MIRA INFORM REPORT

 

 

Report No. :

302831

Report Date :

27.01.2015

 

IDENTIFICATION DETAILS

 

Name :

FOSKOR (PTY) LTD

 

 

Formerly Known As :

FOSKOR LTD

 

 

Registered Office :

Block G Riverview Office Park Janadel Avenue Midrand Johannesburg Gauteng P O Box 2494 Halfway House 1685

 

 

Country :

South Africa

 

 

Financial As On :

31.03.2014

 

 

Date of Incorporation :

18.08.1951

 

 

Legal Form :

Private Company

 

 

Line of Business :

Subject is a Mining company, mining phosphate rock and producing phosphoric and granular acids.

 

 

No. of Employees :

1,842

 


 

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 and address

 

FOSKOR (PTY) LTD

 

Formerly: FOSKOR LTD, the legal entity of the company having been changed in March 2005

Formerly: UNIE FOSFAAT ONTGINNINGS MAATSKAPPY EDMS BPK, the name having been changed on 2 December 1987

Formerly: FOSFAAT-ONTGINNINGSKORPORASIE (EDMS) BPK, the name having changed on

26 August 1974

 

 

INTERNAL DIVISIONS

 

MINING

ACID

 

 

PHYSICAL ADDRESS    

 

Block G

Riverview Office Park

Janadel Avenue

MIDRAND

Johannesburg

Gauteng

 

 

POSTAL ADDRESS

 

P O Box 2494

HALFWAY HOUSE

1685

 

 

TELEPHONE NUMBER:            +27 11 347 0600

 

FAX NUMBER:                          +27 11 347 0640

 

The subject moved its head office premises from 18 Thornhill Office Park, 94 Bekker Road, Midrand, Gauteng, in November 2008.


 

SHAREHOLDER

 

59  %    THE INDUSTRIAL DEVELOPMENT CORPORATION OF SOUTH

AFRICA LTD (IDC), which in turn is owned by the S A GOVERNMENT

26  %    BBBEEE – Consortium which consists of 3 companies :

           

The 26% BBBEEE is made up as follows:

                       

15%      MANYORO CONSORTIUM

6%       KOPANO FOSKOR EMPLOYEES TRUST

5%       B A PHALABORWA AND UMHLATHUZE COMMUNITY TRUST

 

 

SHAREHOLDERS

 

continued

 

11.82%  COROMANDEL FERTILISERS LTD (Registered in Mauritius)

  2.18% COROMANDEL INTERNATIONAL LTD (India)

 1      %            SUN INTERNATIONAL FZE (Dubai)

 

The shareholding changed and was previously:

 

59%      THE INDUSTRIAL DEVELOPMENT CORPORATION OF SOUTH

AFRICA LTD, which in turn is owned by the S A GOVERNMENT.

            26%      BBBEEE – Consortium.

14%      COROMANDEL FERTILISERS LTD (Mauritius)

  1%     SUN INTERNATIONAL FZE Dubai

 

It was stated by the respondents that these shareholders COROMANDEL FERTILIZERS LTD may be upgrading their shareholding to about 15% in the near future.  This, however, has not yet been finalized.

 

 

ASSOCIATE COMPANIES

 

ZIRCONIA (PTY) LTD

(Registration Certificate Number:  2003/075280/23)

INTER MINERALS HOLDINGS AG (SWITZERLAND)

IOF PROPERTY TRUST (SOUTH AFRICA)

FOSKOR SOCIAL RESPONSIBILITY TRUST

FOSKOR ZIRCONIA (PTY) LTD

(Registration Certificate Number: 2007/025096/07)

 FOSKOR TECHNOLOGIES (PTY) LTD – Dormant

FOSKOR ESOP SPV (PTY) LTD

(Registration Certificate Number: 2009/008799/07)

FOSKOR BEE SPV 1 (PTY) LTD

(Registration Certificate Number: 2008/027545/07)

FOSKOR BEE SPV 2 (PTY) LTD

(Registration Certificate Number: 2008/027514/07)

FOSKOR BEE SPV 3 (PTY) LTD

(Registration Certificate Number: 2009/008805/07)

 

 

SUBSIDIARY COMPANIES

 

PHOSPHATE SHIPPING (PTY) LTD

(Registration Certificate Number:  1988/001252/07)

PHOSFERT MARINE (PTY) LTD

(Registration Certificate Number:  1988/003553/07

INDIAN OCEAN FERTILIZER (PTY) LTD (dormant)

(Registration Certificate Number:  1951/003733/07)

 

The percentage of shareholding was not forthcoming

 

 

DIRECTORS

 

A VELLAYAN (non-exec)                                   D.O.B.  530109 (India)

M A PITSE (CEO & president)                            ID No.   5410075792081

G VAN WYK (non-exec)                                     ID No.   5909165005080

DR D S PHAHO            (Ind non-exec)              ID No.   6804166018084

M G QHENA (Independent non-exec)                  ID No.   6511045402088

F MADAVO (Ind non-exec)                                 ID No.   5908045270088

S P NGWENYA                                                 ID No.   5309035726082

J R BARTON (Independent non-exec)                 ID No.   4711295098089

N G NIKA (Independent non-exec)                      ID No.   5804125384081

B MAGARA (Independent non-exec)                   ID No.   6706245790190

MS R J GAVENI (non-exec)                               ID No.   7107180331080

N MEDUPE                                                       ID No.   7009220779080

 

 

BANKERS

 

The subject is reported to deal with all the major banks including FIRST NATIONAL BANK, STANDARD BANK, NEDBANK and ABSA BANK, Phalaborwa Branch. Account number: 1680000316.


 

DATE REGISTERED

 

18 August 1951

Registration Certificate Number: 1951/002918/07

 

The subject was founded in 1951 by the INDUSTRIAL DEVELOPMENT CORPORATION OF SOUTH AFRICA LTD. 

 

The subject was converted from a private company to a limited company in July 1964.  The subject took over assets and operations of a company named INDIAN OCEAN FERTILIZER (PTY) LTD on 1 October 2001.  The subject converted to a private company on 30 March 2005.   

 

 

VAT NUMBER:              4400106649

 

TAX NUMBER:              Not available

 

BEE STATUS:              Level 4 contributor

 

 

MAJOR OPERATION

 

Mining company, mining phosphate rock and producing phosphoric and granular acids.

 

 

MAJOR SUPPLIERS

 

The subject is reported to be a large organisation and is reported to import most of its supplies through one of its subsidiary companies PHOSFERT MARINE (PTY) LTD and deals locally with 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

 

Fertilizer manufacturers and agricultural companies such as Fedmis, Omnia, Sasol etc.


 

AREA OF DISTRIBUTION AND SELLING:          South Africa

 

EXPORTS:                                                       Worldwide, mainly India

 

TOTAL EMPLOYEES:                                       ±1 842 having reduced from 1 945 reported in July 2004

 

 

OTHER PREMISES

 

The subject is reported to have divisions in Phalaborwa (Mining Division) and Richard’s Bay (Acid Division).

 

 

OWNED OR LEASED

 

The head office premises are leased while the remainder of the premises are reported to be owned by FOSKOR (PTY) LTD.  The Phalaborwa premises are stated to be free of bond.  The Richards Bay premises are reported to be owned by the subject.

 

 

AUTHORISED SHARE CAPITAL

 

R9 157 647 divided into 9 157 647 ordinary shares of R1 each

 

 

ISSUED SHARE CAPITAL    

 

R9 157 647 (increased in June 2008)

 

 

FINANCIALS

 

Please find attached Comprehensive Income Statement and an integrated report of group financial statements for the year ended 31st March 2014.

 

 

AUDITORS    

 

PRICEWATERHOUSECOOPERS INC 4000   +27 11 797 4000 /

NGUBANE & PARTNERS +27 11 254 0800)


 

YEAR END:                              MARCH

 

INSURANCE BROKERS:           AON INSURANCE BROKERS

 

 

TRADE REFERENCES – SEPTEMBER 2006

 

      PERIOD       HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

                          CREDIT         CREDIT                          PATTERN

 

1.     Old acc                                   R2 500 000      R1 000 000-                  30 days     30 days            Excellent

                                                     c/l                   R1 500 000

2.    Old acc        R2 500 000    R   500 000     30 days    30 days        Excellent

 

3.    Do not give trade references

 

4.    Do not give trade references

 

5.     Do not give trade references

 

 

TRADE REFERENCES – APRIL 2007

 

      PERIOD       HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

                          CREDIT         CREDIT                          PATTERN

 

1.    Do not give trade references

 

2.     Do not give trade references

 

3.    10 years       do not disclose figures        30 days    30 days        Very Good

 

4.    10 years       R12 000 000   R12 000 000    30 days    30 days        Excellent

 

5.    +10 years     R  2 500 000  R  2 000 000    30 days    30 days        Excellent

 


TRADE REFERENCES – NOVEMBER 2007

 

      PERIOD       HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

                          CREDIT         CREDIT                          PATTERN

 

1.    Do not give trade references

 

2.    Do not give trade references

 

3.    1999             R250 000       R   600 000-    30 days    30 days        Very Good

                                               R1 000 000

 

4.    10 years       R3 500 000    R2 000 000      30 days    30 days        Very Good

 

 

CURRENT TRADE REFERENCES – JULY 2008

 

      PERIOD       HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

                          CREDIT         CREDIT                          PATTERN

 

1.    Do not give trade references

 

2.    Do not give trade references

 

3.    9 years         R2 500 000    R1 300 000      30 days    30 days        Very Good

 

4.    Do not give trade references

 

5.    Oct 1993      R5 000 000    R2 500 000      30 days    30 days        Excellent

 

 

TRADE REFERENCES – MARCH 2009

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    Old Acc.       R10 000 000   R3 500 000      30 days    30 days        Very Good

 

2.     Do not give trade references

 

3.     10 years       R2 500 000    R1 700 000-     30 days    30 days        Very Good                                    R2 500 000

 


 

TRADE REFERENCES – OCTOBER 2009

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    Do not give trade references

 

2.    Do not give trade references

 

3.    16 years       R10 000 000   ±R100 000-      30 days    30 days        Good

                          c/l                   R  500 000

 

4.    Unable to obtain trade reference

 

 

TRADE REFERENCES – JUNE 2010

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    Do not have such an account

 

2.    17 years       R10 000 000   ±R2 000 000    30 days    30 days        Excellent

                          c/l

 

3.     Unable to obtain trade references

 

4.    Do not give trade references

 

 

TRADE REFERENCES – SEPTEMBER 2010

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    ±10 years     R10 000 000   R1 000 000-     30 days    30 days        Very Good

                          c/l                 R3 000 000

 

2.    +6 months    open acc       R     30 000-    30 days    30 days        Very Good

                                               R     40 000

 

4.     Do not give trade references

 

5.     Do not give trade references

 

TRADE REFERENCES – JANUARY 2011

 

      ACCOUNT    HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

      OPENED      CREDIT         CREDIT                          PATTERN

 

1.    1993             R10 000         R1 600 000      60 days    60 days        Very Good

 

2.     Do not give trade references

 

3.     Do not give trade references

 

4.     Do not give trade references

 

5.    2009             declined        declined          30 days    30 days        Very Good

 

 

TRADE REFERENCES – DECEMBER 2011

 

      PERIOD       HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

                          CREDIT         CREDIT                          PATTERN

 

1.          1993                                 R10 000 000    R500 000  60 days        60 days     Good

 

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

 

3.    5 years         R500 000       R200 000        30 days    30 days        Good

 

4.    Do not give trade references

 

 

TRADE REFERENCES – OCTOBER 2013

 

      PERIOD       HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

                          CREDIT         CREDIT                          PATTERN

 

1.          Do not give trade references

2.          Do not give trade references

3.    Oct 1993      R10 000 000   R2 500 000      30 days    30 days        Excellent

 

4.    +15 years     Open             R4 000 000      30 days    30 days        Very Good

 

5.    Unable to obtain trade reference

 

 

TRADE REFERENCES – JULY 2014

 

      PERIOD       HIGHEST      AVERAGE      TERMS    PAYMENT    EXPERIENCE

                          CREDIT         CREDIT                          PATTERN

 

1.          Do not give trade references

 

2.    Do not give trade references

 

3.    1993             R10 000 000   R  2 000 000    30 days    30 days        Good

                          c/l

 

4.    Old acc        Open             R  5 000 000    30 days    30 days        Excellent

 

5.    ±15 years     Open             R  5 000 000-   30 days    30 days        Very Good

                                               R20 000 000

 

NATURE OF GOODS OR SERVICES SUPPLIED

 

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

 

3.         Raw Materials

           

4.         Water

 

5.         Machinery and services

 

 

CURRENT TRADE REFERENCES

 

            ACCOUNT         HIGHEST          AVERAGE        TERMS PAYMENT   EXPERIENCE

            OPENED          CREDIT            CREDIT                        PATTERN

 

1.         +5 years           Declined           Declined           30 days            30 days            Good               

2.         +18 years          Open    R5 000 000        30 days            30 days            Good

 

3.         Do not give trade reference      


 

NATURE OF GOODS OR SERVICES SUPPLIED

 

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

 

1.         Earthmoving equipment

                       

2.         Water   

 

 

COMMENTS

 

This is a very large, well-established and well-connected company meeting its commitments timeously. 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.50

UK Pound

1

Rs.92.16

Euro

1

Rs.69.62

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIS

 

               

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.