MIRA INFORM REPORT

Report Date :

14.04.2011

IDENTIFICATION DETAILS

Correct Name :	COATES BROTHERS (SOUTH AFRICA) (PTY) LTD
Registered Office :	7, 18th Avenue, Maitland, Cape Town, Western Cape
Country :	South Africa
Date of Incorporation :	21.04.1936
Com. Reg. No.:	1936/007944/07
Legal Form :	Private Company
Line of Business :	Manufacturers and suppliers of printing inks

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

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – December 31, 2010

Country Name	Previous Rating (30.09.2010)	Current Rating (31.12.2010)
South Africa	a2	a2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Note:

On investigation contact was made with the Financial Controller who declined to assist with information telephonically and requested that an e-mail questionnaire be forwarded, which was duly sent. At a later stage contact was again made with the respondent who stated that they are still busy with month end and will try and complete it as soon as possible. Numerous messages have since been left for the respondent to contact the investigator, to which we have not had a response. Nevertheless, please see historical information as at March 2009.

(The information contained in this report, other than comment by outside authorities, has been voluntarily supplied by Officials of the subject):

COMPANY NAME

COATES BROTHERS (SOUTH AFRICA) (PTY) LTD

The subject converted from a public company to a private company in August 2003. It was stated that the subject was delisted from the JSE LTD on 21 August 2000

TRADING DIVISION

INKS

PHYSICAL ADDRESS

7, 18th Avenue

Maitland

Cape Town

Western Cape

Postal Address

P O Box 1057

Cape Town

8000

Telephone Number: 021 590 5100

Fax Number: 021 593 0604

The subject previously operated a division known as CRAY VALLEY RESINS, which was sold off to a French company named TOTALFINALEF in 2001.

The subject has a manufacturing branch at 2 Baltex Road, Isipingo; P O Box 600, Umbogintwini, Kwazulu Natal, telephone number 031 913 3000

SHAREHOLDERS

100% SUN CHEMICAL GROUP BV, which is based in Holland, which is ultimately owned by DAINIPPON INC AND CHEMICALS in Japan.

The shareholding changed and was previously 66.3% SUN CHEMICALS which is based in the USA, while the remainder of the shares were held by general investors on the JSE LTD.

ASSOCIATE COMPANIES

SUN CHEMICAL (PTY) LTD (dormant)

There are reported to be a number of companies within the SUN CHEMICAL GROUP.

DIRECTORS

J J BISSET ID No: 6503305161009 – (MD)

S M ROGOW ID No: 4406225074009 – (Non Executive)

A STEWART ID No: 7201255214089

D A OGG ID No: 5705315175181

L SWAN ID No: 6608215098082

B R BALDWIN ID No: 5303045109082

J K J GOWLETT (UK) DOB: 541101

BANKERS

STANDARD BANK, Parow Branch, account number 072674008. It was stated that the subject enjoys overdraft facilities, unsecured. Utilisation of the overdraft is stated to be nil as normally credit balances are maintained at the bank.

It was stated that the subject has a foreign facility with ABSA BANK, Corporate Branch Cape Town.

DATE REGISTERED

21 April 1936

Registration certificate number 1936/007944/07.

VAT NUMBER

4900101900

MAJOR OPERATION

Manufacturers and suppliers of printing inks.

MAJOR SUPPLIERS

The subject imports raw materials from Europe and deals locally with:

· PROTEA INDUSTRIAL CHEMICALS Cape Town

· DURBAN SPECIALITY CHEMICALS Durban

· JLM Durban

· ILLOVO SUGAR Tongaat

· CIBA SPECIALITY CHEMICALS Johannesburg

· SAFCOR Cape Town

· ENGEN PETROLEUM Cape Town

MAJOR CUSTOMERS OR BUSINESS SECTORS

The printing industry

AREA OF DISTRIBUTION AND SELLING

South Africa

EXPORTS

Southern Africa, Indian Ocean Islands and neighbouring countries, Including Kenya, Zambia, Zimbabwe and Tanzania. The subject supplies these countries through sister companies within Africa.

TOTAL EMPLOYEES

300 including temporary staff.

OTHER PREMISES

The subject is reported to have branches at Isipingo, Cape Town, East London and Johannesburg and an agent in Port Elizabeth.

OWNED OR LEASED

All the premises are reported to be owned by the company except for the East London premises which are reported to be leased.

AUTHORISED SHARE CAPITAL

R3 000 000 divided into 60 000 000 ordinary shares of R0,05 cents each.

ISSUED SHARE CAPITAL

R1 776

SHARE PREMIUM ACCOUNT

R1 046 000

Financial information was submitted as follows:

STOCK R80 000 000 – R 90 000 000

DEBTORS R 65 000 000

FIXED ASSETS net book value R 40 000 000

CREDITORS foreign & local R 30 000 000

LOANS Nil

TURNOVER per annum (previously stated) R300 000 000

AUDITORS

DELOITTE Cape Town

Telephone number: (021) 670 1500

YEAR END

DECEMBER

INSURANCE BROKERS

GLENRAND MIB

TRADE REFERENCES – FEBRUARY 2006

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 15 yrs+ R500 000 R300 000 - 30 days 30 days Very good

R500 000

2. 73 yrs R200 000 R200 000 30 days 30 days Excellent

2½% 2½%

3. 1992+ R473 000 R173 000 - 30 days 30 days Very good

R390 000

4. 10 yrs R100 000 R100 000 30 days 30 days Good

TRADE REFERENCES – FEBRUARY 2007

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. Do not give trade references.

2. 10 yrs declined R 50 000 - 30 days 30 days Very good

R100 000

3. 14 yrs declined R200 000 30 days 30 days Very good

2.5%

4. 1983 R713 000 R155 000 30 days 30 days Very good

TRADE REFERENCES – MARCH 2008

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 15 yrs R713 000 R226 000 - 30 days 30 days Excellent

R713 000

2. Old acc R100 000 R 80 000 - 30 days 30 days Very Good

R100 000

3. Old acc declined declined 30 days 30 days Good

4. Do not give trade references

5. Do not give trade references

6. Do not give trade references

CURRENT TRADE REFERENCES

– NOVEMBER 2008:

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 1983 R713 000 R300 000 30 days 30 days Very Good

2. Old acc R70 000 R60 000 30 days 30 days Good

-R60 000

3. 15 yrs R250 000 R200 000 30 days 30 days Excellent

R250 000

TRADE REFERENCES

MARCH 2009:

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 5 yrs R100 000 ±R25 000 30 days 30 days Good

c/l

2. 1983 R713 000 ±R220 000 30 days 30 days Very Good

c/l

3. 16 yrs declined ±R200 000 30 days 30 days Excellent

COMMENTS

This is a well established company that is meeting its commitments timeously. Suppliers speak highly of the subject and the subject is considered equal to £602 000 over 90 days.

CURRENT TRADE REFERENCES

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. Do not have such an account (might be C.O.D)

2. Do not give trade references

3. Do not give trade references

4. Do not give trade references

COMMENTS

This is a well established company, however, we could not trace a payment pattern with suppliers. In view of the payment history on the subject we have not traced dealings to an extent of US$1 000 000 and would prefer to see such large figures on a letter of credit basis only. The lack of updated information should be borne in mind. As soon as any further information is forthcoming, the same will be compiled and forwarded to our client.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.48
UK Pound	1	Rs.72.37
Euro	1	Rs.64.42

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	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

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.