MIRA
INFORM REPORT
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Report Date : |
13.07.2007 |
IDENTIFICATION DETAILS
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Name : |
SOMOCHEM – DIVISION OF DENEL [PTY] LTD |
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Registered Office : |
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Country : |
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Date of Incorporation : |
13 March 1992 |
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Com. Reg. No.: |
1992/001337/07 |
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Line of Business : |
Manufacture of defence systems and products |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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Litigation : |
Clear |
COMPANY NAME
SOMCHEM
POSTAL ADDRESS
SOMERSET WEST
7129
TELEPHONE NUMBER: 021 850 2911
On investigation it was established that the subject is reported to be a division of a company named DENEL (PTY) LTD which report should be consulted.
COMPANY NAME
DENEL (PTY) LTD
TRADING DIVISIONS
DENEL AVIATION
DENEL AEROSPACE
SYSTEMS
DENEL OPTRONICS
DENEL PERSONNEL
SOLUTIONS
DENEL LAND SYSTEMS
(DLS)
DLS LYTTELTON
(Merger between LIW & VEKTOR)
DLS LARGE CALIBRE
AMMUNITION (Former NASCHEM & LA FORGE)
DLS SMALL CALIBRE
AMMUNITION (former PMP &
MECHEM)
DENEL MUNITIONS
SAAB AEROSTRUCTURE
PHYSICAL ADDRESS
Cnr Irene &
IRENE
POSTAL ADDRESS
CENTURION
0046
TELEPHONE NUMBER : 012 671 2700
FAX NUMBER: 012 671 2793
SHAREHOLDERS
100% THE SOUTH AFRICAN GOVERNMENT
SUBSIDIARY COMPANIES
AERO PROPERTIES (PTY)L TD
BONAERO PARK (PTY) LTD (sold)
COSOURCE (PTY) LTD (in the process of being sold)
DENEL INFORMATICS MARKETING IN AFRICA (PTY) LTD (dormant)
DENEL INTERNATIONAL LTD (incorporated in
DENEL PERSONNEL SOLUTIONS (PTY) LTD
DENEL PROPERTIES (PTY) LTD
DENSECURE (PTY) LTD
IRENCO (PTY) LTD (sold)
I P S (PTY) LTD (deregistered)
LA FORGE (PTY) LTD
SKEW ROAD PROPERTIES (PTY) LTD
SPECIALISED PROTEIN PRODUCTS (PTY) LTD
DIRECTORS
M T SADIK (Group FD) (Non-Executive)
DR B G HALSE (
MISS C C MULDER (Non-Executive)
MISS N NYEMBEZI-HEITA (Non-Executive)
DR S P SIBISI (Chairman) (Non-Executive)
A HIRSCH (Non-Executive)
M
L C JONES (Non-Executive)
N R
S H
C M L SAVAGE (Non-Executive)
T MSERETSE (
BANKERS
FIRST NATIONAL BANK,
The subject is reported to also bank with ABSA BANK, Menlyn, Pretoria Branch.
DATE REGISTERED
13 March 1992
Registration Certificate Number: 1992/001337/07
The assets, liabilities and operations of the company PRETORIA METAL PRESSINGS (PTY) LTD as well as ATLAS AVIATION CO, which were all previously divisions and related to Denel, were incorporated into the subject.
The former trading divisions, ARIEL TECHNOLOGIES and ARIEL ENTERPRISE SYSTEMS (Business Unit) became dormant and were registered as separate companies.
VAT NUMBER
4660131485
MAJOR OPERATION
Manufacture of defence systems and products including overhaul, maintenance, repair, refurbishing and upgrading of rotary and fixed wing aircraft and land systems. The subject also specialises in landmine clearance and other mine action services.
MAJOR SUPPLIERS
Each division has its
own separate suppliers and purchases on their own accounts.
MAJOR CUSTOMERS OR
BUSINESS SECTORS
Industry in general, SA Defence Force, etc
AREA OF DISTRIBUTION
AND SELLING
EXPORTS
Worldwide
TOTAL EMPLOYEES
9 942 as at 31 March 2005.
OTHER PREMISES
The subject is reported to have factory branches countrywide
i.e.
OWNED OR LEASED
All the premises are reported to be owned by the subject and the premises were previously valued in the region of R215 000 000 free of bond.
ISSUED SHARE CAPITAL
R1 976 400 000 (unconfirmed)
It was stated that the Annual Report will be published in August 2007, nevertheless, please see attached the latest available balance sheet and income statement as at 31 March 2006.
AUDITORS
SIZWENTSALUBA VSP / ERNST & YOUNG
YEAR END
MARCH
INSURANCE BROKERS
DENSECURE
TRADE REFERENCES
NOT APPLICABLE
COMMENTS
Previous financial information recorded that the financial position has deteriorated substantially. This company is a separate legal entity and although the South African state is the sole shareholder, the company’s commitments cannot be considered as automatically guaranteed by the State.
In view of the foregoing we recommend that at this stage that all sizeable dealings be secured, either by guarantees issued by the South African Government or by a letter of credit opened and/or confirmed by a first class bank until current financial information is available.
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average/normal. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)