|
Report Date : |
12.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
SILVER FERN FARMS LIMITED |
|
|
|
|
Registered Office : |
Harvest
Court, 218 George Street, Dunedin Central, Dunedin, 9016 |
|
|
|
|
Country : |
New Zealand |
|
|
|
|
Financials (as on) : |
30.09.2012 |
|
|
|
|
Date of Incorporation : |
30.09.1948 |
|
|
|
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Com. Reg. No.: |
149713 |
|
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|
|
Legal Form : |
New Zealand Co-operative Company |
|
|
|
|
Line of Business : |
The Subject is engaged in processing, marketing, and export of meat and associated by-products. |
|
|
|
|
No. of Employees : |
7,000 employees including contract 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 : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
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Litigation : |
-- |
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) |
|
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 1.7% growth in 2010 and 2% in 2011. 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 |
Verified Address
Subject
name : SILVER FERN FARMS
LIMITED
Business
address : Harvest Court, 218
George Street
Town : Dunedin Central
Province : Dunedin
Zip/postal
code : 9016
Country : New Zealand
Tel :
+64 3 4773980
Fax : +64 3 4741087
Email :
info@silverfernfarms.co.nz
Website :
www.silverfernfarms.co.nz
Registered
address : Harvest Court, 218 George
Street
Town : Dunedin Central
Province : Dunedin
Zip/postal
code : 9016
Country : New Zealand
Postal
address : P.O. Box 941
Town : Dunedin Central
Province : Dunedin
Zip/postal
code : 9054
Country : New Zealand
Executive Summary
Date
founded or registered :
30/09/1948
Legal form : New Zealand
Co-operative Company
Chief
executive : Keith
Cooper
Issued
& paid up capital : NZD
136,495,000
Sales
turnover : NZD
2,034,920,000 (Consolidated 12 months, 30/09/2012)
Net income : NZD -31,121,000
(Consolidated 12 months, 30/09/2012)
Total fixed
assets : NZD
796,365,000 (Consolidated 12 months, 30/09/2012)
Line of
business :
Procurer, processor and marketer of sheep, lamb, beef and venison.
Staff
employed : 7,000
employees including contract employees
Company Analysis
Country
risk :
Country risk is minimal
Operation
trend : Operational trend is
declining
Management
experience : Management is
adequately experienced
Financial
performance : Financial
performance is good
Organization
structure : Organizational
structure is stable
Detrimental :
No detrimental found
Payment
history : No
payment delays noted
Registry Data
Registration
date : 30/09/1948
Legal form : New Zealand Co-operative
Company
Registration
no : 149713
Registered
authority : New Zealand Companies
Office
Registry
status : Live/Active
Previous
name : PPCS LIMITED (until
03-06-2008)
PRIMARY
PRODUCERS CO-OPERATIVE SOCIETY LIMITED (until 13-01-1999)
Change of
legal form : None reported.
Key Management
Name : Keith Cooper
Designation
: Chief Executive
Officer
Name : Kevin Winders
Designation
: Chief Operating
Officer
Name : Jamie Adamson
Designation
: Group Financial
Controller
Name : Glenn Tyrrell
Designation
: General Manager Sales
and Marketing
Name : Grant Pearson
Designation
: Group Technical
Manager
Appointments
Name : Eoin Reay Hamilton Garden
Designation
: Chairman
Appointment
date : 18/12/98
Address : Avenel, Millers Flat,
Rd 2
Roxburgh, 9572
New Zealand
Biography : Joined the Board in December 1998 and
appointed Chairman in 2008. Operates 2,930 ha of high country and finishing land
at Millers
Flat and another 290 ha in West
Otago. His 13,500 su include sheep,
cattle and deer.
Name : Richard John
Somerville
Designation
: Vice Chairman
Appointment
date : 01/07/04
Address : 320 Beacon Point Road
Wanaka, Central Otago 9305
New Zealand
Biography : Appointed to Board in 2004; Chairman of the
Board’s Audit,Risk Assessment and Mitigation Committee. Chartered Accountant,
Chairman of Milford Asset Management Limited. Director of Southern Hemisphere
Proving Ground Limited, Milford Dart Limited and a number of private companies.
Name :
Angus Collis Mabin
Designation
: Director
Appointment
date : 04/09/07
Address : Taniwha, RD 1
Waipukurau
Hawke's Bay 4281
New Zealand
Biography : Appointed to Board in September 2007. Farms bull-beef
on a 1,000 ha property in Waipukurau, Central Hawke’s Bay. Held a number of
positions in the deer industry during the 1990s. Graduate of Massey University.
Name : Peter Herstall
Ulrich
Designation
: Director
Appointment
date : 29/02/08
Address : Rock Farm, Rd 13
Pleasant Point, South Canterbury 7983
New Zealand
Biography : Elected to Board in February 2008. Farms 6,000
su near Cave in South Canterbury. Participant in the Kellogg leadership course for
2008. Graduate of Lincoln University. Former Chairman of Northern South Island
Sheep and Beef Council.
Name : Robert James Hewett
Designation
: Director
Appointment
date : 29/02/08
Address :
Manuka Gorge Highway
RD3, Lawrence 9593, Otago
New Zealand
Biography : Elected to Board in February 2008. Farms a
9,250 su, 960 ha sheep and beef
breeding and finishing unit in Manuka Gorge, South Otago. Graduate of
Lincoln University, holding an M.Com in marketing and a B.Com (Ag) in
Economics. Director of a number of private companies in New Zealand and
Australia.
Name : Trevor John Burt
Designation
: Director
Appointment
date : 30/07/09
Address : 58 Old Tai Tapu Road
Kennedys Bush, Christchurch, 8025
New Zealand
Biography : Joined Board in August 2009 and is Chairman of
the Remuneration and Appointments Committee. Chairman of Ngai Tahu Holdings
Corporation Ltd. Director of New Zealand Lamb Company Ltd
and Lyttleton Port of Christchurch Ltd. Former member of the Executive Board of
the Munich-based Linde Group. Has high level experience in the strategic
leadership of large and complex corporate organisations and a proven record of
implementing change and achieving results.
Name : Antony John Balfour
Designation
: Director
Appointment
date : 30/07/09
Address : 238 Littles Road
Dalefield RD1, Queenstown 9371
New Zealand
Biography : Joined Board in August 2009. Director of The
Warehouse Group Ltd. A globally experienced senior executive with a strong
track record of success in a wide diversity of industries and categories, and
leading innovation and market/ category development. Formerly GM Markets for
Icebreaker, the world’s leading brand of merino apparel.
Name : David Alfred Shaw
Designation
: Director
Appointment
date : 27/01/11
Address : Clutha Downs Road, Rd 3
Balclutha, 9273
New Zealand
Biography : Board member from 2006 to 2009; re-elected in
2011. Farms an intensive bull beef and lamb finishing operation near Clinton.
Graduate of Lincoln and Minnesota (USA) Universities FAME and Kellogg scholar,
Strategic Leadership Programme NZ Cooperatives Association Council.
Staff
employed : 7,000 employees
including contract employees
Key Advisors
Auditors : ERNST & YOUNG
Ernst & Young Building
2 Takutai Square
Britomart
Auckland 1010
New Zealand
Solicitors : HARMOS HORTON LUSK
LIMITED
Level 37, Vero Centre
48 Shortland Street
Auckland 1010
New Zealand
Composition
Authorized
Capital : NZD 136,495,000
Issued
capital : NZD 136,495,000
Paid up
capital : NZD 136,495,000
How listed : Partial List
Composition
Shareholder
name : FORSYTH BARR CUSTODIANS
LIMITED
Address : Forsyth Barr House
Cnr Octagon & Stuart Street
Dunedin, Null
New Zealand
No. of
shares : 1,084,057 Shares
Shareholder
name : FNZ CUSTODIANS LIMITED
Address : Level 7, 256 Lambton
Quay
Wellington, Null, 6011
New Zealand
No. of
shares : 639,767 Shares
Shareholder
name : GLENTHORNE STATION LIMITED
Address : C/o BROWN GLASSFORD
& CO LIMITED
86 Cavendish Road
Casebrook, Christchurch 8051
New Zealand
No. of
shares : 397,766 Shares
Shareholder
name : Eoin Reay Hamilton Garden
Address : Avenel, Millers Flat,
Rd 2
Roxburgh, 9572
New Zealand
No. of
shares : 166,632 Shares
Shareholder
name : A W J H ADAMS PARTNERSHIP
Address : 893 Clintons Road
Rd 1, Christchurch, 7671
New Zealand
No. of
shares : 146,250 Shares
Shareholder
name : P J and F M Grant
Address : Rangitata, Rd 22
Geraldine, 7992
New Zealand
No. of
shares : 146,250 Shares
Shareholder
name : RAKAIA ISLAND LIMITED
Address : C/o BROWN GLASSFORD
& CO LIMITED
86 Cavendish Road
Casebrook, Christchurch 8051
New Zealand
No. of
shares : 146,250 Shares
Shareholder
name : WISTARIA CO. LIMITED
Address : 102 Clyde Street
Balclutha, Null, 9230
New Zealand
No. of
shares : 146,250 Shares
Shareholder
name : MT SOMERS STATION
Address : 281 Peaches Road
Rd 1 Mount Somers
Ashburton, 7771
New Zealand
No. of
shares : 146,250 Shares
Shareholder
name : A S and T R Browne
Address : 195 Redoubt Road, Rd 3
Cambridge 3495
New Zealand
No. of
shares : 146,250 Shares
Comments : The Subject is a
co-operative owned primarily by suppliers of livestock to the
Subject. The Subject has over 20,000
sheep, cattle and deer farmers members
throughout New Zealand.
Structure
Name : RICHMOND GROUP
HOLDINGS LIMITED
Affiliation
type : Wholly-owned
Subsidiary
Address : Harvest Court, 218
George Street
Dunedin Central, Dunedin 9016
New Zealand
Name : VENISON ROTORUA
LIMITED
Affiliation
type : Wholly-owned
Subsidiary
Address : Harvest Court, 218
George Street
Dunedin Central, Dunedin 9016
New Zealand
Name : FRASERTOWN MEAT CO.
LIMITED
Affiliation
type : Wholly-owned Subsidiary
Address : Harvest Court, 218
George Street
Dunedin Central, Dunedin 9016
New Zealand
Name : SILVER FERN FARMS
NV
Affiliation
type : Wholly-owned
Subsidiary
Address : Molendries 11A
9300 Aalst
Belgium
Name : SILVER FERN FARMS
(UK) LIMITED
Affiliation
type : Wholly-owned
Subsidiary
Address : The Stables
Four Mile Stable Barns
Cambridge Road
Newmarket CB8 0TN
United Kingdom
Name : GLOBAL TECHNOLOGIES
(NZ) LIMITED
Affiliation
type : Wholly-owned
Subsidiary
Address : Harvest Court, 218
George Street
Dunedin Central, Dunedin 9016
New Zealand
Name :
FARM ENTERPRISES (OTAGO) LIMITED
Affiliation
type : Wholly-owned
Subsidiary
Address : Harvest Court, 218
George Street
Dunedin Central, Dunedin 9016
New Zealand
Name : SILVER FERN FARMS
GMBH
Affiliation
type : Wholly-owned
Subsidiary
Address : Rondenburg 25
22525 Hamburg
Germany
Name : B. BROOKS (NORWICH)
LIMITED
Affiliation
type : Wholly-owned
Subsidiary
Address : The Stables
Four Mile Stable Barns
Cambridge Road
Newmarket CB8 0TN
United Kingdom
Name : PPCS USA INC
Affiliation
type : Wholly-owned
Subsidiary
Address : 161 N Broad Street
Woodbury, NJ 08096-1718
United States
Related
companies and corporate affiliations comments : Other companies of the Silver
Fern Farms
Group should be considered affiliates of the Subject.
Bank Details
Name of
bank : Rabobank New Zealand
Address : New Zealand
Account
details : Current Account
Name of
bank : The Hongkong and Shanghai Banking
Corporation Limited
Address : New Zealand
Account
details : Current Account
Name of
bank : Commonwealth Bank of Australia
Address : New Zealand
Account
details : Current Account
Name of
bank : Westpac New Zealand Limited
Address : New Zealand
Account
details : Current Account
Comments : It is generally not the policy of local banks to provide
credit status information to non related parties, however interested parties
would be advised to consult first with the Subject if banker's references are
required.
Mortgages : None reported.
Legal Fillings
Bankruptcy
fillings : None reported.
Court
judgements : 16 February 2011
Silver Fern Farms Limited has been fined $40,500 and ordered
to pay reparations of $20,000 after a contractor had her hand pulled into a
conveyor at its meat processing plant at Waitotara.
On 19 January 2010 an employee of Ecowize Limited, the
company contracted to clean and sanitise the processing areas of the plant, was
attempting to clean a conveyor.
The Whanganui District Court heard that the employee’s latex
glove became stuck, pulling her arm into the roller. A fellow worker tried to
stop the conveyor by
pressing the emergency button, but
it didn’t work. The conveyor only stopped
when an employee of Silver Fern Farms pressed a second
emergency button and she was cut free. Her right arm was severely disfigured.
“Silver Fern Farms could have easily
prevented this accident if the conveyor was
properly guarded,” says the Department of Labour New
Plymouth Service Manger, Jo Pugh.
“The company failed to indentify the conveyor rollers as a
potential hazard resulting in this worker being seriously injured – it is not
acceptable.
“The Department is seeing far too many of these types of
accidents where machines are not adequately guarded to protect workers. Machine
guarding has
been in legislation for over a century and businesses still
seem to be forgetting
about it.
“Because of the high number of
serious injuries and deaths in this area, the
Department has a three-year project under way to focus on
effective machine guarding standards and ensuring they are implemented.
“The project will also focus on
designers, manufacturers and suppliers where
inspectors identify that unsafe
machinery has been sold or supplied to New
Zealand businesses,” Ms Pugh says.
Tax liens : None reported.
Others : None reported.
Description
Source of
financial statement : Commercial Registry Filings
Financial
statement date : 30/09/12
Type of accounts
: Full audited
Currency : New Zealand,
Dollar (NZD)
Exchange
rate : 1 USD =
NZD 1.19 as of 18-12-2012
Summarized Financial Information
Consolidation
type : Consolidated
Consolidated
Currency : New Zealand,
Dollar (NZD)
New Zealand, Dollar
(NZD)
Denomination
: (x1) One (x1) One
Date of
financial year end : 30/09/12 30/09/11
Length of
accounts : 12 months 12 months
Sale
turnover / Income :
2,034,920,000 2,110,902,000
Profit
before tax :
-42,338,000 40,606,000
Net income : -31,121,000 30,801,000
Non current
assets : 421,319,000 366,755,000
Current
assets :
375,046,000 307,742,000
Inventories
:
180,125,000 111,538,000
Total
assets :
796,365,000 674,497,000
Current
liabilities :
428,027,000 248,272,000
Non current
liabilities : 42,570,000 59,798,000
Total
liabilities :
470,597,000 308,070,000
Share
equity :
325,768,000 366,427,000
Retained
earning :
100,497,000 140,833,000
Comments : The consolidated financial information
above relates to the Subject and its subsidiaries.
Main activities : The Subject is
engaged in processing, marketing, and export of meat and associated by-products
in New Zealand and internationally.
The Subject is one of the leading exporters of meat in New
Zealand.
The subject was registered in 1948 as Primary Producers
Co-operative
Society, eventually trading as PPCS until it changed its
name and its brand
in 2008 to Silver Fern Farms - reflecting its integrated
supply chain
strategy.
While Subject's strategy has evolved from production-based
to market-led,
the Subject has retained its co-operative status, today
representing more than 20,000 sheep, cattle and deer farmers throughout New
Zealand.
The Subject is a co-operative owned primarily by suppliers
of livestock to the Subject.
The Subject had $75 million of secured bonds listed on the
New Zealand
Debt Securities Market (NZDX) as at 30 September 2010. These
bonds were repaid on 15 November 2010 and the Company has ceased to be listed
with NZX.
The subject has a class of shares called New Ordinary Shares
which are
traded under the code “SFF” on Unlisted. Unlisted is a cost
efficient
trading facility and is not a registered stock exchange
under the Securities Markets Act 1988.
The Subject mainly sells its products to independent meat
wholesalers and distributors, as well as to retailers and food service industry
participants.
Product
& services : Lamb
Meat
Mutton Meat
Veal Meat
Venison Meat
Beef Meat
Slipe wool
Calf skins
Sheep and lamb pelts
Food grade and pharmeceutical hide collagen
Brand : BEEF
SUPERGRASS, BIO BLANKET, PPCS, RICHMOND
Purchases
Local : Yes
Sales
Local : Yes
International
: Australia,
Belgium, France, Germany, Greece, Hong Kong, Italy, Japan,
Jordan, Republic of Korea, Mexico, Singapore, United Arab
Emirates,
United Kingdom, United States, Europe, Middle East
Key events : 13 November
2012
‘Strong balance sheet, investment into the future the key
focus’
Silver Fern Farms has reported a net operating loss after
tax for the 12
months ended 30 September 2012 of $31.1 million (2011 profit
$30.8
million) from total revenue of $2 billion. Silver Fern Farms
Chairman Eoin
Garden said that, despite an operational loss, the company’s
balance
sheet was robust (44% equity ratio); and significant
investments had been made in 2012 to underpin future growth, including new
marketing
initiatives ($8 million) and the new Te Aroha plant ($67
million). In addition, Silver Fern Farms had also made a significant investment
of $4 million in FarmIQ in 2012.
Now in year 3 of the 7-year build timeframe, not only will
FarmIQ become
the enabler for farmers to deliver the required product to
meet Silver Fern Farms’ marketing and sales plans, but it will also empower
farmers to identify opportunities on farm to grow their productive capacity,
thereby generating more value from within their own farming businesses.
Mr Garden said it was important to highlight the commitment
the company had made to forge ahead with the implementation of the business’
overall growth strategy for the future of Silver Fern Farms, its shareholders,
suppliers and people, notwithstanding this poor 12-month financial performance.
“In the 2012/13 financial year Silver Fern Farms plans to
invest a further
$22.6 million into brand development and marketing
initiatives to build brand equity, channel and market development, and FarmIQ.
That clearly demonstrates our confidence in, and commitment
to, the growth path we have charted for our co-operative” said Mr Garden.
Chief Executive Keith Cooper commented that Silver Fern
Farms operates in an environment where many outcomes are beyond the company’s
control but materially impact on the business.
“Climatically we went into the 2011/12 season with ideal
pasture growing conditions which meant livestock was held on farm for valid
reasons. This resulted in markets being short of product versus historical
supply patterns. Off the back of this, we saw global prices for lamb in particular,
escalate to unsustainable levels, which resulted in a sharp fall in emand,
and which then led to a significant decline in value. This
market orrection
was subsequently reflected back to suppliers and, in turn,
caused writedowns in inventory valuations
throughout the financial year of circa $25.6 million. Through this period,
Silver Fern Farms had to manage business continuity – supplying to customers
and operating processing assets – which meant we had to compete for livestock
at unsustainable prices which further contributed to the problem.
Mr Cooper reiterated that while this was a poor year
financially, strategically it was a progressive one.
“2012 marked a
continuation of our unwavering commitment to executing our Plate-to-Pasture
strategy.
This is a progressive and long term plan, which demands
perseverance and determination, to ultimately generate sustainable value for
our farmer-partners, by meeting the modern consumer’s requirements.”
Over the last 4-years, Silver Fern Farms has invested in
designing the
brand detail and marketing infrastructure required to drive
a greater
proportion of its revenue through premium value branded
products. “Our
differentiated approach means that our brand has now become
integrated across all areas of the business - corporate, supplier service,
operations, sales and consumer activities - and we are now starting to see the
benefits of this throughout the value chain” said Mr Cooper.
While Silver Fern Farms’ final inventory position for 2012
was up versus
the previous year, Mr Cooper advised that this had decreased
markedly
since balance date, with the increased working capital being
driven by
those higher balance date inventories.
Mr Garden also advised that incumbent director Angus Mabin, who
retired by rotation, has been reappointed unopposed, which gives the board
confidence they have continuing shareholder support.
Property & Assets
Premises : The Subject
operates from premises located at the verified heading
address consisting of an
administrative office.
Branches : In addition,
the Subject operates from branch facilities located at:
Plunket Street, P.O. Box 940
Hastings 4156
New Zealand
Tel: +64 6 8726660
34 Branston Street
PO Box 283, Christchurch 8140
New Zealand
Tel: +64 3 3796900
Gross Domestic Products (GDP) &
Economic Overview
Central
bank :
Reserve Bank of New Zealand
Reserve of
foreign exchange & gold : US$
20.562 billion
Gross
domestic product - GDP : US$
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 :
2009: 2.1%
2010: 2.3%
2011: 4%
Unemployment
rate : 2009: 6.1%
2010: 6.5%
2011: 6.5%
Public debt
(General
Government gross debt as
a % GDP) :
2009: 26.1%
2010: 32.3%
2011: 37%
Government
bond ratings :
Standard & Poor's: AA+/Stable/A-1+
Moody's rating: Aaa
Moody's outlook: STA
Market
value of publicly traded
Shares :
US$67.061 billion
Largest companies in the country : Westpac Limited, Transpower,
Fletcher Building Limited, National Bank of New Zealand, Fonterra Co-Operative
Group Ltd, Air New Zealand Limited, The Warehouse Group Limited, Progressive
Enterprises Ltd Trade & Competitiveness Overview
Total
exports :
US$33.24 billion
Exports
commodities :
Dairy products, meat, wood and wood products, fish, machinery
Total
imports :
US$31.11 billion
Imports commodities : Machinery and equipment,
vehicles and aircraft, petroleum, electronics, textiles, plastics
Export - major partners : Australia 22%, US
11.5%, Japan 9.2%, China 5.3%, UK 4.6%
Import - major partners : Australia 20.7%,
China 13.4%, US 9.7%, Japan 9.5%, Singapore 4.9%, Germany 4.7%
FDI Inflows
:
2008: US$4,598 million
2009: US$-1,293 million
2010: US$561 million
FDI
Outflows :
2008: US$462 million
2009: US$-308 million
2010: US$589 million
Best
countries for doing business :
3 out of 183 countries
Global competitiveness
ranking : 25 (ranking by
country on a basis of 142, the first is the best)
Country and Population Overview
Total
population :
4.37 million
Total area :
270,467 km2
Capital :
Wellington
Currency :
New Zealand dollars (NZD)
Internet
users as % of total
Population :
83%
Purchase Term
Local :
Prepayment, Bank transfer, Credit up to 90 days
Sales Term
Local :
Prepayment, Bank transfer, Credit up to 90 days
International
: L/C, Prepayment,
Telegraphic transfer, Credit up to 90 days
Trade Reference/ Payment
Behaviour
Comments : As local and international trade
references were not supplied, the Subject's payment track record history cannot
be appropriately determined but based on our research, payments are believed to
be met without delay.
Investigation Note
Sources : Interviews
and material provided by the Subject
: Other official and local business
sources
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.29 |
|
UK Pound |
1 |
Rs.81.08 |
|
Euro |
1 |
Rs.70.61 |
INFORMATION DETAILS
|
Report Prepared
by : |
NLM |
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.