MIRA INFORM REPORT

 

Report Date :

22.02.2012

 

IDENTIFICATION DETAILS

 

Name :

NEW ZEALAND WOOL SERVICES INTERNATIONAL LIMITED

 

 

Formerly Known As :

WOOL SERVICES INTERNATIONAL (WSI)

 

 

Registered Office :

First Floor, 30 Sir William Pickering Drive Russley Christchurch 8042

 

 

Country :

New  Zealand

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

13.12.1991

 

 

Com. Reg. No.:

530665

 

 

Legal Form :

Public Listed Company

 

 

Line of Business :

Marketing, processing and selling of New Zealand wool.

 

 

No. of Employees :

17 employees (Subject); 70 employees (WSI Group)

 

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

 

Maximum Credit Limit :

USD 1,750,000

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, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

New Zealand

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

IDENTIFICATION DETAILS

 

Verified Address

 

Subject name                            :   NEW ZEALAND WOOL SERVICES INTERNATIONAL LIMITED

Other style / Business name       :   WOOL SERVICES INTERNATIONAL (WSI)

Business address                      :   First Floor, 30 Sir William Pickering Drive

Town                                         :   Russley

Province                                    :   Christchurch

Zip/postal code                          :   8042

Country                                     :   New  Zealand

 

Tel                                            :   +64 3 3578700

Fax                                           :   +64 3 3578720

 

Email                                        :   info@woolserv.co.nz

Website                                    :   www.woolserv.co.nz

 

Registered address                    :   First Floor, 30 Sir William Pickering Drive

Town                                         :   Russley

Province                                    :   Christchurch

Zip/postal code                          :   8042

Country                                     :   New  Zealand

Postal address                          :   P.O. Box 29383

Town                                         :   Fendalton

Province                                    :   Christchurch

Zip/postal code                          :   8540

Country                                     :   New  Zealand

 

Comments        :   Although the Subject's head office and the Kaputone wool scour are both located in Christchurch, the Subject was fortunate to emerge from last year’s unprecedented events largely unscathed.

 

 

SUMMARY DETAILS

 

Executive Summary

 

Date founded or registered          :   13/12/1991

Legal form                                 :   Public Listed Company

Chief executive                          :   Michael Brian Francis Dwyer

Issued & paid up capital             :   NZD 28,804,000

Sales turnover                            :   NZD 200,113,000 (Consolidated 12 months, 30/06/2011)

Net income                                :   NZD 6,636,000 (Consolidated 12 months, 30/06/2011)

Total fixed assets                       :   NZD 102,818,000 (Consolidated 12 months, 30/06/2011)

Line of business             :   Marketing, processing and selling of New Zealand wool.

Staff employed                           :   17 employees (Subject); 70 employees (WSI Group)

 

 

 

Company Analysis

 

Country risk                               :   Country risk is minimal

Operation trend                          :   Operational trend is steady

Management experience :   Management is adequately experienced

Financial performance                :   Financial performance is good

Organization structure                :   Organizational structure is stable

Detrimental                    :   No detrimental records found

Payment history                                    :   No payment delays noted

Credit amount suggestion     :   USD 1,750,000

Credit amount asked                                      :   Not described.

 

 

STATUTORY DETAILS

 

Registry Data

 

Registration date                        :   13/12/1991

Legal form                                 :   Public Listed Company

Registration no                          530665

Registered authority                   :   New Zealand Companies Office

Registry status                          :   Live/Active

Previous name                           :   None reported.

Change of legal form                   :   None reported.

 

 

MANAGEMENT / DIRECTORS

 

Key Management

 

Name                :           Michael Brian Francis Dwyer

Designation       :           Managing

Director Name   :           Geoffrey Deakins

Designation       :           Financial Controller

Biography          :           Geoff has spent over 20 years specialising in financial activities within the wool industry, particularly in relation to local and export market transactions.  Geoff joined WSI in 1992.

 

 

Name                :           John Dawson

Designation       :           General Manager

Biography          :           John was previously with the Mair Group from 1978 to 1992 and was appointed a director of Mair Wool in 1989.  John joined New Zealand Wool Services International Limited in 1992 and specialises in international wool marketing where he has acquired an in-depth knowledge of markets in the European, Pacific and Asiaregions.

John is deputy to the Managing Director.

 

Name                :           Paul Steel

Designation       :           Marketing Manager

Biography          :           Previously with the New Zealand Wool Board and fibre marketing manager at Wools of New Zealand, Paul joined New Zealand Wool Services International Limited at its inception in 1992 and has been instrumental in New Zealand Wool Services International Limited successfully establishing markets in the Indian sub-continent and the Middle East and is in charge of marketing in Japan.

 

Name                :           Adrian Donnelly

Designation       :           General Manager - Whakatu Wool Scour

Biography          :           Adrian has held various positions within the scouring industry for over

30 years.  He was previously manager of Clifton Wool Scour between

2001 and 2009 and joined Whakatu Wool Scour as General Manager in May 2009.

 

Name                :           Don Caradus

Designation       :           General Manager - Kaputone Wool Scour

Biography          :           Don has held various positions in the scouring industry over the last

28 years.  He has worked at Kaputone Wool Scour since 1994 and has held the position of General Manager since 2005.

 

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

 

Name                            :           Michael Brian Francis Dwyer

Designation                            :                       Director

Appointment date           :           21/08/92

Address                        :           40 McDougall Avenue

St Albans, Christchurch 8014

New Zealand

 

Biography          :           Mr. Michael B.F. Dwyer Dip.Wool (Massey) has been Managing Director and Director of New Zealand Wool Services International since 1992. Mr.Dwyer served as Managing Director of Mairwool from1975 to 1991. He served as a Director of Mair Astley Holdings Limited from 1980 to 1989.

 

Name                            :           Herbert Lawrence John Govan

Designation                   :           Director

Appointment date           :           07/12/10

Address                        :           15 Chateau Drive

Burnside, Christchurch 8053

New Zealand

 

Biography          :           Mr. Herbert Lawrence John Govan has been Director of New Zealand

Wool Services International since December 2010.

 

Name                            :           David Michael John Houldsworth

Designation                   :           Director

Appointment date           :           01/08/99

Address                        :           9 Maui Grove

Remuera, Auckland 1050

New Zealand

 

 

Biography          :           Mr. David Michael John Houldsworth served as the Managing Director of Hellaby Holdings Limited since June 1998 and also its Chief Executive Officer until July 2, 2007. Mr. Houldsworth's extensive background in management and investment is a valuable advantage for the business growth expected in the next few years.

Prior to Hellaby, he served as Head of Corporate Banking at Westpac

Banking Corporation from 1989 to 1998. He held senior corporate and investment banking roles with Chase Manhatten and Citibank. He has been a Non-Independent Director of New Zealand Wool Services International since 1999. He serves as a Director of Meteorological Service of New Zealand Limited. He serves as a Director of R Hannah & Co, Wool Services International Ltd and various other Hellaby Holding's subsidiaries. He served as Executive

Director of Hellaby Holdings Ltd. since 1998. He served as a Director of Energy Intellect Ltd.

 

Name                            :           Peter Alexander Hughlings Jackson

Designation                            :                       Director

Appointment date           :           06/11/97

Address                        :           Te Akau, Ngaruawahia 3742

New Zealand

 

Biography          :           Mr. Peter A. H. Jackson has been Independent Director of New Zealand Wool Services International Ltd. since November 1997. Mr. Jackson served as Chairman of Mt Linton Station Limited. and Former Chairman Affco Holdings Limited. He is a Nuffield Farming Scholar. He is a farmer.

 

Name                            :           Derek Mervyn Kirke

Designation                   :           Director

Appointment date           :           30/07/93

Address                        :           26 Mataraki Place

Wanaka, 9305

New Zealand

 

Biography          :           Mr. Derek M. Kirke Dip. V FM, has been Chairman of New Zealand Wool Services International since February 2, 2011. Mr. Kirke served as the Chairman MacKenzie Tourism and Development Board. Mr. Kirke served as the Chairman of Christchurch and Canterbury Marketing Limited. He is a Nuffield Farming Scholar. Mr. Kirke has been an Independent director of New Zealand Wool Services International since July 1993.

 

Staff employed               :           17 employees (Subject); 70 employees (WSI Group)

 

Key Advisors

 

Auditors                        :           ERNST & YOUNG

20-22 Twigger Street Addington Christchurch 8013

New Zealand

 

 

SHARE CAPITAL

 

Composition

 

Authorized Capital          :   NZD 28,804,000

 

No of shares                  :   68,987,726 Ordinary Shares

 

Share par value              :   No par value

 

Issued capital                :   NZD 28,804,000

 

Paid up capital                                                :   NZD 28,804,000

 

 

OWNERSHIP / SHAREHOLDERS

 

How listed                     :   Major Shareholders Only

 

Composition

Shareholder name          :   PLUM DUFF LIMITED

Address                        :   5 Sir Gil Simpson Drive

Burnside, Christchurch, 8053

New Zealand

 

No. of shares                 :   30,592,451 Ordinary Shares

% of shares                   :   44.34%

 

Shareholder name          :   WOOLPAK HOLDINGS LIMITED

Address                        :   5 Sir Gil Simpson Drive

Burnside, Christchurch, 8053

New Zealand

 

No. of shares                 :   13,795,830 Ordinary Shares

% of shares                   :   20.00%

 

Shareholder name          :   Michael Brian Francis Dwyer

Address                        :   40 McDougall Avenue

St Albans, Christchurch 8014

New Zealand

 

No. of shares                 :   4,282,601 Ordinary Shares

% of shares                   :   6.21%

 

Shareholder name          :   SCALES SUPERANNUATION MANAGEMENT LIMITED

Address                        :   55 Belfast Road

Belfast, Christchurch, 8051

New Zealand

 

No. of shares                 :   1,611,651 Ordinary Shares

 

% of shares                            :   2.34%

 

Shareholder name          :   John Dawson

Address                        :   New Zealand

No. of shares                 :   1,001,545

% of shares                   :   1.45%

 

Ownership / Shareholding comment   :   The Subject’s shares are listed on the alternative market operated by the New Zealand Exchange known as the NZAX since 03 May 2004. As of 30-06-2011, the Subject has approximately 3,909 shareholders.

 

The Subject majority shareholders Plum Duff Limited and Woolpak Holdings Limited, which hold a controlling 64 per cent shareholding in the company, have been placed in receivership. This shareholding has been on the market since early of 2011. A number of parties have sought to take advantage, in some

cases aiming to consolidate the industry, and in others to increase their own stake in it.

 

Cavalier Wool Holdings Limited has expressed the most widely publicized interest in the Subject. To achieve its desired outcome, it applied to the Commerce Commission for authorisation to create a monopoly in the scouring industry.

 

Although this authorisation was granted, it has been appealed in the High Court, causing the receiver to suspend the share sale process.

 

Once the High Court has determined this appeal, the Subject will inform shareholders of the outcome, and similarly advise if the receivers complete a sale of the shares.

 

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

 

Name                :   KAPUTONE WOOL SCOUR (1994) LIMITED

Affiliation type    :   Wholly-owned Subsidiary

Address            :   20 Station Road

Belfast, Christchurch 8051

New Zealand

 

Comments        :   Wool processing.

 

Name                :   WHAKATU WOOL SCOUR LIMITED

Affiliation type    :   Wholly-owned Subsidiary

Address            :   Railway Road

Hawkes Bay, Whakatu 4172

New Zealand

 

Comments        :   Wool processing.

 

Name                :   RAYMOND DALE WOOL MARKETING LIMITED

Affiliation type    :   Wholly-owned Subsidiary

Address            :   Level 1, 2 Kari Street

Grafton, Auckland 1010

New Zealand

Comments        :   Wool trading and marketing.

Name                :   RURAL WOOL-LINK LIMITED

Affiliation type    :   Wholly-owned Subsidiary

Address            :   1500 State Highway 3

Te Kuiti 3985

New Zealand

 

Comments        :   Wool trading and marketing.

 

 

Name                :   RAYMOND DALE WOOL MARKETING LIMITED

Affiliation type    :   Wholly-owned Subsidiary

Address            :   30 Sir William Pickering Drive

Christchurch 8053

New Zealand

 

Comments      :   Wool trading and marketing.

 

 

BANK & MORTGAGES

 

Bank Details

 

Name of bank    :   Bank of New Zealand Limited

 

Address            :   New Zealand

 

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      :   Commercial Registry Filings

 

Financial statement date            :   30/06/11

 

Type of accounts                       :   Full audited

 

Currency                                   :   New Zealand, Dollar (NZD)

Exchange rate                           :   1 USD = NZD 1.19 as of 20-02-2012

 

Summarized Financial Information

 

Consolidation type                     :   Consolidated                                                                  Consolidated                          Consolidated

Currency                            :   New Zealand, Dollar                 New Zealand, Dollar       New Zealand, Dollar

(NZD)                                                             (NZD)                                                             (NZD)

 

 

Denomination                                                 :   (x1) One                                 (x1) One                                    (x1) One

 

Date of financial year end      :   31/12/11                                 30/06/11                                    30/06/10

 

Length of accounts                                         :   6 months                                12 months                                 12 months

 

Sale turnover / Income                                   :   107,564,000                            200,113,000                              151,034,000

 

Gross profit                                                    :                                                                                               18,754,000                                12,821,000

 

Profit before tax                                                                      :   2,514,000                                9,112,000                                  3,240,000

 

Net income                                                     :   1,801,000                                6,636,000                                  1,147,000

 

Non current assets                                        :   21,841,000                              22,647,000                                23,253,000

 

Current assets                           :   60,663,000                                                                      80,171,000                                                      59,508,000

 

Inventories         :

33,325,000

46,717,000

32,628,000

Total assets      :

82,504,000

102,818,000

82,761,000

Current liabilities            :

37,083,000

56,574,000

39,626,000

Non current liabilities      :

10,021,000

10,636,000

11,842,000

Total liabilities    :

47,104,000

67,210,000

51,468,000

Share equity      :

35,400,000

35,608,000

31,293,000

Retained earning            :

4,282,000

4,551,000

-2,000

 

Comments        :   The consolidated financial information above relates to the Subject and its subsidiaries.

 

 

OPERATION DETAILS

 

Main activities    :   The Subject is engaged in marketing, processing and selling of New Zealand wool worldwide. The Subject is listed on the alternative market (NZAX) operated by the New Zealand Stock Exchange.

 

The Subject owns and operates 2 modern scouring plants: Kaputone Wool Scour in Christchurch and Whakatu Wool Scour in Hawkes Bay. Both are equipped with state-of-the-art equipment and regularly operate 24 hours a day at full capacity processing 40% of New Zealand’s coarse wool.

 

 

Product & services         :   Scoured wool

Greasy wool

 

Brand                            :   PURELANA GLACIAL RED BAND

 

Purchases

 

Local    :   Yes (Primarily from New Zealand)

 

Sales

 

Local    :   Yes

 

International       :   Mainly to China, India, Europe, United States

 

Key events        :   21 December 2011

No appeal in wool scouring case

Godfrey Hirst says it won't appeal a High Court decision over a proposal to create a wool scouring monopoly in New Zealand.

 

That leaves the way clear for Cavalier Wool Holdings, to proceed with its plan to buy the assets of Wool Services International, so it can merge the scouring services of two companies.

 

Cavalier argues that the merger is necessary to keep the process of cleaning greasy wool in New Zealand, in the face of competition from China.

 

The takeover has been cleared by the Commerce Commission and

Godfrey Hirst failed in its High Court action to block the move.

 

Cavalier is not saying at this stage when it will make the bid for WSI's assets.

 

Godfrey Hirst says it's concerned that a scouring monopoly could lead to an increase in processing costs here, forcing it and other processors to shift more of their operations off-shore.

 

General manager Tania Pauling says the carpet maker is waiting to see what will happen next.

 

 

Godfrey Hirst lost a significant part of its domestic yarn processing capacity with closure of its factory in Christchurch, due to earthquake damage.

 

MS Pauling says yarn imported from China and India will be used to supplement, not replace production at its remaining domestic yarn plants in Dannevirke and Lower Hutt.

 

But she says it's likely that if the carpet market picks up again, the extra wool needed by her company would not come from New Zealand.

 

20 December 2011

Capital raising venture fails to meet target

 

Joint venture company WoolCo has failed to raise the capital it was seeking to buy the country's largest wool exporter, Wool Services International (WSI).

 

WoolCo, a joint venture between farmer-owned Wool Equities and Christchurch-based investment bank Ocean Partners, was seeking $40 million from farmers and other investors to purchase WSI and prevent its sale to Cavalier Wool Holdings.

 

It believes sale to Cavalier will create a wool scouring monopoly in New

Zealand.

 

WoolCo planned to use WSI as the basis for an integrated farmer-controlled wool marketing operation.

 

The High Court last month validated the Commerce Commission's decision to allow Cavalier to buy the company and Mr Heath says many farmers

now believe a monopoly is inevitable.

 

WoolCo chair Cliff Heath said wool growers had expressed considerable support for the initiative but that did not translate into adequate financial support to allow the purchase.

 

He would not say exactly how much was raised but said the gap was too big and the money subscribed by investors will be returned.

 

Mr Heath says WoolCo had a limited time to try to raise the money

because the deadline for appealing the High Court decision on the scouring monopoly expires this week.

 

But he says the farmer investment company Wool Equities will continue searching for ways to consolidate the industry.

 

"We believe that in the end what's is required is one strong company owned by farmers that can look after the interests of farmers."

 

It was the second attempt within a year to unify parts of the wool industry under farmer control.

 

In early 2011, a proposed farmer co-operative failed to reach its money raising target to buy the marketing company Wool Partners International.

 

 

Meanwhile, debate over the prospect of a scouring monopoly continues.

 

The managing director of Christchurch-based exporter John Marshall and

Company, Peter Crone, estimates it would cost his firm an extra $200,000 -

$300,000 a year in transport and other charges.

 

Mr Crone says the Commerce Commission also made a serious mistake with the last wool industry rationalisation, when it allowed a wool dumping and handling monopoly, which has resulted in significantly increased charges for greasy wool exports.

 

However, support has come from Curtis Wool Direct, which describes itself as the largest buyer and processor of British wool in the Northern Hemisphere. It also has buying and merchanting operations in New Zealand.

 

The firm says the Cavalier Wool Holdings proposal will bring about structural changes that the industry requires to keep a strong scouring sector in New Zealand, increase efficiencies, and stay competitive with international scourers.

 

New Zealand Wool Sale Expected By June

02/17/2012

A sale of 64% stake in New Zealand Wool Services International is expected to be completed by June 2012, according to Maurice Noone of PwC, the receiver of Allan Hubbard-related companies Plum Duff and Woolpak Holdings. "On the back of recent Commerce Commission appeals, we are continuing discussions with interested parties with the

intention to reach some form of settlement within the next reporting period," he said in his latest report.

 

New Zealand Wool Services International Reports Unaudited Consolidated

Earnings Results for the Half Year Ended December 31, 2011

02/7/2012

New Zealand Wool Services International reported unaudited consolidated earnings results for the half year ended December 31, 2011. For the period, the company reported total operating revenue of NZD 107,564,000

against NZD 84,801,000 a year ago. Operating surplus before taxation was NZD 2,514,000 against NZD 4,372,000 a year ago. Net surplus attributable to members of the company was NZD 1,801,000 against NZD 3,508,000 a year ago. Basic EPS was NZD 0.026 against NZD 0.044 a year ago. Net operating cash flow was NZD 11,175,000 against NZD 3,029,000 a year ago. Cash paid for purchases of property, plant and equipment was NZD

153,000 against NZD 694,000 a year ago. Returns on assets was 3.05% compared to 5.10% reported a year ago. Returns on equity was 5.09% compared to 9.08% reported a year ago.

 

Cavalier Eyes Wool Services' Assets

10/7/2011

Cavalier Corporation Limited intends to acquire the wool assets of New Zealand Wool Services International Limited. Cavalier may lay off more of its own staff if the deal goes ahead when it closes two of WSI's scours and mothballs two of its own plants. The deal, which could create a monopoly,

 

 

has been authorized by the Commerce Commission. Cavalier shares fell

1% to $3.1 on October 6, 2011.

 

Property & Assets

 

Premises          :   The Subject operates from premises located at the verified heading address consisting of administrative office.

Branches          :   None reported.

Other property   :   Wool scouring facility:

 

KAPUTONE WOOL SCOUR (1994) LIMITED, located just north of

Christchurch on the east coast of the South Island, New Zealand.

 

WHAKATU WOOL SCOUR LIMITED, located in the Hawkes Bay on the east coast of the North Island, New Zealand.

 

Total Group NBV of property, plant and equipment as of 30-06-2011 was

NZD 15,602,000.

 

 

SUMMARIZED COUNTRY RISK

 

Gross Domestic Products (GDP) & Economic Overview

 

Central bank                                          :   Reserve Bank of New Zealand

Reserve of foreign exchange & gold         :   US$ 20.562 billion

Gross domestic product - GDP               :   US$ 153.252 billion

 

GPP (Purchasing power parity)               :   120.2 billion of International dollars

 

GDP per capita - current prices               :   US$ 34,701

 

GDP - composition by sector                  :   agriculture: 4.6% industry: 23.7% services: 71.7%

 

Inflation                                                 :   2008: 4%

2009: 2.1%

2010: 2.3%

Unemployment rate                                2008: 4.2%

2009: 6.2%

2010: 6.5%

 

Public debt

(General Government gross debt as a % GDP)2008: 20.4%

2009: 26.1%

2010: 31.6%

 

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

Moody's rating: Aaa

Moody's outlook: STA

 

Market value of publicly traded shares      US$67.061 billion

Largest companies in the country            :   Telecom of New Zealand, Transpower, Fletcher Building, Infratil

 


Trade & Competitiveness Overview

 

Total exports                 :   US$33.24 billion

 

Exports commodities     :   dairy products, meat, wood and wood products, fish, machinery

 

Total imports                 :   US$31.11 billion

 

Imports commodities      :   machinery and equipment, vehicles and aircraft, petroleum, electronics,textiles, plastics

Export - major partners   :   Australia 22%, US 11.5%, Japan 9.2%, China 5.3%, UK 4.6%

 

Import - major partners   :   Australia 20.7%, China 13.4%, US 9.7%, Japan 9.5%, Singapore 4.9%, Germany 4.7%

 

FDI Inflows                    :   2008: US$4,598 million

2009: US$-1,293 million

2010: US$561 million

 

FDI Outflows                  :   2008: US$462 million

2009: US$-308 million

2010: US$589 million

 

Best countries for doing business:   3 out of 183 countries

Global competitiveness ranking   :   25 (ranking by country on a basis of 142, the first is the best)

 

Country and Population Overview

 

Total population :   4.37 million

 

Total area          :   270,467 km2

 

Capital              :   Wellington

 

Currency         :   New Zealand dollars (NZD)

Internet users as % of total population:   83%

 

PAYMENT HISTORY

 

Purchase Term

 

Local    :   Prepayment, Cash against document, Credit up to 120 days

 

International       :   Prepayment, Cash against document, Credit up to 120 days

 

 

Sales Term

 

Local    :   Cash against document, Cash against document, Credit up to 120 days

 

International       :   L/C, Cash against document, Credit up to 120 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 source


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.49.08

UK Pound

1

Rs.77.80

Euro

1

Rs.65.17

 

 

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

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NB

                                       New Business

 

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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.