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Report Date : |
30.10.2014 |
IDENTIFICATION DETAILS
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Name : |
MACSTEEL SERVICE CENTRES SA (PTY) LTD |
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Formerly Known As : |
MACSTEEL SERVICE CENTRES SA 2005 (PTY) LTD |
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Registered Office : |
7 Brook Road Lilianton Boksburg
Gauteng |
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Country : |
South
Africa |
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Date of Incorporation : |
17.05.2005 |
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Legal Form : |
Private Company |
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Line of Business : |
Subject is distributing the entire spectrum of steel and allied steel
products including significant value added and beneficiation capabilities |
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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 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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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 |
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
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
7 Brook Road
LILIANTON
Boksburg
Gauteng
P O Box 7729
JOHANNESBURG
2000
+27 11 871 0000
+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.
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
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
There are reported to be a number of companies in the MACSTEEL Group, most of which are dormant as the assets and operations have been incorporated into the subject, and which are operating as divisions of the subject. The main trading company however is the subject.
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
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.
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: Level 3 contributor
It was stated that the subject is the largest steel service
centre and steel trading Group in Southern Africa, distributing the entire
spectrum of steel and allied steel products including significant value added
and beneficiation capabilities.
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.
General industry and merchants
AREA OF DISTRIBUTION AND SELLING: South Africa
EXPORTS: Sub-Saharan Africa
±5 000 – 95% of which are in the subject company, while 5% are in the remainder of the group of companies.
It was stated that the subject has ±60 branches countrywide as well as an additional 18 branches in Africa
It was stated that all premises which were previously owned by the subject are in the process of being sold, and by 1 November 2014 all premises will be leased.
It was previously stated that some of the premises are owned while some are leased. The head office premises are reported to be owned by a group company.
R1 000 000 divided into R1 000 000 000 ordinary shares of 0.001c each
ISSUED CAPITAL AND SHARE PREMIUM: R800 000
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
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
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
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
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
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
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
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)
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
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
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
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
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
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
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
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
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
(These descriptions
relate respectively by number to the above current trade transactions):
1. Steel
3. Steel
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. Old account Declined Declined 30
days 30 days Excellent
2. Do not give trade references
3. 12 years Declined Declined 30
days 30 days Excellent
4. Awaiting email trade references
5. Do not give trade references
(These descriptions
relate respectively by number to the above current trade transactions):
1. Steel
3. Steel
This is a very well-established and very well-connected company that is the largest steel trading company in the Southern Hemisphere. 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.61.31 |
|
|
1 |
Rs.99.00 |
|
Euro |
1 |
Rs.78.14 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
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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 |
|
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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 |
|
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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|
-- |
NB |
New Business |
-- |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.