MIRA INFORM REPORT

 

 

Report Date :

14.08.2013

 

IDENTIFICATION DETAILS

 

Name :

BALAMARA RESOURCES LIMITED

 

 

Formerly Known As :

SULTAN CORPORATION LIMITED

 

 

Registered Office :

Level 1, 350 Hay Street Subiaco Western Australia 6008

 

 

Country :

Australia

 

 

Financials (as on) :

31.12.2012 (Consolidated)

 

 

Date of Incorporation :

16.08.1993

 

 

Com. Reg. No.:

061219985

 

 

Legal Form :

Listed Australian Public Company

 

 

Line of Business :

Exploration stage of mineral products.

 

 

No. of Employees :

5 employees (Full Time)

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Small Company

Payment Behaviour :

Slow

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, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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

 

The Australian economy has experienced continuous growth and features low unemployment, contained inflation, very low public debt, and a strong and stable financial system. By 2012, Australia had experienced more than 20 years of continued economic growth, averaging 3.5% a year. Demand for resources and energy from Asia and especially China has grown rapidly, creating a channel for resources investments and growth in commodity exports. The high Australian dollar has hurt the manufacturing sector, while the services sector is the largest part of the Australian economy, accounting for about 70% of GDP and 75% of jobs. Australia was comparatively unaffected by the global financial crisis as the banking system has remained strong and inflation is under control. Australia has benefited from a dramatic surge in its terms of trade in recent years, stemming from rising global commodity prices. Australia is a significant exporter of natural resources, energy, and food. Australia's abundant and diverse natural resources attract high levels of foreign investment and include extensive reserves of coal, iron, 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 is an open market with minimal restrictions on imports of goods and services. The process of opening up has increased productivity, stimulated growth, and made the economy more flexible and dynamic. Australia plays an active role in the World Trade Organization, APEC, the G20, and other trade forums. Australia has bilateral free trade agreements (FTAs) with Chile, Malaysia, New Zealand, Singapore, Thailand, and the US, has a regional FTA with ASEAN and New Zealand, is negotiating agreements with China, India, Indonesia, Japan, and the Republic of Korea, as well as with its Pacific neighbors and the Gulf Cooperation Council countries, and is also working on the Trans-Pacific Partnership Agreement with Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the US, and Vietnam.

Source : CIA


IDENTIFICATION DETAILS

 

Verified Address

Subject name :              BALAMARA RESOURCES LIMITED

Business address :        Level 1, 350 Hay Street

Town :                          Subiaco

Province :                     Western Australia

Zip/postal code :           6008

Country :                       Australia

Tel :                              +61 8 63654519

Fax :                             +61 8 93886040

Email :                          enquiries@balamara.com.au

Website :                      www.balamara.com.au

 

Registered address :     Level 1, 350 Hay Street

Town :                          Subiaco

Province :                     Western Australia

Zip/postal code :           6008

Country :                       Australia

Postal address :            P.O. Box 222

Town :                          Subiaco

Province :                     Western Australia

Zip/postal code :           6904

Country :                       Australia

 

SUMMARY DETAILS

 

Executive Summary

Date founded or registered :      16/08/1993

Legal form :                              Listed Australian Public Company

Chief executive :                       Michael Ralston

Issued & paid up capital :          AUD 66,860,247.18

Sales turnover :                         AUD 170,043 (Consolidated 12 months, 30/06/2012)

Net income :                             AUD -9,373,634 (Consolidated 12 months, 30/06/2012)

Total fixed assets :                    AUD 5,973,160 (Consolidated 12 months, 30/06/2012)

Line of business :                      Exploration stage of mineral products.

Staff employed :                       5 employees (Full Time)

 

CREDIT RISK OPINION

 

Company Analysis

Country risk :                             Country risk is minimal

Operation trend :                       Operational trend is declining

Management experience :          Management is modestly experienced

Financial performance :             Financial performance is poor

Organization structure :              Organizational structure is acceptable

Detrimental :                             No detrimental found

Payment history :                      Payment punctuality is undetermined

Credit amount suggestion :        Fully secured terms.

Credit amount asked :                Not described.

Comments :                              Caution is needed in granting credit due to the Subject’s constant losses.

 

STATUTORY DETAILS

 

Registry Data

Registration date :         16/08/1993

Legal form :                  Listed Australian Public Company

Registration no              Australian Company Number: 061219985

Registered authority :    Australian Securities and Investments Commission

Fiscal/ Tax no :                         Australian Business Number: 84061219985

Registry status :            Live/Active

Previous name :            SULTAN CORPORATION LIMITED

WYTOMIC LIMITED

QUADTEL LIMITED

QUADTEL NL

CALEDONIAN PACIFIC MINERALS N.L.

ASIA-PACIFIC MINERALS N.L. (initial)

Change of legal form :   None reported.

 

MANAGEMENT / DIRECTORS

 

Key Management

Name :              Michael Ralston

Designation :    Managing Director

 

Name :              Daniel Mark Kendall

Designation :    Financial Controller

 

Name :              Ellie Kempe

Designation :    Administration Manager

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

Name :              Derek Lenartowicz

Designation :    Director

Appointment date : 02/05/07

Address :          13 Kingsland Avenue

City Beach, WA 6015

Australia

Biography :       Born on 30/05/1958 in Bedzin, Poland.

Mr. Lenartowicz has been with the company since the 2nd of May

2007 as an Executive Director, and recently appointed as Executive

Chairman from the 1st of August 2011. He brings to the company

extensive project development and mining experience, from previous

positions within major Australian resources companies at a senior

management level. As an executive chairman, he will focus primarily

on bringing new projects into the company and assisting with the

development of these projects moving forward. Mr Lenartowicz is a

mining engineer with significant experience in developing and

operating large scale resource projects such as Western Mining’s

flagship nickel operation at Mt Keith in Western Australia (1.7 million

tones of nickel). Prior to his engagement with Western Mining, he

held senior positions at North Limited and Dominion Mining. Most

recently, Mr. Lenartowicz was the Managing Director of View

Resources Limited.

 

Name :             Milos Bosnjakovic

Designation :    Director

Appointment date : 02/06/09

Address :          30 Rossello Lane

Subiaco, WA 6008

Australia

Biography :       Born on 01/03/1958 in Tuzla, Bosnia and Herzegovina.

Mr. Bosnjakovic was co-founder of Sultan Corporation Limited which

became Balamara Resources, and has been with the Company as

Executive Director since the 2nd of June 2009. Prior to emigrating to

New Zealand in 1996, Mr. Bosnjakovic served as a lawyer in the

Government of former Yugoslavia. During his time in New Zealand,

he was the Managing Director of Globe Trade, a company whose

value tripled under his leadership. Currently, Mr. Bosnjakovic is the

Managing Director of the family run residential development company

MBL Construction, as well as the founder and Executive Chairman of

the building construction company MB Point Pty Ltd. He has

developed MBL Construction from ground level into a multimillion

dollar property development company, and has lead MB Point to

become one of the state’s most successful boutique residential

building companies which employees over 100 contractors and

permanent staff. Mr. Bosnjakovic possesses extensive knowledge in

project management and development, financial control, and contract

negotiation. As a former practising lawyer, he has a high level of

competency in all aspects of business law, and laws relating to

private and public companies. Thanks to considerable business

experience within Australia and overseas, Mr. Bosnjakovic has strong

managerial skills which often encompass the running of numerous

projects at one time. Extensive travel and ability to speak multiple

languages has helped him build a wide and influential business and

political network.

 

Name :              Michael Ralston

Designation :    Director

Appointment date : 28/02/11

Address :          20 Keans Avenue

Sorrento, WA 6020

Australia

Biography :       Born on 22/04/1967 in Harare, Zimbabwe.

Mr. Ralston was appointed to the board as a Non-Executive Director

on 1 March 2011, and quickly became Managing Diretor as of the 1st

of August 2011. Mike has been a Senior Executive Manager with

extensive international experience over the last 20 years, working in

both private and public companies in Australia, Africa and the United

Kingdom. He has spent the past 7 years living in Australia, and he is

now an Australian citizen, residing in Perth with his family. He has

worked as Chief Finance Officer for four junior ASX-listed resource

companies over that period, covering both senior management and

board roles. Mr Ralston has 15 years’ experience working in senior

corporate and finance roles across the world and has held both

executive management and Director positions with several ASX-listed

resource companies since his move to Australia. As CFO of

Kangaroo Resources, Mr Ralston was part of the management team

which helped drive the company in the space of two years from a $5

million shell company with minimal value or assets to a company with

a current market capitalisation of $600 million which is poised to

become one of Indonesia’s big coal producers. Mike is an

aggressive, ambitious and energetic driver of the business with a

strong delivery record and he is most suited to a dynamic growth

environment. He is a team player but is also entrepreneurial by

nature and he has wide commercial and management experience,

particularly in the mining sector. He can fulfil a wide scope of

executive management functions including general management,

financial management, corporate and strategy, reporting, fund

raising, business development, company secretarial and shareholder

relations.

 

Name :              Michael Anthony Hale

Designation :    Director

Appointment date : 12/04/11

Address :          Unit 17, 38 Fielder Street

East Perth, WA 6004

Australia

Biography :       Born on 24/03/1954 in Ayr, Queensland, Australia.

Mr Hale was appointed as the Independent Non-Executive Director

on the 12th of April 2011. Michael is a former public servant within the

Cabinet Office for the state Government of Western Australia, with

strong public and administration skills and experience. His role at

Balamara is primarily with governance, strategy and other corporate

office affairs. He also plays a key role as an independent Director on

the board.

Name :              Daniel Mark Kendall

Designation :    Company Secretary

Appointment date : 11/01/13

Address :          55B Hamilton Street

Stirling, WA 6021

Australia

Biography :       Born on 26/03/1987 in East Fremantle, Western Australia, Australia.

Mr. Kendall is a Chartered Accountant with a background in finance

derived from his time in audit during his career at BDO Perth, along

with international experience working in London as a Financial

Controller within the Royal Bank of Scotland. His focus is on all

financial matters, including treasury, systems, procedures, budgeting

and forecasting, financial reporting and controls. His experience in

developing appropriate financial controls and cash management

within the Company is critical as Balamara grows into a larger and

more mature resource company over the medium term.

Staff employed : 5 employees (Full Time)

Key Advisors

Auditors :          BDO AUDIT (WA) PTY LTD

38 Station Street

Subiaco, WA 6008

Australia

 

SHARE CAPITAL

 

Composition

Authorized Capital :       AUD 66,860,247.18

No of shares :               286,020,913 Ordinary Shares

Share par value :           No par value

Issued capital :              AUD 66,860,247.18

Paid up capital :            AUD 66,860,247.18

 

OWNERSHIP / SHAREHOLDERS

 

How listed :                   Major Shareholders Only

 

Composition

Shareholder name :       AMPLE SKILL LIMITED

Address :                      2205, 22/F., Harbour Centre

25 Harbour Road

Wan Chai

Hong Kong

No. of shares :              115,422,279 Ordinary Shares

% of shares :                35.13%

 

Shareholder name :       MBL CONSTRUCTION PTY LTD

Address :                      30 Rossello Lane

Subiaco, WA 6008

Australia

No. of shares :              16,613,810 Ordinary Shares

% of shares :                5.06%

 

Shareholder name :       Derek Lenartowicz

Address :                      13 Kingsland Avenue

City Beach, WA 6015

Australia

No. of shares :              16,741,254 Ordinary Shares

% of shares :                5.10%

Comments :                  The Subject's shares are listed on the Australian Securities Exchange (ASX).

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

Name :              NORTH MINING DOO

Affiliation type : Wholly-owned Subsidiary

Address :          Dalmatinska 176

Podgorica 81000

Montenegro

 

Name :              POLMETAL SP. Z O.O.

Affiliation type : Subsidiary

Address :          Ul Kopernika 4/6

40-064 Katowice

Poland

 

Name :              GLOBAL MINERAL PROSPECTS SP. Z O.O.

Affiliation type : Subsidiary

Address :          Ul Kopernika 4/6

40-064 Katowice

Poland

 

Name :              ISABELLA MINERALS PTY LTD

Affiliation type : Wholly-owned Subsidiary

Address :          Level 1, 350 Hay Street

Subiaco, WA 6008

Australia

 

Name :              BALKAN MINING PTY LTD

Affiliation type : Wholly-owned Subsidiary

Address :          Level 1, 350 Hay Street

Subiaco, WA 6008

Australia

 

Name :              POLISH INVESTMENTS PTY LTD

Affiliation type : Wholly-owned Subsidiary

Address :          Level 1, 350 Hay Street

Subiaco, WA 6008

Australia

 

BANK & MORTGAGES

 

Bank Details

Name of bank : Australia And New Zealand Banking Group 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.

 

FINANCIAL DATA

 

Description

Source of financial statement :   Public Record Sources

Financial statement date :          30/06/12

Type of accounts :                    Full audited

Currency :                                 Australia Dollar (AUD)

Exchange rate :                         1 USD = AUD 1.09 as of 13-08-2013

 

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 :        31/12/12                        30/06/12                        30/06/11

Length of accounts :                 6 months                      12 months                     12 months

Sale turnover / Income :             17,309                          170,043                         194,659

Profit before tax :                      -3,173,229                    -9,373,634                     -2,945,263

Net income :                             -3,173,229                     -9,373,634                     -2,945,263

Non current assets :                  7,267,117                      3,695,159                      3,616,507

Current assets :                         2,191,686                      2,278,001                      5,479,287

Total assets :                            9,458,803                      5,973,160                     9,095,794

Current liabilities :                      958,971                         412,874                         717,757

Non current liabilities :               8,653                            0                                  0

Total liabilities :                         967,624                         412,874             717,757

Share equity :                            8,491,179                      5,560,286                      8,378,037

Reserve :                                  4,490,477                     4,257,133                      594,023

Retained earning :                     -51,560,530                   -48,408,793                   -39,093,897

 

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

subsidiaries.

 

OPERATION DETAILS

 

Main activities :                                     The Subject engages in exploration and production of minerals mainly

copper, zinc, lead, silver and gold. However, production for any of the

Subject's projects is yet to begin.

The Subject has 6 mineral exploration projects; Monty Project in

Montenegro, Bogdan Project in Poland, Elsienora And Peelwood Projects

in New South Wales, Australia, RSC Project and Varesh Project in Bosnia

& Herzegovina.

During the fiscal year ended June 30, 2012, the Subject changed its

primary focus from the New South Wales, Australia Projects consisting of

Elsienora and Peelwood, to its Central European projects in Montenegro

and Poland.

 

- Monty Project (100% owned by the Subject)

Zinc-Lead-Copper-Silver Deposit In Montenegro

The Monty Project is in the eastern part of Montenegro located near to the

town of Mojkovac and approximately 100km from the capital city of

Podgorica. Mojkovac is linked by rail and road between Podgorica and

Belgrade, Serbia.

The Subject received a 25 year exploration and mining lease of the Monty

Project in late 2010 on favorable acquisition terms. Subject has completed

drilling in late 2011 for metallurgical samples and work is currently

underway on the feasibility study as the company is targeting to bring

Monty into production in early 2014 subject to funding.

 

Monty Project Highlights include:

- 9.2 Million Tonnes of Zinc, Lead, Copper and Gold Mineralisation;

- Monty Project contains 5 Large Already Defined Deposits;

Current Monty Project Status: In exploration drilling stage.

- Bogdan Project (85% owned by the Subject)

Highly Prospective Base Metals Exploration Project In Poland

Located in the Lower Silesia region of South-Western Poland, Bogdan is a

tenement of approximately 42 square kilometers bordering the significant

area of established copper/silver mines owned and operated by KGHM

Polska Miedz, one of the largest copper producers in Europe.

In September 2011, the Subject acquired an 85 % ownership in “Polmetal”

a local polish company holding the Bogdan tenement in accordance with

an investment agreement.

Historically this area sits in a region that has produced over 20 million

tonnes of copper over the past 40 years, most of it produced by KGHM.

The area is defined by a large fault system that runs south-east and a vast

tabular mineralised zone is associated with this fault, covering an area of

some 200-300 square kilometres. KGHM have developed a mature,

end-to-end mining and smelting operation in this region since the 1960’s

that has built it into one of the largest listed companies on the Warsaw

Stock Exchange.

Current Bogdan Project Stage: In exploration drilling stage.

- RSC Project (Bosnia & Herzegovina)

Highly Prospective Concession Secured Adjacent To Large Operating

Zinc-Lead Mine In Montenegro

In March 2013 Balamara was awarded the RSC Project; a highly

prospective exploration concession in the Balkans region which is

strategically located immediately adjacent to the currently operating Suplja

Stijena zinc-lead mine in north-western Montenegro. The Suplja Stijena

mine has significant resources and reserves of zinc, lead and copper with

some gold and silver. Balamara won this tender ahead of significant local

competition, including from Suplja Stijena itself, which reflects both the

prospectivity of the concession and the high level of interest in it within the

industry. There was no acquisition fee for the Project, with exception to the

standard concession fees applicable.

The concession area – known locally as the

RAJKOVICI-SELIŠTE- CELEBICI ore field, which Balamara will abbreviate to

“RSC Project” (“RSC” or the “Project”) – comprises an extensive area of

over 50sqkm, and is located immediately across the Montenegrin border in

the Srpska Republic, which is part of Bosnia-Herzegovina. Balamara owns

80% of local subsidiary “Western Mining” d.o.o which has been awarded

the rights to explore the RSC Project.

Current RSC Project Status:

Under the terms of the concession agreement, Balamara is obliged to plan

an initial exploration programme with a view to commencing activities

shortly thereafter.It is likely that drilling may commence within the RSC

Project during 2H 2013.

- Varesh Project (Bosnia-Herzegovina)

In 2012 Balamara Resources acquired its second advanced Zinc-Silver

Project in the Balkans region, located close to its existing Montenegro

(Monty) Project.

The acquisition of the new Varesh Project – which is located in

Bosnia-Herzegovina just ~30km north of the capital city Sarajevo, and

close to existing infrastructure including roads, rail, power and water – adds

further momentum to the Company’s strategy of consolidating several

quality base metal projects across the region.

Together with the Monty Project, the Company now has a significant

pipeline of near-production assets in Central Europe, providing a strong

foundation for the Company’s growth ambitions, including its aim to

become a significant supplier of quality base metal concentrates from this

region.

Current Varesh Project Stage: Not Started

- Peelwood Project in New South Wales, Australia (100% owned by the

Subject)

Copper – Zinc Project In New South Wales, Australia

Balamara Resources Limited is 100% owner of the six exploration licences

(EL’s) located in the Lachlan Fold Belt of eastern New South Wales,

Australia.

The seven exploration licenses are:

EL2934 – Peelwood North

EL2934 – Peelwood South

EL6081 – Single Tree Hill

EL6082 – Junction Point

EL6767 – Elsienora

EL6831 – Black Springs

EL6955 – Mount Costigan

All tenements form a contiguous package that is located from around 50-80

kilometres (km) south of the City of Bathurst in eastern New South Wales.

Balamara’s main asset at Peelwood is the Peelwood North deposit

(formerly known as John Fardy).

In addition, the Peelwood Copper-Zinc project has several historical mines

and prospects with zinc-rich volcanic-hosed sulphide-style mineralization.

Each of these old mines or prospects has the potential for similar style of

mineralization to that at Peelwood North deposits.

Current Peelwood Project Stage: Exploration drilling stage

- Elsienora Project(New South Wales, Australia)

The Elsienora Project lies mainly within EL6767 and covers an area

37km2. It is contiguous with and immediately to the south of EL6082 and

contains the extensions of the historical Elsienora prospects. The geology

consists of Ordovician sediments, volcanic and intrusive in addition to the

Late Silurian and Early Devonian sediments and volcanics of the Peelwood

area.

Current Elsienora Project Stage: Exploration drilling stage

 

Purchases

International :                            The Subject has mineral exploration projects in Australia, Montenegro,

Poland and Bosnia and Herzegovina.

 

Sales

Local :                                      None reported.

International :                            None reported.

 

Property & Assets

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

consisting of an administrative office.

Branches :                                None reported.

 

SUMMARIZED COUNTRY RISK

 

Gross Domestic Products (GDP) & Economic Overview

Central bank :                                        Reserve Bank of Australia

Reserve of foreign exchange & gold :    US$ 46.714 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 :                                              2010: 2.8%

2011: 3.4%

2012: 2.7%

Unemployment rate :                             2010: 5.2%

2011: 5.1%

2012: 5.2%

Public debt

(General Government gross debt as

a % GDP):                                            2010: 20.4%

2011: 22.9%

2012: 24%

Government bond ratings :                    Standard & Poor's: AAA

Moody's rating: Aaa

Moody's outlook: STA

Market value of publicly traded

shares:                                                             US$1.198 trillion

Largest companies in the country :         Qantas Airways (Airline),Coca-Cola Amatil (Beverages), CSL (Biotechs),

Brambles (Business & Personal Services),Crown Ltd (Casinos & Gaming), Amcor (Containers & Packaging),Suncorp-Metway (Diversified Insurance), BHP Billiton (Diversified Metals & Mining),Newcrest Mining (Diversified Metals & Mining), Orica (Diversified Metals & Mining), Iluka

Resources(Diversified Metals & Mining), Origin Energy (Electric Utilities),

AGL Energy (Electric Utilities), Wesfarmers (Food Retail), Woolworths (Food Retail), Metcash (Food Retail), Macquarie Group (Investment services), AMP (Investment services), Challenger Ltd (Investment services), Fortescue Metals Group (Iron & Steel), Bluescope Steel (Iron & Steel), Commonwealth Bank (Major Banks), Westpac Banking Group

(Major Banks), National Australia Bank (Major Banks), ANZ (Major Banks), Woodside Petroleum (Oil & Gas Operations), Santos (Oil & Gas

Operations), Caltex Australia (Oil & Gas Operations), WorleyParsons (Oil

Services & Equipment), Toll Holdings (Other Transportation), Transurban

Group (Other Transportation), QBE Insurance Group (Property & Casualty Insurance), Insurance Australia Group (Property & Casualty Insurance), QR National (Railroads), Westfield Group (Real Estate), Stockland Australia (Real Estate), Westfield Retail Trust (Real Estate), Lend Lease (Real Estate), CFS Retail Property Trust (Real Estate), Goodman Group (Real Estate), Bendigo & Adelaide Bank (Regional Banks), Bank of Queensland (Regional Banks), Incitec Pivot (Specialized Chemicals), Telstra (Telecommunications Services)

 

Trade & Competitiveness Overview

Total exports :                                       US$263.9 billion

Exports commodities :                          Coal, iron ore, gold, meat, wool, alumina, wheat, machinery and transport equipment

Total imports :                                       US$239.7 billion

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

telecommunication equipment and parts; crude oil and petroleum products

Export - major partners :                        China 27.4%, Japan 19.2%, South Korea 8.9%, India 5.8%

Import - major partners :                        China 18.5%, US 11.4%, Japan 7.9%, Singapore 6.3%, Germany 4.7%

FDI Inflows :                                         2009: US$26,554 million

2010: US$35,556 million

2011: US$41,317 million

FDI Outflows :                                       2009: US$16,693 million

2010: US$12,791 million

2011: US$19,999 million

Best countries for doing business :        10 out of 185 countries

Global competitiveness ranking :            20 (ranking by country on a basis of 144, the first is the best)

 

Country and Population Overview

Total population :                      22.68 million

Total area :                                7,692,024 km2

Capital :                                    Canberra

Currency :                                 Australian dollars (AUD)

Internet users as % of total

population:                               79%

 

PAYMENT HISTORY

 

Purchase Term

Local :              Bank transfer, Credit 30-90 days

International :    Telegraphic transfer, Credit 30-90 days

 

Sales Term

Local :              None

International :    None

 

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.

 

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.61.43

UK Pound

1

Rs.95.07

Euro

1

Rs.81.77

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

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NB

New Business

 

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This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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