MIRA INFORM REPORT

 

 

Report No. :

300047

Report Date :

17.01.2015

 

IDENTIFICATION DETAILS

 

Name :

DOW AGROSCIENCES SOUTHERN AFRICA (PTY) LTD

 

 

Formerly Known As :

SANACHEM (PTY) LTD

 

 

Registered Office :

2nd Floor, SLA Meadow Business Park, Campus Office Park, Cnr Main & Sloane Streets Bryanston, Randburg Gauteng Private Bag X55, Bryanston, 2021

 

 

Country :

South Africa

 

 

Date of Incorporation :

03.07.1967

 

 

Legal Form :

Private Company

 

 

Line of Business :

Manufacture and distribution of agricultural (crop protection) chemicals such as herbicides, pesticides and insecticides

 

 

No. of Employee :

210-220 [In The Group]

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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

 

DOW AGROSCIENCES SOUTHERN AFRICA (PTY) LTD

 

Formerly: SANACHEM (PTY) LTD, the name having been changed on 12 September 2000

Formerly: SA NATIONAL AGRICULTURAL CHEMICALS (PTY) LTD the name having been changed in May 1995

Formerly: FARM MACHINERY (PTY) LIMITED the name having been changed on 1 March 1984

 

 

PHYSICAL ADDRESS

 

2nd Floor

SLA Meadow Business Park

Campus Office Park

Cnr Main & Sloane Streets

Bryanston

Randburg

Gauteng

 

POSTAL ADDRESS

 

Private Bag X55

Bryanston

2021

 

 

TELEPHONE NUMBER

 

+27 11 575 0808

 

 

FAX NUMBER

 

+27 11 575 6088

 

The subject’s operational site is based at Old Mill Site Canelands North Coast KwaZulu-Natal and can be contacted on +27 32 439 1111.

 


SHAREHOLDERS

 

100%    DOW AGROSCIENCES LLC in the USA, (Registered in Indianapolis).  The latter company was delisted from the Chicago Stock Exchange on the 16th of July 2012 and is in turn owned by DOW CHEMICAL COMPANY INC in the USA.

 

 

ASSOCIATE COMPANIES

 

SENTRACHEM LTD

(Registration Certificate Number: 1967/002258/06)

DOW SOUTH AFRICA HOLDINGS (PTY) LTD

(Registration Certificate Number: 1997/011422/07)

AMERICAN CHAMBER OF COMMERCE IN S A (ASSOCIATION INC.)

(Registration Certificate Number: 1977/003776/08)

 

 

ASSOCIATE COMPANIES

 

continued

 

DOW SOUTH AFRICA (PTY) LTD

CISVAAL (PTY) LTD - dormant

(Registration Certificate Number: 1962/003795/07)

ROHM AND HAAS SOUTH AFRICA (PTY) LTD

(Registration Certificate Number: 1997/019822/07)

 

- plus other companies within the DOW group.

 

 

DIRECTORS

 

N S LUTSEKE                                                               ID No.   5309250832086

 

It was stated by the respondent that G T PIJL HOGEWEG (Resident in DUBAI) recently resigned as a       director and the subject is in the process of appointing another director.

 

 

BANKERS

 

NEDBANK, Durban North Branch.  Account Number:  1454012153.   It was stated that the subject is managed by a cash management scheme which is controlled by SENTRACHEM LTD.

 

The subject also utilises an account at NEDBANK, City Bank Branch.  Branch Code: 350005.  Account number: 0200581016.

 

It was stated by the respondent that they use different accounts for different currencies.

 

 

DATE REGISTERED

 

3 July 1967

Registration Certificate Number: 1967/007147/07

 

 

VAT NUMBER

 

4010102442

 

 

TAX NUMBER

 

9264211203

 

 

MAJOR OPERATION

 

The manufacture and distribution of agricultural (crop protection) chemicals such as herbicides, pesticides and insecticides

 

 

MAJOR 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

 

Agricultural distributors such as AGRICURA that sells to farmers, retailers.

 

AREA OF DISTRIBUTION AND SELLING:          South Africa

 

EXPORTS:       60 countries worldwide

TOTAL EMPLOYEES:   210-220 in the group.

 

 

OTHER PREMISES

 

The subject has operational sites in Canelands, Durban +27 32 439 1111, branches in Sasolburg and Paarl, Cape Town +27 21 872 1751, a warehouse in Chloorkop +27 11 393 2453 and administrative offices in Bryanston, Johannesburg +27 11 575 6088.  It is reported that the group has approximately 7 manufacturing sites across South Africa.

 

OWNED OR LEASED:   The premises are reported to be leased

 

 

AUTHORISED SHARE CAPITAL

 

R2 000 divided into 1 000 ordinary shares of R2 each

 

 

ISSUED SHARE CAPITAL

 

R2 000

 

 

FINANCIALS

 

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

 

 

AUDITORS

 

DELOITTE AND TOUCHE, Durban +27 31 560 7000

 

 

YEAR END

 

DECEMBER

INSURANCE BROKERS

 

MARSH INSURANCE BROKERS (Previously ALEXANDER FORBES), AIG INSURANCE BROKERS and CHARTIS INSURANCE BROKERS

 

TRADE REFERENCES – AUGUST 2006:

 

            ACCOUNT        HIGHEST         AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT           CREDIT                        PATTERN

 

1.         10 years            R4 500 000       R1 500 000 -      30 days            30 days            Very Good

                                    R2 000 000

 

2a.        4 years R1 500 000       R900 000 -        30 days            30 days            Very Good

                                    R1 000 000

 

2b.       4 years R1 500 000       R500 000 -        30 days            30 days            Excellent

                                    R900 000

 

2c.        4 years R600 000         R100 000          30 days            30 days            Excellent

 

 

TRADE REFERENCES – JUNE 2007:

 

            ACCOUNT        HIGHEST         AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT           CREDIT                        PATTERN

 

1.         Do not give trade references

 

2.         10 years+          declined            declined            30 days            30 days            Good

 

3.         2000     R100 000          R1 000  30 days            30 days            Good

 

4.         10 years            R500 000          R200 000 -        30 days            30 days            Good

                                    R300 000

 

TRADE REFERENCES – AUGUST 2008:

 

            ACCOUNT        HIGHEST         AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT           CREDIT                        PATTERN

 

1.         Do not give trade references

 

2.         8 years declined            declined            30 days            30 days            Excellent

 

3.         2004     R2 000 000        R800 000          30 days            30 days            Very Good

 

TRADE REFERENCES – SEPTEMBER 2009:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         8 years confidential       confidential       30 days            30 days            Very Good

 

2.         Feb 2004          R2 000 000        R300 000          30 days            30 days            Very Good

                        c/l

 

Do not give trade references

 

Do not give trade references

 

TRADE REFERENCES – JULY 2010:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         2004     R2 000 000        R450 000          30 days            30 days            Good

                        c/l

 

2.         10 years +         declined            declined            30 days            30 days            Good

 

3.         2000     declined            declined            30 days            30 days            Good

 

4.         Before 2002      R100 000          R55 000-           30 days            30 days            Very Good

                        c/l         R60 000

 

TRADE REFERENCES – MAY 2011:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

Do not give trade references

 

Do not give trade references

 

Do not give trade references

 

2004     R2 000 000        R400 000          30 days            30 days            Very Good

            c/l                     - at present, used to be much more

 

10 years+          declined            large amount     30 days            30 days            Very Good

 

10 years            declined            declined            30 days            -30 days           Excellent

                                    - discount

 

TRADE REFERENCES – NOVEMBER 2012:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         + 15 years         R26 000 000      R12 000 000      30 days            30 days            Excellent

 

2.         Awaiting a fax trade reference

 

3.         Do not give trade references

 

TRADE REFERENCES- AUGUST 2013:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         Feb 2004          R  2 000 000      ±R  100 000       30 days            ±90 days           Average

 

2.         10 years            R30 000 000      R20 000 000      30 days            30 days            Excellent

 

3.         10 years            Declined           Declined           30 days            30 days            Excellent

 

4.         Do not give trade references

 

Do not give trade references

 

Do not give trade references

 

CURRENT TRADE REFERENCES :

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         2002     R     100 000     ±R     30 000     30 days            30 days            Very Good

 

2.         2007     Declined           R10 000 000      30 days            30 days            Very Good

 

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.         Chemicals        

                       

2.         Shipper

 

COMMENTS

 

This is a very well established and well-connected company that is meeting its commitments timeously. The suppliers regard the subject highly and it is considered equal to a maximum figure of €1 500 000 over 30 days.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.89

UK Pound

1

Rs.93.92

Euro

1

Rs.72.00

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

TPT

 


 

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.