MIRA INFORM REPORT

 

 

Report Date :

09.08.2014              

 

IDENTIFICATION DETAILS

 

Name :

MACSTEEL SERVICE CENTRES SA (PTY) LTD

 

 

Formerly Known As :

MACSTEEL SERVICE CENTRES SA 2005 (PTY) LTD

 

 

Registered Office :

7 Brook Road, Lilianton, Boksburg, Gauteng

 

 

Country :

South Africa

 

 

Date of Incorporation :

17.05.2005

 

 

Legal Form :

Private Company

 

 

Line of Business :

Subject is the largest steel service centre and trading Group in Southern Africa, distributing the entire spectrum of steel and allied steel products including significant value added and beneficiation capabilities.

 

 

No. of Employees :

±5 000

 

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 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

South Africa

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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

 

MACSTEEL SERVICE CENTRES SA (PTY) LTD

 

Formerly: MACSTEEL SERVICE CENTRES SA 2005 (PTY) LTD, the name having been changed on 3 January 2007

Formerly: MAIN STREET 316 (PTY) LTD, the name having been changed on 1 August 2005

 

 

TRADING DIVISIONS

 

MACSTEEL BRIGHT BAR

MACSTEEL TRADING (incorporating HALL & PICKLES)

MACSTEEL TUBE & PIPE

MACSTEEL ROOFING PRODUCTS

HARVEY ROOFING

MACSTEEL VRN (ROODEKOP)

MACSTEEL EXPORTS

MACSTEEL SPECIAL STEELS

MACSTEEL FLUID CONTROL

MACSTEEL COIL PROCESSING

MACSTEEL FLANGES

MACSTEEL REINFORCING

 

 

PHYSICAL ADDRESS

 

7 Brook Road

LILIANTON

Boksburg

Gauteng

 

 

POSTAL ADDRESS   

 

P O Box 7729

JOHANNESBURG

2000

 

17 Berry Road,

Roodekop,

Germiston P O Box 123813 Airode 1451,

South Africa

 

TELEPHONE NUMBER:                    

+27 11 871 0000

 

FAX NUMBER:                                 

+27 11 824 4994

On investigation contact was made with the Group Company Secretary.  He stated that the subject moved from 243 Dyson Road, Wadeville, Germiston in 2011.

 

 

SHAREHOLDERS

 

32.52% E SAMSON

32.52% S SAMSON

7.50%   VENMAC INVESTMENTS (PTY) LTD

(Registration Certificate Number: 2005/039202/07)

7.50%   SHANDUKA STEEL HOLDINGS (PTY) LTD

(Registration Certificate Number: 2000/017113/07

 

             

SHAREHOLDERS

 

continued

 

  5.0  % MACSTEEL EMPLOYEES TRUST SA 2005 (PTY) LTD

            (Registration Certificate Number: IT7286/06)

              4.83% THE MAC STEEL SE TRUST

            (Registration Certificate Number: IT763/2012)

  3.63% MSCSA INVESTMENTS (PTY) LTD

            (Registration Certificate Number: 1956/002295/07)

    2.5%             PEOTANA DEVELOPMENT INVESTMENTS 1 (PTY) LTD

            (Registration Certificate Number: 2006/023879/07)

    1.0% PEOTANA RENEWABLES (PTY) LTD

    1.0% THE FERREL TRUST

    1.0% FUTURE AFRICA INVESTMENT HOLDINGS (PTY) LTD

            (Registration Certificate Number: 2001/020477/07)

    1.0% Dr. D KONAR (ID No. 5402195036085)

 

            The shareholding changed and was previously:

 

65.04% SECOND DAVE SAMSON TRUST

            (Registration Certificate Number: IT 4967)

    7.5% VENMAC INVESTMENTS (PTY) LTD (KAGISO)

            (Registration Certificate Number: 2005/039202/07)

    7.5% SHANDUKA STEEL HOLDINGS (PTY) LTD

            Registration Certificate Number: 2000/017113/07

    5.0% MACSTEEL EMPLOYEES TRUST SA 2005 (PTY) LTD

            (Registration Certificate Number: IT7286/06)

  4.83% THE MACSTEEL SE TRUST

            (Registration Certificate Number: IT763/2012)

  3.63% MSCSA INVESTMENTS (PTY) LTD

            (Registration Certificate Number: 1956/002295/07)

    2.5% PEOTANA DEVELOPMENT INVESTMENTS 1 (PTY) LTD

            (Registration Certificate Number: 2006/023879/07)

    1.0% FUTURE AFRICA INVESTMENT HOLDINGS (PTY) LTD

            (Registration Certificate Number: 2001/020477/07)

    1.0% KHEIP INVESTMENTS (PTY) LTD

            (Registration Certificate Number: 1997/007788/07)           

    1.0% Dr. D KONAR (ID No. 5402195036085)

    1.0% Held by an undisclosed shareholder

 

The shareholding changed and was previously:

 

73.5%   MSCSA INVESTMENTS (PTY) LTD, formerly MACSTEEL SERVICE CENTRES SA (PTY) LTD, the name having been changed in January 2007. (Registration Certificate Number: 1956/002295/07)

25.5%   BEE Consortium including DR L KONAR, KHEIP (PTY) LTD, KAGISO TRUST INVESTMENTS, SHANDUKA GROUP, MACSTEEL EMPLOYEE TRUST, PEOTONA DEVELOPMENT INVESTMENTS (PTY) LTD, FUTURE AFRICA INVESTMENT HOLDINGS (PTY) LTD.

  1.0%   Held by an undisclosed shareholder

 

We hereby confirm that the correct registered name is as reflected on our report.  It is also correct that the company changed its name from MACSTEEL SERVICE CENTRE SA 2005 (PTY) LTD on 3 January 2007. 

 

The company MACSTEEL SERVICE CENTRES SA 2005 (PTY) LTD started operations in January 2006, after having taken over the operations and assets of its holding company MACSTEEL SERVICE CENTRE SA (PTY) LTD (Registration Certificate Number: 1956/002295/07), which changed its name to MSCSA INVESTMENTS (PTY) LTD on 12 December 2006 (now a 3.63% shareholder), just prior to the subject changing its name to the present style on 3 January 2007.  After having operated for about a year under the previous name, it was decided to change the name again.  In other words there was a virtual simultaneous change of names of both companies that would have lead you to believe that the name of the subject and the holding company were the same at some point.  If, however, one takes notice of the relevant Registration Certificate Numbers, and the changes of names respectively on the 12th of December 2006 of 1956/002295/07 and 3 January 2007 of 2005/016292/07)

 

 

ASSOCIATE COMPANIES

 

There are reported to be a number of companies in the MACSTEEL Group, the main trading company however being the subject.

 

 

DIRECTORS

 

E SAMSON (CH)                                            ID No.  3810105093008

M H HOFFMAN                                              ID No.  4701245031009

L L VAN NIEKERK                                         ID No.  5001195076081

J P L VAN DER WALT (Exec)                         ID No.  6112105013004

A E BROWNE (ne)                                         ID No.  3003305049000

MRS C A CAROLUS (ne)                                ID No.  5805270795088

S R COHEN (ne)                                            ID No.  7105125064089

D KONAR (ne)                                                ID No.  5402195036085

C F LIEBENBERG (ne)                                   ID No.  3410025067081

L S SANK (ne)                                               ID No.  6504165188009

MS D D MOKGATLE (Alt)                               ID No.  5605160732088

N PROVIS                                                     ID No.  5006045104082

M DANISA                                                     ID No.  7003255982081

N MOHARIR                                                   ID No.  6209065285182

SIR B MOFFAT                                              Ppt No.205017517

 

 

BANKERS

 

The subject’s main bank is FIRST NATIONAL BANK, Corporate Business Division, Johannesburg.  The subject also banks with ABSA BANK, NEDBANK and STANDARD BANK, where they have overdraft facilities available as well as a group cash management facility controlled by the holding company.

 

 

DATE REGISTERED

 

17 May 2005

Registration Certificate Number: 2005/016292/07

 

The subject commenced trading in January 2006 when it took over all the trading operations from its holding company, MACSTEEL SERVICE CENTRES SA (PTY) LTD which has since changed its name to MSCSA INVESTMENTS (PTY) LTD.

 

 

VAT NUMBER

           

4430224206

4090104250 (MSCSA INVESTMENTS (PTY) LTD)

 

 

TAX NUMBER

 

9018884156

 

 

BEE STATUS

 

Unknown

MAJOR OPERATION

 

It was stated that the subject is the largest steel service centre and trading Group in Southern Africa, distributing the entire spectrum of steel and allied steel products including significant value added and beneficiation capabilities.

 

 

MAJOR 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

 

General industry and merchants

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

Sub-Saharan Africa

 

 

TOTAL EMPLOYEES

 

±5 000 – 95% of which are in the subject company, while 5% are in the remaining group of companies.

 

 

OTHER PREMISES   

 

It was stated that the subject has ±60 branches countrywide as well as an additional 18 branches in Africa

 

 

OWNED OR LEASED

 

It was stated that some of the premises are owned while some are leased. The head office premises are reported to be owned by the group company.  Further information was not forthcoming.

 

 

AUTHORISED SHARE CAPITAL

 

R1 000 000 divided into R1 000 000 000 ordinary shares of 0.001c each

 

 

ISSUED CAPITAL AND SHARE PREMIUM 

 

R800 000

 

 

FINANCIALS

 

Full financial information was declined by respondents at the subject, however, please see previous Average Annual Turnover which is between
R8 000 000 000 to R10 000 000 000.

 

 

AUDITORS    

 

KPMG INCORPORATAED

 

 

YEAR END    

 

DECEMBER

 

 

INSURANCE BROKERS 

 

AON INSURANCE BROKERS

 

 

TRADE REFERENCES – DECEMBER 2006

 

      ACCOUNT HIGHEST      AVERAGE         TERMS     PAYMENT    EXPERIENCE

      OPENED    CREDIT        CREDIT                             PATTERN

 

1.    25 years    R75 000 000   R75 000 000      30 days    30 days        Excellent

 

2.    25 years    R10 000 000   R10 000 000      60 days    60 days        Excellent

                                                                     2.5%        2.5%           

 

3.    30 years+  do not disclose figures             30 days    30 days        Excellent

 

4.    Do not give trade references

 

 

TRADE REFERENCES – JULY 2007

 

      ACCOUNT HIGHEST      AVERAGE         TERMS     PAYMENT    EXPERIENCE

      OPENED    CREDIT        CREDIT                             PATTERN

 

1.    25 years    in the millions                          60 days    60 days        Excellent

                                                                     2.5%

 

2.    30 years    declined         declined             30 days    30 days        Excellent

 

3.   20 years    declined         declined             30 days     30 days Excellent

 

 

TRADE REFERENCES – APRIL 2008

 

      ACCOUNT HIGHEST      AVERAGE         TERMS     PAYMENT    EXPERIENCE

      OPENED    CREDIT        CREDIT                             PATTERN

 

1.    30 years    declined         figures              30 days    30 days        Excellent

 

2.    25 years    R100 000 000 R75 000 000      30 days    30 days        Very Good

 

3.    Old acc      declined         declined            30 days    30 days        Very Good

 

 

TRADE REFERENCES – JULY 2008

 

      ACCOUNT HIGHEST      AVERAGE         TERMS     PAYMENT    EXPERIENCE

      OPENED    CREDIT        CREDIT                             PATTERN

 

1.    30 years    declined         declined             30 days    30 days        Excellent

 

2.    25 years    declined         R       200 000-   30 days    30 days        Excellent

                                            R250 000 000

 

3.    Awaiting a trade reference

 

 

TRADE REFERENCES – FEBRUARY 2009

 

      ACCOUNT HIGHEST      AVERAGE         TERMS     PAYMENT    EXPERIENCE

      OPENED    CREDIT        CREDIT                             PATTERN

 

1.    +30 years  declined         declined             30 days    30 days        Excellent

 

2.       Do not give trade references.

 

3.       Do not give trade references.

 

4.       +30 years  large amount declined             30 days    30 days        Excellent

 

 

TRADE REFERENCES – APRIL 2009

 

      ACCOUNT    HIGHEST       AVERAGE          TERMS  PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    40 years       Undisclosed   Undisclosed       30 days 30 days        Very Good

 

2.    ±20-25          Undisclosed   R100 000 000- 30 days    30 days        Excellent

      years                                R130 000 000

 

3.    +30 years     Undisclosed   Undisclosed       30 days 30 days        Excellent

 

 

TRADE REFERENCES – OCTOBER 2009

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    Do not give trade references.

 

2.    20-30            declined         R100 000 000- 30 days    30 days        Good

      years+                              R200 000 000

 

3.    30 years+     declined         declined          30 days    30 days        Excellent

                          (insured)

 

TRADE REFERENCES – NOVEMBER 2009

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    ±50 years     declined         declined          30 days    30 days        Excellent

                          c/l

 

2.    25 years+     declined         R100 000 000  30 days    30 days        Excellent

 

3.       Do not give trade references.

 

4.    30 years+     declined         declined          30 days    30 days        Excellent

 

5.    Do not give trade references

 

 

TRADE REFERENCES – FEBRUARY 2010

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    20 years       declined         R200 000 000- 30 days    30 days        Excellent

                                               R300 000 000

 

2.    10 years       declined         figures             30 days    30 days        Excellent

 

3.    Old               declined         figures             30 days    30 days        Very Good

 

4.    Do not give trade references

 

 

TRADE REFERENCES – JULY 2010

 

      ACCOUNT   HIGHEST         AVERAGE       TERMS    PAYMENT    EXPERIENCE

      OPENED     CREDIT            CREDIT                          PATTERN

 

1.    25 years      R300 000 000   R300 000 000  30 days    30 days        Very Good

 

2.    40 years      R100 000 000   R100 000 000  30 days    30 days        Excellent

 

3.    Old             R115 000 000   R100 000 000  30 days    30 days        Very Good

 

TRADE REFERENCES – AUGUST 2010

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    25-30 years   Confidential    ±R200 000 000- 30 days   30 days        Excellent

                                                 R275 000 000

 

2.    30 years       Confidential    Confidential     30 days    30 days        Excellent

       (Insured)

 

3.       Do not give trade references

 

4.       Unable to obtain trade references

 

 

TRADE REFERENCES – MARCH 2011

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    ±25 years     confidential     R  80 000 000  30 days    30 days        Very Good

                          CGIC sec.      R120 000 000

 

2.    30+ years     confidential     confidential      30 days    30 days        Excellent

                          CGIC insured

 

3.       Do not give trade references

 

4.       Do not give trade references

 

 

TRADE REFERENCES – MARCH 2012

 

       ACCOUNT   HIGHEST       AVERAGE      TERMS     PAYMENT    EXPERIENCE

       OPENED      CREDIT          CREDIT                          PATTERN

 

1.         +40 years    Confidential     Confidential     30 days     30 days        Excellent

 

2.         +25 years    Confidential     R100 000 000 30 days     30 days        Excellent

                                               R150 000 000

 

3.         Do not give trade references.

 

4.         Last dealt with subject in 2009

 

5.         16 years      R160 000 000 R75 000 000   30 days     30 days        Excellent

 

 

TRADE REFERENCES – AUGUST 2012

 

       ACCOUNT   HIGHEST          AVERAGE      TERMS     PAYMENT    EXPERIENCE

       OPENED      CREDIT            CREDIT                          PATTERN

 

1.     50 years      Declined           Declined         30 days     30 days        Excellent

                          This is a large account

 

2.     25 years      Declined           R     90 000-   30 days     30 days        Excellent

                                                  R   100 000

 

3.     30 years      Declined           Declined         30 days     30 days        Excellent

 

4.     16 years      R160 000 000    R75 000 000   30 days     30 days        Excellent

                                                                       -2.5%

 

5.     Do not give trade references

 

 

CURRENT TRADE REFERENCES

 

       ACCOUNT   HIGHEST       AVERAGE      TERMS     PAYMENT    EXPERIENCE

       OPENED      CREDIT          CREDIT                          PATTERN

 

1.         12-15 years  Declined         Declined         30 days     30 days        Very Good

 

2.         30 years      Declined         Declined         30 days     30 days        Very Good

 

3.         17 years      R160 000        R75 300 000   30 days     30 days        Excellent

                          Ins CIGC                                              Less 2.5%

 

4.         Do not give trade references

 

 

CURRENT TRADE REFERENCES

 

       ACCOUNT   HIGHEST       AVERAGE      TERMS     PAYMENT    EXPERIENCE

       OPENED      CREDIT          CREDIT                          PATTERN

 

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

 

2.     Do not give trade references

 

3.     12 years      Declined         Declined         30 days     30 days        Excellent

 

 

NATURE OF GOODS OR SERVICES SUPPLIED

 

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

 

1.    Steel

 

3.    Steel

 

 

COMMENTS

 

This is a well-established and well-connected company. The subject is meeting its commitments timeously and is spoken of highly by its suppliers. 


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.55

UK Pound

1

Rs.103.50

Euro

1

Rs.82.41

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

PDT

 

               

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.