MIRA INFORM REPORT

 

 

 

Report Date :

04.08.2008

 

IDENTIFICATION DETAILS

 

Name :

DOW AGROSCIENCES SOUTHERN AFRICA (PTY) LTD

 

 

Formerly Known As :

FARM MACHINERY (PTY) LIMITED

 

 

Registered Office :

Old Mill Site, Canelands, North Coast, Kwa-Zulu Natal

 

 

Country :

South Africa

 

 

Date of Incorporation :

03.07.1967

 

 

Com. Reg. No.:

1967/007147/07

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacture and Distribution of Agricultural Chemicals such as Herbicides, Pesticides and Insecticides

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

COMPANY NAME

 

DOW AGROSCIENCES SOUTHERN AFRICA (PTY) LTD

 

Formerly SANACHEM (PTY) LTD, the name having been changed on 12 September 2000; formerly SA NATIONAL AGRICULTURAL CHEMICALS (PTY) LTD the name having been changed in May 1995; formerly FARM MACHINERY (PTY) LIMITED the name having been changed on 1 March 1990.

 

 

PHYSICAL ADDRESS

 

Old Mill Site

Canelands

NORTH COAST

Kwa-Zulu Natal

 

 

POSTAL ADDRESS   

 

P O Box 1454

DURBAN

4000

TELEPHONE NUMBER: 032 439 1111

FAX NUMBER:  032 439 1035

 

Please note that the division EFFEKTO was incorporated into the company, AGROSERVE (PTY) LTD 18 months ago.

 

The heading addresses and contact numbers belong to the subject’s manufacturing division.  It was stated that the financial, administration and head office addresses are:

 

 

PHYSICAL ADDRESS

 

Eden Gardens Building

Dimension Data Campus

cnr Sloan Street & Main Road

BRYANSTON

Gauteng

 

 

POSTAL ADDRESS   

 

Private Bag X160

BRYANSTON

2021

TELEPHONE NUMBER: 011 578 0808

FAX NUMBER:  011 578 6088                                        

 

 

SHAREHOLDERS

 

100%     DOW AGROSCIENCES LLC in the USA, which is in turn owned by DOW CHEMICAL COMPANY INC in the USA.

 

 

ASSOCIATE COMPANIES

 

SENTRACHEM LTD

DOW SOUTHERN AFRICA HOLDINGS (PTY) LTD

 

Plus other companies within the DOW group.

 

 

DIRECTORS  

 

R MCLEAN

D ERASMUS

 

 

BANKERS

 

NEDBANK, Durban North branch, account number:  1352041154.  It was stated that the subject is managed by a cash management scheme which is controlled by SENTRACHEM LTD.

 

 

DATE REGISTERED

 

3 July 1967

Registration Certificate Number: 1967/007147/07

 

 

VAT NUMBER    

 

4010102442

 

 

MAJOR OPERATION

 

The manufacture and distribution of agricultural chemicals such as herbicides, pesticides and insecticides

 

 

MAJOR SUPPLIERS

 

The subject imports raw materials worldwide and local suppliers are as follows:

 

SASOL POLYMERS   Johannesburg

MEGAPAK  Durban

SAFCOR  Johannesburg

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

Agricultural distributors such as Agricura, that sells to farmers, retailers, etc

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

60 countries worldwide

 

 

TOTAL EMPLOYEES

 

200 in the group.

 

 

OTHER PREMISES

 

The subject has branches in Canelands in Durban, and Sasolburg

 

 

OWNED OR LEASED

 

Leased

 

 

AUTHORISED SHARE CAPITAL

 

R2 000 divided into 1 000 ordinary shares of R2 each

 

 

ISSUED SHARE CAPITAL

 

R2 000

 

Full financial information was not forthcoming from respondents at the company, nevertheless, it was stated that the estimated turnover per annum was R800 million.

 

 

AUDITORS

 

DELOITTE, Durban 031 560 7000

 

 

YEAR END

 

DECEMBER

 

 

INSURANCE BROKERS

 

ALEXANDER FORBES / AIG

 

 

TRADE REFERENCES – AUGUST 2006

 

       ACCOUNT    HIGHEST      AVERAGE       TERMS     PAYMENT    EXPERIENCE

       OPENED      CREDIT        CREDIT                          PATTERN

 

1.    10 yrs           R4 500 000   R1 500 000 -    30 days    30 days        Very good

                                               R2 000 000

 

2a.  4 yrs            R1 500 000   R   900 000 -   30 days    30 days        Very good

                                               R1 000 000

 

2b.  4 yrs            R1 500 000   R   500 000 -   30 days    30 days        Excellent

                                               R   900 000

 

2c.  4 yrs            R   600 000   R   100 000     30 days    30 days        Excellent

 

 

TRADE REFERENCES – JUNE 2007

 

       ACCOUNT    HIGHEST      AVERAGE       TERMS     PAYMENT    EXPERIENCE

       OPENED      CREDIT        CREDIT                          PATTERN

 

1.    Do not give trade references

 

2.    10 yrs+         declined         declined          30 days    30 days        Good

 

3.    2000             R100 000       R    1 000        30 days    30 days        Good

 

4.    10 yrs           R500 000       R200 000 -      30 days    30 days        Good

                                               R300 000

 

 

CURRENT TRADE REFERENCES

 

       ACCOUNT    HIGHEST      AVERAGE       TERMS     PAYMENT    EXPERIENCE

       OPENED      CREDIT        CREDIT                          PATTERN

 

1.    Do not give trade references

 

2.    8 yrs            declined         declined          30 days    30 days        Excellent

 

3.    2004             R2 000 000    R800 000        30 days    30 days        Very good

 

 

COMMENTS

 

This is a well established and connected company meeting its commitments timeously.  The subject is considered equal to US$1 000 000 on DA terms.

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.42.37

UK Pound

1

Rs.84.00

Euro

1

Rs.65.96

 

 

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.

 

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