

 

4.    1995             R500 000       R220 000        30 days    30 days        Good

                          c/l

 

 

CURRENT TRADE REFERENCES

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    1996             R500 000       R200 000        60 days    60/65 days    Good

 

2.    20 yrs           R  50 000       R  45 000        30 days    30 days        Very good

 

 

COMMENTS

 

This is an established and well-connected company, which imports most of its supplies.  The subject is meeting its commitments timeously, and is regarded as equal to US$1 million DA.

 

 

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

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

 

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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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