MIRA INFORM REPORT

 

 

Report No. :

308622

Report Date :

26.02.2015

 

IDENTIFICATION DETAILS

 

Name :

ORICA AFRICA (PTY) LTD

 

 

Formerly Known As :

ORICA SOUTH AFRICA (PTY) LTD

 

LARITZA INVESTMENTS NO 146 (PTY) LTD

 

 

Registered Office :

Cnr Vanacht and Gewel Street, Isando, Kempton Park, Gauteng, P O Box 3985, Randburg 2125

 

 

Country :

South Africa

 

 

Date of Incorporation :

26.03.2004

 

 

Legal Form :

Private Company

 

 

Line of Business :

Import and supply of electronic detonators and manufacture of circuit boards.

 

 

No. of Employees :

70

 

 

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

 

ORICA AFRICA (PTY) LTD

 

Formerly: ORICA SOUTH AFRICA (PTY) LTD, the name having been changed on 17 January 2014.

 

Formerly LARITZA INVESTMENTS NO 146 (PTY) LTD, the name having been changed on 11 June 2004.

 

 

PHYSICAL ADDRESS

 

Cnr Vanacht and Gewel Street

Isando

Kempton Park

Gauteng

 

 

POSTAL ADDRESS

 

P O Box 3985

Randburg

2125

 

 

TELEPHONE NUMBER

 

+27 10 596 3101

 

 

FAX NUMBER

 

+27 11 923 1935

 

The subject moved from the premises 1ST Kent Boulevard, 1st Floor, 293 Kent Avenue, Ferndale, Randburg, Gauteng on 19 January 2015. It was stated that the subject is still in the process of changing its postal address.

 

The subject moved from the premises Unit 202, 2nd Floor, Dalefern Building, 284 Oak Avenue, Ferndale, Randburg, Gauteng years ago.

 

 

SHAREHOLDERS

 

100%    ORICA GERMANY GMBH

ASSOCIATE COMPANIES

 

The subject is an associate of an international group of companies through their holding company. The main holding company is reported to be in Melbourne, Australia.

 

 

DIRECTORS

 

N HARIPARSAD                                    ID No.   7812025040081

Y M MAKRA                                         ID No.   6303105099081

 

It was stated that the directors are in the process of changing and up to date details will be loged at CIPC

 

 

BANKERS

 

CITIBANK, Sandton branch.

 

The subject will soon move its banking facilities to STANDARD CHARTERED BANK.

 

It was stated that the subject is managed by a cash management scheme, controlled by ORICA FINANCE in Melbourne, Australia.

 

 

DATE REGISTERED

 

26 March 2004

Registration Certificate Number 2004/008296/07

 

The subject commenced trading on 1 August 2004.

 

 

VAT NUMBER

 

4850213234

 

 

TAX NUMBER

 

9146735155

 

BBBEE STATUS

 

In the process of obtaining BBBEE certificate

 

 

MAJOR OPERATION

 

Import and supply of electronic detonators and manufacture of circuit boards.

 

 

MAJOR SUPPLIERS

 

The subject imports most of its supplies from sister companies in Zambia, and Canada and deals with local 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 sector and construction companies

 

 

AREA OF DISTRIBUTION AND SELLING

 

South Africa

 

 

EXPORTS

 

The subject exports to group companies in Ghana, Canada, Tanzania and Australia

 

TOTAL EMPLOYEES

 

70, having increased from 34 permanent employees and 7 contract workers reported in 2010.

 

OTHER PREMISES

 

The subject has a manufacturing facility in Cape Town and

storage facilities at Bapsfontein.

 

 

OWNED OR LEASED

 

The premises are reported to be leased.

 

 

AUTHORISED SHARE CAPITAL

 

R1 000 divided into 1 000 ordinary shares of R1 each.

 

 

ISSUED SHARE CAPITAL

 

R120

 

The following financial information was supplied as at 17 February 2015:

 

STOCK R    9 500 000

DEBTORS        R108 000 000

FIXED ASSETS – net book        R  28 000 000

CREDITORS     R  91 000 000

LOANS Nil

TURNOVER      R374 000 000

The turnover has increased substantially since 2010 when it was stated to be R85 000 000 per annum.

 

 

AUDITORS

 

KPMG INCORPORATED, Johannesburg. Tel no:  +27 11 647 7111

 

 

YEAR END

 

SEPTEMBER

 


INSURANCE BROKERS

 

AON INSURANCE BROKERS

 

TRADE REFERENCES – NOVEMBER 2006:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         2005     R100 000          R45 000            30 days            30 days            Very good

                                    c/l

 

2.         Do not give trade references.    

 

TRADE REFERENCES – FEBRUARY 2008

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         02/2005 R     50 000       R  47 000          30 days            30 days            Good

 

2.         Do not give trade references     

 

3.         3 yrs     R1 000 000        R500 000          30 days            30 days            Good

 

 

TRADE REFERENCES – JANUARY 2009:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         Apr 2005           Open    ±R150 000         30 days            30 days            Good

                        c/l

 

2.         4 yrs     R1 500 000        R   900 000 -     30 days            30 days            Good

                                    R1 500 000

 

C.O.D.

 

Do not give trade references

 

TRADE REFERENCES-JULY 2010:

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         4 years open     R2 500  30 days            30 days            Dormant since

                        R2 500                                      2009

 

Unknown account

 

3.         2005     R1 500 000        R1 200 000        30 days            30 days            Very Good

                        c/l

           

Do not give trade references

 

 

CURRENT TRADE REFERENCES

 

            ACCOUNT        HIGHEST          AVERAGE        TERMS PAYMENT        EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

Do not give trade references

 

+6 years           Open    R200 000-         30 days            30 days            Very Good

                                                     R500 000

 

2008     R800 000          R200 000-      30 days    30 days                      Very Good

R600 000

 

 

NATURE OF GOODS OR SERVICES SUPPLIED

 

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

 

2.         Transport

 

Clearing and forwarding

 

 

COMMENTS

 

This is an established overseas connected company, which imports most of its supplies. The subject is meeting its obtainable commitments timeously and is well regarded by its suppliers. The subject is considered equal to its normal business engagements and to a maximum figure of €400 000 over 30 days.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.05

UK Pound

1

Rs.96.03

Euro

1

Rs.70.43

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

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.