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Report Date : |
22.05.2014 |
IDENTIFICATION DETAILS
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Name : |
KMART AUSTRALIA
LIMITED |
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Formerly Known as : |
K MART AUSTRALIA LTD |
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Registered Office : |
C/o WESFARMERS LIMITED Level 11, Wesfarmers House, 40 The Esplanade, Perth, Western Australia, Zip code 6000 |
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Country : |
Australia |
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Financials (as on) : |
30.06.2013 (Group Consolidated) |
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Date of Incorporation : |
10.07.1967 |
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Com. Reg. No.: |
004700485 |
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Legal Form : |
Unlisted Australian Public
Company |
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Line of Business : |
Subject owns and operates a network of discount department stores in Australia and New Zealand under the brand name KMART and KMART TYRE & AUTO SERVICE. |
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No of Employees : |
26,000 employees (Subject); 200,000
employees (Wesfarmers Group) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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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 Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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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 |
Verified Address
Subject name : KMART AUSTRALIA LIMITED
Other style / Business name :
KMART / KMART TYRE & AUTO SERVICE
Business address : Level 3, 690 Springvale Road
Town : Mulgrave
Province : Victoria
Zip/postal code : 3170
Country : Australia
Tel : +61 3 99022000
Fax : +61 3 99022334
Website : www.kmart.com.au
Registered address : C/o WESFARMERS LIMITED
Level 11,
Wesfarmers House
40 The
Esplanade
Town : Perth
Province : Western
Australia
Zip/postal code : 6000
Country : Australia
Executive Summary
Date founded or registered : 10/07/1967
Legal form : Unlisted
Australian Public Company
Chief executive : Gaetano Alfred Gerrard
Russo
Issued & paid up capital
: AUD 340,000,000
Sales turnover : AUD 59,832,000,000
(Group-Consolidated 12 months, 30/06/2013)
Net income : AUD 2,261,000,000
(Group-Consolidated 12 months, 30/06/2013)
Total fixed assets : AUD 43,155,000,000
(Group-Consolidated 12 months, 30/06/2013)
Line of business : Owns and operates a
network of discount department stores in Australia and
New Zealand under the name KMART and KMART TYRE & AUTO
SERVICE.
Staff employed : 26,000 employees (Subject);
200,000 employees (Wesfarmers Group)
Credit Risk
Interpretation
Credit risk theory : Sound financial and
operational base. Small to medium credits may be
considered
with confidence that the commitment will be sustained in almost all cases. This
is based on criterions such as years of establishment, number of employees,
sales turnover, profit after tax, total assets, reserve, and others. Normal
credit control policy applies.
Company Analysis
Country risk : Country risk is
minimal
Operation trend : Operational trend is
steady
Management experience : Management is adequately experienced
Financial performance : Financial performance is very good
Organization structure : Organizational structure is
consistent
Detrimental : No detrimental found
Payment history : No payment delays noted
Credit amount asked : Not described.
Comments : Larger credit can
still be considered. The Subject is well positioned in the market
and the financial stability of the group is positive.
Registry Data
Registration date : 10/07/1967
Legal form : Unlisted
Australian Public Company
Registration no Australian Company
Number: 004700485
Registered authority : Australian Securities and
Investments Commission
Fiscal/ Tax no : Australian Business
Number: 73004700485
Registry status : Live/Active
Previous name : K MART AUSTRALIA LTD
COLES KMA LIMITED
K MART
(AUSTRALIA) LIMITED
K MART
LIMITED
K MART
PTY. LIMITED (initial)
Change of legal form : None reported.
Key Management
Name : Gaetano
Alfred Gerrard Russo
Designation : Chief Executive
Officer
Name : Ian Bailey
Designation : Chief Operating
Officer
Name : David Graham
Matheson
Designation : Chief Operating
Officer - Store and Supply Chain Operations
Appointments
Name : Ian Bailey
Designation : Director
Appointment date : 29/01/08
Address : 75 Dendy Street
Brighton,
VIC 3186
Australia
Biography : Born on 18-06-1966 in London,
United Kingdom.
Name : Richard James Barr
Goyder
Designation : Director
Appointment date : 29/01/08
Address : C/o WESFARMERS LIMITED
Level 11,
Wesfarmers House
40 The
Esplanade
Perth, WA
6000
Australia
Biography : Born on 18-01-1960 in
Tambellup, Western Australia, Australia.
Mr. Richard Goyder serves as Chief
Executive Officer, Group Managing Director, Executive Director of Wesfarmers
Limited. He holds a Bachelor of Commerce degree from the University of Western
Australia and has completed the Advanced Management Program at the Harvard
Business School. He held a number of positions with Tubemakers of Australia,
particularly business development roles, before joining Wesfarmers in 1993. He
is a director of Gresham Partners Holdings and a number of Wesfarmers group
subsidiaries and related companies.
Name : Terence James Bowen
Designation : Director
Appointment date : 01/05/09
Address : C/o WESFARMERS LIMITED
Level 11, Wesfarmers
House
40 The
Esplanade
Perth, WA
6000
Australia
Biography : Born
on 24-12-1966 in London, United Kingdom.
Mr. Terry J. Bowen is the Finance
Director, Executive Director of Wesfarmers Limited. He appointed in 2009 as an
executive director (non-independent). He holds a Bachelor of Accountancy degree
and is a Fellow of CPA Australia. He has held a number of finance
positions with Tubemakers of
Australia Ltd, culminating in his appointment as General Manager Finance. He
joined Wesfarmers in 1996 and undertook various roles with Wesfarmers Landmark,
where he was appointed Chief Financial Officer, until its acquisition by AWB
Limited in 2003. He was then appointed the inaugural Chief Financial
Officer for Jetstar Airways, prior to
rejoining Wesfarmers as Managing Director, Wesfarmers Industrial and Safety in
November 2005. He became Finance Director, Coles in 2007, and was appointed
Finance Director, Wesfarmers in May 2009. He is also a director of Gresham
Partners Holdings Ltd, the Western Australian Opera Company
Incorporated, the Western Australian
Institute for Medical Research Incorporated and a number of Wesfarmers Group
subsidiaries. He is a member of both the National Executive of the Group of 100
Inc and Curtin University School of Accountancy Advisory Board.
Name : David Graham Matheson
Designation : Director
Appointment date : 25/03/11
Address : 19 Hartley Road
Wonga
Park, VIC 3115
Australia
Biography : Born on 20-06-1964 in Cape
Town, South Africa.
Name : Colin Brian Pavlovich
Designation : Director
Appointment date : 29/04/13
Address : 11C Parker Street
East
Fremantle, WA 6158
Australia
Biography : Born on 25-12-1970 in Perth,
Western Australia, Australia.
Name : Gaetano Alfred Gerrard
Russo
Designation : Director
Appointment date : 10/11/08
Address : 3 Rose Craddock Place
Caulfield
North, VIC 3161
Australia
Biography : Born on 13-07-1959 in Sydney,
New South Wales, Australia.
Name : Marnie Kronja
Designation : Company Secretary
Appointment date : 04/02/11
Address : 72 Carr Street
West
Perth, WA 6005
Australia
Biography : Born on 07-01-1975 in
Subiaco, Western Australia, Australia.
Staff employed : 26,000 employees (Subject); 200,000
employees (Wesfarmers Group)
Key Advisors
Auditors : ERNST & YOUNG
Ernst
& Young Building
11 Mounts
Bay Road
Perth, WA
6000
Australia
Composition
Authorized Capital : AUD 340,000,000
No of shares : 8,160,000 Ordinary A Shares /
7,840,000 Ordinary B Shares / 3,240,000 Redeemable
Preference Shares
Share par value : AUD 1 for Ordinary A & Ordinary B
Share / AUD 100 for Redeemable Preference Share
Issued capital : AUD 340,000,000
Paid up capital : AUD 340,000,000
How listed : Full List
Composition
Shareholder name : WESFARMERS LIMITED
Address : Level 11,
Wesfarmers House
40 The
Esplanade
Perth, WA
6000
Australia
No. of shares : 8,160,000 Ordinary A
Shares / 7,840,000 Ordinary B Shares / 3,240,000
Redeemable Preference Shares
% of shares : 100%
Structure
Name : WESFARMERS LIMITED
Affiliation type : Parent Company
Address : Level 11, Wesfarmers House
40 The
Esplanade
Perth, WA
6000
Australia
Comments : Wesfarmers Limited is engaged in the retail; coal mining and production; gas processing
and distribution; insurance;
industrial and safety product distribution; chemicals and fertilizers
manufacture; and investment businesses in Australia, New Zealand, and internationally.
The company operates 756 BI-LO supermarkets; 810 liquor stores trading under
the Liquorland, Vintage Cellars, and First Choice Liquor Superstores brands; 92
hotels; 636 fuel and convenience store outlets under the Coles Express name;
and an online supermarket. It also offers home improvement and outdoor living
products through 210 warehouse stores, 67 small format stores, and 36 trade
centers under the Bunnings name; office products and solutions
through 150 Officeworks stores; apparel and general merchandise through 190
Kmart stores; and automotive services, repairs, and tires through 263 Kmart
Tyre & Auto Service centers, as well as is involved in the retail of
building materials, and office and technology products. In addition, the
company is engaged in property business; and supplying and distributing
maintenance, repair, and operating products, as well as industrial safety
products and services. Further, it manufactures and markets industrial gases
and Mequipment; supplies and distributes industrial safety products and
services; and extracts, markets, and distributes LPG and LNG. Additionally, the
company provides rural and small business regional insurance; general
insurance; insurance broking services; risk management solutions; and financial
advisory, structured finance, and property and private equity funds management
services. It also offers chemicals for industry, mining, and mineral processing
activities;
broadacre and horticultural fertilizers;
industrial, medical, and specialty gases; and industrial equipment, as well as
holds interests in the Curragh and Bengalla cola mines in Australia. Wesfarmers
Limited was founded in 1914 and is based in Perth, Australia.
Name : COLES
GROUP LIMITED
Affiliation type : Sister Company
Address : 800
Toorak Road
Hawthorn East, VIC
3123
Australia
Name : TARGET
AUSTRALIA PTY LTD
Affiliation type : Sister Company
Address : 12-14 Thompson Road
North Geelong, VIC
3215
Australia
Name : WESFARMERS
RESOURCES LIMITED
Affiliation type : Sister Company
Address : Level 31, Central Plaza One
345 Queen Street
Brisbane, QLD 4000
Australia
Name : BUNNINGS
GROUP LIMITED
Affiliation type : Sister Company
Address : 16-18 Cato Street
Hawthorn East, VIC
3123
Australia
Related companies and
corporate affiliations comments
Other companies of the Wesfarmers Limited should be considered affiliates of the Subject.
Bank Details
Name of bank : Australia And New Zealand Banking
Group Limited
Address : Australia
Account details : Current Account
Name of bank : National Australia Bank Limited
Address : Australia
Account details : Current Account
Comments : It is generally not the policy
of local banks to provide credit status information to
non
related parties, however interested parties would be advised to consult first
with the
Subject if banker's references are required.
Mortgages : None
reported.
Legal Fillings
Bankruptcy fillings : None reported.
Court judgements : None reported.
Tax liens : None reported.
Others : None reported.
Description
Source of financial statement : Public Record Sources
Financial statement date : 30/06/13
Type of accounts : Full audited
Currency : Australia
Dollar (AUD)
Exchange rate : 1 USD = AUD 1.08 as of 21-05-2014
Summarized
Financial Information
Consolidation type : Group Consolidated Group Consolidated Group Consolidated
Currency : Australia Dollar
(AUD) Australia Dollar (AUD) Australia Dollar (AUD)
Denomination : (x1) One (x1) One (x1) One
Date of financial year end : 30/06/13 30/06/12 30/06/11
Length of accounts : 12 months 12 months 12 months
Sale turnover / Income : 59,832,000,000 58,080,000,000 54,875,000,000
Profit before tax : 3,226,000,000 3,044,000,000 2,706,000,000
Net income : 2,261,000,000 2,126,000,000 1,922,000,000
Non current assets : 32,569,000,000 31,401,000,000 30,596,000,000
Current assets : 10,586,000,000 10,911,000,000
10,218,000,000
Inventories : 5,047,000,000 5,006,000,000 4,987,000,000
Total assets : 43,155,000,000 42,312,000,000 40,814,000,000
Current liabilities : 9,572,000,000 10,747,000,000 8,722,000,000
Non current liabilities : 7,561,000,000 5,938,000,000 6,763,000,000
Total liabilities : 17,133,000,000 16,685,000,000 15,485,000,000
Share equity : 26,022,000,000 25,627,000,000 25,329,000,000
Reserve : 383,000,000 269,000,000 310,000,000
Retained earning : 2,375,000,000 2,103,000,000 1,774,000,000
Comments : The group
consolidated financial information above relates to the Subjects
Parent /
Ultimate Holding Company Wesfarmers Limited and all its subsidiaries which
includes the Subject.
The Kmart division reported sales
turnover of AUD 4,167 million with EBIT of AUD 344 million for financial year
end 30-06-2013 compared to sales turnover of AUD 4,055 million and EBIT of AUD
266 million for financial year end 30-06-2012.
Main activities : The Subject owns and
operates a network of discount department stores in
Australia and New Zealand under the brand name KMART and KMART TYRE & AUTO SERVICE.
KMART
engages in retail sales of apparel and general merchandise, including toys,
leisure, entertainment, home and consumables.
KMART TYRE & AUTO SERVICE
provides automotive service, repairs and
tyre services.
The Subject is part of Wesfarmers
Limited, which is an Australia based company. The Company's principal
activities are retailing operations, including supermarkets, general
merchandise and specialty department stores; fuel, liquor and convenience
outlets; retailing of home improvement and outdoor living products and supply
of building materials; retailing of office and technology products; coal mining
and production; gas processing and distribution; insurance; industrial and
safety product distribution; chemicals and fertilizers manufacture, and
investments.
Product &
services :
· Apparels
General
merchandise
Electronics
products
Toys
DVDs
Appliances
Bathroom
& Laundry products
Bedding
& Accessories
Dining
products
Home
Decor
Indoor
Furniture
Kitchen
products
Office
products: Inks and office supplies
Storage
Solutions
Automotive
products: Car Batteries, Car Cleaning, Car Interior
Accessories,
Oils & Coolants, Seat Covers & Car Mats, Spare Parts &
Accessories
Sunshades
Automotive
repair and services
Brand : KMART
KMART TYRE & AUTO SERVICE
Purchases
International : Worldwide: Hong Kong, China,
Bangladesh and India
Sales
Local : Yes
International : No exports.
History :
Kmart Australia Limited was born out of a joint venture between G.J Coles & Coy Limited (Coles) and S.S. Kresge Company in the US, with Kresge owning 51% of the common stock in the company. They began organizing to develop Kmart stores in Australia in 1968.
The first store opened in Burwood
East, Victoria in April 1969. The Burwood store opened to intense interest,
with over 40,000 people passing through the checkouts on the first day. The
doors had been closed 45 minutes after opening as a safety measure.
In 1978 Kresge exchanged its 51%
stake in Kmart Australia for a 20% stake in Coles, then in 1994 Coles bought
back all Coles shares from Kresge. A long-term licensing agreement allows
Wesfarmers to use the Kmart name in Australia and New Zealand. In 2006, Coles
Group announced its plans for Kmart, along with BI-LO and the Coles Group
liquor brands, to be merged into the Coles brand. The merger would have seen a
variety of Coles stores with different purposes,including food, merchandise,
petrol and liquor. The plan was for the first re-branded store
to open in 2007, with 40 stores, mostly former Super K stores divided last decade into separate Coles and Kmart stores, reformed into Coles Superstores. However, in March 2007, Coles Group announced that the plans for these super centres were being deferred, pending the sale of all or part of Coles Group. In August 2007, Wesfarmers CEO Richard Goyder said super centres would almost certainly not be part of the Wesfarmers approach after taking over Coles Group. Kmarts performance immediately prior to the Wesfarmers takeover was poor. In May 2007, it reported a sales drop of 3.2% for the third quarter, and an overall drop in sales of 3.9% for the first three quarters. Announcing its plans in August 2007 for Coles Group following their expected takeover, Wesfarmers said it would consider selling all or part of Kmart, or converting some stores to the Target brand.
Wesfarmers took control of Coles Group in November 2007 and by March 2008 had decided to retain Kmart and invest $300m in the chain over the next five years. During the first financial year of the Wesfarmers takeover (November 2007 to June 2008), Kmart reported revenue of A$2.45 billion, and EBIT of A$111 million. Kmarts performance during the 2009 financial year was quite poor; reporting revenue of A$4 billion and an EBIT of A$109
million. The 2010 financial year saw Kmart with a large increase in EBIT, reporting revenue of A$4.02 billion and an EBIT of A$190 million, which was an increase in EBIT of over 74%.
Property &
Assets
Premises : The Subject operates from head office at the verified heading address
consisting
of an administrative office.
Branches : In addition, the Subject
operates from 190 Kmart stores and 263 Kmart
Tyre & Auto Service centres located throughout Australia and
New Zealand.
Gross Domestic
Products (GDP) & Economic Overview
Central bank : Reserve
Bank of Australia
Reserve of foreign exchange & gold : US$ 46.714 billion
Gross domestic product - GDP : US$
1.586 trillion
GPP (Purchasing power parity) : 954.296
billion of International dollars
GDP per capita - current prices : US$
68,916
GDP - composition by sector : agriculture: 4%
industry: 25.6%
services: 70.4%
Inflation : 2010:
2.8%
2011: 3.4%
2012: 2.7%
Unemployment rate : 2010:
5.2%
2011: 5.1%
2012: 5.2%
Public debt
(General Government
gross debt as a % GDP) 2010:
20.4%
2011: 22.9%
2012: 24%
Government bond ratings : Standard
& Poors: AAA
Moodys rating: Aaa
Moodys outlook: STA
Market value of publicly traded shares
US$1.198 trillion
Largest companies in the country : Qantas
Airways (Airline),Coca-Cola Amatil (Beverages), CSL
(Biotechs), Brambles (Business & Personal Services),Crown Ltd
(Casinos & Gaming), Amcor (Containers & Packaging),Suncorp-Metway
(Diversified Insurance), BHP Billiton (Diversified Metals &
Mining),Newcrest Mining (Diversified Metals & Mining), Orica (Diversified
Metals & Mining), Iluka Resources (Diversified Metals & Mining), Origin
Energy (Electric Utilities), AGL Energy
(Electric Utilities), Wesfarmers (Food Retail), Woolworths (Food
Retail), Metcash (Food Retail), Macquarie Group (Investment services), AMP
(Investment services), Challenger Ltd (Investment services), Fortescue Metals
Group (Iron & Steel), Bluescope Steel (Iron & Steel), Commonwealth Bank
(Major Banks), Westpac Banking Group (Major Banks), National Australia Bank
(Major Banks), ANZ (Major Banks), Woodside Petroleum (Oil & Gas
Operations), Santos (Oil & Gas Operations), Caltex Australia (Oil & Gas
Operations), WorleyParsons (Oil Services & Equipment), Toll Holdings (Other
Transportation), Transurban Group (Other Transportation), QBE Insurance Group
(Property & Casualty Insurance), Insurance Australia Group (Property &
Casualty Insurance), QR National (Railroads), Westfield Group (Real Estate),
Stockland Australia (Real Estate), Westfield Retail Trust (Real Estate), Lend
Lease
(Real Estate), CFS Retail Property Trust (Real Estate), Goodman Group
(Real Estate), Bendigo & Adelaide Bank (Regional Banks), Bank of Queensland
(Regional Banks), Incitec Pivot (Specialized Chemicals), Telstra
(Telecommunications Services)
Trade & Competitiveness
Overview
Total exports : US$263.9
billion
Exports commodities : Coal,
iron ore, gold, meat, wool, alumina, wheat, machinery and
Transport
equipment
Total imports : US$239.7
billion
Imports commodities : Machinery and transport equipment,
computers and office
machines, telecommunication equipment and
parts; crude oil and petroleum products
Export - major partners : China
27.4%, Japan 19.2%, South Korea 8.9%, India 5.8%
Import - major partners : China
18.5%, US 11.4%, Japan 7.9%, Singapore 6.3%,
Germany 4.7%
FDI Inflows : 2009:
US$26,554 million
2010: US$35,556 million
2011: US$41,317 million
FDI Outflows : 2009:
US$16,693 million
2010: US$12,791 million
2011: US$19,999 million
Best countries for doing business : 10
out of 185 countries
Global competitiveness ranking : 20
(ranking by country on a basis of 144, the first is the best)
Country and
Population Overview
Total population : 22.68
million
Total area : 7,692,024
km2
Capital : Canberra
Currency : Australian
dollars (AUD)
Internet users as % of total
Population 79%
Purchase Term
Local : Prepayment, Bank
Transfer, D/P, Prepayment, Credit 30-120 Days
International : L/C, Prepayment, Telegraphic
Transfer, D/P, Prepayment, Credit 30-120 Days
Sales Term
Local : Cash, Credit Card
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.58.72 |
|
|
1 |
Rs.99.02 |
|
Euro |
1 |
Rs.80.57 |
INFORMATION DETAILS
|
Analysis Done by
: |
Sum |
|
|
|
|
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.