MIRA INFORM REPORT

 

 

Report Date :

21.04.2008

 

 

IDENTIFICATION DETAILS

 

Name :

COLUMBUS STAINLESS (PTY) LTD      

 

 

Formerly Known As :

FINDIV FIVE INVESTMENT HOLDINGS (PTY) LTD

 

 

Registered Office :

Hendrina Road, Middelburg, Mpumalanga

 

 

Country :

South Africa

 

 

Date of Incorporation :

05.02. 1999

 

 

Com. Reg. No.:

1999/002477/07

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturers of Stainless Steel

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

 

 

 

 

 

COMPANY NAME

 

COLUMBUS STAINLESS (PTY) LTD         

 

Formerly FINDIV FIVE INVESTMENT HOLDINGS (PTY) LTD, the name having been changed on the 21 December 2001.

 

 

PHYSICAL ADDRESS

 

Head Office:

Hendrina Road

MIDDELBURG

Mpumalanga

 

 

POSTAL ADDRESS

 

P O Box 133     and       Private Bag X251844

MIDDELBURG               MIDDELBURG

1050                             1050

TELEPHONE NUMBER: 013 247 9111

FAX NUMBER:  013 247 2707

 

 

SHAREHOLDERS

 

76%      ACERINOX SA in Spain.  It was stated that ACERINOX SA is the 3rd largest stainless steel producer in the world

12%      SAMANCOR LTD

12%      THE INDUSTRIAL DEVELOPMENT CORPORATION OF SOUTH AFRICA LTD

 

The Shareholding changed recently and was previously 75% ACERINOX SA, 12% SAMANCOR LTD and 12% IDC

 

 

ASSOCIATE COMPANIES

 

None

 

 

DIRECTORS

 

D P MARTIN (CEO) 

M FERRANDIS (Spanish)

J RIESTRA (Spanish)

L TOYI (Mrs)

Q ROUX

B VELASQUEZ (Spanish)

J F MABHENA (Company Secretary)

P RIESTRA (Chairman Spanish)

BANKERS

 

FIRST NATIONAL BANK, Johannesburg Corporate Branch, Account Number: 62030028204.  It was stated that the subject enjoys overdraft facilities to an extent of R400 million, unsecured.  Utilisation is stated to be nil as credit balances are normally maintained at the bank.

 

The subject is also reported to have Foreign Currency accounts at NEDBANK, CITIBANK, STANDARD BANK and ABSA BANK.

 

 

DATE REGISTERED

 

5 February 1999

Registration Certificate Number: 1999/002477/07.

 

The subject commenced active operations on 1 January 2002 when it took over a well established joint venture between HIGHVELD STEEL & VANADIUM CORPORATION LTD, SAMANCOR LTD and the INDUSTRIAL DEVELOPMENT CORPORATION OF SOUTH AFRICA LTD, trading as COLUMBUS JOINT VENTURE / COLUMBUS STAINLESS.  The joint venture took effect from 1 October 1991. 

 

The joint venture was formed to take over the operations and trading assets, as well as the plant and equipment, of the Stainless Steel side of the company, MIDDELBURG STEEL & ALLOYS (PTY) LTD, which was registered on 23 May 1955, Registration Certificate Number: 1955/001490/07.

 

 

VAT NUMBER    

 

4640196368

 

 

MAJOR OPERATION

 

Manufacturers of stainless steel

 

 

MAJOR SUPPLIERS

 

RUSTENBURG PLATINUM MINES Rustenburg

AIR PRODUCTS Johannesburg

IMPALA PLATINUM LTD Johannesburg

SAMANCOR Johannesburg

CRONIMET Johannesburg

THE RECLAMATION GROUP Johannesburg

AFROX Johannesburg

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

Export market mainly, industry in general and government.

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa.

 

 

EXPORTS

 

Worldwide

 

 

TOTAL EMPLOYEES

 

1800

 

 

OTHER PREMISES

 

The subject has a sales office in Johannesburg and small sales offices in Durban, Port Elizabeth  and Cape Town.

 

 

OWNED OR LEASED

 

The head office premises are reported to be owned by the subject and the branch premises are leased.

 

 

AUTHORISED SHARE CAPITAL

 

R50 divided into 5 000 ordinary shares of R0,01 cents each

 

 

ISSUED SHARE CAPITAL

 

R50

 

The following estimated financial situation dated October 2007 was submitted:

 

STOCK             + R   500 000 000

DEBTORS         + R   800 000 000

FIXED ASSETS + R2 000 000 000

CREDITORS      R   500 000 000

LOANS Foreign loans from Standard Corporate Bank &

Nedbank are on a short term basis

TURNOVER      R6 000 000 000

 

 

AUDITORS

 

KPMG  Pretoria

 

YEAR END    

 

DECEMBER

 

 

INSURANCE BROKERS

 

MARSH

 

 

TRADE REFERENCES – MAY 2006

 

            ACCOUNT        HIGHEST         AVERAGE         TERMS             PAYMENT         EXPERIENCE

            OPENED           CREDIT           CREDIT                                    PATTERN

 

1.         15 yrs+             R  7 000 000      R  6 000 000      30 days             30 days             Very good

 

2.         1995                 R     600 000     R     600 000     30 days             30 days             Excellent

 

3.         30 yrs               35 000 000        R35 000 000      30 days             30 days             Excellent

 

 

TRADE REFERENCES – MARCH 2007

 

            ACCOUNT        HIGHEST         AVERAGE         TERMS             PAYMENT         EXPERIENCE

            OPENED           CREDIT           CREDIT                                    PATTERN

 

1.         15 yrs               R30 000 000      R30 000 000      30 days             30 days             Excellent

 

2.         1995                 R50 000 000      R     500 000     30 days             30 days             Excellent

 

3.         50 yrs               R50 000 000      R20 000 000 -    30 days             30 days             Excellent

                                                            R30 000 000

 

 

TRADE REFERENCES – OCTOBER 2007

 

            ACCOUNT        HIGHEST         AVERAGE         TERMS             PAYMENT         EXPERIENCE

            OPENED           CREDIT           CREDIT                                    PATTERN

 

1.         Do not give trade references

 

2.         Old acc             declined            declined            declined            declined            Very good

 

3.         40 yrs               R100 000 000    R80 000 000      30 days             30 days             Excellent

 

4.         15 yrs               R  80 000 000    R40 000 000 -    30 days             30 days             Excellent

                                                            R80 000 000

 CURRENT TRADE REFERENCES

 

            ACCOUNT        HIGHEST         AVERAGE         TERMS             PAYMENT         EXPERIENCE

            OPENED           CREDIT           CREDIT                                    PATTERN

 

1.         Old acc                        declined            R10 000 000      30 days             30 days             Good

 

2.         5 yrs                 R150 000 000    R85 000 000-     30 days             30 days             Excellent

                                                            R90 000 000

 

3.         15  yrs              open                 R50 000 000-     30 days             30 days             Excellent

                                                            R70 000 000

 

 

COMMENTS

 

This is an established and very well connected company which took over a well established and well connected joint venture.  The subject is meeting its commitments timeously and is considered equal to £41 231 000 over 180 days.

 

 

 

 

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

Unfavourable & favourable factors carry similar weight in credit consideration. 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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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