MIRA INFORM REPORT

           

 

Report Date :

13.05.2014

 

IDENTIFICATION DETAILS

 

Name :

NUFARM AUSTRALIA LIMITED

 

 

Registered Office :

103-105 Pipe Road, Laverton North, Victoria, 3026

 

 

Country :

Australia

 

 

Financials (as on) :

31.07.2013

 

 

Date of Incorporation :

21.05.1957

 

 

Com. Reg. No.:

004377780

 

 

Legal Form :

Unlisted Australian Public Company

 

 

Line of Business :

Manufacturing and distribution of crop protection products.

 

 

No. of Employees :

3,458 employees (Nufarm Group)

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 


 

Status :

Good

Payment Behaviour :

No complaints

Litigation :

Clear

 

NOTES :

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

 

 

ECGC Country Risk Classification List – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Australia

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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 :                          NUFARM AUSTRALIA LIMITED

 

Business address :                    103-105 Pipe Road

Town :                                       Laverton North

Province :                                  Victoria

Zip/postal code :                        3026

Country :                                   Australia

Tel :                                          +61 3 92821000

Fax :                                         +61 3 92821003

Email :                                      info@au.nufarm.com

Website :                                  www.nufarm.com

 

Registered address :                  103-105 Pipe Road

Town :                                       Laverton North

Province :                                  Victoria

Zip/postal code :                        3026

Country :                                   Australia

 

 

SUMMARY DETAILS

 

Executive Summary

Date founded or registered :        21/05/1957

Legal form :                               Unlisted Australian Public Company

Chief executive :                        Douglas John Rathbone

Issued & paid up capital :           AUD 16,003,314

Sales turnover :                          AUD 2,277,292,000 (Group-Consolidated 12 months, 31/07/2013)

Net income :                              AUD 81,750,000 (Group-Consolidated 12 months, 31/07/2013)

Total fixed assets :                     AUD 3,371,669,000 (Group-Consolidated 12 months, 31/07/2013)

Line of business :                       Manufacturing and distribution of crop protection products.

Staff employed :                                     3,458 employees (Nufarm Group)

 

Company Analysis

Country risk :                             Country risk is minimal

Operation trend :                        Operational trend is steady

Management experience :           Management is adequately experienced

Financial performance :              Group financial performance is very good

Organization structure :              Organizational structure is stable

Detrimental :                              No detrimental found

Payment history :                      No payment delays noted

 

 

STATUTORY DETAILS

 

Registry Data

Registration date :                      21/05/1957

Legal form :                               Unlisted Australian Public Company

Registration no                          Australia Company Number: 004377780

Registered authority :                 Australian Securities and Investments Commission

Fiscal/ Tax no :                          Australia Business Number: 80004377780

Registry status :                                    Live/Active

Previous name :                                     NUFARM LIMITED

NUFARM CHEMICALS PTY. LIMITED

NUFARM RURAL PRODUCTS PROPRIETARY LIMITED NUFARM RURAL

PRODUCTS LIMITED

Change of legal form :                 None reported.

Other registration :                     The Subject owns the following business names:

FARM CHEMICALS

FARMCO

NUFARM ANIMAL HEALTH

C.I.K. AUSTRALIA

A. & R. PUMPS (AUST.)

NUFARM ANIMAL HEALTH

NUFARM CROPLANDS

FARMCO

NUFARM CROPLANDS

CHEMPACK

KEMCON

FARM SPRAYING SYSTEMS

C.I.K. AUSTRALIA

FARMCO

FARM CHEMICALS

LANDWATCH

 

 

MANAGEMENT / DIRECTORS

 

Key Management

Name :                                      Douglas John Rathbone

Designation :                             Chief Executive Officer

 

Name :                                      Lachlan McKinnon

Designation :                             General Manager

 

 


BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

Name :                                      Douglas John Rathbone

Designation :                             Director

Appointment date :                     29/10/82

Address :                                  38 Edward Street

Essendon, VIC 3040

Australia

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

Mr. Douglas John Rathbone has been the Chief Executive Officer and Managing Director of Nufarm Limited since October 1999. Mr. Rathbone has been the Managing Director of Nufarm Australia Limited since 1982. He has been with Nufarm for over 35 years. He is an Industrialist with vast experience in Chemicals and Agrochemicals Industry/ International Business. He has expertise in specific functional areas and has chemical engineering and commerce background.

 

Name :                                      Paul Andrew Binfield

Designation :                             Director

Appointment date :                     23/05/12

Address :                                  16 Chandlers Road

Malvern, VIC 3144

Australia

Biography :                                Born on 04-03-1965 in Epping, United Kingdom.

Mr. Paul Andrew Binfield has been Chief Financial Officer of Nufarm Ltd. since November 6, 2011.

 

Name :                                      Rodney Heath

Designation :                             Company Secretary

Appointment date :                     26/07/89

Address :                                  6 Lockwood Avenue

Brighton East, VIC 3187

Australia

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

Staff employed :                         3,458 employees (Nufarm Group)

 

 

SHARE CAPITAL

 

Composition

Authorized Capital :                    AUD 16,003,314

No of shares :                            8,001,657 Ordinary Shares

Share par value :                        AUD 2

Issued capital :                          AUD 16,003,314

Paid up capital :                         AUD 16,003,314

 


OWNERSHIP / SHAREHOLDERS

 

How listed :                               Full List

 

Composition

Shareholder name :                    NUFARM LIMITED

Address :                                  103–105 Pipe Road

Laverton North, VIC 3026

Australia

No. of shares :                           8,001,657 Ordinary Shares

% of shares :                             100%

 

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

Name :                                      NUFARM LIMITED

Affiliation type :                          Parent Company

Address :                                  103–105 Pipe Road

Laverton North, VIC 3026

Australia

Comments :                              Nufarm Limited is an Australia-based global crop protection company. The Company develops, manufactures and sells a range of crop protection products, including herbicides, insecticides and fungicides that help crop producers protect their crops against damage caused by weeds, pests and disease. The Company operates in two segments: crop protection and seed technologies. The crop protection business deals in the manufacture and sale of crop protection products used by farmers to protect crops from damage caused by weeds, pests and disease. The seed technologies business deals in the sale of seeds and seed treatment products. The seed technologies business is managed on a worldwide basis.

 

Name :                                      CROP CARE AUSTRALASIA PTY LTD

Affiliation type :                          Sister Company

Address :                                  Portal North, 15/16 Metroplex Avenue

Murarrie, QLD 4172

Australia

 

Name :                                      NUFARM MALAYSIA SDN BHD

Affiliation type :                          Sister Company

Address :                                  L2.03 Wisma BU8

No. 11, Lebuh Bandar Utama

Bandar Utama

47800 Petaling Jaya

Selangor Darul Ehsan

Malaysia

 

Name :                                      NUFARM NZ LIMITED

Affiliation type :                          Sister Company

Address :                                  6 Manu Street

Otahuhu, Auckland

New Zealand

 

Name :                                      NUFARM K.K.

Affiliation type :                          Sister Company

Address :                                  21st Fukokuseimei Building

2-2, Uchisaiwaicho, 2-Chome

Chiyoda-ku

Tokyo 100-0011

Japan

Related companies and corporate:           Other companies of the Nufarm Group should be considered affiliated         

affiliations comments                             companies of the Subject.

 

 

BANK & MORTGAGES

 

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 :                                    None reported.

 

 

FINANCIAL DATA

 

Description

Source of financial statement :    Public Record Sources

Financial statement date :          31/07/13

Type of accounts :                     Full audited

Currency :                                 Australia Dollar (AUD)

Exchange rate :                         1 USD = AUD 1.06 as of 11-05-2014


Summarized Financial Information

 

Consolidation type

:  Group Consolidated

Group Consolidated

Currency

: Australia Dollar (AUD)

Australia Dollar (AUD)

Denomination

: (x1) One

(x1) One

Date of financial year end

: 31/07/13

31/07/12

Length of accounts

:  12 months

12 months

Sale turnover / Income

: 2,277,292,000

2,181,551,000

Gross profit

: 623,301,000

610,894,000

Profit before tax

: 112,923,000

110,323,000

Net income

: 81,750,000

72,822,000

Non current assets

: 1,511,508,000

1,326,537,000

Current assets

: 1,860,161,000

1,474,731,000

Inventories

: 802,789,000

515,254,000

Total assets

: 3,371,669,000

2,801,268,000

Current liabilities

: 906,423,000

807,057,000

Non current liabilities

: 800,501,000

517,409,000

Total liabilities

: 1,706,924,000

1,324,466,000

Share equity

: 1,664,745,000

1,476,802,000

Retained earning

: 547,302,000

496,663,000

 

 

OPERATION DETAILS

 

Main activities :              The Subject engages in manufacturing and distribution of crop protection products.

 

The Subject operates as a wholly owned subsidiary of Nufarm Limited, a Public Listed Company on Australian Stock Exchange.

 

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

 

Product & services :       Agricultural chemicals

Specialty chemicals

Glyphosate

Diuron Insecticides

Plant nutrition

Herbicides

Fungicides

Seeds and seed treatment

Fertilisers

Brand :                          NUFARM

 

 


Purchases

Local :                          Yes

International :                 Worldwide

 

Sales

Local :                          Yes

International :                 Worldwide

 

Key events :                  17 March, 2014

Nufarm Limited : Nufarm to Shut Australian Pesticide Plants

 

Australian agriculture chemicals company Nufarm Ltd. (NUF.AU) said Tuesday it would close two local manufacturing plants to reduce costs, as it grapples with the loss of key distribution contracts.

 

The Melbourne-based company suffered a severe hit to revenue last year after it lost separate contracts to distribute crop-protection products made by BASF and Monsanto Co. in Australia.

 

Nufarm has also been hurt by persistently weak glyphosate prices, kept low by a flood of global supply and lax demand since 2008.

 

The closure of the plants, located in Western Australia and Queensland states, will be implemented over the next two years. A company spokesman was not available to comment on whether there would be any job losses. Nufarm also said it was reviewing its manufacturing operations in New Zealand.

 

It will book a restructure charge of 39 million Australian dollars (US$35 million) related to the Australian plant closures. Facilities in Victoria state will be expanded to manufacture the products affected by the two closures, the company said.

 

Property & Assets

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

Branches :                    In addition, the Subject operates from branches located at:

30 Pritchard Street

Lytton, QLD 4178

Australia

Tel: +61 7 39092060

 

Lot 51, Mason Road

Kwinana, WA 6167

Australia

Tel: +61 8 94114000

 

 


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:                                           2010: 20.4%

(General Government gross debt as         2011: 22.9%

a % GDP)                                             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

 

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

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

 

Sales Term

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

International :                             L/C, Prepayment, Credit up to 120 days

 

Trade Reference/ Payment Behaviour

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

 

Investigation Note

Sources                                    : Interviews and material provided by the Subject

: Other official and local business sources

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.73

UK Pound

1

Rs.100.82

Euro

1

Rs.82.22

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

NNA

 

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.