MIRA INFORM REPORT

 

 

Report Date :           

10.03.2011

 

IDENTIFICATION DETAILS

 

Name :

RHEINMETALL DENEL MUNITION (PTY) LTD

 

 

Formerly Known As :

DENEL MUNITIONS (PTY) LTD

 

 

Registered Office :

Firgrove Reed Road, Somerset West, Western Cape

 

 

Country :

South Africa

 

 

Date of Incorporation :

15.11.2007

 

 

Com. Reg. No.:

2007/032918/07

 

 

Legal Form :

Private Company

 

 

Line of Business :

development, design and manufacturer of calibre ammunition such as mortars.

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Small Company 

 

 

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:

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

 

 

COMPANY NAME

 

RHEINMETALL DENEL MUNITION (PTY) LTD

 

·         Formerly DENEL MUNITIONS (PTY) LTD, the name having been changed on 13 October 2008;

·         Formerly LEXSHELL 87 GENERAL TRADING (PTY) LTD, the name having been changed on 24 April 2008.

 

 

TRADING NAME 

 

RDM

 

 

PHYSICAL ADDRESS    

 

Firgrove Reed Road

Somerset West

Western Cape

 

 

POSTAL ADDRESS   

 

P O Box 187

Somerset West

7129

Telephone Number:                  021 850 2911

Fax Number:                             021 850 3027

 

 

SHAREHOLDERS

 

51%      RHEINMETALL WAFFE MUNITION GMBH-which in turn is owned by RHEINMETALL AG, Germany.

49%      DENEL (PTY) LTD, (Registration Certificate Number: 1992/001337/07) which is in turn owned 100% by the South African Government-Department of Public Enterprises

 

ASSOCIATE COMPANIES

 

Large number of group companies

 

RHEINMETALL AIR DEFENCE AG

RHEINMETALL LANDSYSTEME GMBH

RHEINMETALL MAN MILITARY VEHICLE GMBH

RHEINMETALL RADFAHRZEUGE GMBH

RHEIMETALL CHEMPRO GMBH

RWN SCHWEIZ AG

RWM SCHWEIZ ZAUGG AG

 

DENEL INTERNATIONAL LTD (incorporated in Mauritius)

DENEL PERSONNEL SOLUTIONS (PTY) LTD

DENEL PROPERTIES (PTY) LTD

DENEL SAAB AEROSTRUCTURE (PTY) LTD)

MECHEM CONSULTANTS (PTY) LTD

 

 

DIRECTORS

 

H P MERCH (Germany)              D.O.B   560220

Z MHLONTLO                            ID No.   6902106114086

T P MUSHUNGWA                    ID No.   7010220431086

A T PAPPERGER (Germany)     D.O.B   630130

B STEURI (Switzerland)              D.O.B   520130

 

 

BANKERS

 

ABSA BANK, Cape Town branch. 

It was stated that the subject enjoys large overdraft facilities secured by RHEINMETALL AG. Overdraft facilities are stated to fluctuate.

 

 

DATE REGISTERED

           

15 November 2007

Registration Certificate Number: 2007/032918/07

 

Respondents stated that the subject was registered to take over a well established division namely the DENEL MUNITION division of DENEL (PTY) LTD in 2007.

 

VAT NUMBER    

 

4020247856

 

 

MAJOR OPERATION

 

The subject specialises in the development, design and manufacturer of calibre ammunition such as mortars.

 

 

MAJOR SUPPLIERS

 

The subject stated that they import raw materials and components worldwide and deals locally with the following South African suppliers:

 

TRANSGLOBAL Cape Town

PRETORIA METAL PRESSING Pretoria

LAINGSDALE ENGINEERING Cape Town

BRINK BROTHERS Boksburg

MACSTEEL SPECIALTIES STEEL Johannesburg

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

Ministry of defence in South Africa and worldwide

 

 

AREA OF DISTRIBUTION AND SELLING   

 

South Africa

 

 

EXPORTS

 

Worldwide

 

 

TOTAL EMPLOYEES

 

1200 up to 1600

 

 

OTHER PREMISES   

 

It was stated that the subject has branches in Potchefstroom, Boksburg and Wellington

 

 

OWNED OR LEASED

 

It was stated that the heading premises are owned by DENEL PROPERTIES (PTY) LTD

 

The following estimated financial situation was submitted:

 

STOCK                                                                                          R400 000 000

DEBTORS                                                              R200 000 000 – R300 000 000

FIXED ASSETS nett book value                                                       R200 000 000

CREDITORS                                                                                   R200 000 000

TURNOVER per annum                                                                   R950 000 000

 

 

AUDITORS    

 

PRICEWATERHOUSECOOPERS

 

 

YEAR END    

 

DECEMBER

 

 

INSURANCE BROKERS 

 

ALEXANDER FORBES

 

 

CURRENT TRADE REFERENCES

 

                  ACCOUNT    HIGHEST     AVERAGE     TERMS       PAYMENT    EXPERIENCE

                  OPENED      CREDIT        CREDIT                           PATTERN

 

1.                2007             open acc      R  28 000-      30 days       30 days        Good

                                                         R130 000                         (Needs monitoring)

 

2.                25 years       open acc      R6 000 000-   30 days       30 days        Very Good

                                                         R8 000 000

 

3.                1992             Conf             figures           30/60days   30 days+      Good

 

 

COMMENTS

 

This is a comparatively new company which took over a well established division.  The subject is meeting its smaller commitments over terms at times but is considered equal to its normal business engagements.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.02

UK Pound

1

Rs.72.70

Euro

1

Rs.62.54

 

 

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.