MIRA INFORM REPORT

 

 

Report Date :

30.10.2014

 

IDENTIFICATION DETAILS

 

Name :

ELITE CHEMICAL INDUSTRIES (PTY) LTD

 

 

Registered Office :

23 Barium Street, Alrode Ext 7, P O Box 123897, Alrode1451, Alberton, Gauteng

 

 

Country :

South Africa

 

 

Date of Incorporation :

14.09.1971

 

 

Com. Reg. No.:

1971/010421/07

 

 

Legal Form :

Private Company

 

 

Line of Business :

The subject produces and distributes a wide range of epoxy / polyurethane and polyester resin systems, glues, putties and encapsulating resins. 

 

 

No. of Employees :

22 permanent employees and 15 contract employees (fluctuates).

 

 

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

 

ELITE CHEMICAL INDUSTRIES (PTY) LTD

 

 

PHYSICAL ADDRESS

 

23 Barium Street

Alrode Ext 7

ALBERTON

Gauteng

 

 

POSTAL ADDRESS

           

P O Box 123897

ALRODE

1451

 

 

TELEPHONE NUMBER

 

011 864 4620

 

 

FAX NUMBER

 

011 864 3403

 

 

SHAREHOLDERS

 

100%    J A W FRIEDRICH

           

Shareholding changed and was previously:

 

65%      J A W FRIEDRICH

35%      H M ADLER 

 

 


ASSOCIATE COMPANIES

 

ELI DOUGH (PTY) LTD

JOINT MASTER (PTY) LTD

RESOLA PROPERTIES (PTY) LTD (property owning company)

 

It was stated that J A W FRIEDRICH is involved in the abovementioned companies.

 

 

DIRECTORS

 

J A W FRIEDRICH         ID No:   4101135081109

O A FRIEDRICH (Jnr)     ID No:   7102035165080

 

 

BANKERS

 

NEDBANK, Alberton Branch, account number 1902098730.  It was stated that the subject enjoys overdraft facilities.  Utilisation is stated to be nil as credit balances are normally maintained at the bank. 

 

 

DATE REGISTERED

 

14 September 1971

Registration Certificate Number 1971/010421/07

 

The subject was commenced as a new business.

 

 

VAT NUMBER    

 

4440119883

 

 

TAX NUMBER    

 

9188114848

 

 


MAJOR OPERATION

 

The subject produces and distributes a wide range of epoxy / polyurethane and polyester resin systems, glues, putties and encapsulating resins. 

 

 

MAJOR SUPPLIERS

 

The subject imports resins from the USA, Brazil, Europe and the Far East.

 

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

 

Mining, electronic, encapsulation, quarrying, general and civil engineering sectors.  The subject also does contract business on a tender basis.

 

 

AREA OF DISTRIBUTION AND SELLING   

 

South Africa

 

 

EXPORTS

 

The subject supplies to a company named, ELICHEM in the UK, which is owned by O A Friedrich (son of J A W Friedrich).  The latter company in turn distributes the products worldwide.

 

 

TOTAL EMPLOYEES

 

22 permanent employees and 15 contract employees (fluctuates).

 

 

OTHER PREMISES

 

None

OWNED OR LEASED

 

The premises are reported to be owned by the associate property owning company with an insurance value in the region of R4 million, free of bond.

 

 

AUTHORISED SHARE CAPITAL

 

R10 000 divided into 10 000 ordinary shares of R1 each

 

 

ISSUED SHARE CAPITAL    

 

R10 000

 

 

FINANCIALS

 

Full financial information was not forthcoming from respondents at the subject and outside authorities were unable to assist in this regard.

 

The last available turnover figure per annum was that reported in 2009 of R45 000 000

 

 

AUDITORS

 

MOORES ROWLAND Johannesburg (011) 484 7700

 

 

YEAR END    

 

FEBRUARY

 

 

INSURANCE BROKERS 

 

MELNICK FAGRI (MFW)

 

 


TRADE REFERENCES – OCTOBER 2004

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    10 yrs+         declined        declined          30 days    30 days        Excellent

 

2.    7 – 10 yrs     R136 000       R20 000 -        30 days    30 days        Very good

                                               c/l                   R50 000                      

 

3.    02/1999        R110 000       R50 000          7 days      7 days         Good

                          c/l

 

 

TRADE REFERENCES – APRIL 2006

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    10 yrs           R100 000       R60 000          30 days    30 days        Very good

 

2.    8 yrs            R70 000         R70 000          30 days    30 days        Good

 

3.    5 yrs            R22 000         R30 000          30 days    30 days        Good

 

 

TRADE REFERENCES – FEBRUARY 2008

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    Do not give trade references

 

2.    Do not give trade references

 

3.    9 yrs            R100 000       R100 000+      7 days      7 days          Very good

 

4.     Do not give trade references

 

 

TRADE REFERENCES – AUGUST 2008

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    8 yrs            R300 000       R300 000        30 days    30 days        Very Good

 

2.    Old acc        figures           confidential     30 days    30 days        Good

 

3.    Do not give trade references

 

4.    Do not give trade references

 

5.    Do not give trade references

 

 

TRADE REFERENCES – MARCH 2009

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    Do not give trade references.

 

2.    Do not give trade references.

 

3.    ±10 years     R200 000       R  20 000 -      30 days    14/30 days   Very Good

                          c/l (Coface)    R400 000

 

4.    Old Acc.       (big acc.)                             undisclosed                 Slow now

                          undisclosed                                                            (normally good)

 

5.    +Jul 2005     R300 000       R  40 000 -      30 days    30 days        Excellent

                          c/l                 R150 000

 

 

TRADE REFERENCES-MARCH 2009

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    +2 years       R200 000       R  10 000-       30 days    7/14 days     Excellent

                          c/l                 R150 000

 

2.    2005             R  80 000       R  70 000        30 days    30 days        Excellent

                          c/l

 

3.     Do not give trade references

 

4.     Do not give trade references

 

5.     Do not give trade references

 

 

CURRENT TRADE REFERENCES

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS     PAYMENT   EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    12 Years       Declined        R 300 000       30 days     30 days       Excellent              

2.    Do not give trade references                                                                      

 

3.    Do not give trade references                                                                      

 

4.    Do not give trade references                                                          

 

 

NATURE OF GOODS OR SERVICES SUPPLIED

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

 

1.    Freight forwarder              

                         

2.    Chemicals   

 

3.    Chemicals   

 

4.    Chemicals

 

 

COMMENTS

 

This is an established company meeting its obtainable commitment timeously.  The subject is considered equal to its normal business engagements. The lack of a full payment pattern should be borne in mind.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.32

UK Pound

1

Rs.99.00

Euro

1

Rs.78.14

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

NIT

 

               

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.