MIRA INFORM REPORT

Report Date :

23.02.2011

IDENTIFICATION DETAILS

Name :	NEW ZEALAND WOOL SERVICES INTERNATIONAL LTD

Registered Office :	30 Sir William Pickering Drive, Christchurch 8053

Country :	New Zealand

Financials (as on) :	30.06.2010

Date of Incorporation :	13.12.1991

Legal Form :	NZ Limited Company

Line of Business :	producer of scoured New Zealand wool for markets

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Good

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 – June 30, 2010

Country Name

Previous Rating

(01.04.2010)

Current Rating

(30.06.2010)

New Zealand

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

REGISTERED NAME

NEW ZEALAND WOOL SERVICES INTERNATIONAL LTD

CORPORATE SEARCH

Type	NZ Limited Company
Incorporated:	13 Dec 1991
Current Status:	Registered
Constitution Filed:	Yes
Annual Return Filing Month:	May

Registered Office

30 Sir William Pickering Drive, Christchurch 8053

Address for Service

30 Sir William Pickering Drive, Christchurch 8053

Directors

DWYER, Michael Brian Francis

40 Mcdougall Ave, Christchurch, 8014

GOVAN, Herbert Lawrence John

15 Chateau Drive, Burnside, Christchurch, 8053

HOULDSWORTH, David Michael John

9 Maui Grove, Remuera, Auckland, 1050

JACKSON, Peter Alexander Hughlings

Te Akau, Ngaruawahia 3742

KIRKE, Derek Mervyn

26 Mataraki Place, Wanaka, 9305

Shareholdings

Total Number of Shares:

69,500,000

BUSINESS STRUCTURE

TRADING ADDRESS                 First Floor, 30 Sir William Pickering Drive,
                                                Burnside, Christchurch
                                                New Zealand

POSTAL ADDRESS PO Box 29 383

CHRISTCHURCH, NZ

TELEPHONE (643) 357 8700

FACSIMILE (643) 357 8720

CONTROLLED ENTITIES KAPUTONE WOOL SCOUR (1994) LTD

WHAATU WOOL SCOUR LTD

RAYMOND DALE WOOL MARKETING LTD

NEW ZEALAND WOOL SERVICES INTERNATIONAL (UK)

BANK ANZ NATIONAL BANK OF NEW ZEALAND

EMPLOYEES Not determined

BACKGROUND

The subject was incorporated in New Zealand on 13 December 1991 under the current style.

The subject is a is a publicly owned company listed on the New Zealand share market that was established by New Zealand woolgrowers

OPERATIONS

The subject operates as a producer of scoured New Zealand wool for markets around the world.

Activities are conducted from premises located at the above listed trading address.

FINANCES

From the subjects most recently lodged financial statements, it is noted that for the financial year ended 30 June 2010 the subject recorded revenue of $151,034,000, which resulted in an operating Profit before tax of $3,240,000 and an operating Profit after tax of $1,147,000.

Below is a summary of the subject’s income results for the past two financial years.

	New Zealand Wool Services International Pty Ltd
	As at 30 June 2010	As at 30 June 2009	Change (%)
Revenue	$151,034,000	$150,561,000	0.31%
Profit b/tax	$3,240,000	($3,821,000)	-184.79%
Profit a/tax	$1,147,000	($4,380,000)	-126.19%
Net Profit Margin	0.76%	-2.91%	3.67%

During fiscal 2009, the subject recorded a deficiency in Net Cashflows from operating activities totalling $13,896,000.

As at 30 June 2010, the subject recorded total current assets of $59,508,000. They included cash of $2,218,000 receivables of $22,928,000 and stock of $32,628,000.

Current liabilities at the same date totalled $39,626,000 and included payables of $10,958,000 and borrowings of $18,168,000.

As at 30 June 2010, the subject recorded Working Capital of $19,882,000 and a current ratio of 1.5 to 1 indicating satisfactory liquidity levels.

Net Assets totalled $31,293,000 as at 30 June 2010. At this date, the subject further recorded a Debt to Equity ratio of 1.64 to 1.

	New Zealand Wool Services International Pty Ltd
	As at 30 June 2010	As at 30 June 2009	Change (%)
Revenue	$151,034,000	$150,561,000	0.31%
Profit b/tax	$3,240,000	($3,821,000)	-184.79%
Profit a/tax	$1,147,000	($4,380,000)	-126.19%
Net Profit Margin	0.76%	-2.91%	3.67%
Current Assets	$59,508,000	$61,663,000	-3.49%
Non Current Assets	$23,253,000	$25,612,000	-9.21%
Total Assets	$82,761,000	$87,275,000	-5.17%
Current Liabilities	$39,626,000	$56,061,000	-29.32%
Non Current Liabilities	$11,842,000	$859,000	1278.58%
Total Liabilities	$51,468,000	$56,920,000	-9.58%
Net Assets	$31,293,000	$30,355,000	3.09%
Working Capital	$19,882,000	$5,602,000	254.91%
Current Ratio	1.50	1.10	36.53%
Debt to Equity	1.64	1.88	-12.29%

TRADE SURVEY

During the current investigation, contact with the subject’s principals was unable to be established.

Subsequently details pertaining to the company’s suppliers were unable to be obtained and a trade survey could not be conducted.

SUMMARY

The subject was incorporated in New Zealand on 13 December 1991 under the current style.

For the financial year ended 30 June 2009 the subject recorded revenue of $150,561,000, which resulted in an operating Loss before tax of $3,821,000 and an operating Loss after tax of $4,380,000.

As at 30 June 2009, the subject recorded Working Capital of $5,602,000 and a current ratio of 1.1 to 1 indicating satisfactory liquidity levels.

Net Assets totalled $30,355,000 as at 30 June 2009.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.20
UK Pound	1	Rs.73.07
Euro	1	Rs.61.41

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

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.