MIRA INFORM REPORT

 

 

Report Date :

09.08.2014

 

IDENTIFICATION DETAILS

 

Name :

CHEM SYSTEMS (PTY) LTD

 

 

Formerly Known As :

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 Company

 

 

Line of Business :

Manufacturers and distributors of speciality chemicals used in the industry across the board

 

 

No. of Employees

Between 210 - 220, having reduced from between 250 - 260

 

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 :

No Complaints

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

South Africa

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

SOUTH AFRICA - ECONOMIC OVERVIEW

 

South Africa is a middle-income, emerging market with an abundant supply of natural resources; well-developed financial, legal, communications, energy, and transport sectors and a stock exchange that is the 16th largest in the world. Even though the country's modern infrastructure supports a relatively efficient distribution of goods to major urban centers throughout the region, unstable electricity supplies retard growth. The global financial crisis reduced commodity prices and world demand. GDP fell nearly 2% in 2009 but has recovered since then, albeit slowly with 2014 growth projected at about 2%. Unemployment, poverty, and inequality - among the highest in the world - remain a challenge. Official unemployment is at nearly 25% of the work force, and runs significantly higher among black youth. Eskom, the state-run power company, has built two new power stations and installed new power demand management programs to improve power grid reliability. Construction delays at two additional plants, however, mean South Africa is operating on a razor thin margin; economists judge that growth cannot exceed 3% until those plants come on line. South Africa's economic policy has focused on controlling inflation, however, the country has had significant budget deficits that restrict its ability to deal with pressing economic problems. The current government faces growing pressure from special interest groups to use state-owned enterprises to deliver basic services to low-income areas and to increase job growth.

Source : CIA

 

 

COMPANY NAME and address

 

CHEM SYSTEMS (PTY) LTD

 

Formerly: CHEMSERVE SYSTEMS (PTY) LTD, the name having been changed on 10 October 2013

 

 

TRADING DIVISION:

S A SILICONES DIVISION

STATUS DIVISION

ORLIK DIVISION

CAPITAL DIVISION (Formerly: POLYMER SCIENCE DIVISION)

APPLIED DIVISION

CONSTRUCTI-KEM

CHEMISPHERE

 

PHYSICAL ADDRESS: 

200 Berg River Drive

CHLOORKOP EXT 24

Kempton Park

Gauteng

 

POSTAL ADDRESS:    

P O Box 12055

CHLOORKOP

1624

 

TELEPHONE NUMBER: +27 11 922 1600

 

FAX NUMBER:              +27 11 976 2338

 

It was stated that the address 14 Field Street, Boksburg, Gauteng is that of the associate company PLAASKEM (PTY) LTD.

 

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 now known as STATUS 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

(Registration Certificate Number: 1969/011158/07) - dormant

CHEMSERVE POLYMER SCIENCES (PTY) LTD

(Registration Certificate Number: 1966/011385/07) – dormant

AKULU-MARCHON (PTY) LTD

(Registration Certificate Number: 1980/000046/07)

ATLAS CONSOLIDATED INDUSTRIES (PTY) LTD, trading as INDUSTRIAL URETHANES

(Registration Certificate Number: 1974/003159/07)

PLASTAMID (PTY) LTD

(Registration Certificate Number: 1968/006620/07)

RESINKEM (PTY) LTD

(Registration Certificate Number: 1973/009008/07)

PLAASKEM (PTY) LTD

(Registration Certificate Number: 1972/013867/07)

 

- plus other companies within the CHEMICAL SERVICES and AECI groups.

 

 

DIRECTORS

 

L A G DAVIES                                                   ID No    6603125179080

M S VAN SCHELT                                             ID No.   7208225215088

M A DYTOR                                                      ID No.   6107185122089

E E LUDICK                                                      ID No.   6407155033088

P G DIANA-OLIARO                                           ID No.   6708205014089

D SMIT                                                             ID No.   Not available

M PEACH (MD)                                                 ID No.   6105185026086

 

 

BANKERS

 

FIRST NATIONAL BANK CORPORATE, Johannesburg Branch, 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

TAX NUMBER:              9700170716

BEE STATUS:               Level 4 contributor

 

MAJOR OPERATION

 

Manufacturers and distributors of speciality chemicals used in the industry across the board

 

 

MAJOR SUPPLIERS

 

The subject mainly imports raw materials from Germany, Far East, UK and the USA and deals with South African suppliers.

 

Previously, we have divulged the names of the major suppliers in our reports.  We have discontinued this practice to protect our valuable sources of trade information.  This has become necessary because we now give a description of the goods or services to which the trade references relate.  This gives our client the ability to assess whether  the purchases are vital to the subject’s operation and whether we have only been given their essential suppliers that must be paid promptly for the subject to maintain its operation.

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

Mines, steel industry, aerospace industry and general industry

 

 

AREA OF DISTRIBUTION AND SELLING   

 

South Africa

 

 

EXPORTS

 

Dubai, France and neighbouring countries

 

 

TOTAL EMPLOYEES

 

Between 210 - 220, having reduced from between 250 - 260 reported in March 2014

 

OTHER PREMISES

 

It was stated that the subject has branches in Durban, Port Elizabeth and Cape Town. It was established that the ORLIK division is situated at the heading address 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 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

 

 

FINANCIALS

 

The following estimated financial situation was submitted as at 5 August 2014:

 

STOCK                                                                                                    ±R 134 000 000

DEBTORS                                                                                                 R   72 000 000

FIXED ASSETS net book value (2010)                                                          R   65 000 000

CREDITORS local & overseas                                                                      R   53 000 000

SHAREHOLDERS LOANS fluctuates                                                           R     5 000 000

TURNOVER per annum - forecast for 2012                                                  ±R 397 000 000

 

 

AUDITORS    

 

KPMG Sunninghill

 

 

YEAR END    

 

DECEMBER

 

 

INSURANCE BROKERS 

 

MARSH INSURANCE BROKERS

 

 

 

TRADE REFERENCES – SEPTEMBER 2006:

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

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

 

2.                10 years       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 years       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 years       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 years       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

 

TRADE REFERENCES – MARCH 2008:

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

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

                                               R   100 000

 

2.                10 years       declined         R   500 000-    30/60 day  30/60 days    Very Good

                                               R1 000 000

 

3.                20 years       declined         R     20 000-    30 days    30 days        Very Good

                                               R     40 000

TRADE REFERENCES – OCTOBER 2008:

 

                  ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.                Old acc        R250 000       R   150 000     30 days    30 days        Very Good

 

2.                10 years       declined         R1 000 000      30 days    30 days        Very Good

 

3.                20 years       declined         R     30 000-    30 days    30 days        Very Good

                                               R     80 000

 

TRADE REFERENCES – MARCH 2009:

 

                  ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

                  OPENED      CREDIT         CREDIT                          PATTERN

 

1.                ±15 years     no limit          R500 000        30 days    30 days        Very Good

 

2.                No purchases since 2006.

 

3.                20 years       undisclosed    R  10 000-       30 days    30 days        Very Good

                                               R  35 000       

 

4.       Do not give trade references

 

5.                ±20 years     undisclosed    very large        30 days    30 days        Very Good

 

TRADE REFERENCES – AUGUST 2009:

 

                  ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

                  OPENED      CREDIT         CREDIT                          PATTERN

 

1.                10 years       R   150 000    R100 000-       30 days    30/31 days    Good

                          c/l                 R160 000

 

2.                ±20 years     R4 000 000    undisclosed     60 days    60 days        Good

                          c/l

 

3.                1996             R1 500 000    R300 000-       30 days    30 days        Very Good

                          c/l                 R350 000                       

 

4.     Do not give trade references

 

TRADE REFERENCES – OCTOBER 2010:

 

                  ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

                  OPENED      CREDIT         CREDIT                          PATTERN

 

1.                +20 years     declined         up to               30 days    30 days        Very Good

                                               R1 000 000     

 

2.                +5 years       R180 000       R     25 000-    30 days    30 days        Good

                          c/l                 R     50 000

 

 3.    Do not give trade references

 

 4.    Do not give trade references

 

 5.      10 years                sporadic         purchases       30 days    30 days        Very Good

 

 6.      Do not give trade references

 

TRADE REFERENCES – APRIL 2012:

 

                  ACCOUNT    HIGHEST       AVERAGE       TERMS        PAYMENT    EXPERIENCE

                  OPENED      CREDIT         CREDIT                             PATTERN

 

1.                20 years       ±R1 000 000   ±R500 000       30 days       30 days        Good

 

2.                10 years         R   180 000  ±R  30 000      30 days       30 days        Good

 

3.                1996               R   100 000  R    20 000-     30 days       30 days        Average

                                               R    80 000

 

4.                Do not give trade references

4.       Do not give trade references

 

TRADE REFERENCES – MARCH 2014:

 

                  ACCOUNT    HIGHEST       AVERAGE       TERMS        PAYMENT    EXPERIENCE

                  OPENED      CREDIT         CREDIT                             PATTERN

 

1.                +20 years     Declined        Declined          30 days       30 days        Excellent

 

2.                15 years       R    200 000   R    7 900        30 days       30/34 days   Good

 

3.                2011             R    750 000   R    2 000-       30 days       30/35 days   Excellent

      c/l                R    4 000

 

4.                Do not give trade references

 

CURRENT TRADE REFERENCES:

 

                  ACCOUNT    HIGHEST       AVERAGE       TERMS        PAYMENT    EXPERIENCE

                  OPENED      CREDIT         CREDIT                             PATTERN

 

1.                20 years       Declined        Large              30 days       30 days        Very Good

 

2.                2006             R  200 000     R    5 000        30 days       30 days        Good

 

3.                Do not give trade references

 

NATURE OF GOODS OR SERVICES SUPPLIED:

(These descriptions relate respectively by number to the above current trade transactions):

 

1.                PVC Stabilisers

     

2.                Plastic Drums

 

 

COMMENTS

 

This is a well-established and well-connected company that appears to have overcome cash flow tightness in the beginning of 2014 and is meeting its commitments timeously. It is spoken of highly by its suppliers.  The subject is considered equal to its normal business engagements in view of the standing of the group. The subject is considered equal to a maximum figure of €350 000 over 30 days.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.56

UK Pound

1

Rs.103.50

Euro

1

Rs.82.41

                

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

SDA

               

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

 

--

NB

New Business

--

 

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.