MIRA INFORM REPORT

 

 

Report Date :

22.09.2014

 

IDENTIFICATION DETAILS

 

Name :

SYNNEX CANADA LIMITED

 

 

Registered Office :

200 Ronson Drive, Etobicoke, Ontario M9W 5Z9 -

 

 

Country :

Canada

 

 

Date of Incorporation :

29.07.1990

 

 

Legal Form :

Corporation – Profit

 

 

Line of Business :

Subject distributes technology products. Its products include personal computers, servers, processors, flat panel LCD and CRT televisions, tabletop and portable DVD players, home theatre audio systems, ipod systems, clock radios, microwaves, water dispensers, compact fridges and freezers, shredders, radar detectors and power inverters, flash memory cards, and USB drives.

 

 

No. of Employees :

700

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No complaints

Litigation :

Clear

 

NOTES :

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

 

ECGC Country Risk Classification List – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Canada

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

CANADA - ECONOMIC OVERVIEW

 

As a high-tech industrial society in the trillion-dollar class, Canada resembles the US in its market-oriented economic system, pattern of production, and high living standards. Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. The 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase in trade and economic integration with the US, its principal trading partner. Canada enjoys a substantial trade surplus with the US, which absorbs about three-fourths of Canadian merchandise exports each year. Canada is the US's largest foreign supplier of energy, including oil, gas, uranium, and electric power. Given its abundant natural resources, highly skilled labor force, and modern capital plant, Canada enjoyed solid economic growth from 1993 through 2007. Buffeted by the global economic crisis, the economy dropped into a sharp recession in the final months of 2008, and Ottawa posted its first fiscal deficit in 2009 after 12 years of surplus. Canada's major banks, however, emerged from the financial crisis of 2008-09 among the strongest in the world, owing to the financial sector's tradition of conservative lending practices and strong capitalization. Canada achieved marginal growth in 2010-13 and plans to balance the budget by 2015. In addition, the country's petroleum sector is rapidly expanding, because Alberta's oil sands significantly boosted Canada's proven oil reserves. Canada now ranks third in the world in proved oil reserves behind Saudi Arabia and Venezuela

 

Source : CIA

 

 

 

 


Company name and address

 

Company name:            SYNNEX CANADA LIMITED (in English)

                                     SYNNEX CANADA LIMITEE (in French)

 

Address:                       200 Ronson Drive, Etobicoke, Ontario M9W 5Z9 - Canada

 

Telephone:                     +1 416-243-7336

 

Fax:                               +1 416-240-0101

 

Website:                        www.synnex.ca

 

Corporate ID#:               001654712

 

State:                           Ontario

 

Judicial form:                 Corporation – Profit

 

Date incorporated:          April 1, 2005

 

Date founded:               July 29, 1990

 

Stock:                             -

 

Value:                                -

 

Name of manager:           Mitchell P. MARTIN

 

 

ACTIVITIES & OPERATIONS

 

IST

 

Business:

 

SYNNEX Canada Limited distributes technology products. Its products include personal computers, servers, processors, flat panel LCD and CRT televisions, tabletop and portable DVD players, home theatre audio systems, ipod systems, clock radios, microwaves, water dispensers, compact fridges and freezers, shredders, radar detectors and power inverters, flash memory cards, and USB drives.

 

The company also offers storage, memory, communication, networking, home office and appliance, case logic automotive, auto-id, bar-coding, point of sale, RFID, physical security, card technology, health and mobility, home and garage, garden, mobile computing, photo video, portable electronic, GMRS/FRS, CBS, GPS, kiosk, digital signage, pro video and imaging, hardware and software, and telecommunication products.

In addition, SYNNEX Canada provides electronics manufacturing services.

It serves government, healthcare, logistics, retail, route accounting, transportation, and broadcasting markets. The company distributes its products to resellers and system builders. It also sells its products online.

The company is based in Toronto, Canada with additional offices and facilities in Toronto, Guelph, Vancouver, Montreal, Calgary, Winnipeg, and Halifax, Canada; and the United States.

The Company operates as a subsidiary of SYNNEX FINANCE HYBRID II, LLC.

 

Suppliers include:

 

HEISEI ELECTRONICS CO LTD
3F NO 5 ALLEY 8 LANE 45 PAO HSIN RD HSIN-TIEN CITY TAIPEI CITY 100 TAIWAN

 

ON REAL LIMITED

UNIT 1015, 10 F, TECHNOLOGY PARK, 18 ON LAI STREET, SHATIN, N.T., HONG KONG

 

 

Staff:     700

 

 

Operations & branches:

 

At the headquarters, we find a store, warehouse and office.

 

 

SHAREHOLDERS & MANAGERS

 

Shareholders:

 

SYNNEX FINANCE HYBRID II, LLC

44201 Nobel Drive, Fremont, CA 94538

 

The ultimate parent company is:

SYNNEX CORPORATION

44201 Nobel Drive, Fremont, CA 94538

Listed with the Nasdaq under symbol SNX.

 

 

Management:

 

Mitchell P. Martin is the President and CEO

He served as President of Sales and Marketing for SYNNEX Canada Limited since September 2001 and also served as its President of Broadline Division.

He served as President and Chief Executive Officer of Merisel Canada from August 2000 until Synnex Information Technologies acquisition of Merisel Canada in July 2001.

 

Prior to this, he joined the Products department at Merisel in 1989.

Mr. Martin serves as a Director of EMJ Data Systems Ltd. He graduated from York University in Toronto with a Master's degree in Business Administration, with emphasis in the areas of product marketing and product management.

 

Simon Y. LEUNG is Secretary.

 

 

Subsidiaries

And partnership:            None

 

 

FINANCIALS

 

SYNNEX Canada has a revolving line of credit arrangement, or the Canadian Revolving Arrangement, with a financial institution for a maximum commitment of CAD100.0 million and includes an accordion feature to increase the maximum commitment by an additional CAD25.0 million to CAD125.0 million, at SYNNEX Canada's request. The Canadian Revolving Arrangement also provides a sublimit of $5.0 million for the issuance of standby letters of credit. As of November 30, 2013, there were no letters of credit outstanding.

As of November 30, 2012, outstanding standby letters of credit totaled $3.4 million. SYNNEX Canada has granted a security interest in substantially all of its assets in favor of the lender under the Canadian Revolving Arrangement. In addition, we pledged our stock in SYNNEX Canada as collateral for the Canadian Revolving Arrangement. The Canadian Revolving Arrangement expires in May 2017. The interest rate applicable under the Canadian Revolving Arrangement is equal to (i) the Canadian base rate plus a margin of 0.75% for a Base Rate Loan in Canadian Dollars, (ii) the US base rate plus a margin of 0.75% for a Base Rate Loan in U.S. Dollars, and (iii) the Bankers' Acceptance rate, or BA, plus a margin of 2.00% for a BA Rate Loan. The Canadian base rate means the greater of (a) the prime rate determined by a major Canadian financial institution and (b) the one month Canadian Dealer Offered Rate, or CDOR, (the average rate applicable to Canadian dollar bankers' acceptances for the applicable period) plus 1.50%). The US base rate means the greater of (a) a reference rate determined by a major Canadian financial institution for US dollar loans made to Canadian borrowers and (b) the US federal funds rate plus 0.50%.

A fee of 0.25% per annum is payable with respect to the unused portion of the commitment. There were no borrowings outstanding under the Canadian Revolving Arrangement as of both November 30, 2013 and 2012.

SYNNEX Canada has a term loan associated with the purchase of its logistics facility in Guelph, Canada. The interest rate for the unpaid principal amount is a fixed rate of 5.374% per annum. The final maturity date for repayment of the unpaid principal is April 1, 2017. The balance outstanding on the term loan as of November 30, 2013 and 2012 was $7.4 million and $8.6 million, respectively.

 

On a direct call, a financial assistant controlled the present report.

 

Sales declared for year 2013 is in the range of CAD 130,000,000+

 

The business is profitable.

 

Banks:  HSBC Bank

                       

 

 

LEGAL FILINGS

 

Legal filings & complaints:

 

As of today date, there is no legal filing pending with the Courts.

 

 

Secured debts summary:   None

 

Haut du formulaire

 

 

COMPANY CREDIT HISTORY

 

Trade references:

 

Date reported:                August 2014

High credit:                    CAD 60,000

Now owing:                    0

Past due:                      0

Last purchase               July 2014

Line of business:            Office supply

Paying status:               On terms

 

Date reported:                August 2014

High credit:                    CAD 1,000,000

Now owing:                    0

Past due:                      0

Last purchase:              July 2014

Line of business:            Payroll

Paying status:               As agreed

 

Date reported:                August 2014

High credit:                    CAD 800

Now owing:                    0

Past due:                      0

Last purchase:               July 2014

Line of business:            Telecommunications

Paying status:               On terms

 

 

Domestic credit history:

 

National Credit Bureaus gave a satisfying credit rating.

 

According to our credit analysts, during the last 6 months, domestic payments were made on due date.

 

 

 

International credit history:

 

Payments of imports are currently made on terms.

 

 

 

Other comments:

 

The Company is developing its business.

 

The bank confirmed a regular account.

 

The Company is in good standing.

This means that all local and federal taxes were paid on due date.

Last report was filed on 05-27-2014.

 

The risk is low.

 

 

Our opinion:

 

A business connection may be conducted.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.80

UK Pound

1

Rs.100.06

Euro

1

Rs.78.46

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

NIS

 

               

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.