MIRA INFORM REPORT

Report Date :

08.03.2008

IDENTIFICATION DETAILS

Name :	CHEMSERVE SYSTEMS (PTY) LTD

Registered Office :	200 Berg River Drive, Chloorkop Ext 24, Kempton Park, Gauteng

Country :	South Africa

Date of Incorporation :	24.05.1958

Com. Reg. No.:	1958/001699/07

Legal Form :	Private Limited Company

Line of Business :	Manufacturers and Distributors of Speciality Chemicals

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory

Payment Behaviour :	Regular

Litigation :	Clear

COMPANY NAME

CHEMSERVE SYSTEMS (PTY) LTD

TRADING DIVISION

S A SILICONES DIVISION

STATUS DIVISION (formerly INDUSTRIAL DIVISION)

ORLIK DIVISION (formerly APPLIED DIVISION)

CAPITAL DIVISION (formerly POLYMER SCIENCE DIVISION)

PHYSICAL ADDRESS

200 Berg River Drive

Chloorkop Ext 24

KEMPTON PARK

Gauteng

POSTAL ADDRESS

P O Box 12055

CHLOORKOP

1624

TELEPHONE NUMBER: 011 922 1600

FAX NUMBER: 011 976 2338

It was stated that the Lubricant and Contracts divisions were incorporated into the STATUS DIVISION.

The Applied Metal Science and Applied Metal Plating Divisions have been incorporated into one division namely APPLIED DIVISION and the Fire Fighting and Contracts Divisions have been incorporated into the INDUSTRIAL DIVISION.

SHAREHOLDERS

100% CHEMICAL SERVICES LTD (delisted from the JSE Ltd), which in turn is owned 100% by AECI LTD (quoted on the JSE Ltd)

ASSOCIATE COMPANIES

CHEMSERVE-TRIO (PTY) LTD (dormant)

CHEMSERVE POLYMER SCIENCES (PTY) LTD (dormant)

INDUSTRIAL OLEOCHEMICAL PRODUCTS (PTY) LTD

CHEMSERVE TECHNICAL PRODUCTS (PTY) LTD

KYNOCARE (PTY) LTD trading as Chemical Initiatives

AKULU-MARCHON (PTY) LTD

PELICHEM (PTY) LTD

ATLAS CONSOLIDATED INDUSTRIES (PTY) LTD trading as Industrial Urethanes.

CREST CHEMICALS (PTY) LTD

CHEMSERVE SYSTEMS (PTY) LTD (50% owned by the holding company)

PLASTAMID (PTY) LTD

RESINKEM (PTY) LTD

PLAASKEM (PTY) LTD

AECI COATINGS (PTY) LTD

Plus other companies within the CHEMICAL SERVICES and AECI groups.

DIRECTORS

T LOUW (Managing Director)

F BAKER

M PEACH

S PERRY

BANKERS

FIRST NATIONAL BANK, Corporate branch, Johannesburg, Account Number: 58860880899. It was stated that the subject is managed by a cash management scheme controlled by CHEMICAL SERVICES LTD.

DATE REGISTERED

24 May 1958

Registration Certificate Number: 1958/001699/07.

The subject commenced as a new business.

The assets and operations of J E ORLIK & ASSOCIATES (PTY) LTD were incorporated into the subject’s APPLIED DIVISION.

VAT NUMBER

4690102977

MAJOR OPERATION

Manufacturers and distributors of speciality chemicals

MAJOR SUPPLIERS

The subject mainly imports raw materials from Germany, Far East, UK and the USA and deals locally with:

QUADRO PLASTICS

UTI Johannesburg

PROTEA CHEMICALS Johannesburg

DEGUSSA Johannesburg

ALLIANCE PEROXIDE Durban

F F S REFINERS Durban

ASSOCIATED ADDITIVES Durban

SHELL CHEMICALS

SERVOCHEM

MAJOR CUSTOMERS OR BUSINESS SECTORS

Mines, steel industry, aerospace industry and general industry.

AREA OF DISTRIBUTION AND SELLING

South Africa

EXPORTS

Neighbouring countries.

TOTAL EMPLOYEES

221

OTHER PREMISES

It was stated that the subject has branches in Durban, Port Elizabeth and Cape Town. It was stated that the ORLIK division is situated in Bedfordview. The subject previously had a factory in Isithebe which relocated to the head office in Chloorkop.

OWNED OR LEASED

The heading premises are reported to be owned by CHEMHOLD INVESTMENTS (PTY) LTD, while the Cape Town premises are owned by group companies. The Port Elizabeth, Bedfordview and Durban premises are reported to be leased

AUTHORISED SHARE CAPITAL

R2 500 000 divided into 2 500 000 ordinary shares of R1 each.

ISSUED SHARE CAPITAL

R2 500 000

The following estimated financial situation was submitted:

STOCK R 81 000 000

DEBTORS R 55 000 000

FIXED ASSETS net book value R 58 000 000

CREDITORS local & overseas R 34 000 000

SHAREHOLDERS LOANS fluctuates R 5 000 000

TURNOVER per annum R320 000 000

AUDITORS

PRICEWATERHOUSECOOPERS Johannesburg

YEAR END

DECEMBER

INSURANCE BROKERS

ALEXANDER FORBES

TRADE REFERENCES – SEPTEMBER 2006:

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 10 yrs R500 000 R300 000 30 days 30 days Good

2. 10 yrs R100 000 R 50 000 - 30 days 30 days Good

R 70 000

3. 1996 R790 000 R400 000 - 30 days 30 days Good

R500 000

TRADE REFERENCES – NOVEMBER 2006

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 10 yrs R200 000 R200 000 60 days 30 days Excellent

2. Do not give trade references

3. 2005 R180 000 declined 30 days 30 days Good

4. 11 yrs R790 000 R300 000 30 days 30 days Excellent

TRADE REFERENCES – OCTOBER 2007

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. Old acc large amounts 30 days 30 days Good

2. 12 yrs R250 000 R100 000 30 days 30 days Excellent

c/l -R200 000

3. 1996 R790 000 R500 000 30 days 30 days Good

c/l

CURRENT TRADE REFERENCES

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 10 yrs R200 000 R 50 000 - 30 days 30 days Excellent

R 100 000

2. 10 yrs declined R 500 000 - 30/60 day 30/60 days Very good

R1 000 000

3. 20 yrs declined R 20 000 - 30 days 30 days Very good

R 40 000

COMMENTS

This is a well-established and well-connected company that is meeting commitments timeously. No adverse comments have been heard and the subject is effecting a substantial turnover. The subject is considered equal to US$1 000 000 over DA terms.

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%)

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