MIRA INFORM REPORT

 

 

Report No. :

308863

Report Date :

28.02.2015

 

IDENTIFICATION DETAILS

 

Name :

MARLYN CHEMICALS (PTY) LTD

 

 

Registered Office :

64 Nasmith Avenue, Jupiter Ext 5, HERIOTDALE, Ermiston, Gauteng

 

 

Country :

South Africa

 

 

Date of Incorporation :

30.03.1990

 

 

Com. Reg. No.:

1990/001843/07

 

 

Legal Form :

Private Company

 

 

Line of Business :

Subject is engaged in import and distribution of chemicals such as cyanide, flocculants and activated carbons.

 

 

No. of Employee :

12

 

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 – 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

 

MARLYN CHEMICALS (PTY) LTD

 

 

PHYSICAL ADDRESS

 

64 Nasmith Avenue

                                                Jupiter Ext 5

                                                HERIOTDALE

                                                Germiston

                                                Gauteng

 

 

POSTAL ADDRESS

 

P O Box 39428

                                                BOOYSENS

                                                2016

 

TELEPHONE NUMBER:            +27 11 873 2117

 

FAX NUMBER:                          +27 11 873 2176

 

The subject moved in October 2010 from 27 Helvellyn Road, The Hill, Johannesburg, contact telephone number: +27 11 436 0683

 

 

SHAREHOLDERS

 

100%    THE PALMER FAMILY TRUST, in which L R PALMER is the Trustee

 

 

ASSOCIATE COMPANIES         

 

            CARBON ASSOCIATES (PTY) LTD

(Registration Certificate Number: 1986/002275/07)

            JOHLES PRODUCTS (PTY) LTD

(Registration Certificate Number: 1998/000350/07)

            MARLYN ENVIRONMENTAL (PTY) LTD

(Registration Certificate Number: 2003/026529/07)

MARLYN VULINDLELA (PTY) LTD

(Registration Certificate Number: 2003/011805/07)

 

 

DIRECTORS

 

            L R PALMER                                                     ID No.   5010015034006

 

 

BANKERS

 

STANDARD BANK, Corporate Branch, Sandton Account Number: 022671048.  It was stated that the subject enjoys overdraft facilities to an extent of R15 000 000, secured by the personal guarantee of L R PALMER.  Utilisation of the overdraft is stated to be seldom.

 

 

DATE REGISTERED

 

            30 March 1990

            Registration Certificate Number: 1990/001843/07.

 

L R Palmer was previously a sales manager at H L & H Timbers.  In 1987 he commenced Carbon Associates (Pty) Ltd, which was involved in the sale of activated carbon.  In 1990 he acquired the full agency of Lanka Carbons which was then re-registered as Marlyn Chemicals (Pty) Ltd in March 1990.

 

VAT NUMBER:              4100103599      

 

TAX NUMBER:              9385212841

 

BEE STATUS:              Non-compliant

 

 

MAJOR OPERATION

 

Import and distribution of chemicals such as cyanide, flocculants and activated carbons.

 

 

MAJOR SUPPLIERS

 

            The subject imports most of its supplies and deals locally with 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

 

Mining industry, water treatment companies as well as municipalities.

 

 

AREA OF DISTRIBUTION AND SELLING   

 

South Africa.

 

 

EXPORTS

 

Southern Africa

 

 

TOTAL EMPLOYEES

 

12

 

 

OWNED OR LEASED

 

The premises are reported to be owned by THE PALMER FAMILY TRUST and valued in the region of R6 000 000, free of bond.

 

 

FINANCIAL

 

The following estimated financial situation was submitted as at 20 February 2015:

 

STOCK                                                                              R  20 000 000

DEBTORS                                                 R  10 000 000 – R  13 000 000

FIXED ASSETS                                                                 R    1 000 000

CREDITORS                                                                      R    5 000 000

TURNOVER per annum                                                       R120 000 000

 

 

AUDITORS

 

HLB BARNETT CHOWN, +27 11 856 5300

 

 

YEAR END

 

AUGUST

 

 

INSURANCE BROKERS

 

GARRUN GROUP INSURANCE BROKERS

 

TRADE REFERENCES – JUNE 2006

 

                  PERIOD       HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

                                      CREDIT         CREDIT          PATTERN

 

1.    11 years       R500 000       R400 000        30 days    30 days         Very Good

                                              

2.    3 years         R50 000         R50 000  30 days             30 days         Good

 

3.    10 years       R250 000       R250 000        30 days    30 days         Excellent

 

 

TRADE REFERENCES – FEBRUARY 2009

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    10 years+     R250 000+     R250 000        30 days    30 days        Very Good

                          (anything over)

 

2.    10 years+     R500 000       R300 000 -      30 days    30 days        Very Good

                          (or more)       R400 000

 

3.    2005             Undisclosed  R250 000        30 days    30 days        Very Good

 

4.    Do not give trade references.

 

 

TRADE REFERENCES – SEPTEMBER 2009

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    10 years       R800 000       R800 000        30 days    30 days        Very Good

 

2.    Old acc        open             R  10 000-       30 days    30 days        Very Good

 

3.     Do not give trade references

 

4.     Do not give trade references

 

 

TRADE REFERENCES – FEBRUARY 2010

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    10 years       R1 000 000    R1 000 000      30 days    30 days        Very Good

                                               Up to

 

2.    12 years       R500 000       R    500 000    30 days    30 days        Very Good

                                               Up to

 

3.     Do not give trade references

 

4.     Do not give trade references

 

 

TRADE REFERENCES – FEBRUARY 2011

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    12 years       R1 000 000    R300 000        30 days    30 days        Very Good

 

2.    15 years       open             R1 000 000      30 days    30 days        Very Good

 

3.     Do not give trade references

 

4.     ±5 years       undisclosed   R2 000 000      30 days    30 days        Excellent

 

 

TRADE REFERENCES – SEPTEMBER 2012

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS       PAYMENT   EXPERIENCE

      OPENED      CREDIT         CREDIT                             PATTERN

 

1.    13 years       R1 000 000    R   500 000-    30 days       30 days       Excellent

                                               R1 000 000

 

2.    13 years       Open             R   600 000     30 days       30 days       Excellent

 

3.    Do not give trade references

 

4.    Jul 2005       R   350 000    Declined         30 days       30 days       Good

 

 

TRADE REFERENCES – OCTOBER 2014

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS       PAYMENT   EXPERIENCE

      OPENED      CREDIT         CREDIT                             PATTERN

 

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

 

2.    +15 years     Open             R  300 000      30 days       30 days       Very Good

 

3.    Do not give trade references

 

 

CURRENT TRADE REFERENCES

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS     PAYMENT   EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    +10 years     R2 000 000    R500 000-       30 days     30 days       Very Good           

                          Insured CGIC R1 000 000     

 

2.    +20 years     Open             R100 000        30 days     30 days       Excellent

 

3.    +10 years     R350 000       R300 000        30 days     30 days       Very Good

 

 

NATURE OF GOODS OR SERVICES SUPPLIED

 

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

 

1.    Freight        

                         

2.    Various chemicals            

 

3.    Chemicals   

 

 

COMMENTS

 

This is an established company meeting its commitments timeously and is regarded highly by its suppliers.  The subject is considered equal to its normal business engagements.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.79

UK Pound

1

Rs.95.42

Euro

1

Rs.69.28

 

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.