MIRA INFORM REPORT

 

 

Report Date :

04.12.2012

 

IDENTIFICATION DETAILS

 

Name :

SUNGROW AUSTRALIA PTY LTD

 

 

Registered Office :

'Bourne House' Suite 3 12 Short Street Port Macquarie New South Wales 2444

 

 

Country :

Australia

 

 

Date of Incorporation :

14.04.2011

 

 

Com. Reg. No.:

150446085

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

Manufacturing, processing, import and distribution of dairy products.

 

 

No. of Employees :

22

 

RATING & COMMENTS

 

MIRA’s Rating :

NB

 

RATING

STATUS

PROPOSED CREDIT LINE

--

NB

New Business

 

--

 

Status :

New Business

 

 

Payment Behaviour :

--

 

 

Litigation :

--

 

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 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Australia

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


Australia - ECONOMIC OVERVIEW

 

Australia's abundant and diverse natural resources attract high levels of foreign investment and include extensive reserves of coal, iron ore, copper, gold, natural gas, uranium, and renewable energy sources. A series of major investments, such as the US$40 billion Gorgon Liquid Natural Gas project, will significantly expand the resources sector. Australia also has a large services sector and is a significant exporter of natural resources, energy, and food. Key tenets of Australia''s trade policy include support for open trade and the successful culmination of the Doha Round of multilateral trade negotiations, particularly for agriculture and services. The Australian economy grew for 17 consecutive years before the global financial crisis. Subsequently, the former RUDD government introduced a fiscal stimulus package worth over US$50 billion to offset the effect of the slowing world economy, while the Reserve Bank of Australia cut interest rates to historic lows. These policies - and continued demand for commodities, especially from China - helped the Australian economy rebound after just one quarter of negative growth. The economy grew by 1.4% during 2009 - the best performance in the OECD - by 2.7% in 2010, and by 1.8% in 2011. Unemployment, originally expected to reach 8-10%, peaked at 5.7% in late 2009 and fell to 5.0% in 2011. As a result of an improved economy, the budget deficit is expected to peak below 4.2% of GDP and the government could return to budget surpluses as early as 2015. Australia was one of the first advanced economies to raise interest rates, with seven rate hikes between October 2009 and November 2010. The GILLARD government is focused on raising Australia''s economic productivity to ensure the sustainability of growth, and continues to manage the symbiotic, but sometimes tense, economic relationship with China. Australia is engaged in the Trans-Pacific Partnership talks and ongoing free trade agreement negotiations with China, Japan, and Korea.

 

Source : CIA

 

 


IDENTIFICATION DETAILS

 

Verified Address

Subject name :                          SUNGROW AUSTRALIA PTY LTD

Business address :                    2 Randall Street

Town :                                       Wauchope

Province :                                  New South Wales

Zip/postal code :                        2446

Country :                                   Australia

Tel :                                          +61 2 65853599

Fax :                                         +61 2 65853519

 

Registered address :                  'Bourne House' Suite 3

12 Short Street

Town :                                       Port Macquarie

Province :                                  New South Wales

Zip/postal code :                        2444

Country :                                   Australia

 

SUMMARY DETAILS

 

Executive Summary

Date founded or registered :                    14/04/2011

Legal form :                                           Australian Proprietary Company

Chief executive :                                    Girish Chitrasen Gulave

Issued & paid up capital :                       AUD 2,392,390

Sales turnover :                          AUD 3,500,000 (Estimated Non-consolidated 6 months, 30/06/2012)

Line of business :                                   Manufacturing, processing, import and distribution of dairy products.

Staff employed :                                     22 employees

 

CREDIT RISK OPINION

 

Company Analysis

Country risk :                             Country risk is minimal

Operation trend :                        Operational trend is in start-up phase

Management experience :           Management is modestly experienced

Financial performance :              Financial performance is fair

Organization structure :              Organizational structure is acceptable

Detrimental :                  No detrimental found

Payment history :                      No payment delays noted


STATUTORY DETAILS

 

Registry Data

Registration date :          14/04/2011

Legal form :                   Australian Proprietary Company

Registration no              Australian Company Number: 150446085

Registered authority :     Australian Securities and Investments Commission

Fiscal/ Tax no :              Australian Business Number: 38150446085

Registry status :            Live/Active

Previous name :             None reported.

Change of legal form :     None reported.

Comments :                  The Subject started commercial production on 16-12-2011.

 

MANAGEMENT / DIRECTORS

 

Key Management

Name :                          Girish Chitrasen Gulave

Designation :                 Managing Director

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

Name :                          Ralph Lawrence Clissold

Designation :                 Director

Appointment date :         14/04/11

Address :                      315 Mount Seaview Road

Wauchope, NSW 2446

Australia

Biography :                    Born on 27-03-1950 in Alice Springs, Northern Territory, Australia.

 

Name :                          Surekha Chitrasen Gulave

Designation :                 Director

Appointment date :         14/04/11

Address :                      315 Mount Seaview Road

Wauchope, NSW 2446

Australia

Biography :                    Born on 02-07-1954 in India.

 

Name :                          Girish Chitrasen Gulave

Designation :                 Director and Company Secretary

Appointment date :         14/04/11

Address :                      315 Mount Seaview Road

Wauchope, NSW 2446

Australia

Biography :                    Born on 25-06-1982 in India.

Staff employed :             22 employees

 

SHARE CAPITAL

 

Composition

Authorized Capital :                    AUD 2,392,390

No of shares :                            2,392,390 Ordinary Shares

Share par value :                        AUD 1

Issued capital :                          AUD 2,392,390

Paid up capital :                         AUD 2,392,390

 

OWNERSHIP / SHAREHOLDERS

 

How listed : Full List

 

Composition

Shareholder name :        Ralph Lawrence Clissold

Address :                      315 Mount Seaview Road

Wauchope, NSW 2446

Australia

No. of shares :               100 Ordinary Shares

 

Shareholder name :        Surekha Chitrasen Gulave

Address :                      315 Mount Seaview Road

Wauchope, NSW 2446

Australia

No. of shares :               300 Ordinary Shares

 

Shareholder name :        Chitrasen Naganath Gulave

Address :                      315 Mount Seaview Road

Wauchope, NSW 2446

Australia

No. of shares :               300 Ordinary Shares

 

Shareholder name :        Girish Chitrasen Gulave

Address :                      315 Mount Seaview Road

Wauchope, NSW 2446

Australia

No. of shares :               300 Ordinary Shares

 

Shareholder name :        IMAGE INDUSTRIES (INDIA) PRIVATE LIMITED

Address :                      Gokul Shirgaon, MIDC, Near Karver

Kolhapur 416234

Maharashtra

India

No. of shares :               1,005,990 Ordinary Shares

 

Shareholder name :        WARANA INDUSTRIES LIMITED

Address :                      T.K. Nagar, Post- Warana Nagar

Tal-Panhala

Dist- Kolhapur- 416113

Maharashtra

India

No. of shares :               381,000 Ordinary Shares

 

Shareholder name :        GANDHARV FARMS AND RESORTS PRIVATE LIMITED

Address :                      Poona - Bangalore High-Way

Beside Chinmay Ashram,

Toap-Sambhapur, Dist. Kolhapur

India

No. of shares :               1,004,400 Ordinary Shares

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

 

Name :                          IMAGE INDUSTRIES (INDIA) PRIVATE LIMITED

Affiliation type :              Shareholder

Address :                      Gokul Shirgaon, MIDC, Near Karver

Kolhapur 416234

Maharashtra

India

 

Name :                          GANDHARV FARMS AND RESORTS PRIVATE LIMITED

Affiliation type :              Shareholder

Address :                      Poona - Bangalore High-Way

Beside Chinmay Ashram,

Toap-Sambhapur, Dist. Kolhapur

India

 

Name :                          WARANA INDUSTRIES LIMITED

Affiliation type :              Shareholder

Address :                      T.K. Nagar, Post- Warana Nagar

Tal-Panhala

Dist- Kolhapur- 416113

Maharashtra

India

 


BANK & MORTGAGES

 

Bank Details

Name of bank :              National Australia Bank

Address :                      Australia

Account details :            Current Account

Comments :                  It is generally not the policy of local banks to provide credit status information to

non related parties, however interested parties would be advised to consult first

with the Subject if banker's references are required.

Mortgages :                   None reported.

 

Legal Fillings

Bankruptcy fillings :        None reported.

Court judgements :         None reported.

Tax liens :                     None reported.

Others :                                    None reported.

 

FINANCIAL DATA

 

Description

Source of financial statement :                Provided by the Subject

Financial statement date :                      30/06/12

Type of accounts :                                 Estimated key figures

Currency :                                             Australia Dollar (AUD)

Exchange rate :                                     1 USD = AUD 0.96 as of 22-08-2012

 

Summarized Financial Information

Consolidation type :                   Non Consolidated

Currency :                                 Australia Dollar (AUD)

Denomination :                          (x1) One

Date of financial year end :          30/06/12

Length of accounts :                   6 months

Sale turnover / Income : 3,500,000

Comments :                              The estimated turnover was provided by Mr. Girish Chitrasen Gulave. The

provided turnover was for 6 months as the Subject started commercial production

on 16-12-2011.

The Subject is classified as a small proprietary company by the Australian

Securities & Investments Commission hence is not required to disclose their

financial statement.

A proprietary company is defined as small for a financial year if it satisfies at least

two of the following:

- The consolidated revenue for the financial year of the company and any entities

it controls is less than $25 million;

-The value of the consolidated gross assets at the end of the financial year of the

company and any entities it controls is less than $12.5 million, and

-The company and any entities it controls have fewer than 50 employees at the

end of the financial year.


OPERATION DETAILS

 

Main activities :              The Subject engages in manufacturing, processing, import and distribution

of dairy products.

Subject purchased a dairy factory from the Hastings Co-operative in the

town of Wauchope, Australia in September 2011. The purchase price was

estimated to be AUD 2.95 million.

Product & services :       Dairy products: Milk, cheese, yoghurt

 

Purchases

International :                 India

 

Sales

Local :                          Yes

International :                 Middle East, Asian countries

Key events :                  16 November 2011

Sungrow to add Indian flavour

ABOUT $2 million worth of milk processing equipment is now being

shipped to the small Mid North Coast rural town of Wauchope, with new

owners expected to take over managing the town’s 96-year-old dairy

factory on December 1.

Shareholders of Hastings Co-operative – which was founded as a milk

business but today owns supermarkets, a boutique department store, liquor

stores, fuel outlets and a rural store – have voted (92 per cent) to sell the

struggling dairy factory to Indian-based agribusiness, Sungrow Australia.

Sungrow will pay $2.95 million, which includes $2 million for the plant and

equipment, land and buildings and $950,000 for the value of stock on hand.

The factory will be leased for two months, with the final exchange due in

January.

Sungrow, which has overseas markets lined up, plans to add Indian

products such as ghee, paneer and khove to its production line and has

indicated it could be taking up to seven times the volume of milk currently

going through the factory by the time it finishes planned extensions, which

include a powdered milk factory.

It is expected Wauchope-produced Indian dairy products will also be sold

domestically, filling markets currently serviced by imports.

Sungrow shareholder, Ralph Clissold, said contract negotiations with

Hasting’s current milk suppliers, whose numbers have dwindled to just 11,

had just begun.

Those producers took a two cents a litre price cut last month (OCT), when

a deal with Casino-based Richmond Dairies to take excess Wauchope milk

finished up.

Hastings suppliers are now receiving an average 43c/l, but were promised

in June (when the initial purchase bid was made) that farmgate prices

would be 45c/l, and rise by another five cents once the powdered milk

factory is in.

Mr Clissold said the company was confident it would be able to source all

the milk it needed.

Milk producers believe the sale, providing Sungrow remains true to its

promises, is a huge boost for the State’s dairy industry, providing the

opportunity for NSW farmers to tap into fast-growing overseas dairy

markets.

For Bellimbopinni suppliers, Harold and Ethel Hooper, “Haro”, the sale

represents light at the end of the tunnel after three years of rock-bottom

returns that have seen them almost halve their milking herd.

Their farmgate price bottomed at just 28c/l as the small Wauchope factory,

one of few co-operative owned milk processing factories left in NSW,

struggled to stay afloat during the global financial crisis.

“It will be sad to see it go out of local hands – my mother supplied that

factory all her life – but it had to happen if dairying was going to continue

around here,” he said.

“The factory just wasn’t profitable for the co-op but the potential is

obviously there to make money from milk, or a company like this would not

be interested.”

20 July 2011

Dairy farmers support factory sale

THIS will certainly be great for us and the community.

That is the opinion of Long Flat dairy farmer Terry Coombes, on the

proposed sale of the Hastings Co-operative milk factory to Sungrow

Australia Pty Ltd.

Terry and Jenny Coombes, are second generation farmers, who with sons

Anthony and Steve, have continued to supply the Co-op with milk since

dairy industry deregulation.

"We stuck with the Co-op, despite the falling prices, and we certainly want

to stick with them," Mr Coombes said.

"But the way things have been going, we were looking to go elsewhere."

Mr Coombes said was very satisfied with the assurances given by Sungrow

at its recent (June 21) meeting with dairy suppliers.

"Sungrow and Mr Clissold assured us that any new factory expansion

would be in the 2446 area, and that existing staff would be retained," he

said.

"We are aware that they will need to employ two or three specialists from

India, but we are assured that the remaining new staff will be sourced

locally."

Mr Coombes said the Sungrow milk price offer of 45c per litre for the first

12 months is 'level with other manufacturers'.

"Sungrow have assured us they will deal through existing suppliers first,

and we appreciate that loyalty," he said.

"There has been the promise of a 5c per litre increase once the powdered

milk factory established, and that will certainly draw others back to dealing

through the local factory," he said.

"This could mean the return of a flourishing local dairy industry, and we are

very excited about that.

"There is enormous dairy potential in this area - from Taree to Kempsey

and especially in the Comboyne area.

"There has been no interest in dairying from young farmers, but this could

change all that."

23rd June 2011

Indian company buys Hastings Valley Dairy

A co-operative on the NSW Mid North Coast has accepted an offer to sell

its dairy factory to Indian company Sungrow Australia.

The company has plans to increase milk production, build a milk powder

plant and also add Indian dairy products to the current range of Hastings

Valley Dairy products.

Sungrow chairman Chiprasean Gulave says it will export more than 50 per

cent of the product.

"This is a manufacturing company wanting to start dairy business here in

dairy cattle and dairy processing making liquid milk and milk powder, all

dairy product to be exported to Gulf countries. We want cheeses also to be

exported to Dubai." The sale is subject to the approval of the Hasting

Co-op's shareholders.

22nd June 2011

Coop accepts offer for factory

THE Hastings Cooperative board has taken the next positive step in

accepting an offer tabled by Sungrow Australia Pty Ltd for the purchase of

the Hastings Valley Dairy Factory in Wauchope.

The Co-op Board is now waiting on the completion of an independent

accountant's report, and then the shareholders will be asked to complete a

postal vote on this issue.

The sale does not include the important brand names, trademarks and

recipes developed by factory staff and management.

These significant resources will be licensed to the purchaser for continuing

manufacturing.

Licensing allows the Hastings Co-op to retain the ownership of these

important assets and the continuation of quality controlled production.

Sungrow Australia chairman Mr Gulave said Sungrow is 'delighted to have

this golden opportunity to work with the successful Hastings Cooperative'.

"We look forward to working with local farmers and the community of the

area into the future," Mr Gulave said.

"We will go on providing all the existing Hastings Valley products, and we

have a plan to increase that four-fold, and increase milk volume to 400,000

litres per day in the future, to accommodate the new milk powder plant.

"Soon we will start the introduction of Indian product production and the

beginning of the plans for building a milk powder plant.

"The sale will also include the honouring of all existing suppliers and and

distribution contracts, and looks at creating ongoing further employment,

product and marketing opportunities.

"On Tuesday 21 June, Sungrow Australia held an initial meeting with dairy

farmers to introduce our proposal directly.

"Naturally price per litre for milk is a key issue for dairy farmers, and

Sungrow Australia is committed to these discussions," Mr Gulave said.

Hastings Cooperative Chairperson Julie Muller said that once the due

diligence and legal processes have been completed the Board will make a

recommendation to Shareholders.

"Shareholders will then be asked to complete a postal vote," Mrs Muller

said.

"Until then we will keep our dairy suppliers and our shareholders informed

of all developments as we move through these stages.

"The board continues to strive for the best outcome for all stakeholders and

the community as a whole," she said.


Property & Assets

Premises :                    The Subject operates from premises located at the verified heading

address consisting of production facilities, warehouse and administrative office.

Branches :                    None reported.

 

SUMMARIZED COUNTRY RISK

 

Gross Domestic Products (GDP) & Economic Overview

Central bank :                                        Reserve Bank of Australia

Reserve of foreign exchange & gold :       US$ 41.385 billion

Gross domestic product - GDP :             US$ 1.235 trillion

GPP (Purchasing power parity) :             918.529 billion of International dollars

GDP per capita - current prices :             US$ 55,590

GDP - composition by sector :                agriculture: 4.1%

industry: 26%

services: 70%

Inflation :                                               2008: 4.4%

2009: 1.8%

2010: 2.8%

Unemployment rate :                              2008: 4.2%

2009: 5.6%

2010: 5.2%

Public debt

(General Government gross debt as

a % GDP) :                                           2008: 11.6%

2009: 17.6%

2010: 22.3%

Government bond ratings :                      Standard & Poor's: AAA/Stable/A-1+

Moody's rating: Aaa

Moody's outlook: STA

Market value of publicly traded

shares:                                                             US$1.258 trillion

Largest companies in the country :          Commonwealth Bank (Banking), BHP Billiton (Materials), Westpac Banking Group (Banking), Rio Tinto (Materials), National Australia Bank (Banking), ANZ Banking (Banking), Telstra (Telecommunications)

 

Trade & Competitiveness Overview

Total exports :                           US$210.7 billion

Exports commodities :               coal, iron ore, gold, meat, wool, alumina, wheat

Total imports :                           US$187.2 billion

Imports commodities :                machinery and transport equipment, computers and office machines,

telecommunication equipment and parts, crude oil and petroleum products

Export - major partners :             Japan 18.9%, China 14.2%, South Korea 8%, US 6%, NZ 5.6%, India

5.5%, UK 4.2%

Import - major partners :             China 15.5%, US 12.8%, Japan 9.6%, Singapore 5.6%, Germany 5.2%,

UK 4.3%, Thailand 4.2%

FDI Inflows :                              2007: US$45,477 million

2008: US$46,722 million

2009: US$22,572 million

FDI Outflows :                            2007: US$16,822 million

2008: US$32,819 million

2009: US$18,426 million

Best countries for doing business :          10 out of 183 countries

Global competitiveness ranking :             16 (ranking by country on a basis of 133, the first is the best)

 

Country and Population Overview

Total population :                       22.23 million

Total area :                                7,692,024 km2

Capital :                                    Canberra

Currency :                                 Australian dollars (AUD)

Internet users as % of total

population:                                74.00%

 

PAYMENT HISTORY

 

Purchase Term

International : Prepayment, Telegraphic transfer, Credit 30-60 days

 

Sales Term

Local : Prepayment, Bank transfer, Credit 30-60 days

International : Prepayment, Telegraphic transfer, Credit 30-60 days

 

Trade Reference/ Payment

 

Behaviour

Comments : As local and international trade references were not supplied, the Subject's

payment track record history cannot be appropriately determined but based

on our research, payments are believed to be met without delay.

 

Investigation Note

Sources            : Interviews and material provided by the Subject

: Other official and local business sources

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.56

UK Pound

1

Rs.87.45

Euro

1

Rs.71.08

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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%)

 

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.