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Report Date : |
09.08.2014 |
IDENTIFICATION DETAILS
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Name : |
CHEM SYSTEMS (PTY) LTD |
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Formerly Known As : |
CHEMSERVE SYSTEMS (PTY) LTD |
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Registered Office : |
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Country : |
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Date of Incorporation : |
24.05.1958 |
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Com. Reg. No.: |
1958/001699/07 |
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Legal Form : |
Private Company |
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Line of Business : |
Manufacturers and distributors of speciality
chemicals used in the industry across the board |
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No. of Employees |
Between 210 - 220, having reduced from between
250 - 260 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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South Africa |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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.
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Source
: CIA |
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.
100% CHEMICAL
SERVICES LTD (delisted from the JSE LTD), which in turn is owned 100% by AECI LTD
(quoted on the JSE LTD)
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.
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
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.
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
Manufacturers and distributors of speciality
chemicals used in the industry across the board
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.
Mines, steel industry, aerospace industry and
general industry
South Africa
Dubai, France and neighbouring countries
Between 210 - 220, having reduced from between 250
- 260 reported in March 2014
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.
The heading premises are reported to be owned by
CHEMHOLD INVESTMENTS (PTY) LTD, while the Cape Town premises are owned by group
companies. The
R2 500 000 divided into 2 500 000 ordinary shares
of R1 each
R2 500 000
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
KPMG Sunninghill
DECEMBER
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
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.56 |
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UK Pound |
1 |
Rs.103.50 |
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Euro |
1 |
Rs.82.41 |
INFORMATION DETAILS
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Analysis Done by
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RAS |
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Report Prepared
by : |
SDA |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.