MIRA INFORM REPORT
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Report Date : |
22.06.2012 |
IDENTIFICATION DETAILS
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Name : |
HILLS HOLDINGS LIMITED |
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Formerly Known As : |
HILLS INDUSTRIES LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
27.06.1957 |
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Com. Reg. No.: |
007573417 |
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Legal Form : |
Australian Public Company |
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Line of Business : |
Import, manufacturing and distribution of electronics security and communications, home and hardware and building and industrial products. |
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No. of Employees : |
3,140 (Hills Group) |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Good |
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Payment
Behaviour : |
No Complaints |
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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 – March 31st, 2012
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Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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a1 |
a1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Verified Address
Subject name : HILLS HOLDINGS LIMITED
Business address :
Town : Hindmarsh
Province :
Zip/postal code : 5007
Country :
Tel : +618
83013200
Fax : +61
8 82974468
Email : info@hills.com.au
Website : www.hills.com.au
Registered address :
Town : Hindmarsh
Province :
Zip/postal code : 5007
Country :
Comments :
The provided address
Executive Summary
Date founded or registered : 27/06/1957
Legal form : Australian Public
Company
Chief executive : Graham Lloyd Twartz
Issued & paid up capital
: AUD 303,886,547.85
Sales turnover : AUD
1,097,001,000 (Consolidated 12 months, 30/06/2011)
Net income : AUD -65,381,000
(Consolidated 12 months, 30/06/2011)
Total fixed assets : AUD 639,641,000
(Consolidated 12 months, 30/06/2011)
Line of business : Import, manufacturing and
distribution of electronics security and
communications, home and hardware and building and industrial
products.
Staff employed : 3,140 (Hills 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
Registry Data
Registration date : 27/06/1957
Legal form : Australian Public
Company
Registration no Australian Company
Number: 007573417
Registered authority : Australian Securities and
Investments Commission
Fiscal/ Tax no : Australian Business
Number: 35007573417
Registry status : Live/Active
Previous name : HILLS INDUSTRIES LIMITED
(initial)
Change of legal form : None reported.
Key Management
Name : Graham Lloyd Twartz
Designation : Managing Director
Name : Mike McKinstry
Designation : Chief Operating Officer
Name : Grant Logan
Designation : Chief Financial Officer
Appointments
Name : Jennifer Helen
Hill-Ling
Designation : Director
Appointment date : 21/08/85
Address : 18 Larkin Street
Waverton,
NSW 2060
Australia
Biography :
Born on 25-05-1962 in Adelaide,
South Australia, Australia.
Ms. Jennifer Helen Hill-Ling, LLB (Adel), FAICD, is Non-Executive Chairman of the Board of Hills Holdings Ltd. She was appointed Director in August 1985, appointed Deputy Chairman in June 2004, and appointed Chairman on 28 October 2005. She has experience in corporate and commercial law, specialising in corporate and business structuring, mergers and acquisitions, joint ventures and related commercial transactions. She has practiced law for some 25 years. She is Director of Hills Associates Limited, Argent Pty Ltd and Hills Industries NZ Limited. She was a Director of Tower Trust Ltd. She has been Member of the nomination committee and Chairman of the remuneration committee of the Company. She is a fellow of the Australian lnstitute of Company Directors.
Name : Ian Elliot
Designation : Director
Appointment date : 01/08/03
Address : Unit 119, 6 Cowper Wharf
Road
Woolloomooloo,
NSW 2011
Australia
Biography :
Born on 30-12-1953 in Sydney,
New South Wales, Australia.
Mr. Ian Elliot has been Independent Non-Executive Director of Hills Holdings Ltd since August 2003. He has spent 38 years in marketing.His speciality is brand building, with involvement in various icon brands. Mr. Elliot is a fellow of the Australian Institute of CompanyDirectors and graduate of the Harvard Business School Advanced Management Program. In addition to his listed company directorships he was formerly a director of Zenith Media Pty Ltd and Cordiant Communications Group and former Chairman of Allied Brands Limited, Artist & Entertainment Group Limited and Chairman and CEO of George Patterson Advertising. He has been Director of Salmat Limited since 2005. He is Chairman of the Nomination Committee and Member of the Remuneration Committee.
Name : Peter William
Stancliffe
Designation : Director
Appointment date : 01/08/03
Address : 114 Prince Alfred Parade
Newport, NSW 2106
Australia
Biography :
Born on 29-01-1948 in
Melbourne, Victoria, Australia.
Mr. Peter William Stancliffe, BE (Civil), FAICD, is Independent Non-Executive Director of Hills Holdings Ltd. He has over 40 years experience in the management of industrial companies both in Australia and overseas and has held various senior management positions, including Chief Executive Officer. He has experience in strategy development and knowledge of modern company management practices. Mr. Stancliffe is a graduate of the MIT Senior Management Program and the AICD Company Directors' Course. In addition to his listed company directorships, he is a director of Harris Scarfe Pty Ltd. He is Chairman of Korvest Ltd (since 2009), Director of Automotive Holdings Group Limited (since 2005), and Former Chairman of View Resources Limited (from 2006 to 2009). He is Member of the Audit and Compliance Committee and Member of the Nomination Committee.
Name : Graham Lloyd Twartz
Designation : Director
Appointment date : 08/07/93
Address : 15 Seaview Road
Tennyson,
SA 5022
Australia
Biography :
Born on 11-05-1957 in
Riverton, South Australia, Australia.
Mr. Graham Lloyd Twartz, BA
(Adel), DipAcc (Flinders), is Group Managing Director and Executive Director of
Hills Holdings Ltd. He joined the Company in 1993 and was appointed Director in
July 1993.
He was appointed Group Managing Director on July 1, 2008. He is Director of Korvest Ltd and Fielders Australia Pty Ltd. He is responsible for the Company's operations, including business strategy and acquisitions. He was formerly the Group Finance Director and Company Secretary and has over 25 years experience in his field. Mr. Twartz held senior management positions in various companies before joining the Company. He graduated from University of Adelaide, Australia, with a Bachelor of Arts.
Name : Fiona Rosalyn Vivienne
Bennett
Designation : Director
Appointment date : 31/05/10
Address : 28 Wolseley Grove
Brighton,
VIC 3186
Australia
Biography :
Born on 24-03-1956 in London,
United Kingdom.
Ms. Fiona Rosalyn Vivienne Bennett, BA (Hons), FCA, FAICD, FAIM, has been Independent Non-Executive Director of Hills Holdings Ltd since May 31, 2010. She is a Chartered Accountant with over 30 years experience in business and financial management, corporate governance, risk management and audit. She has previously held senior executive positions at BHP Billiton Limited and Coles Group Limited and has been a Chief Financial Officer at several organisations in the health sector. Ms. Bennett is a graduate of The Executive Program at the University of Virginia's Darden Graduate School, the United States, and the AICD Company Directors' course.
She is Director of Boom Logistics Limited (since March 2010). She is Chairman of the Audit and Compliance Committee.
Name : David Moray Spence
Designation : Director
Appointment date : 01/09/10
Address : 17 Berrillee Street
Turramurra,
NSW 2074
Australia
Biography :
Born on 20-01-1952 in Durban,
South Africa.
Mr. David Moray Spence, BCom, CA (SA), is Independent
Non-Executive Director of Hills Holdings Ltd. He has experience in various
industries and more recently in the technology and communications industry. He
has over 25 years of senior management experience,
including as CFO of Freedom Furniture and OPSM, where he also assumed
responsibility for manufacturing and logistics. He has been involved in various
internet and communications companies including the building of Australia's
dial up ISP, OzEmail. Mr. Spence was the chief executive officer of Unwired
Australia until February 2010. He has been involved in various listed and
non-listed boards including WebCentral, uuNet, Access1, Emitch, Commander
Communications, Chaosmusic, ubowireless, Vividwireless and is a past chairman
of the Internet Industry Association. He is currently a non-executive Director
of AWA Limited. He is Chairman of VOCUS Communications Ltd (since June 2010).
He is Member of the Audit and Compliance Committee and Member of the
Remuneration Committee at the Company. He graduated from University of Cape
Town, South Africa, and holds a degree in Commerce from University of
KwaZulu-Natal, South Africa.
Name : Matthew Arnold Campbell
Designation : Director
Appointment date : 19/12/11
Address : 5 Jersey Place
Cromer,
NSW 2099
Australia
Biography :
Born on 26-07-1954 in Yarram,
Victoria, Australia.
Mr. Matthew Campbell has been Non-Executive Director of Hills Holdings Ltd since December 19, 2011. He has served as Group General Manager of Retail, Merchandise and Supply Chain of Rebel Group, Managing Director of Epic Records (within Sony Music Australia Ltd), Group General Manager of Brash Holdings, National Merchandise Manager of VOX Retail Group and National Merchandise Manager of The Warehouse Ltd New Zealand.
Name : Rachel Jane Rees
Designation : Company Secretary
Appointment date : 01/02/12
Address : 103 Allinga Avenue
Glenunga,
SA 5064
Australia
Biography :
Born on 29-11-1968 in
Esperance, Western Australia, Australia.
Ms. Rachel Rees serves as Company
Secretary of Hills Holdings Limited since February 1, 2012. She was the Chief
Financial Officer and Company Secretary of Uranium One Australia. She is
currently Chartered Secretaries Australia SA/NT State Chairman.
Staff employed : 3,140 (Hills
Group)
Key Advisors
Auditors : KPMG
115
Grenfell Street
Adelaide,
SA 5000
Australia
Composition
Authorized Capital : AUD 303,886,547.85
No of shares : 246,500,444 Ordinary Shares
Share par value : No par value
Issued capital : AUD 303,886,547.85
Paid up capital : AUD
303,886,547.85
How listed : Major Shareholders Only
Composition
Shareholder name : RBC DEXIA INVESTOR SERVICES AUSTRALIA
NOMINEES PTY LIMITED
Address : Level 17, 2 Park Street
Sydney,
NSW 2000
Australia
% of shares : 9.06%
Shareholder name : POPLAR PTY LIMITED
Address : Adelaide, SA 5000
Australia
% of
shares : 8.14%
Shareholder name : HILLS ASSOCIATES LIMITED
Address : 944-956 South Road
Edwardstown,
SA 5039
Australia
% of shares : 5.40%
Shareholder name : JP MORGAN NOMINEES AUSTRALIA LIMITED
Address : Level 32, Grosvenor Place
225 George
Street
Sydney,
NSW 2000
Australia
% of shares : 3.92%
Shareholder name : NATIONAL NOMINEES LIMITED
Address : Level 21, 500 Bourke Street
Melbourne,
VIC 3000
Australia
% of shares : 3.01%
Comments The Subject is listed on the Australian Securities
Exchange since 30 June, 1962.
Structure
Name : HILLS FINANCE PTY. LTD.
Affiliation type : Wholly-owned Subsidiary
Address : 159 Port Road
Hindmarsh,
SA 5007
Australia
Name : FIELDERS AUSTRALIA PTY LTD
Affiliation type : Wholly-owned Subsidiary
Address : 213 Railway Terrace
Keswick
Terminal, SA 5035
Australia
Name : ACCESS TELEVISION SERVICES PTY LTD
Affiliation type : Wholly-owned Subsidiary
Address : Level 3, Austar Building
35 Robina
Town Centre Drive
Robina,
QLD 4226
Australia
Name : ORRCON HOLDINGS PTY LTD
Affiliation type :
Wholly-owned Subsidiary
Address : 121 Evans Road
Salisbury,
QLD 4107
Australia
Name : WOODROFFE INDUSTRIES PTY LTD
Affiliation type : Wholly-owned Subsidiary
Address : 59 Kylta Road
West
Heidelberg, VIC 3081
Australia
Related companies
and corporate affiliations comments
Other companies of the Hills Group
should be considered affiliates of the Subject.
Bank Details
Name of bank : National Australia Bank Limited
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.
Description
Source of financial statement
: Public Record Sources
Financial statement date : 30/06/11
Type of accounts : Full audited
Currency : Australia Dollar
(AUD)
Exchange rate : 1 USD = AUD 0.98 as of
20-06-2012
Summarized
Financial Information
Consolidation type : Consolidated Consolidated Consolidated
Currency : Australia
Dollar (AUD) Australia Dollar (AUD) Australia Dollar (AUD)
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 : 553,680,000 1,097,001,000 1,158,247,000
Profit before tax : 21,584,000 -78,489,000 62,060,000
Net income : 15,430,000 -65,381,000 42,918,000
Non current assets : 281,653,000 277,740,000 359,731,000
Current assets : 364,811,000 361,901,000 425,213,000
Inventories : 166,898,000 167,999,000 181,496,000
Total assets : 646,464,000 639,641,000 784,944,000
Current liabilities : 111,931,000 137,229,000 173,761,000
Non current liabilities : 131,637,000 100,105,000 114,684,000
Total liabilities : 243,568,000 237,334,000 288,445,000
Share equity : 402,896,000 402,307,000 496,499,000
Retained earning : 37,178,000 21,504,000 126,107,000
Comments : The consolidated financial
information above relates to the Subject and its
subsidiaries.
Main
activities :
The Subject engages in import,
manufacturing and distribution of electronics security and communications, home
and hardware and building and industrial products in Australia and internationally.
The
Subject conducts its business operations in three business segments:
· Electronic security and entertainment segment,
· Home and hardware segment, and
· Building and industrial segment.
Electronic Security and
Entertainment Segment
The
electronic security and entertainment segment comprises Hills Electronic
Security and the Hills Antenna & TV Systems business. This segment markets
electronic security products ranging from simple domestic alarm systems to
complex integrated surveillance and access control systems. The company offers
electronic security communications related products and services, such as
domestic and Entertainment and commercial antennas, master antenna television
systems, communications antennas, amplifiers, electronic security systems,
closed circuit television systems, home automation systems and fibre optic
transmission solutions.
Hills Electronic
Security:
The company’s hills electronic security business unit markets electronic security products ranging from simple domestic alarm systems to complex integrated surveillance and access control systems.
Hills Antenna & TV Systems: The company’s Hills Antenna & TV Systems business unit provides reception and distribution equipment for the Pay TV, free to air television and wireless voice and data markets. This business
unit is the major supplier of signal reception equipment to the Pay TV industry.
Its Hills Signal Master business in New Zealand offers both equipment supply and the installation of Sky Television services.
Home and Hardware Segment
The
home and hardware segment engages in the manufacture and distribution of metal
based branded products to consumers, trade customers and government utilities. The
home and hardware segment offers home and hardware outdoor clothes driers,
ladders, ironing boards, laundry trolleys, security doors, playtime equipment,
garden sprayers, wheelbarrows, Do-It-Yourself woodworking equipment, and
rehabilitation and mobility products. The segments major market brands include
Hills, Bailey, Oldfields Ladders, Kelso, and Triton.
Building and Industrial
Segment
The
company, through its building and industrial segment, offers building and
industrial structural, precision and steel tubing, galvanizing, precision metal
cabinets, office storage systems, stainless steel products, steel door
frames, roll-formed metal building products, carports, cable and pipe support systems, and shed systems.
The building and industrial segment consists of Orrcon, Fielders, Korvest, and Woodroffe Equipment. Orrcon: The company’s Orrcon business United States engages in the manufacture and distribution of steel tube and piping. With manufacturing plants in South Australia, Queensland and the Large Pipe and Tube Mill in Wollongong the company is able to service all segments of the market nationally. Fielders: The company’s fielders business unit
engages in the manufacture and distribution of roll-formed
metal building products, such as roof and gutter material, downpipes, steel
flooring systems, carports, sheds, and purlins, for the commercial and domestic
building industries throughout Australia.
The subject, formerly known
as Hills Industries Limited, is based in Hindmarsh, Australia.
Product & services :
· Electronic security products
· Electronic communication products
· Antenna & TV Systems
· Steel tube and piping
· Building products
· Clotheslines
· Laundry Products
· Ironing Boards
· Sprayers
· Handtrucks
· Play Gyms & Slides
· Garden Products
· Doors
Brand : Hills, Bailey,
Oldfields Ladders, Kelso, and Triton.
Purchases
International Worldwide
Sales
Local : Yes
International : South Africa, Japan, India,
United States, Europe, New Zealand, United Kingdom
Key events :
Hills Sound Vision and Lighting
Hills Sound Vision and Lighting acquires Herma Technologies Media Release , Hills Sound Vision and Lighting Australia and New Zealand’s leading AV distributor, Hills SVL has announced today that it has acquired Herma Technologies. Herma Technologies is a Melbourne based AV distribution company with a significant market share of the residential and commercial projection screen markets through its LP Morgan, Grandview and 2C brands. Herma also distributes SunBrite Outdoor LCD screens, Brightline video conferencing lighting solutions and Panamorph lenses.
Group General Manager of the Hills SVL Group, Stuart Craig, announced the acquisition today “On the back of our recent expansion with the Denon and Marantz Group, this is another significant expansion for Hills SVL. The Herma acquisition makes sense in many ways. It’s another step toward SVL offering an end to end solution for our customers and allowing us to take our ‘intuitive integrated solutions’ program to a whole new level. It also helps the SVL Group establish some new channels in the residential and IT markets which are key to our on-going growth. For Herma it’s an expansion opportunity as it becomes part of a much larger team and will leverage SVL’s strengths in the commercial and education markets.
Customers of both SVL and Herma will see immediate benefits. Herma will keep its identity and will not be merged into Hills SVL, it will operate as a division of Hills SVL just as Crestron and Australian Monitor operates.”
Carlinea Williamson, Managing Director of Herma
Technologies, "Everyone at Herma is enthusiastic about the Hills
acquisition; we see it as an exciting new chapter for
the company. The team at Herma is looking forward to
working with Hills management
to maintain the high level of service and support we are known for. The backing
of a major Australian company will bring great opportunities for Herma to
continue developing and expanding
its offering in both
manufactured and distributed products.
The Hills SVL Group has offices
and warehouses in Sydney, Brisbane, Canberra, Melbourne, Adelaide, Perth and
Auckland. The Hills SVL Group incorporates six divisions:
· Crestron Australia and New Zealand
· Australian Monitor
· Herma Technologies
· Hills SVL Audio Solutions
· Hills SVL AV Solutions
· Lighthouse Entertainment & Architectural Lighting Solution
Property &
Assets
Premises : The Subject
operates from headquarters located at the verified heading
address consisting of administrative office.
Branches : In addition, the
Subject operates from business units located throughout
Australia.
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%
Purchase Term
International : L/C, Prepayment, Telegraphic transfer,
Credit 30-120 days
Sales Term
Local : Prepayment, Bank transfer, Credit
30-120 days
International : L/C, Prepayment, Telegraphic transfer,
Credit 30-120 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 sources
FOREIGN EXCHANGE
RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.56.42 |
|
UK Pound |
1 |
Rs.88.45 |
|
Euro |
1 |
Rs.71.52 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.