MIRA INFORM REPORT

 

 

Report No. :

314374

Report Date :

04.04.2015

 

IDENTIFICATION DETAILS

 

Name :

ZENITH HOLDINGS (PTY) LTD

 

 

Formerly Known As :

CARST & WALKER (PTY) LTD

 

 

Registered Office :

Building Number 2, Sherbourne Square, 5 Sherbourne Road, Parktown, Johannesburg, Gauteng

 

P O Box 87710, Houghton, 2041

 

 

Country :

South Africa

 

 

Date of Incorporation :

18.12.1975

 

 

Com. Reg. No.:

1975/004382/07

 

 

Legal Form :

Private Company

 

 

Line of Business :
  • ANCHOR CHEMICALS:  manufacturer of speciality chemicals that service the rubber and adhesives industries

 

  • CARST AND WALKER:  importer and distributor of chemical raw materials which find application in the adhesive, coatings, food, paper, plastics and rubber industries.

 

  • ZENITH:  Investment and property holding company as well as the administration and management arm of the subject.

 

 

No. of Employee :

120

 

 

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 :

Good

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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 and address

 

ZENITH HOLDINGS (PTY) LTD

 

Formerly: CARST & WALKER (PTY) LTD, the name having been changed on 29 September 1999

 

TRADING DIVISIONS :                           CARST & WALKER

                                                 ZENITH

                                                 ANCHOR CHEMICALS

 

 

PHYSICAL ADDRESS :                          Building Number 2

                                                 Sherbourne Square

5 Sherbourne Road

                                                 PARKTOWN

                                                 Johannesburg

                                                 Gauteng

 

POSTAL ADDRESS :                             P O Box 87710

                                                 HOUGHTON

                                                 2041

 

TELEPHONE NUMBER:                         +27 11 489 3600

 

FAX NUMBER:                                       +27 11 489 3601

 

 

 

SHAREHOLDERS

 

            46.5%   D C TULLIS

            53.5%   HURLINGHAM INVESTMENTS LTD (incorporated in the Isle of Man)

 

The shareholding changed and was previously:  74% HOBART ENTERPRISES LTD – registered in the Isle of Man, 25% D C TULLIS and 1%   G D WESTLEY

 

 

ASSOCIATE COMPANIES

 

MULTI BULK GROUPAGES (PTY) LTD

(Registration Certificate Number: 1991/000999/07)

C AND W PROPERTIES (PTY) LTD

(Registration Certificate Number: 1961/001487/07)

 

 

SUBSIDIARY COMPANIES

           

CARST AND WALKER (PTY) LTD (dormant)

(Registration Certificate Number: 1998/006246/07)

ANCHOR CHEMICALS (PTY) LTD (dormant)

(Registration Certificate Number: 1978/004106/07)

 

It was stated that the above mentioned subsidiary companies are dormant and that the trading operations were divisionalised into the subject on 1 May 2009.

 

 

DIRECTORS

 

            D C TULLIS (MD)                                               ID No.   5510155025003

D JOHNSON                                                     ID No    5803285224186

G A FORD                                                        ID No.   5904100065083

D G BARNBY                                                    ID No.   6305025246106

P R EDGE                                                        ID No.   6407105219084

C R DU PREEZ                                                 ID No.   6604295189016

G W SCHELL                                                    ID No.   6802265022080

A MOHAMMED (FD)                                          ID No.   6907035081082

J G SMITH                                                        ID No.   7408115020081

 

 

BANKERS

 

 

NEDBANK Business Central, Johannesburg Branch. Account number: 1284139093.  It was stated that the subject and its divisions enjoy a total facility to an extent of R25 000 000, secured by the debtors of CARST AND WALKER.  The respondent stated that the overdraft is utilised for working capital purposes.   The respondent stated that the divisions are managed by a cash management scheme controlled by the finance department of ZENITH HOLDINGS (PTY) LTD.

 

 

DATE REGISTERED

 

18 December 1975

Registration Certificate Number: 1975/004382/07

 

ZENITH HOLDINGS (PTY) LTD trading operations of two of its subsidiary companies named, CARST AND WALKER (PTY) LTD and ANCHOR CHEMICALS (PTY) LTD on 1 May 2009.  The latter companies are currently dormant.

 

There was another registered entity ZENITH HOLDINGS (PTY) LTD, Registration Certificate Number: 1992/003618/07, and due to restructuring within the group, it had a name change in 1999 to a GENERAL COMMODITY SALES HOLDINGS which is now dormant.

 

VAT NUMBER:              4320186754

 

TAX NUMBER:              9081003718

 

BBBEE STATUS:             

 

Level 5 contributor.  The subject is in the process of renewing their BEE certification.

 

 

MAJOR OPERATION

 

ANCHOR CHEMICALS:  manufacturer of speciality chemicals that service the rubber and adhesives industries

 

CARST AND WALKER:  importer and distributor of chemical raw materials which find application in the adhesive, coatings, food, paper, plastics and rubber industries.

 

ZENITH:  Investment and property holding company as well as the administration and management arm of the subject.

 

 

MAJOR SUPPLIERS

 

It was stated that each division has its own suppliers.

 

The division CARST AND WALKER imports worldwide – suppliers of raw materials, adhesives, chemicals, coatings, rubber, plastics and raw materials and deals with local suppliers.

 

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

 

ANCHOR CHEMICALS rubber and adhesives industries, however mainly to the associated division, CARST AND WALKER.

 

CARST AND WALKER adhesive, coatings, food, paper, plastics and rubber industries.

 

ZENITH owns three properties, which it rents out to group companies and provides a service to subsidiary companies and to the associated divisions.

 

 

AREA OF DISTRIBUTION AND SELLING

 

Worldwide

 

 

EXPORTS

 

Worldwide

 

 

TOTAL EMPLOYEES

 

120 permanent employees

 

 

OTHER PREMISES

 

It was stated that CARST AND WALKER has branches in Durban, Cape Town and Port Elizabeth, while ANCHOR CHEMICALS has a factory in Pietermaritzburg.

 

 

OWNED OR LEASED

           

It was stated that the heading Durban and Pietermaritzburg premises are owned by ZENITH HOLDINGS (PTY) LTD, while the remaining branch premises are leased from a 3rd party. 

 

 

FINANCIALS

 

The following estimated financial situation was submitted as at 1 April 2015:

 

STOCK                                                                                R   95 000 000

TOTAL ASSETS                                                                   R 176 000 000

TOTAL LIABILITIES                                                              R   80 000 000

CAPITAL EMPLOYED                                                          R   95 000 000

TURNOVER per annum                                                         R 500 000 000

 

                                                                                                           

AUDITORS

 

KPMG

 

 

YEAR END

 

DECEMBER

 

 

INSURANCE BROKERS

 

FINANCIAL PORTFOLIO MANAGEMENT INSURANCE BROKERS

 

 

TRADE REFERENCES – APRIL 2010:

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    10 years       R1 500 000    R    500 000-   30 days    30 days        Very Good

                          Open acc       R 1 500 000

 

2.    4 years         R5 000 000    R4 500 000      7 days      7 days          Very Good

                          c/l

 

3.     Awaiting a fax trade reference

 

4.     Awaiting a fax trade reference

 

5.     5 years         R5   00 000    R   73 157       30 days    30 days        Good

                                      c/l

 

TRADE REFERENCES – JUNE 2010:

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    10 years       open             R1 000 000-     30 days    30 days        Excellent

                                               R1 500 000

 

2.    18 years       R800 000       ±R650 000       60 days    60 days        Excellent

                          c/l

 

3.     Awaiting trade reference

 

4.     Unable to obtain trade reference

 

5.     Do not give trade references

 

 

TRADE REFERENCES – FEBRUARY 2011:  CARST & WALKER

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    5 years         R5 000 000    R5 000 000      7 days      7 days          Excellent

 

2.    April 2010     R2 000 000    R   350 000-    30 days    30 days        Very Good

                          c/l                 R   700 000

 

3.    5 years         R     50 000    R     40 000-    30 days    30 days        Very Good

                          Open account                      R     50 000

 

4.    5 years         R   200 000    R     15 000-    30 days    30 days        Very Good

                          c/l                 R     30 000

 

 

TRADE REFERENCES – SEPTEMBER 2011:  CARST & WALKER

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    ±6 Years       R5 000 000    R1 000 000-     7 days      7 days          Excellent

                          c/l                 R5 000 000

 

2.    Old              R2 000 000    R   500 000-    30 days    30 days        Very Good

                          c/l                 R1 400 000

 

3.    ±6 years       R   200 000    R     30 000     30 days    30 days        Very Good

                          c/l

 

 

TRADE REFERENCES – FEBRUARY 2012:  CARST & WALKER

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    1992             Confidential   R   500 000     60 days    60 days        Very Good

 

2.    6 years         R5 000 000    R4 000 000        7 days      7 days        Excellent

                          c/l

 

3.    Do not give trade references

 

4.    5-6 years      R  200 000     R     20 000-    30 days    30 days        Very Good

                                               R     35 000

 

 

TRADE REFERENCES – AUGUST 2012:

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS       PAYMENT   EXPERIENCE

      OPENED      CREDIT         CREDIT                             PATTERN

 

1.    Last traded with the subject in June 2011

 

2.    2009             R   500 000    R     10 000-    30 days       30 days       Very Good

                                               R   100 000

 

3.    2005             R   200 000    R     20 000-    30 days       30 days       Very Good

                                               R     30 000

 

4.    2010             R2 000 000    R   600 000-    30 days       30 days       Very Good

                                               R1 000 000

 

 

TRADE REFERENCES- OCTOBER 2012:

 

       ACCOUNT   HIGHEST       AVERAGE     TERMS     PAYMENT   EXPERIENCE

       OPENED     CREDIT         CREDIT                          PATTERN

 

1.     2003             R2 000 000     R   600 000-    30 days     30 days       Very Good

                                               R   700 000

 

2.     ±5 years        R8 000 000     R5 400 000     7 days       7 days         Very Good

 

3.     Unable to obtain trade reference

 

 

TRADE REFERENCES – JULY 2013:

 

       ACCOUNT   HIGHEST       AVERAGE     TERMS     PAYMENT   EXPERIENCE

       OPENED     CREDIT         CREDIT                          PATTERN

 

1.     ±6 years        R8 000 000     Declined        30 days     30 days       Very Good

 

2.     Inactive account

 

3.     April 2012     R2 000 000     R600 000-       30 days     30 days       Excellent

                                               R800 000

 

 

TRADE REFERENCES – SEPTEMBER 2013:

 

       ACCOUNT   HIGHEST       AVERAGE     TERMS     PAYMENT   EXPERIENCE

       OPENED     CREDIT         CREDIT                          PATTERN

 

1.     7 years         R   200 000     R    25 000-    30 days     30 days       Excellent

                                               R    40 000

 

2.     2003             R2 000 000     R   600 000-    30 days     30 days       Excellent

                                               R1 000 000

 

3.     ±6 years        R8 000 000     Declined        15 days     15 days       Very Good

                          c/l                 

 

 

TRADE REFERENCES – DECEMBER 2013:

 

       ACCOUNT   HIGHEST       AVERAGE     TERMS     PAYMENT   EXPERIENCE

       OPENED     CREDIT         CREDIT                          PATTERN

 

1.     2003             R3 000 000     R1 500 000     30 days     30 days       Very Good

 

2.     6 years         R8 000 000     Reduced        15 days     15 days       Very Good

 

3.     8 years         R   200 000     R    30 000-    30 days     30 days       Very Good

                                                           R    70 000

 

 

TRADE REFERENCES – JULY 2014

 

       ACCOUNT   HIGHEST       AVERAGE     TERMS     PAYMENT   EXPERIENCE

       OPENED     CREDIT         CREDIT                          PATTERN

 

1.     7 years         R   200 000     R    30 000-    30 days     30 days       Very Good

                                         R    40 000

 

2.     1994             R   100 000     R    40 000     30 days     30 days       Excellent

 

3.     +5 years       Declined        Declined        30 days     30 days       Very Good

 

 

 

TRADE REFERENCES-OCTOBER 2014:

 

       ACCOUNT   HIGHEST       AVERAGE     TERMS     PAYMENT   EXPERIENCE

       OPENED     CREDIT         CREDIT                          PATTERN

 

1.     8 years         R200 000        R30 000-        30 days     30 days       Very Good

                                                           R70 000

 

2.     1992             Declined        Declined        30 days     30 days       Very Good

 

3.     Awaiting trade reference

 

            NATURE OF GOODS OR SERVICES SUPPLIED:

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

 

1.    Chemicals

     

2.    Chemicals

 

CURRENT TRADE REFERENCES:

 

       ACCOUNT   HIGHEST       AVERAGE     TERMS     PAYMENT   EXPERIENCE

       OPENED     CREDIT         CREDIT                          PATTERN

 

1.     Awaiting emailed trade references

 

2.     1992            Declined        R4 000 000-    60 days     60 days            Very Good

                                               R5 000 000

 

3.     Supplier has no record of the subject

 

4.     8 years        R200 000        R20 000-        30 days     30 days            Very Good

                                               R80 000

 

5.      Awaiting faxed trade references

 

NATURE OF GOODS OR SERVICES SUPPLIED:

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

 

2.    Chemicals

     

3.    Chemicals

 

 

COMMENTS

 

This is a well-established investment holding company, which acquired the trading operations of two of its subsidiary companies.  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.62.59

UK Pound

1

Rs.92.46

Euro

1

Rs.67.51

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ASH

 

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.