MIRA INFORM REPORT

 

 

Report Date :

16.04.2014

 

IDENTIFICATION DETAILS

 

Name :

FOSCHINI RETAIL GROUP (PTY) LTD

 

 

Formerly Known As :

FOSCHINI JFC (PTY) LTD

 

 

Registered Office :

Stanley Lewis Centre, 340 Voortrekker Road, Parow East, Western Cape

 

 

Country :

South Africa

 

 

Date of Incorporation :

20.12.1988

 

 

Com. Reg. No.:

1988/007302/07

 

 

Legal Form :

Private Company

 

 

Line of Business :

Retailers of clothing, shoes, accessories, jewellery and related activities, the subject being the main trading company within the Foschini Group of Companies

 

 

No. of Employees

15 000

 

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

South Africa

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately  High Risk

C1

High Risk

 

C2

Very High Risk

 

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 15th largest in the world. Even though the country possesses modern infrastructure that support 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. Unemployment, poverty, and inequality remain a challenge, with official unemployment at nearly 25% of the work force. Eskom, the state-run power company, has built two new power stations and installed new power demand management programs to improve power grid reliability. 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

 

FOSCHINI RETAIL GROUP (PTY) LTD

 

Formerly FOSCHINI JFC (PTY) LTD, the name having been changed on 18 May 2000.

 

 

TRADING DIVISIONS

 

AMERICAN SWISS JEWELLERS DIVISION

FOSCHINI STORES DIVISION (incorporating W.W.W (World Wide Wear) as a department)

MARKHAM DIVISION

EXACT!

STERNS JEWELLERS

SPORTS SCENE

DONNA CLAIRE

@HOME

TOTAL SPORTS

FASHION EXPRESS

@HOME LIVING SPACE

LUELLA

DUE SOUTH

CHARLES & KEITH

FABIANI

HI

G-STAR

MAT & MAY

 

 

PHYSICAL ADDRESS

 

Stanley Lewis Centre

340 Voortrekker Road

PAROW EAST

Western Cape

 

 

POSTAL ADDRESS

                                                            

P O Box 6020

PAROW EAST

7501

 

TELEPHONE NUMBER:                         

+27 21 938 1911

 

FAX NUMBER:                                      

+27 21 937 4257

 

 

SHAREHOLDERS

 

100%    THE FOSCHINI GROUP LIMITED quoted on the JSE LTD

 

 

ASSOCIATE COMPANIES

 

Companies within the FOSCHINI Group

 

 

DIRECTORS

 

R STEIN                                                            ID No.   4906255088084

A D MURRAY                                                    ID No.   5703305223087

P S MEIRING                                                    ID No.   5508095124084

M MENDELSOHN                                              ID No.   5811265106083

G S NAIDOO                                                     ID No.   6802140275085

D B GEDYE                                                      ID No.   5903175004001

B J CURRY                                                       ID No.   6107165045086

M A MARITZ                                                      ID No.   6712225283088

S A BAIRD                                                        Newly Appointed

 

 

BANKERS

 

FIRST NATIONAL BANK, Corporate branch, Cape Town, Account Number: 55791093252.  The subject is reported to have substantial overdraft facilities, secured by the holding company guarantees.  It was stated by the respondent at the subject that they have various accounts for different purposes.

 

 

DATE REGISTERED

 

20 December 1988

Registration Certificate Number: 1988/007302/07

 

The subject was previously a dormant company and commenced active operations as at 1 April 2000.

 

The subject took over part of the assets and operations of the very well established FOSCHINI GROUP (PTY) LTD, which is currently dormant. The assets and operations were transferred to the subject and two other companies namely, FOSCHINI SERVICES (PTY) LTD and RETAIL CREDIT SOLUTIONS (PTY) LTD.

 

 

VAT NUMBER

 

4210187250      

 

 

VAT NUMBER    

 

9280605032

 

 

MAJOR OPERATION

 

Retailers of clothing, shoes, accessories, jewellery and related activities, the subject being the main trading company within the Foschini Group of Companies

 

 

MAJOR SUPPLIERS

 

It was stated that each division has its own suppliers.  

 

The @HOME division deals locally with:

 

PATSY’S DECORATORS Cape Town

DESIGN CO Cape Town

BATES PRINTING

BERRY & DONALDSON

The FOSCHINI RETAIL division deals locally with:

 

LITHOTECH AFRIC MAIL Cape Town

HUGE TELEKOMS Cape Town

I T B MANUFACTURING Mafikeng

 

 

MAJOR SUPPLIERS

 

continued

 

The STERNS and AMERICAN SWISS division deals with:

 

ALLEN TURNER Cape Town

GOLD MASTER Cape Town

B MILLER JEWELLERY

S BACHER Johannesburg

 

 

MAJOR CUSTOMERS OR BUSINESS SECTORS

 

The general public on a cash and credit basis

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

Namibia, Swaziland and Botswana.

 

 

TOTAL EMPLOYEES

 

15 000 including casuals, contract and factory employees

 

 

OTHER PREMISES   

 

±1600 stores nationwide

 

 

OWNED OR LEASED

 

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

 

 

AUTHORISED SHARE CAPITAL

 

R100 000 divided into 100 000 ordinary R1 shares

 

 

ISSUED SHARE CAPITAL

 

R66 000

 

 

FINANCIALS

 

Please see the latest consolidated financial information on the FOSCHINI GROUP LIMITED as at 31 March 2013.

 

 

AUDITORS    

 

KPMG              +27 21 408 7000

 

 

FINANCIAL YEAR END  

 

MARCH

 

 

INSURANCE BROKERS 

 

AON INSURANCE BROKERS

 

TRADE REFERENCES – NOVEMBER 2006:

 

                  ACCOUNT   HIGHEST     AVERAGE         TERMS     PAYMENT    EXPERIENCE

                  OPENED     CREDIT        CREDIT                             PATTERN

 

1.    5 years        R4 000 000   R3 000 000        14 days    14 days        Very Good

 

2.    3 years        R   500 000   R   150 000        30 days    30 days        Excellent

 

3.    Awaiting trade reference

 

 

TRADE REFERENCES –JULY 2007:

 

      ACCOUNT   HIGHEST     AVERAGE         TERMS     PAYMENT    EXPERIENCE

      OPENED     CREDIT        CREDIT                             PATTERN

 

1.    Do not give trade references

 

2.    Do not give trade references

 

3.    1999           open acc      varies                30 days    30 days        Excellent

 

4.    4 years+      open acc      R200 000           30 days    30 days        Good

                                                                     2.5%        2.5%

 

TRADE REFERENCES – JULY 2007:

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    14 years       open              R   500 000-    30 days    30 days        Excellent

                                               R1 000 000

 

2.    Old acc        declined         declined          30 days    30 days        Good

 

3.    12 years       R15 000 000   R1 800 000      14 days    14 days        Very Good

 

TRADE REFERENCES – SEPTEMBER 2008:

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    Old acc        declined         R2 000 000      30 days    30 days        Very Good

 

2.    6 years         R600 000       R   600 000     30 days    30 days        Very Good

 

3.    Old acc        R  75 000       R     20 000     60 days    60 days        Very Good

                          c/l

 

TRADE REFERENCES – MARCH 2009:

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    8 years         R500 000         R   500 000   30 days    30 days        Excellent

 

2.    ±10 years     declined         +R   200 000   30 days    30 days        Very Good

 

3.    9 years         ±R4 000 000   +R1 000 000    14 days    14 days        Very Good

 

TRADE REFERENCES – SEPTEMBER 2009

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    Old               declined         R   200 000     30 days    30 days        Very Good

 

2.    Old               declined         R1 000 000      30 days    30 days        Very Good

 

3.    10 years       declined         figures             30 days    30 days        Very Good

 

TRADE REFERENCES – AUGUST 2010:

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    15 years       +R1 000 000  +R1 000 000    30 days    30 days        Very Good

 

2.    25 years         R1 500 000  +R1 000 000    30 days    30 days        Very Good

 

3.    Do not give trade references

 

TRADE REFERENCES – DECEMBER 2010:

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    2006             R1 000 000    R100 000        60 days    60 days        Excellent

                          c/l

 

2.    1996             undisclosed    R300 000        30 days    30 days        Very Good

 

3.    Old               declined         figures             30 days    30 days        Very Good

 

TRADE REFERENCES – MAY 2011:

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    Old Acc        ±R3 500 000   ±R2 800 000    30 days    30 days        Very Good

 

2.    Old Acc        open              ±R   500 000    30 days    30 days        Excellent

 

3.    Old Acc        R6 000 000      R6 000 000-   30 days    30 days        Excellent

                          c/l                                                       less 2.5%

 

TRADE REFERENCES – MAY 2013:

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    25 years       open              R3 000 000-     30 days    30 days        Very Good

                                               R7 000 000

 

2.    Awaiting fax trade reference

 

3.    10 years       R6 000 000    R2 000 000-     30 days    30 days        Excellent

                                               R6 000 000                    

 

CURRENT TRADE REFERENCES:

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    Old               Declined        R3 000 000-     14 days    14 days        Excellent

                                               R6 000 000

 

2.    2 years         Declined        Declined          30 days    30 days        Excellent

 

3.    Do not give trade references

 

CURRENT TRADE REFERENCES:

 

      ACCOUNT    HIGHEST       AVERAGE       TERMS     PAYMENT   EXPERIENCE

      OPENED      CREDIT         CREDIT                           PATTERN

 

1.    20 years       open              R2 000 000   30/60 days   30/60 days   Very Good            

2.    20 years       open              R3 000 000  30 days        30 days        Excellent

 

3.    Do not give trade references                     

 

NATURE OF GOODS OR SERVICES SUPPLIED:

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

 

1.    Jewellery     

                         

2.    Jewellery     

 

3.    Jewellery     

 

COMMENTS:

 

This is a large well-established company in South Africa which division is  meeting its commitments timeously.  

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.26

UK Pound

1

Rs.100.70

Euro

1

Rs.83.27

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

PDT

 

               

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.