MIRA INFORM REPORT
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Report Date : |
17.03.2012 |
IDENTIFICATION DETAILS
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Name : |
SILVER FERN FARMS LIMITED |
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Formerly Known As : |
PRIMARY PRODUCERS CO-OPERATIVE
SOCIETY LIMITED |
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Registered Office : |
Harvest Court, 218 George
Street, Dunedin Central, Dunedinm Zip code
9016 |
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Country : |
New Zealand |
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Financials (as on) : |
30.09.2011 |
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Date of Incorporation : |
30.09.1948 |
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Com. Reg. No.: |
149713 |
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Legal Form : |
New Zealand Co-operative
Company |
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Line of Business : |
Procurer, processor and marketer of sheep, lamb, beef and venison |
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No. of Employees : |
7,000 employees including contract employees |
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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Maximum Credit Limit : |
USD 20,000,000 |
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Status : |
Good |
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Payment
Behaviour : |
No Complaints |
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Litigation : |
Exists |
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 30th, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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New Zealand |
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 : SILVER FERN FARMS LIMITED
Business address : Harvest Court, 218 George Street
Town : Dunedin Central
Province : Dunedin
Zip/postal code : 9016
Country : New Zealand
Tel : +64 3 4773980
Fax : +64 3 4741087
Email : info@silverfernfarms.co.nz
Website : www.silverfernfarms.co.nz
Registered address : Harvest Court, 218 George Street
Town : Dunedin Central
Province : Dunedin
Zip/postal code : 9016
Country : New Zealand
Postal address : P.O. Box 941
Town : Dunedin Central
Province : Dunedin
Zip/postal code : 9054
Country : New
Zealand
Executive Summary
Date founded or registered : 30/09/1948
Legal form : New Zealand
Co-operative Company
Chief executive : Keith Cooper
Issued & paid up capital
: NZD 153,448,000
Sales turnover : NZD 2,056,416,000 (Consolidated 12
months, 30/09/2011)
Net income : NZD 30,801,000
(Consolidated 12 months, 30/09/2011)
Total fixed assets : NZD 674,497,000
(Consolidated 12 months, 30/09/2011)
Line of business : Procurer, processor and
marketer of sheep, lamb, beef and venison.
Staff employed : 7,000 employees including contract employees
Company Analysis
Country risk : Country risk is
minimal
Operation trend : Operational trend is
progressing
Management experience : Management is adequately experienced
Financial performance : Financial performance is very good
Organization structure : Organizational structure is
consistent
Detrimental : No detrimental records found
Payment history : No payment delays noted
Credit amount suggestion : USD
20,000,000
Credit amount asked : Not described.
Registry Data
Registration date : 30/09/1948
Legal form : New Zealand Co-operative
Company
Registration no 149713
Registered authority : New Zealand Companies Office
Registry status : Live/Active
Previous name : PPCS LIMITED (until 03-06-2008)
PRIMARY PRODUCERS CO-OPERATIVE SOCIETY LIMITED (until 13-01-1999)
Change of legal form : None
reported.
Key Management
Name : Keith Cooper
Designation : Chief Executive Officer
Name : Kevin Winders
Designation : Chief Operating Officer
Name : Jamie Adamson
Designation : Group Financial Controller
Name : Glenn Tyrrell
Designation : General Manager Sales and Marketing
Name : Grant Pearson
Designation : Group Technical Manager
BOARD OF DIRECTORS/ OTHER
APPOINTMENTS
Appointments
Name : Eoin Reay Hamilton
Garden
Designation : Chairman
Appointment date : 18/12/98
Address : Avenel, Millers Flat, Rd 2
Roxburgh,
9572
New
Zealand
Name : Richard John Somerville
Designation : Vice Chairman
Appointment date : 01/07/04
Address : 320 Beacon Point Road
Wanaka,
Central Otago 9305
New Zealand
Name : Angus Collis Mabin
Designation Director
Appointment date : 04/09/07
Address : Taniwha, RD 1 Waipukurau
Hawke's
Bay 4281
New
Zealand
Name : Peter Herstall Ulrich
Designation Director
Appointment date : 29/02/08
Address : Rock Farm, Rd 13
Pleasant
Point, South Canterbury 7983
New Zealand
Name : Robert James Hewett
Designation : Director
Appointment date : 29/02/08
Address : Manuka Gorge Highway
RD3,
Lawrence 9593, Otago
New
Zealand
Name : Trevor John Burt
Designation : Director
Appointment date : 30/07/09
Address : 58 Old Tai Tapu Road
Kennedys
Bush, Christchurch, 8025
New
Zealand
Name : Antony John Balfour
Designation : Director
Appointment date : 30/07/09
Address : 238 Littles Road
Dalefield RD1,
Queenstown 9371
New
Zealand
Name : David Alfred Shaw
Designation : Director
Appointment date : 27/01/11
Address : Clutha Downs Road, Rd 3
Balclutha,
9273
New
Zealand
Staff employed : 7,000 employees including contract
employees
Key Advisors
Auditors : ERNST & YOUNG
Ernst
& Young Building
2 Takutai
Square
Britomart
Auckland
1010
New
Zealand
Solicitors : HARMOS HORTON LUSK LIMITED
Level 37,
Vero Centre
48
Shortland Street
Auckland
1010
New Zealand
Composition
Authorized Capital : NZD 153,448,000
Issued capital : NZD 153,448,000
Paid up capital : NZD
153,448,000
How listed : Partial List
Composition
Shareholder name : GLENTHORNE STATION LIMITED
Address : C/o BROWN GLASSFORD &
CO LIMITED
86
Cavendish Road
Casebrook,
Christchurch 8051
New
Zealand
No. of shares : 397,766 Shares
Shareholder name : FNZ CUSTODIANS LIMITED
Address : Level 7, 256 Lambton Quay
Wellington,
Null, 6011
New
Zealand
No. of shares : 474,813 Shares
Shareholder name : FORSYTH BARR CUSTODIANS
LIMITED
Address : Forsyth Barr
House
Cnr
Octagon & Stuart Street
Dunedin,
Null
New
Zealand
No. of shares : 767,853 Shares
Shareholder name : A
W J H ADAMS PARTNERSHIP
Address : 893 Clintons
Road
Rd 1,
Christchurch, 7671
New
Zealand
No. of shares : 146,250 Shares
Shareholder name : P J and F M Grant
Address : Rangitata, Rd
22
Geraldine,
7992
New
Zealand
No. of shares : 146,250 Shares
Shareholder name : MT SOMERS STATION
Address : 281 Peaches
Road
Rd 1 Mount
Somers
Ashburton, 7771
New Zealand
No. of shares : 146,250 shares
Shareholder name : RAKAIA ISLAND LIMITED
Address : C/o BROWN
GLASSFORD & CO LIMITED
86
Cavendish Road
Casebrook,
Christchurch 8051
New
Zealand
No. of shares : 146,250 shares
Shareholder name : WISTARIA CO. LIMITED
Address : 102 Clyde
Street
Balclutha,
Null, 9230
New
Zealand
No. of shares : 146,250 shares
Comments : The Subject is a
co-operative owned primarily by suppliers of livestock to the
Subject. The Subject has over 20,000 sheep, cattle and deer
farmers members
throughout New Zealand.
RELATED COMPANIES & CORPORATE AFFILIATIONS
Structure
Structure
Name : RICHMOND GROUP HOLDINGS
LIMITED
Affiliation type : Wholly-owned Subsidiary
Address : Harvest Court, 218 George
Street
Dunedin
Central, Dunedin 9016
New
Zealand
Name : VENISON ROTORUA LIMITED
Affiliation type : Wholly-owned Subsidiary
Address : Harvest Court, 218 George
Street
Dunedin
Central, Dunedin 9016
New
Zealand
Name : FRASERTOWN MEAT CO.
LIMITED
Affiliation type : Wholly-owned Subsidiary
Address : Harvest Court, 218 George
Street
Dunedin
Central, Dunedin 9016
New
Zealand
Name : SILVER FERN FARMS NV
Affiliation type : Wholly-owned Subsidiary
Address : Molendries 11A
9300 Aalst
Belgium
Name : SILVER FERN FARMS (UK)
LIMITED
Affiliation type : Wholly-owned Subsidiary
Address : The Stables
Four Mile Stable Barns
Cambridge Road
Newmarket CB8 0TN
United
Kingdom
Name : GLOBAL
TECHNOLOGIES (NZ) LIMITED
Affiliation type : Wholly-owned Subsidiary
Address : Harvest Court, 218 George Street
Dunedin Central,
Dunedin 9016
New Zealand
Name : FARM
ENTERPRISES (OTAGO) LIMITED
Affiliation type : Wholly-owned Subsidiary
Address : Harvest Court, 218 George Street
Dunedin Central,
Dunedin 9016
New Zealand
Name : SILVER
FERN FARMS GMBH
Affiliation type : Wholly-owned Subsidiary
Address : Rondenburg 25
22525 Hamburg
Germany
Name : B.
BROOKS (NORWICH) LIMITED
Affiliation type : Wholly-owned Subsidiary
Address : The Stables
Four Mile Stable Barns
Cambridge Road
Newmarket CB8 0TN
United
Kingdom
Name : PPCS
USA INC
Affiliation type : Wholly-owned Subsidiary
Address : 161 N Broad Street
Woodbury, NJ
08096-1718
United States
Related
companies and corporate affiliations comments
Other companies of the Silver Fern Farms
Group should be considered affiliates of the Subject
Bank Details
Name of bank : Rabobank New Zealand
Address : New Zealand
Account details : Current Account
Name of bank : Westpac New Zealand Limited
Address : New Zealand
Account details : Current Account
Name of bank : The Hongkong and Shanghai Banking
Corporation Limited
Address : New Zealand
Account details : Current Account
Name of bank : Commonwealth Bank of Australia
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 : 16 February 2011
Silver Fern Farms Limited has been fined $40,500 and ordered to pay reparations of $20,000 after a contractor had her hand pulled into a conveyor at its meat processing plant at Waitotara.
On 19 January 2010 an employee of Ecowize Limited, the company contracted to clean and sanitise the processing areas of the plant, was attempting to clean a conveyor.
The Whanganui District Court heard that the employee’s latex glove became stuck, pulling her arm into the roller. A fellow worker tried to stop the conveyor by pressing the emergency button, but it didn’t work. The conveyor only stopped when an employee of Silver Fern Farms pressed a second emergency button and she was cut free. Her right arm was severely disfigured. “Silver Fern Farms could have easily prevented this accident if the conveyor was properly guarded,” says the Department of Labour New Plymouth Service
Manger, Jo Pugh.
“The company failed to indentify the conveyor rollers as a potential hazard resulting in this worker being seriously injured – it is not acceptable.
“The Department is seeing far too many of these types of accidents where machines are not adequately guarded to protect workers. Machine guarding has been in legislation for over a century and businesses still seem to be forgetting about it.
“Because of the high number of serious injuries and deaths in this area, the Department has a three-year project under way to focus on effective machine guarding standards and ensuring they are implemented.
“The project will also focus on designers, manufacturers and suppliers where inspectors identify that unsafe machinery has been sold or supplied to New Zealand businesses,” Ms Pugh says.
Tax liens : None reported.
Others : None reported
Description
Source of financial statement
: Commercial Registry Filings
Financial statement date : 30/09/11
Type of accounts : Full audited
Currency : New Zealand,
Dollar (NZD)
Exchange rate : 1 USD = NZD 1.23 as of
14-03-2012
Summarized
Financial Information
Consolidation type : Consolidated Consolidated
Currency : New Zealand,
Dollar (NZD) New Zealand, Dollar
(NZD)
Denomination : (x1) One (x1) One
Date of financial year end : 30/09/11 30/09/10
Length of accounts : 12 months 13 months
Sale turnover / Income : 2,056,416,000 1,833,194,000
Profit before tax : 40,606,000 -15,415,000
Net income : 30,801,000 -14,019,000
Non current assets : 366,755,000 370,637,000
Current assets : 307,742,000 229,604,000
Inventories : 111,538,000 76,141,000
Total assets : 674,497,000 600,241,000
Current liabilities : 248,272,000 170,110,000
Non current liabilities : 31,458,000 62,360,000
Total liabilities : 308,070,000 261,628,000
Share equity : 366,427,000 338,613,000
Retained earning : 140,833,000 126,251,000
Comments : The consolidated financial
information above relates to the Subject and its subsidiaries.
Main activities : The Subject
is engaged in processing, marketing, and export of meat and associated
by-products in New Zealand and internationally.
The Subject is one of the leading exporters of meat in New Zealand.
The subject was registered in 1948 as Primary Producers Co-operative Society, eventually trading as PPCS until it changed its name and its brand in 2008 to Silver Fern Farms - reflecting its integrated supply chain strategy.
While Subject's strategy has evolved from production-based to market-led, the Subject has retained its co-operative status, today representing more than 20,000 sheep, cattle and deer farmers throughout New Zealand.
The Subject is a co-operative owned primarily by suppliers of livestock to the Subject.
The Subject had $75 million of secured bonds listed on the New Zealand Debt Securities Market (NZDX) as at 30 September 2010. These bonds were repaid on 15 November 2010 and the Company has ceased to be listed with NZX.
The subject has a class of shares called New Ordinary Shares which are traded under the code “SFF” on Unlisted. Unlisted is a cost efficient trading facility and is not a registered stock exchange under the Securities
Markets Act 1988.
The Subject mainly sells its products to independent meat wholesalers and distributors, as well as to retailers and food service industry participants.
Product &
services :
· Lamb Meat
· Mutton Meat
· Veal Meat
· Venison Meat
· Beef Meat
· Slipe wool
· Calf skins
· Sheep and lamb pelts
· Food grade and pharmeceutical hide collagen
Brand : BEEF SUPERGRASS, BIO BLANKET, PPCS, RICHMOND
Purchases
Local : Yes
Sales
Local : Yes
International : Australia, Belgium, France, Germany,
Greece, Hong Kong, Italy, Japan, Jordan, Republic of Korea, Mexico, Singapore,
United Arab Emirates, United Kingdom, United States, Europe, Middle East
Key events : 1 July 2011
FREIGHT PARTNERSHIP TO DRIVE NEW ZEALAND
COMPETITIVENESS
Fonterra
and Silver Fern Farms announced today the launch of Kotahi, a partnership that
aims to bring New Zealand’s exporters and importers together to lift the
performance of the country’s supply chain.
Kotahi
will match supply and demand for freight services on land and sea to get New
Zealand products to distant markets around the world more efficiently.
Gary
Romano, Managing Director of Fonterra Trade and Operations, says Kotahi will
create a sea change that will help New Zealand businesses be more competitive
in global markets.
“Export
earnings are New Zealand’s bread and butter, just last year the collective
return was over $40 billion. This is a great success story but as the world
changes there is a real risk we will be squeezed out. We are the most remote
developed country in the world relative to international markets and the way we
get our products to and from these markets is critical to continued success.
“International companies, including shipping, are reshaping their business models to adapt to changing markets. If New Zealand is serious about being a truly global player we have to show leadership in areas like freight management. This is about taking the New Zealand economy to the world.
“The real driver for Kotahi is
establishing an efficient and secure supply chain service that will ensure New Zealand
businesses are able to operate with certainty and compete on a global scale,”
he says.
When Kotahi starts operating on August 1
it will service approximately one third of all containers that leave New
Zealand’s shores.
“We
see real value in bringing freight management and purchasing into one
partnership. At present, many smaller companies are handicapped because
individually they ship relatively low volumes and don’t have consistent freight
needs throughout the year. Through Kotahi’s ability to match supply and demand
for freight across a variety of imports and exports we will be able to create
efficiencies along the entire supply chain,”
says
Keith Cooper, CEO Silver Fern Farms. Mr Cooper says exporters like Silver Fern
Farms are facing a loss of international business if ocean freight services
continue to decline.
“New
Zealand is effectively the last bus stop on the planet. We are pitched against
international companies that are much closer to our markets. Our ability to
compete comes back to having efficient and reliable freight networks that offer
quicker transit times and solid schedules. If we fail at this we put our
exporting success story in serious jeopardy,” he says.
Kotahi’s
establishment will also work in favour for freight owners and carriers by
giving them more certainty around the country’s shipping needs.
“New
Zealand exports are characterised by seasonal fluctuations and volatile demand.
By coordinating our freight needs we will be much more consistent in our
scheduling and will be able to better utilise freight capacity going north and
south, on both land and sea. This means we will be able to attract better
shipping schedules and bigger ships as well as reducing our carbon footprint by
getting better at using what we’ve already got to full
capacity,”
says Mr Cooper.
The
initial response from New Zealand business has clearly shown that there is a
need for a partnership like Kotahi. Flemming Gamst, whose brokerage Matchbox
Brokers oversees a lot of New Zealand’s apple exports, says: “The creation of
Kotahi is an important step towards like minded exporters and importers working
together with service providers to achieve the most efficient and sustainable
supply chain, jointly driving better value from supply chain assets. It is great
to see Fonterra and Silver Fern Farms taking a leading role in what’s an
important initiative for New Zealand Inc.”
Iain
Hill, General Manager for KiwiRail Freight, says: “KiwiRail applauds the Kotahi
initiative for recognising the advantage of managing freight demand across
industries. The critical role of rail as a neutral line-haul provider will
complement this new service offer to the market.”
Ports
of Auckland Chief Executive Tony Gibson has also welcomed the establishment of
Kotahi.
“Fonterra
and Silver Fern Farms are to be congratulated for establishing this new
venture. Greater collaboration among supply chain players has to be good for
New Zealand. We’re a small country and need to leverage what scale we have.
“If
Kotahi succeeds in improving vessel utilisation and providing greater certainty
about demand for sea freight, it has the potential to achieve significant
supply chain efficiencies. For Ports of Auckland, efforts to smooth peaks and
troughs in export demand are also positive.
“We’re pleased to see New Zealand cargo
owners seeking to play a larger role in decisions over logistics nfrastructure and sea freight services, and
look forward to working with Kotahi in the future,” he says.
Chris
Greenough, Kotahi’s CEO, says Kotahi’s initial focus will be on working with
exporters and ocean carriers to drive greater efficiency and service
enhancements in sea freight. He says cooperation with others to drive more
efficient rail, road and port usage will naturally follow.
“There
is a lot we can achieve fairly quickly to improve services and efficiency in
the ocean freight space, but obviously in the long term these efficiencies will
only be maximised if collectively we are able to work smarter on the land side
too.”
Kotahi
will first create a robust operating model for its partners’ freight before
taking new customers on board in the coming months. Appropriate authorisation
from the Commerce Commission will be sought for Kotahi. 20 April 2010
‘Silver
Fern Farms announces new plant for Te Aroha and purchase of Wallace Corporation
Meats plant’ Silver Fern Farms has announced plans today to build a new
high-tech beef processing plant on its Te Aroha site,subject to final board and
other approvals including union agreement. At the same time, the company has
advised the purchase of Wallace Corporation’s meat processing plant at Waitoa.
Wallace Corporation will retain its rendering, tanning, farming and casualty
stock collection business at Waitoa.
Silver
Fern Farms’ Te Aroha plant was seriously damaged by fire in December 2010 and
has been out of operation since then. Silver Fern Farms Chief Executive, Keith
Cooper, said that the company’s intention to rebuild the facility would be
welcome news for the Te Aroha community. “We have had enormous support from our
suppliers and our staff in the Te Aroha area to rebuild a beef processing plant
in the Waikato and we’re pleased to be able to give them confidence in the
future with this decision.” Mr Cooper said the company planned to make a
significant investment in the new Te Aroha facility subject to obtaining the
necessary approvals.
Designed
in consultation with internationally recognised experts in process layout and
ergonomics and incorporating the latest technologies, including sophisticated
traceability and yield collection systems, the plant will reflect the company’s
focus on plant economics and best practice processing. Mr Cooper said the new
design has been developed with eco-efficiency and sustainability in mind and
will set a new industry benchmark in line with global customer requirements.
“At
every opportunity we are reviewing the environmental footprint of our
operations. Our focus is on improving environmental efficiency while reducing
costs through better use of resources and reduction of waste. The new Te Aroha
plant will use significantly less electricity and water per head and discharge
less effluent per head processed.”
Once
the green light is given the company expects construction to take approximately
9 months.
Mr
Cooper said that the opportunity to acquire Wallace Meats had emerged during
the course of the company’s due diligence to identify the best solution to
service farmer-suppliers’ needs in the broader Waikato area
and
at the same time contribute to industry aggregation.
“From
Silver Fern Farms’ perspective the purchase makes total sense. It has been long
recognised that industry aggregation is required to ensure the sustainability
of the red meat processing sector over the long term. Our plan of action
demonstrates the ability of commercial entities to make commercial investment
decisions with confidence in the sector.”
Wallace Corporation Chief Executive Graham Shortland said the
company has been planning significant investments in environmental initiatives
such as waste to energy and new infrastructure at its Waitoa site.
Property &
Assets
Premises : The Subject operates from
premises located at the verified heading address consisting of administrative
office.
Branches : In addition, the Subject
operates from branch facilities located at:
507W
Eastbourne Street
PO Box 940
Hastings
4156
New
Zealand
Tel: +64 6
8726660
34
Branston Street
PO Box 283
Christchurch
8140
New
Zealand
Tel: +64 3
3796900
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: 4.7% industry: 24% services: 71.3%
Inflation 2009: 2.1%
2010: 2.3%
2011: 4.1%
Unemployment
rate 2009:6.2%
2010: 6.5%
2011: 6.7%
Public debt
(General Government gross
debt as a % GDP) 2009: 26.1 %
2010: 31.6%
2011: 35.8%
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, Trans power, 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 2007: US$ 462 million
2008: US$-308 million
2009: 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 Dollar (NZD)
Internet
users as % of total population
:
83 %
Purchase Term
Local : Prepayment, Bank
transfer, Credit up to 90 days
Sales Term
Local : Prepayment, Bank transfer,
Credit up to 90 days
International : L/C, Prepayment, Telegraphic
transfer, Credit up to 90 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.50.31 |
|
UK Pound |
1 |
Rs.79.04 |
|
Euro |
1 |
Rs.65.82 |
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.