.

MIRA INFORM REPORT

 

 

Report Date :

29.01.2014

 

IDENTIFICATION DETAILS

 

Name :

LAKE INTERNATIONAL TECHNOLOGIES (PTY) LTD

 

 

Formerly Known As :

CHEMSERVE TECHNICAL PRODUCTS PTY) LTD

 

 

Registered Office :

Building 2 Galaxy Office Park, 17 Galaxy Road, Linbro Business Park, Linbro Park

Sandton, Gauteng

 

 

Country :

South Africa

 

 

Date of Incorporation :

07.11.1946

 

 

Com. Reg. No.:

1946/023685/07

 

 

Legal Form :

Private Company

 

 

Line of Business :

Subject engaged in division wise

 

Chemical Division : The subject is an agent for speciality chemicals and they also manufacture and distribute chemical products,

 

Food Division: Distributors of speciality ingredients, products and services to the food industry

 

Surfactants Division : Supplier of fertiliser, agricultural chemicals, additives and emulsifiers.

 

 

No of Employees :

350

 

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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 15th largest in the world. Even though the country possesses modern infrastructure that support a relatively efficient distribution of goods to major urban centers throughout the region, some components retard growth. The economy began to slow in the second half of 2007 due to an electricity crisis. State power supplier Eskom encountered problems with aging plants and meeting electricity demand necessitating "load-shedding" cuts in 2007 and 2008 to residents and businesses in the major cities. Subsequently, the global financial crisis reduced commodity prices and world demand. GDP fell nearly 2% in 2009 but has recovered since then. Unemployment, poverty, and inequality remain a challenge, with official unemployment at nearly 25% of the work force. Eskom has built two new power stations and installed new power demand management programs to improve power grid reliability. 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

 

LAKE INTERNATIONAL TECHNOLOGIES (PTY) LTD

 

Formerly: CHEMSERVE TECHNICAL PRODUCTS PTY) LTD, the name having been changed on 23 June 2003

 

 

TRADING DIVISION

 

LAKE FOODS (Formerly DARLEON)

SOLUTIONS

INFIGRA

AFOODABLE

COBITO

 

LAKE CHEMICALS

EXPRESS

SURFACTANTS

FERTILISERS & AGRICULTURAL

CHEMICALS

GENERAL CHEMICALS

SPECIALISTY CHEMICALS

INDUSTRIAL URETHANES

 

- plus various other divisions

 

 

PHYSICAL ADDRESS          

 

Building 2 Galaxy Office Park

17 Galaxy Road

Linbro Business Park

LINBRO PARK

Sandton

Gauteng

 

 

POSTAL ADDRESS

 

Private Bag X137

BRYANSTON

2021

 

 

TELEPHONE NUMBER

 

+27 11 409 5000 

 

 

FAX NUMBER

 

+27 11 608 2345

 

 

The subject moved from the premises Gemini Street, Linbro Business Park, Sandton a few years ago and no longer utilise the telephone number +27 11 458 8000.

 

 

SHAREHOLDERS

 

100%    AECI LTD

(Registration Certificate Number 1924/002590/06) (quoted on the JSE LTD)

 

The shareholding was previously 100% CHEMICAL SERVICES LTD which in turn is owned by AECI LTD having changed.

 

 

ASSOCIATE COMPANIES

 

AKULU-MARCHON (PTY) LTD

CHEMICAL INITIATIVES (PTY) LTD

ATLAS CONSOLIDATED INDUSTRIES (PTY) LTD trading as INDUSTRIAL URETHANES

SENMIN (PTY) LTD

CHEMIPHOS SA (PTY) LTD

(Registration Certificate Number 1998/014017/07) – which was purchased by the subject in May 2005

CREST CHEMICALS (PTY) LTD – 50% owned by the subject

CHEMSERVE SYSTEMS (PTY) LTD – 100% owned by the subject

CHEMSERVE PERLITE (PTY) LTD

SA PAPER CHEMICALS (PTY) LTD

 

And other companies in AECI LIMITED group

 

 

SUBSIDIARY COMPANIES

 

80%      AFOODABLE (PTY) LTD (Marinades and Sauces)

(Registration Certificate Number: 2003/009337/07)

 

DIRECTORS

 

J F VAN HEERDEN                                                               ID No.6703225038085

D K MURRAY (Chairman)                                                       ID No.6809275031084

T N DAVIES (MD for Lake Foods)                                            ID No.7501050144088

B HARVEY (FD)                                                                    ID No.7409205199082

G GERBER (MD for Lake Chemicals)                                      Not available

 

Mr. G Gerber was previously the Managing Director for PLASTAMID and prior to his commencement at the subject a Managing Director at INDUSTRIAL URETHANES.

 

 

BANKERS

 

FIRST NATIONAL BANK, Johannesburg Branch, Account Number: 58860880617.  It was stated that the subject is managed by a cash management scheme controlled by the holding company.

 

 

DATE REGISTERED

 

7 November 1946

Registration Certificate Number 1946/023685/07

 

It was stated that the subject bought and incorporated the coatings operations of JLM INDUSTRIES (SA) (PTY) LTD into the Coating and Lake General Chemicals divisions on 1 July 2005.

 

It was stated that the subject bought the assets and operations of a business namely, DARLEON CC (Registration Certificate Number 1985/008889/23) and incorporated it as a division into the subject.

 

 

VAT NUMBER

 

4230103154 (Confirmed at SARS)

 

 

TAX NUMBER

 

9000170713

 

 

BEE STATUS

 

Level 5 contributor

 

MAJOR OPERATION

 

Chemical Division

 

The subject is an agent for speciality chemicals and they also manufacture and distribute chemical products,

 

Food Division

 

Distributors of speciality ingredients, products and services to the food industry

 

Surfactants Division

 

Supplier of fertiliser, agricultural chemicals, additives and emulsifiers.

 

 

MAJOR SUPPLIERS

 

The subject imports chemicals (colourants) from Europe, Australia and deals with the following South African suppliers:

 

UTI Johannesburg

TANKER SERVICES Johannesburg

SHELL CHEMICALS Johannesburg

CONEKT BUSINESS GROUP Johannesburg

SAFCOR PANALPINA

SYNERGY WORLDWIDE LOGISTICS Durban

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

Industry in general i.e. mining, painting, glass, chemical and detergent industries.

 

 

AREA OF DISTRIBUTION AND SELLING

 

USA, Northern Africa, Far East and on a small basis to Hong Kong, Australasia and South America.

 

 

TOTAL EMPLOYEES

 

350

 

OTHER PREMISES

 

The subject has a plant in Umbogintwini 1 Dickens Road, Industrial Park (KwaZulu-Natal South Coast) +86 099 0011., Natalspruit, Alberton, a laboratory in Chloorkop, an office in Cape Town and a division is situated in Linbro Park, Johannesburg.

 

 

OWNED OR LEASED

 

The head office premises are reported to be owned by a group property owning company.  The various plant premises, Cape Town office and laboratory premises are reported to be leased.

 

 

AUTHORISED SHARE CAPITAL

 

R36 000 divided into 18 000 ordinary shares of R2 each

 

 

ISSUED SHARE CAPITAL

 

R34 290

 

 

FINANCIALS

 

The following estimated financial situation was submitted as at December 2012:

 

STOCK                                                                                                      R  100 000 000

DEBTORS                                                                                                  R    80 000 000

FIXED ASSETS – (including goodwill)                                                           R    90 000 000

CREDITORS                                                                                               R    50 000 000

SHAREHOLDERS LOANS                                                                                             Nil

TURNOVER - per annum                                                                             R  800 000 000

 

 

AUDITORS

 

KPMG

 

 

 

YEAR END

 

DECEMBER

 

 

INSURANCE BROKERS

 

WILLIS INSURANCE BROKERS

 

 

TRADE REFERENCES – SEPTEMBER 2006

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT           CREDIT                        PATTERN

 

1.    Nov 2001      R3 000 000    R500 000       30 days    30 days       Very Good

                          c/l

 

2.    Do not give trade references

 

3.       Do not give trade references

 

4.    1995             R500 000         R220 000      30 days     30 days        Good

                          c/l

 

 

TRADE REFERENCES - FEBRUARY 2007

 

ACCOUNT          HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                         PATTERN

 

1.    1996             R500 000       R200 000        60 days    60/65 days       Good

 

2.    20 years       R  50 000       R  45 000        30 days    30 days          Very Good

 

 

 

TRADE REFERENCES – JUNE 2007

 

ACCOUNT    HIGHEST     AVERAGE        TERMS     PAYMENT    EXPERIENCE

OPENED      CREDIT        CREDIT                          PATTERN

 

1.    1995             R   500 000   R200 000         30 days    30 days          Very Good

                          c/l

 

2.    2001             R3 000 000     R400 000        30 days    30 days          Very Good

                          c/l

 

3.       Do not give trade references

 

4.       Do not give trade references

 

 

TRADE REFERENCES – FEBRUARY 2008

 

 

ACCOUNT    HIGHEST     AVERAGE        TERMS     PAYMENT    EXPERIENCE

OPENED      CREDIT          CREDIT                         PATTERN

 

1.    Old acc        R   500 000    R400 000        30 days    30 days       Good

                          c/l

 

2.    2001             R3 000 000    R500 000        30 days    30 days       Good

                          c/l

 

3.       Do not give trade references

 

4.       Do not give trade references

 

 

TRADE REFERENCES - JANUARY 2010

 

ACCOUNT          HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT           CREDIT                        PATTERN

 

1.    3 years         R500 000       R400 000        30 days      35 days        Very Good

 

2.    5 years         open acc        R350 000-       30 days      30 days         Good

                                               R400 000

 

3.       Do not give trade references

 

4.       Do not give trade references

 

 

TRADE REFERENCES – OCTOBER 2010

 

ACCOUNT          HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT           CREDIT                        PATTERN

 

1.    2006             R100 000         R60 000        30 days      30 days        Very Good

                                               -R100 000

 

2.       Do not give trade references

 

3.       2007             R950 000       R500 000        30 days   30 days         Very Good

                          c/l

 

4.    Sporadic purchases – haven’t bought for a while

 

5.       Do not give trade references

 

 

TRADE REFERENCES – JANUARY 2011

 

ACCOUNT          HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                         PATTERN

 

1.    3+ years       R950 000       R200 000-      30 days      30 days        Very Good

                          c/l                 R400 000

 

2.    2+ years       undisclosed    R  80 000±     30 days      30 days        Very Good

 

3.       Do not give trade references

 

4.       Do not give trade references

 

5.       Do not give trade references

 

 

TRADE REFERENCES – MAY 2011

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                         PATTERN

 

1.    4+ years       R950 000       R200 000        30 days    30 days       Very Good

                          c/l

 

2.    ±4 years       undisclosed    R150 000       30 days    30 days       Very Good

 

3.    2009             R75 000         undisclosed     30 days    30 days       Very Good

                          c/l

 

 

 

TRADE REFERENCES – AUGUST 2011

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    2007             R   900 000    ±R  500 000     30 days   30 days         Very Good

                          c/l

 

2.    2009             R   200 000    R     30 000     30 days   30 days         Good

                          c/l

 

3.    2006             open              ±R 100 000      30 days   30 days         Very Good

                          c/l

 

 

TRADE REFERENCES – MAY 2012

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                         PATTERN

 

1.    2007             R   950 000    R   400 000     30 days    30 days       Good

 

2.    2010             R   100 000    R     65 000     30 days    30 days       No problems

 

3.    2006             Open             R   100 000-    30 days    30 days       Very Good

                                               R   250 000

 

4.       Do not give trade references

 

5.    Do not give trade references

 

 

TRADE REFERENCES – OCTOBER 2012

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    2007             R   950 000    R   350 000     30 days     30 days      Very Good

 

2.    2006             Open             R   200 000     60 days     60 days      Very Good

 

3.    Do not give trade references

 

4.    Do not give trade references

 

 

TRADE REFERENCES – JUNE 2013

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                         PATTERN

 

1.    2 years         R5 000 000    R2 500 000      14 days    14 days         Very Good

 

2.    2007             R   500 000    R   100 000     30 days    30 days       Very Good

 

3.    2006             Open Acc      R   100 000     30 days    30 days       Very Good

 

 

CURRENT TRADE REFERENCES

 

       ACCOUNT   HIGHEST       AVERAGE      TERMS     PAYMENT    EXPERIENCE

       OPENED      CREDIT            CREDIT                        PATTERN

 

1.         2007            R   950 000     R400 000        30 days     30 days         Very good

 

2.         Unable to obtain

 

3.         4 years        R5 000 000     R3 000 000     14 days    14 days         Excellent

 

 

COMMENTS

 

This a well-established and well-connected company meeting its commitments timeously as per arranged terms.  The subject is undertaking restructuring within the group, however, the subject would be considered as equal to its normal business engagements and to a maximum figure of over 30 days.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 62.98

UK Pound

1

Rs. 104.61

Euro

1

Rs. 86.17

 

 

INFORMATION DETAILS

 

Report Prepared by :

DPT

 

 

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.