MIRA INFORM REPORT

Report Date :

08.05.2014

IDENTIFICATION DETAILS

Name :	MERISOL RSA (PTY) LTD
Formerly Known As :	MERICHEM SASOL RSA (PTY) LTD
Registered Office :	2 Sturdee Avenue Rosebank Johannesburg Gauteng
Country :	South Africa
Date of Incorporation :	26.03.1997
Com. Reg. No.:	1997/004385/07
Legal Form :	Private Company
Line of Business :	Manufacturers of cosmetics, pharmaceuticals, flavourants, herbicides, pesticides.
No. of Employees :	93

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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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 and address

MERISOL RSA (PTY) LTD

Formerly: MERICHEM SASOL RSA (PTY) LTD the name having changed on 10 July 2000

Formerly: WIP INVESTMENTS ONE HUNDRED AND ELEVEN (PTY) LTD the name having changed on 11 July 1997

PHYSICAL ADDRESS

2 Sturdee Avenue

ROSEBANK

Johannesburg

Gauteng

POSTAL ADDRESS

P O Box 4590

JOHANNESBURG

2000

TELEPHONE NUMBER

+27 11 280 0121 / 0004

FAX NUMBER

+27 11 442 3816

SHAREHOLDERS

100% SASOL HOLDINGS USA (PTY) LTD (South Africa)

The shareholding changed and was previously:

50% MERICHEM COMPANY INC (USA)

50% SASOL HOLDINGS USA (PTY) LTD (South Africa)

ASSOCIATE COMPANIES

The subject is associated to the SASOL group of companies

DIRECTORS

A S KARACHI ID No. 7011065278087

A P FIELD ID No. 5708295103082

F R GROBLER ID No. Not available

BANKERS

ABSA BANK, Sasolburg and Rosebank branches. It was stated that the subject has a loan facility with its shareholder company SASOL HOLDINGS USA (PTY) LTD (South Africa)

DATE REGISTERED

26 March 1997

Registration Certificate Number 1997/004385/07

The subject utilised a shelf company for registration purposes

VAT NUMBER

4290166406

TAX NUMBER

9190264847

BEE STATUS

Level 3 contributor

MAJOR OPERATION

Manufacture of chemicals known as phenolics which are used in pesticides, herbicides, resins, penicillin, aspirin, computer chips, etc and cresylics that are found in dyes, colours, perfumes, flavourants, etc.

MERISOL owns and operates two major cresylic acid production facilities. The combined operations of the Greens Bayou Plant in Houston, Texas, and the Sasolburg Plant near Johannesburg, South Africa, offer enhanced capacity and efficiency, processing flexibility and superior logistics for supplying the global marketplace.

The raw materials for MERISOL cresylic acids and derivatives come from a variety of sources around the word. Foremost among these are coal gasification plants.

MERISOL is also a partner with Chang Chun Plastics, producing high-grade ortho-cresol novolac (OCN) in a plant located in Sasolburg.

MAJOR SUPPLIERS

The subject’s raw materials are mainly supplied by the Sasol Group and has accounts with:

SPOORNET (Government transporting division)

PORTNET (Government transporting division)

TANKER SERVICES, Johannesburg.

MAJOR CUSTOMERS OR BUSINESS SECTORS

Manufacturers of cosmetics, pharmaceuticals, flavourants, herbicides, pesticides, etc.

AREA OF DISTRIBUTION AND SELLING

Small in South Africa

EXPORTS

Worldwide

TOTAL EMPLOYEES

101 having increased from 93 permanent and 2 temporary staff reported in June 2010.

OTHER PREMISES

An operation in Sasolburg, 016 960 2015 on the Sasol premises

OWNED OR LEASED

The head office premises are leased while the Sasolburg building and plant are owned by a group company

ISSUED SHARE CAPITAl

R 100

FINANCIALS

The following estimated financial situation was submitted as at 29 April 2014:

STOCK R 100 000 000

DEBTORS R 170 000 000

FIXED ASSETS R 300 000 000

CREDITORS R 60 000 000

TURNOVER per annum R1 000 000 000

AUDITORS

PWC

YEAR END

JUNE

INSURANCE BROKERS

SASOL’S INSURANCE BROKERS

TRADE REFERENCES – JULY 2006

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. Jan 2001 R2 600 000 R 990 000 30 days 30 days Good

2. 1995 R1 200 000 R 700 000- 30 days 30 days Good

R1 200 000

3. Do not give trade references

4. Do not give trade references

TRADE REFERENCES – DECEMBER 2008

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. Do not give trade references

2. Old acc R12 000 000 R2 000 000 - 30 days 30 days Very Good

c/l R3 000 000

3. Do not give trade references

TRADE REFERENCES – MAY 2009

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 2 years R12 000 000 ±R1 200 000 30 days 30 days Excellent

c/l R1 500 000

(were spending about R4 000 000 a year ago)

TRADE REFERENCES – JUNE 2010

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. 3+ years R12 000 000 R 1 700 000- 30 days 30 days Very Good

c/l R19 000 000

CURRENT TRADE REFERENCES

ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE

OPENED CREDIT CREDIT PATTERN

1. Do not give trade references

2. Do not give trade references

2. Unable to obtain trade reference

COMMENTS

This is a well-established and very well connected company that imports most of its supplies. The subject is considered equal to its normal business engagements.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.04
UK Pound	1	Rs.101.97
Euro	1	Rs.83.58

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	NIS

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.