MIRA INFORM REPORT

 

 

Report Date :

27.09.2012

 

IDENTIFICATION DETAILS

 

Name :

NUFARM LIMITED

 

 

Registered Office :

103-105 Pipe Road, Laverton North, Victoria 3026

 

 

Country :

Australia

 

 

Financials (as on) :

31.07.2012

 

 

Date of Incorporation :

27.01.2000

 

 

Legal Form :

Australian Public Company

 

 

Line of Business :

Manufacturing and distribution of crop protection products used by farmers to protect crops from damage caused by weeds, pests and disease.

 

 

No. of Employees :

3026

 

 

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

 

Status :

Good

Payment Behaviour :

No complaints

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

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 :              NUFARM LIMITED

Business address :        103–105 Pipe Road

Town :                           Laverton North

Province :                      Victoria

Zip/postal code :            3026

Country :                       Australia

Tel :                              +61 3 92821000

Fax :                             +61 3 92821001

Website :                      www.nufarm.com

 

Registered address :      103-105 Pipe Road

Town :                           Laverton North

Province :                      Victoria

Zip/postal code :            3026

Country :                       Australia

Postal address :            P.O. Box 103

Town :                           Laverton

Province :                      Victoria

Zip/postal code :            3028

Country :                       Australia

 

 

SUMMARY DETAILS

 

Executive Summary

Date founded or registered :                    27/01/2000

Legal form :                                           Australian Public Company

Chief executive :                                    Douglas John Rathbone

Issued & paid up capital :                       AUD 262,142,247

Sales turnover :                          AUD 2,181,551,000 (Consolidated 12 months, 31/07/2012)

Net income :                                          AUD 72,822,000 (Consolidated 12 months, 31/07/2012)

Total fixed assets :                                 AUD 2,801,268,000 (Consolidated 12 months, 31/07/2012)

Line of business :                                   Manufacturing and distribution of crop protection products used by farmers to protect crops from damage caused by weeds, pests and disease.

Staff employed :                                     3,193 employees (Nufarm Group)

 

 

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 found

Payment history :                      No payment delays noted

Comments :                              Larger credit can still be considered.

 

 

STATUTORY DETAILS

 

Registry Data

Registration date :                                              27/01/2000

Legal form :                                                       Australian Public Company

Registration no Australian Company Number:       091323312

Registered authority :                                         Australian Securities & Investments Commission

Fiscal/ Tax no : Australian Business Number:      37091323312

Registry status :                                                Live/Active

Previous name :                                                 None reported.

Change of legal form :                                         None reported.

 

 

MANAGEMENT / DIRECTORS

 

Key Management

Name :                          Douglas John Rathbone

Designation :                 Chief Executive Officer, Managing Director, Executive Director

Name :                          Brian Benson

Designation :                 Group General Manager - Agriculture

Name :                          Rodney Heath

Designation :                 Group General Manager - Corporate Services, Company Secretary

Name :                          David Pullan

Designation :                 Group General Manager - Operations

Name :                          Robert Reis

Designation :                 Group General Manager - Corporate Strategy and External Affairs

Name :                          Mike Pointon

Designation :                 Group General Manager - Innovation and Development

Name :                          Bonita Croft

Designation :                 Group General Manger - HR & Organisation Development

Name :                          Dale Mellody

Designation :                 Group General Manager - Supply Chain & Strategic Procurement

Name :                          Paul Andrew Binfield

Designation :                 Chief Financial Officer

Name :                          Greg Hunt

Designation :                 Group General Manager - Global Marketing & Business Development

 

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

Name :                          Douglas John Rathbone

Designation :                 Chief Executive Officer, Managing Director, Executive Director

Appointment date :         21/08/87

Address :                      38 Edward Street

Essendon, VIC 3040

Australia

Biography :                    Born on 03-11-1945 in Melbourne, Victoria, Australia.

Mr. Douglas (Doug) John Rathbone, AM, is Chief Executive,

Managing Director and Executive Director of Nufarm Limited. Mr.

Rathbone joined the board in 1987. His background is chemical

engineering and commerce and he has worked for Nufarm Australia

Limited for 32 years. He was appointed Managing Director of Nufarm

Australia in 1982 and Managing Director of the Company in October

1999.

Name :                          William Bruce Goodfellow

Designation :                 Non-Executive Non-Independent Director

Appointment date :         15/02/91

Address :                      531 Remuera Road

1050 Auckland

New Zealand

Biography :                    Born on 30-11-1951 in Auckland, New Zealand.

Dr. William Bruce Goodfellow, Ph.D., is Non-Executive

Non-Independent Director of Nufarm Limited since 1999. He holds a

Doctorate in Philosophy in Chemical Engineering from the University

of Auckland. Mr. Goodfellow joined the Board, representing the

holders of the "C" shares, in 1991. Following the conversion of the

"C" shares into ordinary shares, he was elected Director in 1999. He

has experience in the chemical trading business and financial and

commercial business management experience. He is Director of

Sulkem Co Ltd (Group), Refrigeration Engineering Co Ltd, SH Lock

(NZ) Ltd and Cambridge Clothing Co Ltd.

Name :                         Donald Gordon McGauchie

Designation :                 Non-Executive Independent Chairman

Appointment date :         19/12/03

Address :                      2400 Echuca Serpentine Road

Prairie, VIC 3572

Australia

Biography :                    Born on 11-02-1950 in Bendigo, Victoria, Australia.

Mr. Donald (Don) Gordon McGauchie, AO, is Non-Executive

Independent Chairman of the Board of Nufarm Limited. He joined the

board in 2003 and was appointed Chairman on July 13, 2010. He has

a farming background and has been involved in agricultural trade,

policy and market reform. He was President of the National Farmers'

Federation from 1994 - 1998. He is past Director and Chairman of

Telstra Limited, and is current Chairman of Australian Agricultural

Company Limited. Other current non-executive directorships include

James Hardie Industries, NV; Graincorp Limited; Reserve Bank of

Australia; and Australian Wool Testing Authority Limited. He is

Chairman of the Nomination Committee (effective 28 September

2010) and Member of the Remuneration Committee.

Name :                          Garry Hounsell

Designation :                 Non-Executive Independent Director

Appointment date :         01/10/04

Address :                      2 Merriwee Crescent

Toorak, VIC 3142

Australia

Biography :                    Born on 21-11-1954 in Junee, New South Wales, Australia.

Mr. Garry Arthur Hounsell is Non-Executive Independent Director of

Nufarm Limited since October 2004. He has a Bachelor of Business

(Accounting) from Swinburne University and is former senior partner

with Ernst & Young and a former Australian country-managing

partner with Arthur Andersen. He has experience across a range of

areas, relating to management and corporate finance and has

worked with some of Australia’s companies in consulting and audit

roles, with a particular emphasis in the manufacturing sector. He is

Chairman of Pan Aust Ltd and Director of Qantas Airways Limited,

Orica Ltd and Dulux Group Ltd. In the past three years he has been

Deputy Chairman of Mitchell Communication Group Ltd. He is

Chairman of the Audit Committee.

Name :                          Anne Bernadette Brennan

Designation :                 Non-Executive Director

Appointment date :         10/02/11

Address :                      7 Cairo Street

South Coogee, NSW 2034

Australia

Biography :                    Born on 22-09-1960 in Castlebar, County Mayo, Ireland.

Ms. Anne Bernadette Brennan is Non-Executive Director of Nufarm

Limited since February 10, 2011. Ms. Brennan was formerly

Executive Finance Director for the Coates Group and Chief Financial

Officer for CSR. She has experience in financial management,

treasury, audit, risk management, tax, investor relations and ASX and

statutory reporting. Prior to her role at CSR, she was partner in three

professional services firms: KPMG, Arthur Andersen and Ernst &

Young, she currently holds non-executive directorships with Myer

Limited, Charter Hall Group and Cuscal Limited and Argo

Investments Limited. She is also Director of the Australian Ireland

Fund and Councillor of the Australian Institute of Company Directors

(NSW). She holds a Bachelor of Commerce (Honours) degree from

University College Galway. She is Fellow of the Institute of Chartered

Accountants in Australia and Fellow of the Australian Institute of

Company Directors.

Name :                          Gordon Richard Davis

Designation :                 Non-Executive Director

Appointment date :         31/05/11

Address :                      7 Gibney Street

Hawthorn, VIC 3122

Australia

Biography :                    Born on 16-07-1956 in Melbourne, Victoria, Australia.

Mr. Gordon R. Davis is Non-Executive Director of Nufarm Limited

since May 31, 2011. He was Managing Director of Australian

agribusiness company AWB Limited between 2006 and 2010. Prior to

this, he held various senior executive positions with Orica, including

General Manager of Orica Mining Services (Australia, Asia) and

General Manager of Incitec Fertilizers. He has also served in a senior

capacity on various industry associations. He holds a Bachelor of

Forest Science (Hons); and has completed a Master of Agricultural

Science from the University of Tasmania and a Master of Business

Administration from the University of Melbourne.

Name :                          Peter Maxwell Margin

Designation :                 Non-Executive Director

Appointment date :         03/10/11

Address :                      35 Service Street

Hampton, VIC 3188

Australia

Biography :                    Born on 17-04-1960 in Gosford, New South Wales, Australia.

Mr. Peter Maxwell Margin serves as Non-Executive Director of

Nufarm Ltd since October 3, 2011. He was Chief Executive of

Australasian food manufacturer Goodman Fielder between 2005 and

Apri l2011. Before this, he was Chief Executive Officer and Chief

Operating Officer of National Foods Ltd. He currently serves as a

non-executive director of Bega Cheese Ltd.

Name :                          Rodney Heath

Designation :                 Company Secretary

Appointment date :         27/01/00

Address :                      6 Lockwood Avenue

Brighton East, VIC 3187

Australia

Biography :                    Born on 10-03-1953 in Auckland, New Zealand.

Mr. Rodney (Rod) Heath is Group Executive Corporate Services and

Company Secretary of Nufarm Limited. He has a Bachelor of Law

(LLB) and joined the Company in 1980, initially as Legal Officer, later

becoming assistant Company Secretary. In 1989, he moved from

New Zealand to Australia to become Company Secretary of Nufarm

Australia Ltd. In 2000, he was appointed Company Secretary of the

Company.

Staff employed :             3,193 employees (Nufarm Group)

 

Key Advisors

Auditors :                      KPMG

147 Collins Street

Melbourne, VIC 3000

Australia

Solicitors :                     ARNOLD BLOCH LEIBLER & CO

333 Collins Street

Melbourne, VIC 3000

Australia

 

SYLVIA MILLER & ASSOCIATES

131 Orrong Road

Elsternwick, VIC 3185

Australia

 

 

SHARE CAPITAL

 

Composition

Authorized Capital :                    AUD 262,142,247

No of shares :                            262,142,247 Ordinary Shares

Share par value :                        AUD 1

Issued capital :                          AUD 262,142,247

Paid up capital :                         AUD 262,142,247

 

 

OWNERSHIP / SHAREHOLDERS

 

How listed :                               Major Shareholders Only

Composition

Shareholder name :                    SUMITOMO CHEMICAL COMPANY, LIMITED

Address :                                  Tokyo Sumitomo Twin Building (East)

27-1, Shinkawa 2-chome

Chuo-ku, Tokyo 104-8260

Japan

No. of shares :                           60,210,136 Ordinary Shares

% of shares :                             23%

Shareholder name :                    HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED

Address :                                  580 George Street

Sydney, NSW 2000

Australia

No. of shares :                           28,194,902 Ordinary Shares

% of shares :                             10.77%

Shareholder name :                    NATIONAL NOMINEES LIMITED

Address :                                  23 Hunter Street

Sydney, NSW 2000

Australia

No. of shares :                           30,633,068 Ordinary Shares

% of shares :                             11.70%

Shareholder name :                    JP MORGAN NOMINEES AUSTRALIA LIMITED

Address :                                  Level 32, 225 George Street

Sydney, NSW 2000

Australia

No. of shares :                          28,305,190 Ordinary Shares

% of shares :                             10.81%

Shareholder name :                    FALLS CREEK NO 2 PTY LTD

Address :                                  Unit 4, 31 Sabre Drive

Port Melbourne, VIC 3207

Australia

No. of shares :                           10,763,092 Ordinary Shares

% of shares :                             4.11%

Shareholder name :                    AMALGAMATED DAIRIES LIMITED

Address :                                  40-42 Anzac Avenue

Auckland

New Zealand

No. of shares :                           14,430,798 Ordinary Shares

% of shares : 5.51%

Shareholder name :                    CITICORP NOMINEES PTY LIMITED

Address :                                  Level 5, 120 Collins Street

Melbourne, VIC 3000

Australia

No. of shares :                           9,642,798 Ordinary Shares

% of shares :                             3.68%

Comments :                              The Subject is listed on the Australian Stock Exchange with the symbol 'NUF'.

The Subject is owned by approximately 13,540 shareholders.

 

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

Name :                          NUFARM AUSTRALIA LTD

Affiliation type :              Wholly-owned Subsidiary

Address :                      103-105 Pipe Road

Laverton North, VIC 3026

Australia

Name :                          CROP CARE AUSTRALASIA PTY LTD

Affiliation type :              Wholly-owned Subsidiary

Address :                      Portal North, 15/16 Metroplex Avenue

Murarrie, QLD 4172

Australia

Name :                          NUFARM S.A.

Affiliation type :              Wholly-owned Subsidiary

Address :                      Edificio Panamericana Plaza

Tronador 4890 – Piso 14

(C1430DNN) Ciudad

Autonoma de Buenos Aires

Republica Argentina

Name :                          NUFARM DO BRAZIL LTDA.

Affiliation type :              Wholly-owned Subsidiary

Address :                      Rua Samuel Morse, 74

15ş andar, Cj. 152. Brooklin

Săo Paulo-SP. Cep: 04.576-060

Brazil

Name :                          NUFARM CHEMICAL (SHANGHAI) CO., LTD.

Affiliation type :              Wholly-owned Subsidiary

Address :                      17N, International Shipping & Finance Building

720 Pudong Ave

Shanghai 200120

China

Name :                          NUFARM ASIA SDN BHD

Affiliation type :              Wholly-owned Subsidiary

Address :                      L2.03 Wisma BU8

No. 11, Lebuh Bandar Utama

Bandar Utama, 47800 Petaling Jaya

Selangor Darul Ehsan

Malaysia

Name :                          CROPLANDS EQUIPMENT LTD

Affiliation type :              Wholly-owned Subsidiary

Address :                      1422 Omahu Road

Hastings 4120

New Zealand

Name :                          NUFARM ESPAŃA S.A.

Affiliation type :              Wholly-owned Subsidiary

Address :                      C/ Balmes, 200, 1o 4a

Barcelona 08006

Spain

Name :                          NUFARM UK LTD

Affiliation type :              Wholly-owned Subsidiary

Address :                      Wyke Lane

Wyke

Bradford

West Yorkshire BD12 9EJ

United Kingdom

Name :                          NUFARM AMERICAS INC.

Affiliation type :              Wholly-owned Subsidiary

Address :                      150 Harvester Drive, Suite 200

Burr Ridge, IL 60527

United States of America

Related companies and corporate

affiliations comments

: Other companies of the Nufarm Group should be considered affiliates of the

Subject.

 

 

BANK & MORTGAGES

 

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 :                               ASIC Charge Number: 2052021

Date Registered:                        27-09-2010

Charge type:                              Both Fixed & Floating

Date Created:                            27-09-2010

Chargees Name:                        NATIONAL AUSTRALIA BANK LIMITED

ASIC Charge Number:                2052039

Date Registered:                        27-09-2010

Charge type:                              Both Fixed & Floating

Date Created:                            27-09-2010

Chargees Name:                        NATIONAL AUSTRALIA BANK LIMITED

ASIC Charge Number:                2151149

Date Registered:                        23-03-2011

Charge type:                              Both Fixed & Floating

Date Created:                            15-03-2011

Chargees Name:                        NATIONAL AUSTRALIA BANK LIMITED

ASIC Charge Number:                2210573

Date Registered:                        27-07-2011

Charge type:                              Both Fixed & Floating

Date Created:                            16-05-2011

Chargees Name:                        NATIONAL AUSTRALIA BANK LIMITED

Legal Fillings

Bankruptcy fillings :                    None reported.

Court judgements :                     None reported.

Tax liens :                                 None reported.

Others :                                    None reported.

 

 

FINANCIAL DATA

 

Description

Source of financial statement :                Public Record Sources

Financial statement date :                      31/07/12

Type of accounts :                                 Full audited

Currency :                                             Australia Dollar (AUD)

Exchange rate :                                     1 USD = AUD 0.96 as of 27-09-2012

Summarized Financial Information

Consolidation type :                               Consolidated                                         Consolidated

Currency :                                             Australia Dollar (AUD)                            Australia Dollar (AUD)

Denomination :                                      (x1) One                                                (x1) One

Date of financial year end :                      31/07/12                                                31/07/11

Length of accounts :                               12 months                                             12 months

Sale turnover / Income :              2,181,551,000                                        2,083,589,000

Gross profit :                                         610,894,000                                          561,946,000

Operating profit :                                    144,972,000                                          28,089,000

Profit before tax :                                   110,323,000                                          -32,548,000

Net income :                                          72,822,000                                            -49,529,000

Non current assets :                               1,326,537,000                                        1,322,838,000

Current assets :                                     1,474,731,000                                        1,514,998,000

Inventories :                                           515,254,000                                          541,679,000

Total assets :                                        2,801,268,000                                        2,837,836,000

Current liabilities :                                  807,057,000                                          1,135,230,000

Non current liabilities :                            517,409,000                                          138,488,000

Total liabilities :                                      1,324,466,000                                        1,273,718,000

Share equity :                                        1,476,802,000                                        1,564,118,000

Reserve :                                               -326,915,000                                         -193,210,000

Retained earning :                                  496,663,000                                          451,472,000

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

 

 

OPERATION DETAILS

 

Main activities :                       The Subject engages in manufacturing and distribution of agricultural chemicals used by farmers to protect crops from damage caused by weeds, pests and disease. Subject has production and marketing operations throughout the world and sells products worldwide. The major markets include Australasia, Europe, North America and South America. Subject is also a breeder and marketer of high quality seeds with a focus on corn, sunflower and canola.

The Subject is listed on the Australian Stock Exchange (symbol NUF) and is the largest manufacturer of crop protection products in Australia.

Product & services :                 Agricultural chemicals

Specialty chemicals

Glyphosate

Diuron Insecticides

Plant nutrition

Herbicides

Fungicides

Seeds and seed treatment

Fertilisers

Brand :                                      NUFARM

NUTURF

Purchases

Local :                                      Yes

International :                             Worldwide

Sales

Local :                                      Yes

International :                             Worldwide

Key events :                              24 September 2012

Nufarm announces assignment of corporate debt rating from Moody’s

Investor Services

Nufarm today announces that Moody’s Investor Services has assigned

Nufarm a corporate rating of 'Ba2' with a stable outlook.

21 September 2012

Nufarm announces proposed Offering of Senior Unsecured Notes

Nufarm Limited today announced the intention of its wholly-owned

subsidiary, Nufarm Australia Ltd, to offer, subject to market and other

conditions, US$300 million aggregate principal amount of Senior

Unsecured Notes (the "Notes"). The Notes will only be offered to qualified institutional buyers in the United States pursuant to Rule 144A under the United States Securities Act of 1933, as amended (the "Securities Act"), and to certain persons outside the United States in offshore transactions in reliance on Regulation S under the Securities Act. If successful, Nufarm intends to apply the net proceeds to repay existing indebtedness outstanding under the A$625 million Australian revolving bank facility entered into in November 2011. Concurrent with this, US$250 million of the commitments under the A$625 million Australian revolving bank facility would be cancelled.

 

1 August 2012

 

Nufarm to Pay A$43.5 Million to Settle Shareholder Suits Nufarm Ltd., (NUF) Australia’s biggest supplier of farm chemicals, agreed to pay A$43.5 million ($46 million) to settle shareholder lawsuits that accused the company of providing misleading profit forecasts in 2010. The settlement agreement, reached today 14 months before a scheduled trial, must be approved by a judge before becoming final, Melbourne-based BNufarm said in a statement today. One group lawsuit alleged a forecast provided on March 2, 2010, of earnings between A$110 million to A$130 million was deceptive. The suit was filed Jan. 14, 2011, in a federal court in Melbourne by Slater & Gordon Ltd. (SGH) on behalf of Australian and international institutional and retail shareholders and followed a Dec. 24, 2010, lawsuit filed by Maurice Blackburn Lawyers. Nufarm cut its 2010 financial year forecast to between A$55 million and A$65 million on July 14 of that year, less than four months after its initial outlook, saying adverse weather in Australia, Europe and North America reduced demand for crop- protection products. The shares fell 28 percent the next day, the biggest decline in 16 years.

“We are pleased to put this matter behind us,” Nufarm Chairman Donald McGauchie said in today’s statement.

 

12 July 2012

 

Nufarm and Sumitomo Chemical enter into distribution contract in Italy Nufarm Limited (“Nufarm”) and Sumitomo Chemical Company Limited (“Sumitomo Chemical”) announced today that Nufarm Italia has signed a non-exclusive distribution contract with Sumitomo Chemical Italia. The new arrangements will take effect from August 1, 2012. This new collaboration will enable Sumitomo Chemical Italia to enlarge their distribution with access to all Nufarm Italia's crop protection portfolio for crop uses in Italy, except for seed treatment, while Nufarm’s revenues of branded product sales in Italy will grow further with the benefit of this additional support from Sumitomo Chemical Italia which has a large sales organisation and broad access to distribution within the Italian market.

History :                                   Nufarm was established in Melbourne, Australia in the mid 1950s. Founder,

Max Fremder, began selling phenoxy herbicides to professional spray applicators in regional Victoria and quickly established a reputation for excellent customer service and good quality products. The company moved to its present head office location at Laverton North in 1972, with the corporate headquarters located adjacent to Nufarm's largest manufacturing facility.

From the mid 1980s until early 2000, Nufarm was a subsidiary of New Zealand based Fernz Corporation. The Nufarm crop protection business continued to grow and expand during that period, with a number of overseas locations established throughout the 1990s.

In 2000, Fernz migrated the incorporation of the company from New Zealand to Australia and changed the group's name to Nufarm Limited. Since that time, the company has focused on building a global platform for its core crop protection business and has divested various industrial and specialty chemical businesses.

Various acquisitions and solid organic growth have seen the business rapidly expand. Nufarm is now ranked the 9th largest crop protection company in the world, with a clear leadership position in Australia and substantial operations in North and South America, Europe, New Zealand and Asia.

Property & Assets

Premises :                                The Subject operates from group headquarters located at the verified heading address consisting of production facilities, warehouse and administrative office.

Branches :                                In addition, the Subject has manufacturing plants in 14 countries worldwide.

 

SUMMARIZED COUNTRY RISK

 

Gross Domestic Products (GDP) & Economic Overview

Central bank :                                        Reserve Bank of Australia

Reserve of foreign exchange & gold :       US$ 43.879 billion

Gross domestic product - GDP :             US$ 1.586 trillion

GPP (Purchasing power parity) :             954.296 billion of International dollars

GDP per capita - current prices :             US$ 68,916

GDP - composition by sector :                agriculture: 4%

industry: 25.6%

services: 70.4%

Inflation :                                               2009: 1.8%

2010: 2.8%

2011: 3.4%

Unemployment rate :                              2009: 5.6%

2010: 5.2%

2011: 5.1%

Public debt

(General Government gross debt as

a % GDP)

: 2009: 16.9%

2010: 20.4%

2011: 22.9%

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 :                                          2008: US$46,843 million

2009: US$25,716 million

2010: US$32,472 million

FDI Outflows :                                        2008: US$33,604 million

2009: US$16,160 million

2010: US$26,431 million

Best countries for doing business :          10 out of 183 countries

Global competitiveness ranking :             20 (ranking by country on a basis of 142, 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

: 76%

 

PAYMENT HISTORY

 

Purchase Term

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

International :                 L/C, Telegraphic transfer, Credit up to 120 days

Sales Term

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

International :                 L/C, Prepayment, 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 sources

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.57

UK Pound

1

Rs.86.60

Euro

1

Rs.68.93

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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

 

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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.