MIRA INFORM REPORT

 

 

Report No. :

327728

Report Date :

24.06.2015

 

IDENTIFICATION DETAILS

 

Name :

SCAW SOUTH AFRICA (PTY) LTD

 

 

Formerly Known As :

MAIN STREET 473 (PTY) LTD

 

 

Registered Office :

Lower Germiston Road Heriotdale Johannes burggauteng, P O Box 61721 Marshalltown 2107

 

 

Country :

South Africa

 

 

Date of Incorporation :

18.09.2006

 

 

Com. Reg. No.:

2006/029205/07

 

 

Legal Form :

Private company

 

 

Line of Business :

Subject is involved in the manufacturing of steel and alloy iron products, cast products, rolled products, grinding media, steel wire rope, wire and strand, chain products, fibre ropes and twines and filtration materials.

 

 

No. of Employee :

±7 000

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 Africa’s largest and among the top 20 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. Economic growth has decelerated in recent years, slowing to just 1.5% in 2014. Unemployment, poverty, and inequality - among the highest in the world - remain a challenge. Official unemployment is roughly 25% of the work force, and runs significantly higher among black youth. Eskom, the state-run power company, is building three new power stations and is installing new power demand management programs to improve power grid reliability. Load shedding and resulting rolling blackouts gripped many parts of South Africa in late 2014 and early 2015 because of electricity supply constraints that resulted from technical problems at some generation units, unavoidable planned maintenance, and an accident at a power station in Mpumalanga province. The rolling black outs were the worst the country faced since 2008. Construction delays at two additional plants, however, mean South Africa will continue to operate on a razor thin margin; economists judge that growth cannot exceed 3% until electrical supply problems are resolved. South Africa's economic policy has focused on controlling inflation, however, the country faces structural constraints that also limit economic growth, such as skills shortages, declining global competitiveness and frequent work stoppages due to strike action. The current government faces growing pressure from urban constituencies to improve the delivery of basic services to low-income areas and to increase job growth.

 

Source : CIA

 

 

COMPANY NAME

 

SCAW SOUTH AFRICA (PTY) LTD

 

Formerly: MAIN STREET 473 (PTY) LTD, the name having been changed 19 October 2006.

 

 

TRADING NAME

 

SCAW METALS GROUP

 

 

Address

 

PHYSICAL ADDRESS

 

Lower Germiston Road

HERIOTDALE

Johannesburg

Gauteng

 

POSTAL ADDRESS

 

P O Box 61721

MARSHALLTOWN

2107

 

TELEPHONE NUMBER

+27 11 621 1555

 

FAX NUMBER

+27 11 621 1590

 

 

The address of 60 Strachan Street, Industria, Germiston, Telephone Number: +27 11 876 2626, is stated to be a factory premises of the subject.

 

The address of 15 Birmingham Street Benoni South, +27 11 747 5000, is stated to be the premises of the ECLIPSE EAST FOUNDRY.

 

The address of Jansen Road, Nuffield, Springs, is stated to be a branch of the subject.

 

The address of Union Junction Black Reef Road, Dinwiddie Germiston is reported to be the factory premises of the subject on the telephone number +27 11 842 9000 and fax number +27 11 842 9703.

 

 

SHAREHOLDERS

 

74%      INDUSTRIAL DEVELOPMENT CORPORATION OF SOUTH AFRICA LIMITED

21%      MAIN STREET 510 (PTY) LTD

 5%      SCAW EMPLOYEE SHARE TRUST

 

 

The shareholding changed in 2012 and was previously:

 

74%      ANGLO AMERICAN PLC

21%      Held by Black Consortium comprising IZINGWE HOLDINGS (PTY) LTD, SOUTHERN PALACE HOLDINGS (PTY) LTD and SHANDUKA RESOURCES (PTY) LTD

 5%      SCAW EMPLOYEE SHARE TRUST

 

 

ASSOCIATE COMPANIES

 

CONSOLIDATED WIRE INDUSTRIES (PTY) LTD

(Registration Certificate Number: 1949/033261/07)

 

The percentage of shareholding was unknown by the respondent.

 

 

DIRECTORS

 

A B ALLY (alt)                                                                       ID No. 6410245219089

L L TSEKI                                                                              ID No. 7911045458081

U KHUMALO (Chairman)                                                        ID No. 6602055286089

N G NIKA                                                                              ID No. 5804125384081

V O TWALA                                                                           ID No. 6309235681086

N V MOKHESI                                                                       ID No. 6102110608088

N A MPULO                                                                          ID No. 7911120460085

S SEROTE                                                                            ID No. 8111195298085

M M HANNEMANN (CEO)                                                      ID No. 6705105119083

O SHARP                                                                              ID No. 8201140103082

 

 

BANKERS

 

NEDBANK, Sandton branch.  It was stated that the subject enjoys overdraft facilities secured by property. Utilisation is stated to fluctuate.  Further banking information was declined.

 

 

DATE REGISTERED

 

18 September 2006

Registration Certificate Number: 2006/029205/07

 

SCAW SOUTH AFRICA (PTY) LTD was established in November 2006 when the operations of SCAW METALS, a division of ANGLO OPERATIONS LTD (Registration Certificate Number 1921/006730/07), were incorporated into a shelf company styled MAIN STREET 473 (PTY) LTD, for registration purposes.  The name of the company was changed in October 2006 to the current name. 

 

It was stated that operations commenced many years prior to this, however, further information was unknown.

 

As of 19 June 2008 the assets and operations of OZZ INDUSTRIES (PTY) LTD (Registration Certificate Number 2002/012715/07) with all its business interests, including ECLIPSE FOUNDRIES LTD (Registration Certificate Number 1927/000441/07) were incorporated into SCAW SOUTH AFRICA (PTY) LTD.  Both the former companies became dormant and were liquidated.

 

 

VAT NUMBER

 

4880111176

 

 

TAX NUMBER

 

9099385164

 

 

BBBEE STATUS

 

Level 3 contributor

 

 

MAJOR OPERATION

 

The subject is involved in the manufacturing of steel and alloy iron products, cast products, rolled products, grinding media, steel wire rope, wire and strand, chain products, fibre ropes and twines and filtration materials.

 

 

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

 

The transport industry, e g SPOORNET/TRANSNET, the mining industry,

 

e.g. Platinum and Gold, heavy and light engineering, construction.

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

West Africa, Far East and North America.

 

 

TOTAL EMPLOYEES

 

±7 000

 

 

OTHER PREMISES

 

The subject has 13 branches and 7 factories throughout South Africa.

 

 

OWNED OR LEASED

 

2 of the branches and all the factories and head office are reported to be owned by the subject, free of bond.

 

 

FINANCIALS

 

Full financial information was declined by the respondent at the subject and outside authorities were unable to assist in this regard.

 

 

AUDITORS

 

DELOITTE AND TOUCHE          +27 11 806 5000

 

 

YEAR END

 

MARCH changed from DECEMBER

 

 

INSURANCE BROKERS

 

MARSH INSURANCE BROKERS

 

 

TRADE REFERENCES – AUGUST 2007

 

       PERIOD       HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

                          CREDIT         CREDIT                          PATTERN

 

1.    Do not give trade references

 

2.    30 years       R16 200 000   R  7 000 000-   30 days    30 days        Excellent

                          c/l                 R10 000 000

 

3.    5 years         open acc       R  9 000 000    30 days    30 days        Excellent

 

4.    Do not give trade references

 

 

TRADE REFERENCES – JUNE 2008

 

       PERIOD       HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

                          CREDIT         CREDIT                          PATTERN

 

1.    20 years       R16 200 000   R  5 000 000-   30 days    30 days        Excellent

                                               R10 000 000

 

2.    Old acc        R  8 100 000  R  1 000 000-   30 days    30 days        Very Good

                                               R  3 500 000

 

3.    30 years       large              R  2 000 000    30 days    30 days        Very Good

 

 

TRADE REFERENCES – SEPTEMBER 2009

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    Aug 2006      undisclosed   undisclosed    30 days    30 days        Good

                          (Coface)                              2.5%        2.5%

 

2.    +10 years     R16 600 000   ±R10 000 000  30 days    30 days        Excellent

                          c/l

 

3.    ±20 years     R10 000 000     R  3 000 000- 30 days    30 days        Very Good

                                                 R  5 000 000

 

 

TRADE REFERENCES – FEBRUARY 2010

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    Do not give trade references

 

2.    Old acc        R   5 000 000 R   4 000 000   30 days    30 days        Very Good

 

4.    +10 years     R100 000 000 R  2 500 000-  30 days    30 days        Very Good

                          c/l                 R10 000 000

 

5.    Do not give trade references

 

 

TRADE REFERENCES – AUGUST 2010

 

      ACCOUNT    HIGHEST          AVERAGE     TERMS  PAYMENT    EXPERIENCE

      OPENED      CREDIT             CREDIT                      PATTERN

 

1.    1999             R    3 200 000    R  1 000 000- 30 days 30 days        Very Good

                          c/l                     R  3 000 000

 

2.    10 years       R  10 000 000     R  5 000 000- 30 days 30 days        Very Good

                          c/l                     R10 000 000

 

3.    2008             R100 000 000     R20 000 000   30 days 30 days        Very Good

                          c/l                                          -2,5%     -2,5%

 

4.    Do not give trade references                      

 

 

TRADE REFERENCES DECEMBER 2011

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    10 years       R16 600 000   ±R  7 700 000  30 days    30 days        Excellent

                          c/l

 

2.    1999             R4 000 000    ±R  1 500 000  30 days    30 days        Excellent

                          c/l

 

3.    ±10 years     R24 000 000     R  5 000 000- 30 days    30 days        Excellent  

                          c/l                   R10 000 000

 

TRADE REFERENCES – JANUARY 2012

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    +8 years       Declined        Declined         30 days    30 days        Excellent

 

2.    Do not give trade references

 

3.    1999             R4 100 000    R1 000 000–    30 days    30 days        Excellent

                                               R3 700 000

 

 

TRADE REFERENCES – FEBRUARY 2012

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    1999             R5 000 000    R1 000 000-     30 days    30 days        Excellent

                                               R5 000 000

 

2.    5-10 years    R10 000 000   R6 000 000      30 days    30 days        Excellent

 

3.    5 years         declined        declined          30 days    30 days        Excellent

 

4.    Do not give trade references

 

 

TRADE REFERENCES – MARCH 2012

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    +10 Years     R25 000 000   ±R9 000 000    30 days    30 days        Excellent

 

2.     Unable to obtain

 

3.     Do not give trade references

 

4.     Do not give trade references

 

5.     Do not give trade references

 

 

TRADE REFERENCES – SEPTEMBER 2012

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    1999             R3 000 000    R  1 500 000-   30 days    30 days        Very Good

                                               R  2 000 000

 

2.    +10 Years     R25 000 000   R10 000 000    30 days    30 days        Excellent

 

3.    Feb 2008      Declined        Declined         30 days    30 days        Very Good

                          Insured with Coface              -2.5%

 

4.    Do not give trade references

 

 

TRADE REFERENCES – JANUARY 2013

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS       PAYMENT   EXPERIENCE

      OPENED      CREDIT         CREDIT                             PATTERN

 

1.    5 Years        Open             R3 000 000-     30 days       30 days       Very Good

                                               R5 000 000

 

2.    Last dealt with them in 2011

 

3.    2006             Declined        Declined         30 days       30 days       Very Good

                          Insured CGIC                       2.5%

 

4.    Do not give trade references

 

 

TRADE REFERENCES – JULY 2013

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS       PAYMENT   EXPERIENCE

      OPENED      CREDIT         CREDIT                             PATTERN

 

1.    Do not give trade references

 

2.    Do not give trade references

 

3.    2007             Declined        Declined         30 days       30 days       Excellent

                          Insured CGIC                       2.5%

 

4.    Do not give trade references

 

 

TRADE REFERENCES – SEPTEMBER 2014

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS       PAYMENT   EXPERIENCE

      OPENED      CREDIT         CREDIT                             PATTERN

 

1.    Do not give trade references

 

2.    Do not give trade references

 

3.    2008             Declined        Declined         60 days       60 days       Very Good

                          Insured:CGIC

 

 

CURRENT TRADE REFERENCES

 

      ACCOUNT    HIGHEST     AVERAGE        TERMS       PAYMENT   EXPERIENCE

      OPENED      CREDIT       CREDIT                               PATTERN

 

1.    7 years         Open           R5 000 000-      30 days       30 days       Very Good         

                                             R9 000 000

     

2.    +11 years     Declined      +R100 000 000  30/60 days   30/60 days     Very Good

 

3.    Against company policy to divulge trade reference information.

 

4.    Against company policy to divulge trade reference information.

 

 

NATURE OF GOODS OR SERVICES SUPPLIED:

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

 

1.    Iron ore products              

                         

2.    Steel           

 

COMMENTS

 

This is an established business that has its origins many years ago as a division of ANGLO OPERATIONS LTD. The subject is meeting its commitments on time as per arrangements. In view of the standing of the subject they are considered equal, preferably secured due to a lack of financial information.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.64

UK Pound

1

Rs.100.41

Euro

1

Rs.71.63

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

ANK

 


 

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.