MIRA INFORM REPORT
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Report Date : |
11.06.2013 |
IDENTIFICATION DETAILS
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Name : |
THE GRIFFIN COAL MINING COMPANY PTY LIMITED |
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Formerly Known As : |
THE GRIFFIN
COAL MINING COMPANY LIMITED |
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Registered Office : |
Level 15, 28
The Esplanade, Perth, Western Australia, Zip/postal code 6000 |
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Country : |
Australia |
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Financials (as on) : |
31.03.2012 |
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Date of Incorporation : |
16.01.1925 |
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Com. Reg. No.: |
008667285 |
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Legal Form : |
Australian
Proprietary Company |
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Line of Business : |
Exploration,
mining and marketing of coal |
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No. of Employees : |
489
employees (Subject); 7,914 employees (Lanco Infratech Group) |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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Australia |
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 |
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 |
Verified Address
Subject name :
THE GRIFFIN COAL
MINING COMPANY PTY LIMITED
Business
address : Level 15, 28
The Esplanade
Town : Perth
Province : Western
Australia
Zip/postal
code : 6000
Country : Australia
Tel : +61 8
61882200
Fax : +61 8
61882201
Email : info@griffincoal.com.au
Website : www.griffincoal.com.au
Registered
address : Level 15, 28 The
Esplanade
Town : Perth
Province : Western
Australia
Zip/postal
code : 6000
Country : Australia
Postal address
: GPO Box G474
Town : Perth
Province : Western
Australia
Zip/postal
code : 6841
Country : Australia
Operating Address 1st Floor, 677 Murray Street,
Town West Perth,
Province Western Australia
Zip/postal code 6005
Country Australia
Executive Summary
Date founded
or registered : 16/01/1925
Legal form : Australian
Proprietary Company
Chief
executive : Satish
Mullapudi
Issued &
paid up capital : AUD 5,695,343
Sales turnover
: AUD 131,177,000
(Non-Consolidated 9 months, 31/03/2011)
Net income : AUD -124,451,000
(Non-Consolidated 9 months, 31/03/2011)
Total fixed
assets : AUD
1,201,192,000 (Non-Consolidated 9 months, 31/03/2011)
Line of
business : Exploration,
mining and marketing of coal.
Staff employed
: 489 employees
(Subject); 7,914 employees (Lanco Infratech Group)
Company Analysis
Country risk :
Country risk
is minimal
Operation
trend : Operational
trend is declining
Management
experience : Management is
adequately experienced
Financial
performance : Financial
performance is gradually declining
Organization
structure : Organizational
structure is stable
Detrimental : No
detrimental found
Payment
history : No payment
delays noted
Comments : Although the
Subject has been facing losses for two consecutive years, the
Subject's share equity is stable.
Registry Data
Registration
date : 16/01/1925
Legal form : Australian
Proprietary Company
Registration
no Australian
Company Number: 008667285
Registered
authority : Australian
Securities and Investments Commission
Fiscal/ Tax no
: Australian
Business Number: 16008667285
Registry
status : Live/Active
Previous name
: THE GRIFFIN COAL
MINING COMPANY LIMITED (initial)
Change of
legal form : None reported.
Key Management
Name : Satish
Mullapudi
Designation : Managing Director
Appointments
Name : Kandimalla K.V. Naga
Prasad
Designation : Director
Appointment
date : 28/02/11
Address : India
Biography : Born on 20-08-1970 in India.
Name : Manoj Agarwal
Designation : Director
Appointment
date : 28/02/11
Address India
Biography : Born on 30-06-1964
in India.
Name : Satish
Mullapudi
Designation : Director
Appointment
date : 09/05/11
Address : 64 Worcester
Crescent
Bundoora, VIC 3083
Australia
Biography : Born on 15-03-1981
in India.
Name : James
Riordan
Designation : Company Secretary
Appointment
date : 28/02/11
Address : 10 Cornell
Place
East Cannington, WA 6107
Australia
Biography : Born on 21-05-1979
in Cork, Ireland.
Staff employed
: 489 employees (Subject);
7,914 employees (Lanco Infratech Group)
Auditors : ERNST &
YOUNG
11 Mounts Bay Road
Perth, WA 6000
Australia
Composition
Authorized Capital : AUD 5,695,343
No of shares : 11,390,685 Ordinary
Shares
Share par value : No par value
Issued capital : AUD 5,695,343
Paid up capital : AUD
5,695,343
How listed : Full List
Composition
Shareholder
name : LANCO RESOURCES
AUSTRALIA PTY LTD
Address : Level 15, 28
The Esplanade
Perth, WA 6000
Australia
No. of shares
: 11,390,685
Ordinary Shares
% of shares : 100%
Structure
Name : LANCO INFRATECH LIMITED
Affiliation
type : Ultimate
Holding Company
Address : Plot No. 397, Udyog Vihar
Phase-III
Gurgaon 122016
Haryana
India
Comments :
Lanco
Infratech Limited engages in engineering, procurement and construction
(EPC), power,
solar energy, natural resources, infrastructure, and property
development businesses
in India, Australia, Singapore, and internationally. The
company
provides EPC services for thermal power projects, hydro power
projects,
chimneys, cooling towers and balance of plant, and transmission and
distribution
projects, as well as for roads, highways and bridges, metros and
railways,
buildings and airports, sea ports and marine structures, and water and
pipelines. It
is also involved in the development of solar power projects. In
addition, the
company generates and trades power from thermal, hydro, wind,
and solar
sources; develops integrated properties comprising commercial and
residential
buildings; and explores, mines, and markets coal. Lanco Infratech
Limited was
founded in 1960 and is based in Gurgaon, India.
Name : LANCO RESOURCES
AUSTRALIA PTY LTD
Affiliation
type : Parent
Company
Address : Level 15, 28 The Esplanade
Perth, WA 6000
Australia
Name : LANCO ANPARA POWER
LIMITED
Affiliation
type : Sister
Company
Address : Gate No. 03, Anpara, P.O.
Anpara
Sonebhadra District
Uttar Pradesh
India
Name : LANCO RESOURCES
INTERNATIONAL PTE. LTD.
Affiliation
type : Sister
Company
Address : 8 Shenton Way
#50-01 AXA Tower
Singapore 068811
Singapore
Name : P.T. LANCO INDONESIA
ENERGY
Affiliation
type : Sister
Company
Address : Sampoerna Strategic Square
North Tower, 20th Floor
Jl.Jend. Sudirman Kav. 45–46
Jakarta 12930
Indonesia
Related companies and corporate affiliations comments
Other
companies of the Lanco Infratech Group should be considered affiliates of the Subject.
Bank Details
Name of bank : National Australia Bank
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 : Petitioner Court Action:
Petitioner: PERDAMAN CHEMICALS AND
FERTILISERS PTY LTD
Address:
Level 17, 54-58 Mounts Bay Road
Perth, WA 6000
Australia
Start date: 23-11-2012
Court no: Supreme WA COR190 of 2012
The case id settled with the Subject agreeing to pay Perdaman a
nominal amount
of AUD 7.5 million and legal costs to be taxed by the Court,
without admission of
any of the allegations of Perdaman.
Description
Source of
financial statement : Commercial
Registry Filings
Financial
statement date : 31/03/11
Type of
accounts : Full audited
Currency : Australia Dollar
(AUD)
Exchange rate
: 1 USD = AUD 1.06
as of 10-06-2013
Summarized
Financial Information
Consolidation
type : Non Consolidated Non Consolidated Group Consolidated
Currency : Australia Dollar
(AUD) Australia Dollar (AUD) India, Rupee (INR)
Denomination :
(x1) One (x1) One (x1) One
Date of
financial year end : 31/03/11 30/06/10 31/03/12
Length of
accounts : 9 months 12 months 12 months
Sale turnover
/ Income : 131,177,000 209,282,000 102,865,733,000
Gross profit : -48,980,000 -95,620,000 ---
Profit before
tax : -163,284,000 -61,796,000 3,483,831,000
Net income : -124,451,000 -45,554,000 1,237,607,000
Non current
assets : 1,139,648,000 1,519,712,000 374,842,101,000
Current assets
: 61,544,000 96,104,000 109,294,903,000
Inventories : 11,736,000 13,138,000 27,888,841,000
Total assets :
1,201,192,000 1,615,816,000 484,137,004,000
Current
liabilities : 157,580,000 802,727,000 157,888,516,000
Non current
liabilities : 296,658,000 344,902,000 269,669,155,000
Total
liabilities : 454,238,000 1,147,629,000 427,557,671,000
Share equity :
746,954,000 468,187,000 47,060,510,000
Reserve : 944,703,000 541,485,000
Retained
earning : -203,504,000
-79,053,000
Comments : The
non-consolidated financial information above relates to the Subject only.
The group’s consolidated financial information above relates to
the Subject’s
Ultimate Holding Company Lanco Infratech Limited and all its
subsidiaries which
include the Subject.
Main
activities : The
Subject engages in exploration, mining and marketing of coal.
The Subject operates 2 coal mines: Ewington 1 & 2 Mines and
Muja South
Mine in the Collie area, approximately 220 kilometres south east
of Perth,
the capital city of Western Australia.
Ewington 1 & 2 Mines:
The Ewington mine lies within the Premier Coal Measures, 10
kilometres
east of Collie and is gradually advancing down dip to the east.
There are three main seams (1.5 metres to three metres thick) and
four
associated seam splits of one metre or less being mined within a
25 metre
vertical section. These seams are generally smaller than Muja but
production levels are similar. Deepening of the mine is underway
to
develop a further three seams.
Muja South Mine:
Located at the south and east of Muja Mine. Muja Mine is 18 kilometres
south east of Collie region)
Muja South is a new mine site immediately south and east of the
existing
Muja Mine, intended to form the next phase in the orderly
development of
Griffin Coal's Collie coal deposits.
The Subject is ultimately owned by Lanco Infratech Limited.
Lanco Infratech Limited engages in engineering, procurement and
construction (EPC), power, solar energy, natural resources,
infrastructure,
and property development businesses in India, Australia,
Singapore, and
internationally. The company provides EPC services for thermal
power
projects, hydro power projects, chimneys, cooling towers and
balance of
plant, and transmission and distribution projects, as well as for
roads,
highways and bridges, metros and railways, buildings and airports,
sea
ports and marine structures, and water and pipelines. It is also
involved in
the development of solar power projects. In addition, the company
generates and trades power from thermal, hydro, wind, and solar
sources;
develops integrated properties comprising commercial and
residential
buildings; and explores, mines, and markets coal. Lanco Infratech
Limited
was founded in 1960 and is based in Gurgaon, India.
Product & services : Coal
Purchases
Local : Yes
International : South Africa, United States
Sales
Local : Yes
International : Asia
Key events : April 29, 2013
Griffin Coal Settles AUD 3.5 Billion Lawsuit by Perdaman
Lanco Infratech's Australian subsidiary, Griffin Coal, has settled
protracted
litigation for a claim of AUD 3.5 billion initiated by Perdaman
Chemicals
against the company. The Australian coal miner has agreed to pay
Perdaman a nominal amount of AUD 7.5 million and legal costs to be
taxed
by the Court, without admission of any of the allegations of Perdaman.
Alleging non-compliance with coal supply pact for the company's
upcoming
urea plant in Western Australia, Perdaman Industries filed an AUD
3.5
billion lawsuit against Lanco in Australia in 2011. This
settlement was
reached pursuant to the rules of Supreme Court of Western
Australia,
which allows for early and cost effective resolution of such
claims.
Source: Businessweek
April 29, 2013
Lanco Infratech May Sell Stake In Griffin Coal And Other Projects
Lanco Infratech Limited (BSE:532778) can sell a stake in Griffin
Coal
Mining Company Pty Ltd. in next one year. Nagaprasad Kandimalla,
its
Chief Executive of Business Development, said that Lanco could
sell a
stake in Griffin Coal in the next one year, and also take loans
and raise
money from its own cash flow for the investment. A sale of shares
in the
coal unit could see "a good response" because of the
settlement with
Perdaman Chemicals and Fertilizers, he added. Lanco is also
looking at
options like stake sale in local power and road projects to raise
funds and
cut its overall debt. Lanco's shares rose 10% to INR 11.60.
Source: Businessweek
2 January 2013
Lanco Infratech subsidiary wins case in Australian court
The Supreme Court of Western Australia has ruled in favour of
Griffin Coal
Mining Company, a subsidiary of diversified infrastructure Indian
conglomerate, Lanco Infratech
Lanco Infratech has won a legal battle in Australia against
Perdaman
Chemicals and Fertilizers Pty Ltd. Lanco Infratech, through its
Australian
subsidiary, Lanco Resources Australia, had acquired Griffin Coal
Mining
Company and Carpenter Mine Management in February 2011.
The Supreme Court of Western Australia allowed subsidiary Griffin
Coal
Mining Company Pty Ltd to enter into revised Coal Supply Agreement
(CSA) with Griffin Power entities. The latter is in the process of
being
acquired by Japanese consortium of Sumitomo Corp and Kansai
Electric
Power Co.
The Supreme Court of Western Australia has rejected the contention
of
Perdaman Chemicals and Fertilizers Pty Ltd.
Lanco Infratech Executive Chairman L Madhusudhan Rao said, ``The
revised CSA will result in a gain of approximately A$ 150 million,
including
a substantial upfront payment to Griffin Coal Mining Company Pty
Ltd''.
Lanco has acquired Griffin Coal for A$ 720 million in February
2011. Last
year, Griffin produced over 3 million tonnes of coal.
The power plant associated with Griffin Coal mine is in the
process of being
sold to the Japanese consortium and a new coal supply agreement
was to
be signed.
However, Perdaman Chemicals, which filed a case for damages
amounting
to $3.2 billion, had sought an interim stay against a deal with
the Japanese
buyers. The court rejected the plea. The main case for damages,
lodged by
Perdaman against Lanco Griffin, is to be heard by February-March
2013.
The Lanco Group filed a counter claim for damages on the ground
that the
petition was vexatious.
At the end of November, Lanco Infratech had spoken about the
Bluewaters
power project, which is located near Griffin coal mines, and was
sold to
Sumitomo Corporation and Kansai Electric. The Lanco arm in
Australia is
to supply about 1.8 million tonnes of coal for over 25 years to
Bluewaters
project, as per agreement.
"Following the recent sale to the Japanese consortium, the
coal supply
contract was renegotiated for next 25 years. This will help us
gain $150
million, including upfront payment of $50 million,'' Nagaprasad
Kandimalla,
Lanco Infra CEO had said.
The Indian major is currently producing 3.7 million tonnes a year
and
expects to increase it to about 5 million tonne next year.
In a related development, Lanco Infratech has also reportedly
begun talks
with Indian firms, JSW Energy and Adani Power, to sell a power
plant in
Karnataka as banks pile pressure on debt laden power companies to
sell
assets and improve cash flow.
Preliminary discussions have taken place between JSW Energy, Lanco
and Adani for the sale of the 1,200 mw coal fired Udupi power
plant.
High debt, paucity of both coal and gas and defaults by bankrupt
state
electricity boards have put immense strain on the cash flows of
private
power firms. Lanco had begun talks with banks some months ago,
seeking
easier repayment terms for its debt of $5.9 billion (Rs 325
billion), one of
the largest among private power producers.
15 December 2010
Lanco Infratech to acquire Griffin Coal Mining Co
Mumbai: Lanco Infratech Ltd with business interests in
construction,
Power, EPC, Infrastructure and Property Development has come into
a
binding agreement with Griffin Energy Group Pvt Ltd
(Administrators
Appointed) and Carpenter Mine Management Holdings Pty Ltd
(Administrators Appointed) to purchase 100% shares of Griffin Coal
Mining
Company Pty Ltd and Carpenter Mine Management Pty Ltd (Griffin
Coal).
This was done through their Australian subsidiary Lanco Resources
Australia Pty Ltd.
Griffin coal owns the largest operational thermal coal mines in
Western
Australia. The mine currently produces over 4 mtpa of coal and can
be
ramped up to over 15 mpta in the near term, post development of
evacuation infrastructure. The mining tenements contain over 1.1
billion
tonnes of JORC compliant thermal coal resources. The mine is
located in
close proximity to India for better trade with India. The mine is
also easily
accessible by rail and road and better connectivity with other
mines in
Australia.
Suresh Kumar, CFO of Lanco Infratech Limited, said: “The
acquisition of
Griffin Coal is an important component of our development
strategy,
providing increased fuel security for our current power generation
assets
and future power portfolio expansions. This acquisition also
presents an
opportunity to Lanco to participate in the burgeoning natural
resources
trading market."
Source: www.news.oneindia.in
History : 1923
Private syndicate formed to develop coal leases to the south of
Collie to
supply coal to Western Australian Government Railways (WAGR).
1925
The Western Australian Coal Mining Briquetting and By-Product
Company
Ltd was formed.
1927
Two years later it changed its name to The Griffin Coal Mining
Company
Pty Ltd, supplying coal to ships, railways and the WA goldfields.
1931
Small railway contract granted.
1953
Open cut mining work commences at Muja Mine.
1954
Deep mining commences at Muja Mine to extract the Hebe Seam.
1960
Griffin Coal wins major share of the coal supply to Muja Power
Station, a
new power station to be operated by Western Australia’s only
electricity
provider, Western Power (now Verve).
1965
Deep mining ceases at Muja after water floods mine.
1966
Griffin Coal makes its first international coal export of 3,000
tonnes of coal
to Japan.
1970
Final year Griffin Coal supplies coal to WAGR.
1982
Open cut mining commences at Chicken Creek.
1996
Mining commences at Ewington II mine.
2006
Development of Ewington I mine.
2009
Mining commences at Ewington I mine.
2011
Griffin Coal purchased by Lanco Infratech, through Australian
subsidiary
Lanco Resources Australia Pty Ltd.
Property &
Assets
Premises : The
Subject operates from premises at the verified heading address consisting of an
administrative office.
Branches : In
addition, the Subject operates 2 coal mines, Ewington 1 & 2 Mines and Muja
South Mine in the Collie area, approximately 220 kilometres south east of
Perth, the capital city of Western Australia.
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 2009: 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%
Purchase Term
Local : Bank transfer, D/P,
D/A, Credit 30-120 days
International
: L/C, Telegraphic
transfer, D/P, D/A, Credit 30-120 days
Sales Term
Local : Bank transfer, D/P,
D/A, Credit 30-120 days
International
: L/C, Telegraphic
transfer, D/P, D/A, 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.57.78 |
|
UK Pound |
1 |
Rs.89.71 |
|
Euro |
1 |
Rs.76.24 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
---- |
NB |
New Business |
---- |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment record
(10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.