MIRA INFORM REPORT

 

 

Report Date :

06.07.2013

 

IDENTIFICATION DETAILS

 

Name :

ZINDIA LIMITED

 

 

Registered Office :

C/o NAIR & CHEN CHARTERED ACCOUNTANTS LIMITED, 280 Great South Road Greenlane Auckland 1051

 

 

Country :

New Zealand

 

 

Date of Incorporation :

14.06.2004

 

 

Com. Reg. No.:

1521564

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

The Subject engages in export of logs and lumber.

 

 

No. of Employees :

5 employees

 

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 :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

NOTES:

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

 

ECGC Country Risk Classification List – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

New Zealand

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 


 

NEW ZEALAND - ECONOMIC OVERVIEW

 

Over the past 20 years the government has transformed New Zealand from an agrarian economy dependent on concessionary British market access to a more industrialized, free market economy that can compete globally. This dynamic growth has boosted real incomes - but left behind some at the bottom of the ladder - and broadened and deepened the technological capabilities of the industrial sector. Per capita income rose for ten consecutive years until 2007 in purchasing power parity terms, but fell in 2008-09. Debt-driven consumer spending drove robust growth in the first half of the decade, helping fuel a large balance of payments deficit that posed a challenge for economic managers. Inflationary pressures caused the central bank to raise its key rate steadily from January 2004 until it was among the highest in the OECD in 2007-08; international capital inflows attracted to the high rates further strengthened the currency and housing market, however, aggravating the current account deficit. The economy fell into recession before the start of the global financial crisis and contracted for five consecutive quarters in 2008-09. In line with global peers, the central bank cut interest rates aggressively and the government developed fiscal stimulus measures. The economy posted a 2% decline in 2009, but pulled out of recession late in the year, and achieved roughly 2% per year growth in 2010-12. Nevertheless, key trade sectors remain vulnerable to weak external demand. The government plans to raise productivity growth and develop infrastructure, while reining in government spending.

Source : CIA

 


IDENTIFICATION DETAILS

 

Verified Address

 

Subject name :              ZINDIA LIMITED

Business address :        8B Mariners Mall, 100 High Street

Town :                          Picton

Province :                     Marlborough

Zip/postal code :           7220

Country :                       New Zealand

Tel :                              +64 3 5737477

Fax :                             +64 3 5737460

Email :                          jacob@zindia.co.nz

Website :                      www.zindia.co.nz

 

Registered address :     C/o NAIR & CHEN CHARTERED ACCOUNTANTS LIMITED

280 Great South Road

Town :                          Greenlane

Province :                     Auckland

Zip/postal code :           1051

Country :                      New Zealand

Postal address :            P.O. Box 137

Town :                          Picton

Province :                     Marlborough

Zip/postal code :           7250

Country :                       New Zealand

 

 

SUMMARY DETAILS

 

Executive Summary

 

Date founded or registered :      14/06/2004

Legal form :                              Private Limited Company

Chief executive :                       Jacob Mani Mannothra

Issued & paid up capital :          NZD 3,000,000

Line of business :                      Logs and lumber exporters.

Staff employed :                       5 employees

 

 

CREDIT RISK OPINION

 

Company Analysis

 

Country risk :                             Country risk is minimal

Operation trend :                       Operational trend is steady

Management experience :          Management is reasonably experienced

Financial performance :             Financial performance is good

Organization structure :              Organizational structure is stable

Detrimental :                             No detrimental found

Payment history :                      No payment delays noted

Comments :                              It is advisable to conduct business dealing on prepayment or L/C for larger credit

transaction than suggested. Although the Subject seems well positioned in the market and financially stable however without official financial information it would be difficult to grant a large credit amount. Our suggestion of credit is based on years of establishment, nature of business, capital investment and ownership

background.

 

 

STATUTORY DETAILS

 

Registry Data

 

Registration date :                     14/06/2004

Legal form :                              Private Limited Company

Registration no                          1521564

Registered authority :                New Zealand Companies Office

Registry status :                        Live/Active

Previous name :                        None reported.

Change of legal form :               None reported.

 

 

MANAGEMENT / DIRECTORS

 

Key Management

 

Name :                          Jacob Mani Mannothra

Designation :                Managing Director

 

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

 

Name :                          Gerald Hunt

Designation :                Director

Appointment date :        14/06/04

Address :                      148A East Coast Road

Forrest Hill, Auckland 0620

New Zealand

Biography :                   -Director of Zindia Ltd, Fortimber Exports Ltd

-Winner of Leadership Award in Forestry

-Ex Chairman of Wood New Zealand(New Zealand’s Pan Industry

Forestry Promotion Programme)

-Ex CEO of Pine Manufacturers Association

 

Name :                          Yogesh Jain

Designation :                Director

Appointment date :        08/01/13

Address :                      C/o SITA RAM FEROZI LALL JAIN PRIVATE LIMITED

1/38, W.H.S., Kirti Nagar

New Delhi 110015

Delhi

India

 

Name :                          Jacob Mani Mannothra

Designation :                Director

Appointment date :        14/06/04

Address :                      58 Marina View Estate

Waikawa, Marlborough 7281

New Zealand

Biography :                   -Director of Zindia Ltd, Fortimber Exports Ltd, Simangie Movies Ltd

-Member Executive Committtee of India - New Zealand Business

Council

-Awarded for his role in Promotion of Rubberwood

-Ex member of Global Ruberwood Project (ITC/UNCTAD/WTO)

-Ex Manager of New Zealand’s India Pine Export Network

Staff employed :           5 employees

 

Key Advisors

 

Auditors :                      NAIR & CHEN CHARTERED ACCOUNTANTS LIMITED

280 Great South Road

Greenlane, Auckland 1051

New Zealand

 

 

SHARE CAPITAL

 

Composition

 

Authorized Capital :       NZD 3,000,000

No of shares :               3,000,000 Shares

Share par value :           NZD 1

Issued capital :              NZD 3,000,000

Paid up capital :            NZD 3,000,000

 

 

OWNERSHIP / SHAREHOLDERS

 

How listed :                   Full List

 

Composition

 

Shareholder name :       Jointly held by Jacob Mani Mannothra, Lali Jo Jacob & NAIR & ASSOCIATES

TRUSTEE COMPANY LIMITED

Address :                      Jacob Mani Mannothra

58 Marina View Estate

Waikawa, Marlborough 7281

New Zealand

Lali Jo Jacob

3 Rochdale Circuit

Stanhope Gardens, NSW 2768

Australia

NAIR & ASSOCIATES TRUSTEE COMPANY LIMITED

280 Great South Road

Greenlane, Auckland 1051

New Zealand

No. of shares :              1,500,000 Shares

% of shares :                50%

 

Shareholder name :       SOUNDS OF FOREST LIMITED

Address :                      C/o NAIR & CHEN CHARTERED ACCOUNTANTS LIMITED

280 Great South Road

Greenlane, Auckland 1051

New Zealand

No. of shares :              1,500,000 Shares

% of shares :                50%

 

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

 

Name :              SOUNDS OF FOREST LIMITED

Affiliation type :            Shareholder

Address :          C/o NAIR & CHEN CHARTERED ACCOUNTANTS LIMITED

280 Great South Road

Greenlane, Auckland 1051

New Zealand

 

Name :              FORTIMBER EXPORTS LIMITED

Affiliation type :            Associate

Address :          C/o NAIR & CHEN CHARTERED ACCOUNTANTS LIMITED

280 Great South Road

Greenlane, Auckland 1051

New Zealand

 

Name :              GREEN TREE HARVESTERS LIMITED

Affiliation type :            Associate

Address :          C/o NAIR & CHEN CHARTERED ACCOUNTANTS LIMITED

280 Great South Road

Greenlane, Auckland 1051

New Zealand

 

Name :              OYSTER BAY RESORTS LIMITED

Affiliation type :            Associate

Address :          C/o NAIR & CHEN CHARTERED ACCOUNTANTS LIMITED

280 Great South Road

Greenlane, Auckland 1051

New Zealand

 

Name :              HAKA HAKA BAY LIMITED

Affiliation type : Associate

Address :          C/o NAIR & CHEN CHARTERED ACCOUNTANTS LIMITED

280 Great South Road

Greenlane, Auckland 1051

New Zealand

Related companies and corporate affiliations comments: Other companies of the Sound of Forest Group should be considered affiliates of the Subject.

 

 

BANK & MORTGAGES

 

Bank Details

 

Name of bank :                         Bank of New Zealand

Address :                      New Zealand

Account details :           Current Account

Comments :                  It is generally not the policy of local banks to provide credit status information to

non related parties, however interested parties would be advised to consult first with the Subject if banker's references are required.

Mortgages :                  None reported.

 

Legal Fillings

 

Bankruptcy fillings :       None reported.

Court judgements :        None reported.

Tax liens :                     None reported.

Others :                        None reported.

 

 

FINANCIAL DATA

 

Description

 

Comments :                  Industry source states the Subject's estimated annual turnover is between NZD

70 million to NZD 100 million.

Private Companies in New Zealand are not required to file accounts unless

classified as "Large", which at the moment means that two out of the following:

- The company has a sales turnover of over NZD 20,000,000;

- The company has total assets of over NZD 10,000,000;

- The company employs 50 people or more.

The Subject does not meet the criteria of being a large Private Company.

 

 

OPERATION DETAILS

 

Main activities :                         The Subject engages in export of logs and lumber.

The Subject is the largest New Zealand log exporter to India.

Product & services :      Unsawn logs

Timber products

Plywoods

Lumber

Wood Pulp

Laminated wood

Purchases

Local :                          Yes

International :                None reported.

Sales

Local :                          None reported.

International :                Mainly to India, China

Key events :                  26 March 2010

Wood Exports Show India Trade Potential

New Zealand’s population might be 0.37% the size of India’s, but an exporter of Kiwi wood to the Indian market says there are enoughsimilarities to make the two countries natural trading partners.

Jacob Mani Mannothra – managing director at Marlborough-based Zindia –said the free trade agreement now being negotiated between the twonations could have a massive impact.

“India could be New Zealand’s biggest trading ally in the coming years,because we have so many things in common. There is synergy in thoughtand language, as well as similar legal systems and a love of cricket. The owner/operator style of business is also a significant part of both economies, with India and New Zealand both producing people who would rather own the business than just work for it.”

Zindia was named the top business operating in the Indian business sector in NBR‘s monthly Exciting Companies series with an 85.8% rating in surveys conducted by strategic business consultancy New River. It was followed by Relianz Forex, Masala Indian Restaurant in Wellington and fast food retailer Bikanervala.

Getting Wood

The business was established in 2004 and ships logs and other timber products out of Marlborough, with one ship making the trip to the subcontinent every month, generating about $US4 million in turnover each voyage.

It’s a competitive industry with other New Zealand timber companies keeping an eye on India, while there is also competition from low-costbusinesses from countries such as Malaysia or Korea.

Mr Mannothre – who co-owns Zindia with Rick Osborne – said Zindia had sidestepped its competitors by focusing on that shared trait for small businesses.

“As a rule, in India we only sell to small sawmillers, so there are no middlemen. By going directly to the small guys who actually use the product, we cut all the middlemen speculators right out of the picture.”

He said having a sales channel to India also helped Zindia make the logging business more viable, as the company found a willing market for wood that wasn’t always wanted in New Zealand.

“India takes the industry-logs, for which there is a limited market for in New Zealand. For a forest owner, to be really viable, you need to sell every single grade and you can get a reasonable return by shipping to India.”

With India’s economy emerging from the global recession relatively unscathed, Mr Mannothra said he had no doubt the business links between the two countries were only going to strengthen.

“India is a growing market with one billion people and a younger population than any other country. It’s a natural fit for New Zealand in the future.”

Source: www.nzwood.co.nz

 

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 New Zealand

Reserve of foreign exchange & gold :    US$ 17.012 billion

Gross domestic product - GDP :            US$ 180.548 billion

GPP (Purchasing power parity) :            126.628 billion of International dollars

GDP per capita - current prices :            US$ 40,454

GDP - composition by sector :              agriculture: 4.7%

industry: 24%

services: 71.3%

Inflation :                                              2010: 2.3%

2011: 4%

2012: 2.1%

Unemployment rate :                             2010: 6.5%

2011: 6.5%

2012: 6%

Public debt

(General Government gross debt as

a % GDP) :                                           2010: 32.3%

2011: 37%

2012: 36%

Government bond ratings :                    Standard & Poor's: AA

Moody's rating: Aaa

Moody's outlook: STA

Market value of publicly traded

shares:                                                             US$71.66 billion

Largest companies in the country :         Fletcher Building Limited, Fonterra Co-Operative Group Ltd, ANZ National Bank Limited, Telecom Corporation of New Zealand Ltd, Westpac New Zealand Ltd, Carter Holt Harvey Limited, Progressive Enterprises Ltd

 

Trade & Competitiveness Overview

 

Total exports :               US$37.73 billion

Exports commodities : Dairy Products, Meat, Wood And Wood Products, Fish, Machinery

Total imports :               US$35.65 billion

Imports commodities :   Machinery And Equipment, Vehicles And Aircraft, Petroleum, Electronics,

Textiles, Plastics

Export - major partners : Australia 22.2%, China 12.5%, US 8.5%, Japan 7.1%

Import - major partners : China 16.1%, Australia 15.9%, US 10.4%, Japan 6.3%, Singapore 4.6%,

Germany 4.3%

FDI Inflows :                 2009: US$-761 million

2010: US$636 million

2011: US$3,369 million

FDI Outflows :               2009: US$-1,037 million

2010: US$591 million

2011: US$2,856 million

Best countries for doing business : 3 out of 185 countries

Global competitiveness ranking : 23 (ranking by country on a basis of 144, the first is the best)

 

Country and Population Overview

 

Total population :          4.46 million

Total area :                    270,467 km2

Capital :                        Wellington

Currency :                     New Zealand dollars (NZD)

Internet users as % of total

Population :                  86%

 

 

PAYMENT HISTORY

 

Purchase Term

 

Local :              Bank transfer, D/P, Credit 30-120 days

Sales Term

International :    L/C, Telegraphic transfer, D/P, Credit 30-120 days

 

Trade Reference/ Payment Behaviour

Comments :      As local and international trade references were not supplied, the Subject's payment track record history cannot be appropriately determined but based on our research, payments are believed to be met without delay.

 

Investigation Note

 

Sources :          Interviews and material provided by the Subject

:                       Other official and local business sources


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.34

UK Pound

1

Rs.90.78

Euro

1

Rs.77.81

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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%)

 

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.