MIRA INFORM REPORT

 

 

Report Date :

11.11.2014

 

IDENTIFICATION DETAILS

 

Name :

IMPROCHEM (PTY) LTD

 

 

Formerly Known As :

CLP INVESTMENTS NO 19 (PTY) LTD

 

 

Registered Office :

Maxwell Drive, 1 Pinelands Hill (Business Park), Modderfontein, Kempton Park

Gauteng

 

 

Country :

South Africa

 

 

Date of Incorporation :

06.06.2005

 

 

Legal Form :

Private Company

 

 

Line of Business :

Water management, energy, process chemicals, technology and solutions supplier including products, services, equipment and technology.

 

 

No of Employees :

±647

 

 

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

 

IMPROCHEM (PTY) LTD

 

Formerly: CLP INVESTMENTS NO 19 (PTY) LTD, the name having been changed on 23 February 2006

 

 

PHYSICAL ADDRESS

 

Maxwell Drive

1 Pinelands Hill (Business Park)

MODDERFONTEIN

Kempton Park

Gauteng

 

 

POSTAL ADDRESS

 

P O Box 2954

KEMPTON PARK

1620

 

 

TELEPHONE NUMBER   

 

+27 11 971 0400

 

 

FAX NUMBER

 

+27 11 971 0485 / 394 3436

 

The subject moved from 138 Plane Road, Spartan, Kempton Park in November 2013 to the current address.

 

The address of 13 Waterson Street, Sasolburg is reported to be a small district sales office of the subject.

 

 

SHAREHOLDERS

                       

100 %   CHEMICAL SERVICES LTD

(Registration Certificate Number: 1969/003338/06) which is in turn owned by 100% AECI LTD (Registration Certificate Number: 1924/002590/06) and are listed on the JSE LTD

 

The subject’s shareholding is reported to have changed in July 2009 and was formerly 74.9% CHEMICAL SERVICES LTD and 25.1% TISO CHEMICALS (PTY) LTD.

 

 

ASSOCIATE COMPANIES

 

IMPROCHEM TANZANIA (PTY) LTD

IMPROCHEM NAMIBIA (PTY) LTD

IMPROCHEM ZIMBABWE (PVT) LTD

IMPROCHEM KENYA (PTY) LTD

IMPROCHEM MOZAMBIQUE (PTY) LTD

ONDUKA (PTY) LTD

(Registration Certificate Number 1991/001924/07)

BLENDTECH (PTY) LTD

The respondent stated that the subject incorporated operations of a division, WATER TREATMENT TECHNOLOGIES of a company called CLARIANT (PTY) LTD as from 1 July 2014.

 

And other companies within the CHEMICAL SERVICES Group.

 

 

DIRECTORS

 

J L DU TOIT (MD)                                              ID No.  5706075014081

M A DYTOR                                                      ID No.  6107185122089

H C BASSON                                                    ID No.  6307095134089

K V WAGHMARAE                                            ID No.  6008215110088

(MS) A CALITZ                                                  ID No.  7509080059085

 

 

BANKERS

 

FIRST NATIONAL BANK, Global Transactional Service Branch, Johannesburg. Account Number: 50490104441. It was stated that the subject is managed by a cash management scheme controlled by the holding company.

 

 

DATE REGISTERED

 

6 June 2005

Registration Certificate Number: 2005/019505/07

 

The subject was formed from assets and operations that were formerly part of a company named CHEMSERVE WATER AND ENERGY SOLUTIONS (PTY) LTD.

 

 

VAT NUMBER    

 

4580221424

 

 

TAX NUMBER    

 

9082075160

 

 

BEE STATUS      

 

Level 4 contributor

 

 

MAJOR OPERATION

 

Water management, energy, process chemicals, technology and solutions          supplier including products, services, equipment and technology.

 

 

MAJOR SUPPLIERS

 

The subject imports a small percentage of raw materials from Europe, USA and China.

           

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

           

Electronics, food, beverage, processing, chemical, petroleum, refineries, steel, mining, power generation and metal works.

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

EXPORTS

 

Sub-Saharan African countries, Mauritius and Europe

 

 

TOTAL EMPLOYEES

 

±647

                       

The subjects staff compliment increased from 443 as reported in July 2013

 

 

OTHER PREMISES

 

The subject has a factory in Umbogintwini, KwaZulu-Natal and approximately 12 branches countrywide and a district office in Sasolburg.

 

 

OWNED OR LEASED

 

The premises are reported to be leased   

 

 

AUTHORISED SHARE CAPITAL

 

R40 000 000 divided into 4 000 ordinary shares of R10 000 each

 

 

ISSUED SHARE CAPITAL

 

R40 000 000

 

The share capital has been confirmed by the subjects auditor who stated that even though CIPC state the subject has 4 000 ordinary R1 shares, it is not recorded in CIPC that each of the shares were issued at a premium of R10 000 each, therefore making the share capital R40 000 000.  The issued share capital was confirmed as being R40 000 000 by the auditors.

 

 

FINANCIALS

 

Please see previous financial information submitted as at 31 December 2012 :

 

STOCK                                                                                                            R100 000 000

DEBTORS                                                                                                       R100 000 000

FIXED ASSETS nett book value incl. intangible assets                                      R130 000 000

CREDITORS                                                                                                    R  50 000 000

SHAREHOLDERS LOANS from CHEMICAL SERVICES LTD                              R  99 000 000

TURNOVER per annum                                                                                     R600 000 000

 

 

AUDITORS    

 

K P M G INC Johannesburg +27 11 647 8340

 

 

YEAR END    

 

DECEMBER

 

 

INSURANCE BROKERS 

 

WILLIS INSURANCE BROKERS

 

 

TRADE REFERENCES – DECEMBER 2006:

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    10 years       R60 000         R  30 000-       30 days    30 days        Very Good

                          c/l                 R  40 000

 

2.    10 years       R250 000       R250 000        30 days    30 days        Good

 

3.    1994             R400 000       R  30 000-       30 days    35 days        Good

                          c/l                 R160 000

 

TRADE REFERENCES – OCTOBER 2007:

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    10 years       open             R     50 000     30 days    30 days        Good

 

2.    5 years         R1 000 000    R   600 000     30 days    30 days        Good

 

3.    15 years       open             R1 000 000      30 days    30 days        Excellent

 

TRADE REFERENCES – JULY 2008:

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    15 years       figures           confidential     30 days    31/32 days   Excellent

 

2.    15 years       figures           confidential     30 days    30 days        Excellent

 

3.     Do not give trade references

 

4.     Do not give trade references

 

5.     Do not give trade references

 

TRADE REFERENCES – MAY 2009

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    Feb 2004      R1 300 000    ±R  600 000     30 days    30 days        Very Good

 

2.    2003             declined        ±R  300 000-    30 days    30 days        Very Good

                                                 R  500 000

 

3.    15 years       declined        ±R2 000 000-   30 days    30 days        Excellent

                                                 R3 000 000

 

TRADE REFERENCES – FEBRUARY 2010:

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    Feb 2004      R1 000 000    R   400 000     30 days    30 days        Very Good

 

2.    15 years       R2 000 000    R2 000 000      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.    11 years       undisclosed     R2 000 000    30 days    30 days        Excellent

 

2.    2004             R1 000 000    ±R   500 000    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 2012:

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS       PAYMENT   EXPERIENCE

      OPENED      CREDIT         CREDIT                             PATTERN

 

1.    2004             R1 000 000    R   500 000     30 days       30 days       Good

                          c/l

 

2.    15 Years       Declined        R2 000 000      30 days       30 days       Good

 

3.    Do not give trade references

 

4.     Do not give trade references

 

5.     Do not give trade references

 

6.     Do not give trade references

 

7.     Do not give trade references

 

8.     Do not give trade references

 

TRADE REFERENCES – APRIL 2013:

 

       ACCOUNT   HIGHEST       AVERAGE     TERMS     PAYMENT   EXPERIENCE

       OPENED     CREDIT         CREDIT                          PATTERN

 

1.     Aug 1994      R1 800 000     R   500 000-    30 days     30 days       Good

                                               R   700 000

 

2.     ±15 years      Declined        R2 000 000     30 days     30 days       Very Good

 

3.     Awaiting fax trade reference

 

4.     Do not give trade references

 

5.     Do not give trade references

 

6.     Do not give trade references

 

TRADE REFERENCES – JULY 2013:

 

       ACCOUNT   HIGHEST       AVERAGE     TERMS     PAYMENT   EXPERIENCE

       OPENED     CREDIT         CREDIT                          PATTERN

 

1.     10 years       R3 200 000     R3 000 000     30 days     31 days       Excellent

 

2.     10 years       R1 000 000     R   500 000     30 days     30 days       Good

 

3.     Do not give trade references

 

4.     Awaiting fax trade reference

 

CURRENT TRADE REFERENCES:

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS     PAYMENT   EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    Do not give trade references

 

2.    Declined       Declined        Declined         30 days     30 days       Good.

 

3.    Old Act        R2 000 000    ±R1 500 000    60 days     60 days       Very Good

                          c/l unsecured

 

4.    Sept 1998     R2 900 000    R2 300 000-     30 days     31 days       Very Good

                          c/l                 R2 500 000                                        

 

5.    Unable to obtain trade reference – needs permission letter from subject

 

6.    Awaiting a faxed trade reference

 

 

NATURE OF GOODS OR SERVICES SUPPLIED

 

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

 

2.    Chemicals   

 

3.    Packaging solutions         

 

4.    Freight transport, chemical storage and distribution

 

 

COMMENTS

 

This is a well-established and very well-connected company meeting one of its commitments slightly over terms at times and other as per arranged terms timeously.  The subject is considered as equal to its normal business engagements

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.45

UK Pound

1

Rs.97.76

Euro

1

Rs.76.68                 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

SMN

 

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.