MIRA
INFORM REPORT
|
Report Date : |
15.03.2007 |
IDENTIFICATION
DETAILS
|
Name : |
KULUNGILE METALS GROUP (PTY) LTD |
|
|
|
|
Registered Office : |
16 Quality Road, Isando, Gauteng |
|
|
|
|
Country : |
South Africa |
|
|
|
|
Date of Incorporation : |
22.06.2001 |
|
|
|
|
Com. Reg. No.: |
2001/013173/07 |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business : |
Distribution and processing of steel and steel profiling e.g. cutting and guillotining of steel. Distribution of aluminium and stainless steel. |
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
KULUNGILE METALS GROUP (PTY) LTD
Formerly KULINGILE METALS (PTY) LTD, the name having been
changed in November 2006; formerly CLIDET NO 366 (PTY) LTD, the
name having been changed in 2002.
HEAD OFFICE ADDRESS
16 Quality Road
ISANDO
Gauteng
HEAD OFFICE POSTAL
ADDRESS
P O Box 995
ISANDO
1600
TELEPHONE NUMBER: (011) 929 5000
FAX NUMBER : (011) 929 5160
PHYSICAL ADDRESS
Corner Linton Jones & Brammer Streets
INDUSTRIES EAST
Germiston
Gauteng
POSTAL ADDRESS
P O Box 75167
GARDEN VIEW
2047
TELEPHONE NUMBER : (011) 871 6900
FAX NUMBER : (011) 873 9456
The above address and contact numbers belong to a branch in Germiston.
PHYSICAL ADDRESS
16 Quality Road
ISANDO
Gauteng
POSTAL ADDRESS
P O Box 995
ISANDO
1600
TELEPHONE NUMBER : (011) 929 5000
FAX NUMBER : (011) 929 5160
The above address and contact numbers belong to a branch in Isando.
SHAREHOLDERS
36% D M T INVESTMENT TRUST, of which M J Gouws and E Rautenbach are two of the trustees.
30% PAMODZI
INVESTMENT HOLDINGS (PTY) LTD – black empowerment company.
19% MEDIRO INDUSTRIAL HOLDINGS (PTY) LTD
15% ABSA BANK LTD
ASSOCIATE COMPANIES
None
DIRECTORS
V P LE FRERE
M L BOSCH (Managing Director)
M G SPIES
DR. M J GOUWS (Chairman)
C J RANSOME (Non-Executive)
E RAUTENBACH (Non-Executive)
A D J BREWITT (Non-Executive)
N A NTSELE
J J DU PLOOY
H B DIKGALE
L LIEBENBERG
K SIBISI
K G BODIGELO
S H M NOKANENG
C ENGELBRECHT
BANKERS
ABSA BANK Eloff Street, Johannesburg, account number 4055232785. It was stated that each division has its own bank account with ABSA BANK. It was stated that the subject enjoys overdraft facilities to an extent of R20 000 000, secured partially by stock. Utilisation of the overdraft is stated to fluctuate.
DATE REGISTERED
22 June 2001
Registration Certificate Number 2001/013173/07.
STALCOR was previously a division of DORBYL MARINE (PTY) LTD and on 1 February 2002 there was a management buyout of the STALCOR division and the operations were divisionalised under KULUNGILE METALS (PTY) LTD. At the same time, BALDWINS STEEL, a division of DORBYL LTD, was also divisionalised into KULUNGILE METALS (PTY) LTD. On 13 May 2003 the stock, assets and operations as well as the customer base of ABKIN’S STEEL SERVICES (PTY) LTD were divisionalised into KULUNGILE METALS (PTY) LTD.
Respondents at the subject stated that the legal entity of ABKINS STEEL SERVICES (PTY) LTD and ABKINS STEEL CORPORATION (PTY) LTD are dormant and that they are still owned by the previous shareholders, SPEEDROLL INDUSTRIAL (PTY) LTD.
VAT NUMBER
4120198454
MAJOR OPERATION
Baldwins Steel: Distribution and processing of steel and steel profiling e.g. cutting and guillotining of steel.
Stalcor: Distribution of aluminium and stainless steel.
MAJOR SUPPLIERS
HULETT ALUMINIUM Pietermaritzburg
COLUMBUS STEEL Middelburg
ALUMINIUM CITY
AIR LIQUIDE Johannesburg
MITTAL STEEL (formerly ISCOR)
HIGHVELD STEEL Middelburg
MAJOR CUSTOMERS OR
BUSINESS SECTORS
The engineering sector, petrochemical industry, mining industry, manufacturing industry and industry in general.
AREA OF DISTRIBUTION
AND SELLING
South Africa
EXPORTS
Occasionally to neighbouring countries.
TOTAL EMPLOYEES
750
OTHER PREMISES
The subject has Branches in Vanderbijlpark, Isando, Germiston, Pine Town, Cape Town, Richards Bay and Port Elizabeth.
OWNED OR LEASED
It was stated that the Germiston and Richards Bay branch premises are owned, while the remainder of the premises are leased.
AUTHORISED SHARE
CAPITAL
R1 000 divided into 1 000 000 shares of 0,001 cent each.
ISSUED SHARE CAPITAL
R300
The following estimated financial situation as at April 2005 was submitted:
STOCK R 200 000 000
DEBTORS approximately R 230 000 000
FIXED ASSETS nett book value R 80 000 000
CREDITORS (30/60 days) fluctuates, approximately R 180 000 000
SHAREHOLDERS LOANS R 68 000 000
TURNOVER per annum R1 500 000 000
AUDITORS
DELOITTES
YEAR END
FEBRUARY
INSURANCE BROKERS
ALEXANDER FORBES INSURANCE BROKERS
TRADE REFERENCES
SEPTEMBER 2006
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 3 yrs Open R30 000 30 days 30 days Good
2. 5 yrs R300 000 R150 000- 30 days 30 days Good
R200 000
3. Old acc R1 mill R1 mill 30 days 30 days Good
CURRENT TRADE
REFERENCES
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. 30 yrs Declined Declined 30 days 30 days Excellent
2. 14 yrs R72 mill R23 mill 30 days 30 days Excellent
2.5% 2.5%
3. 20 yrs Declined R10 mill- 30 days 30 days Excellent
R15 mill 2.5% 2.5%
COMMENTS
This is a comparatively new company that took over operations and assets of the subject’s businesses. The subject is meeting its commitments timeously and is considered equal to its normal business engagements.
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%)