MIRA INFORM REPORT

 

 

Report No. :

304601

Report Date :

27.01.2015

 

 

IDENTIFICATION DETAILS

 

Name :

ADAMA MAKHTESHIM LTD.

 

 

Formerly Known as : 

MAKHTESHIM CHEMICAL WORKS LTD

 

 

Registered Office :

P.O. Box 60, 1 Seadia Malal Street, Industrial Zone, Beer Sheva 8410001

 

 

Country :

Israel

 

 

Financials (as on) :

30.09.2014 (Consolidated Financial Statements - Adama Agricultural Solutions Ltd)

 

 

Date of Incorporation :

17.07.1952

 

 

Com. Reg. No.:

No. 52-002396-1

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Subject is a part of ADAMA Group, Developers, Manufacturers, Exporters and Marketers of Crop Protection Products - Pesticides, Insecticides, Herbicides, Polyester Resins & Photo-Chemicals

 

 

No of Employees :

4,564 employees serving ADAMA Group as of end of 2013 (had 4,508 employees in end of 2012), of which 1,340 employees in Israel.

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Israel

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


Israel ECONOMIC OVERVIEW

 

Israel has a technologically advanced market economy. Cut diamonds, high-technology equipment, and pharmaceuticals are among the leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are covered by tourism and other service exports, as well as significant foreign investment inflows. Between 2004 and 2011, growth averaged nearly 5% per year, led by exports. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals, following years of prudent fiscal policy and a resilient banking sector. In 2010, Israel formally acceded to the OECD. Israel's economy also has weathered the Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects. The economy has recovered better than most advanced, comparably sized economies, but slowing demand domestically and internationally, and a strong shekel, have reduced forecasts for the next decade to the 3% level. Natural gas fields discovered off Israel's coast since 2009 have brightened Israel's energy security outlook. The Tamar and Leviathan fields were some of the world's largest offshore natural gas finds this past decade. The massive Leviathan field is not due to come online until 2018, but production from Tamar provided a one percentage point boost to Israel's GDP in 2013 and is expected to contribute 0.5% growth in 2014. In mid-2011, public protests arose around income inequality and rising housing and commodity prices. Israel's income inequality and poverty rates are among the highest of OECD countries and there is a broad perception among the public that a small number of "tycoons" have a cartel-like grip over the major parts of the economy. The government formed committees to address some of the grievances but has maintained that it will not engage in deficit spending to satisfy populist demands. In May 2013 the Israeli government, in a politically difficult process, passed an austerity budget to reign in the deficit and restore confidence in the government's fiscal position. Over the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultra-orthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only 9% of the workforce, with the rest employed in manufacturing and services - sectors which face downward wage pressures from global competition.

 

Source : CIA

 


Company name & address

 

ADAMA MAKHTESHIM LTD.

Telephone         972 8 629 66 11

Fax                   972 8 629 69 91

P.O. Box 60

1 Seadia Malal Street

Industrial Zone

BEER SHEVA   8410001            ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

Originally incorporated as a public limited company, registered as such as per file No. 52-002396-1 on the 17.07.1952.

 

In May 1992 published a prospectus offering shares to the public and started trading through the Tel Aviv Stock Exchange.

 

In June 1998 amalgamated with Agan Chemical Manufacturers LTD. (ADAMA AGAN), forming MAKHTESHIM AGAN Group (now ADAMA Group).

 

As of May 1998, due to change of ownership, subject's shares were de-listed from trade on the Tel Aviv Stock Exchange (TASE), following which subject converted into a private limited company (registration number remains the same).

 

Originally registered under the name MAKHTESHIM CHEMICAL WORKS LTD., which changed to the present one on the 02.07.2014.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 212,000,000.00, divided into -

                   212,000,000 ordinary shares of NIS 1.00 each,

of which 114,238,074 shares amounting to NIS 114,238,074.00 were issued.

 

 

SHAREHOLDERS

 

Company is fully owned by ADAMA AGRICULTURAL SOLUTIONS LTD. (formerly MAKHTESHIM – AGAN INDUSTRIES LTD.), hereinafter ADAMA, owned by:

 

1.   CNAC INTERNATIONAL PTE LTD., 60%, of Singapore, fully owned by CHINA NATIONAL AGROCHEMICAL CORP. (“ChemChina”), a People's Republic of China company,

2.   KOOR INDUSTRIES LTD., 40%, fully owned by DISCOUNT INVESTMENT CO. LTD. (DIC), publicly traded on Tel Aviv Stock Exchange (TASE), controlled (73.9%) by IDB DEVELOPMENT CORPORATION LTD., publicly traded on TASE (heading IDB Concern).

 

On the 17.10.2011 a transaction was completed, according to which ChemChina acquired 52.3% of ADAMA's shares held by the public for US$ 1,270 million plus 7% of the shares held by KOOR for US$ 168 million, based on value of US$ 2.4 billion for ADAMA (transaction carried on in a way of reverse tri-angle merger).

 

Following the deal completion, ADAMA became a private limited company and shares were de-listed from trade on TASE (on 17.10.11), although its bonds are still publicly traded.

 

 

DIRECTORS

 

1.   Aviram Lahav, CFO of ADAMA,

2.  Elhanan Avramov, V.P. Global Resources of ADAMA,

 

 

MANAGEMENT

 

·         Yang Xingqiang, of ChemChina, Chairman of ADAMA,

·         Chen Lichtenstein, General Manager & President of ADAMA Group,

·         David Ben-Simon, General Manager of subject.

 

 

BUSINESS

 

Subject is a part of ADAMA Group, developers, manufacturers, exporters and marketers of crop protection products - pesticides, insecticides, herbicides, polyester resins & photo-chemicals

 

ADAMA exports 96% of its production to some 120 countries, through subsidiaries and distribution branches worldwide.

 

Among local clients: HAMASHBIR FOR AGRICULTURAL, CHEMADA FINE CHEMICALS CO.

 

Among local suppliers: G.G. YAROM GETTER, MODCHEM, GOLD BAR, SANO INTERTRANS, ATEKA, PETRUS TECHNICAL SUPPLIES, AVCO CHEMICALS, ALMOR FIBREGLASS, DORMEX TRADE, DEAL ENGINEERS, YAMATON, TAGAD CHEMICLS, APPLIED CHEM, K.L. TEX & SONS, DIONYX, RABDION, ARDAN TRANSFORMERS, ELECTRO CHLORINE CHEMICAL INDS., etc.

 

Sole pesticides sub-contractor for BAYER - of Germany.

Raw materials purchase agreement with DOW CHEMICALS - of U.S.A.

Also manufacturing for a/m resins under the brand name DERKANE.

Also have cooperation agreements with CRAY VALLEY and MONSANTO.

 

Operating from ADAMA Group headquarters offices (rented, on an area of 6,000 sq. meters) in Golan Street, Arava House, AirPort City Park, near the Ben Gurion International Airport.

 

Production is from main plant, owned, 407,000 sq. meters plot on which 37,000 sq. meters are built, in 1 Seadia Malal Street, Industrial Zone (a compound which spreads also to Hebron Rd.), Beer Sheva, and Group's owned plant in Ramat Hovav, on an area of 1,086,000 sq. meters (on which 170,000 sq. meters built).

 

ADAMA Group also operates from 2 plants in Brazil (subsidiary MILLENIA) and facilities in USA, S. Korea, Mexico, Colombia, Spain, Italy, Greece and India.

 

Distribution through 23 marketing companies and offices worldwide.

 

Having 4,564 employees serving ADAMA Group as of end of 2013 (had 4,508 employees in end of 2012), of which 1,340 employees in Israel.

 

 

MEANS

 

In December 2006, March 2009, January 2012 and January 2013 ADAMA completed a capital raise of NIS 2.35 billion, NIS 1.2 billion, NIS 1.08 billion and NIS 678 million, respectively, with bonds issue via TASE. In February 2014 and January 2015 ADAMA raised US$ 500 million and NIS 689.6 million, respectively, in private placements of bonds issue.

 

Financial data is included in the consolidated financial statements of ADAMA AGRICULTURAL SOLUTIONS LTD., which shows:

                                                                                          US$ (thousands)

                                                                                    30.09.2014            31.12.2013

ASSETS

Current assets

     Cash and short term investments                                 534,936                 390,449

     Customers                                                               1,244,577                 979,497

     Other assets                                                               179,646                 152,458

     Inventories                                                               1,220,503              1,218,200

                                                                                    3,179,662              2,740,604

 

Long term investments, loans & debit                               140,539                 187,304

Fixed assets, net                                                             759,774                 723,194

Deferred tax                                                                      84,652                  82,101

Intangible assets, net                                                       703,545                 723,698

                                                                                    1,688,510              1,716,297

                                                                                    4,868,172              4,456,901

                                                                                  ========            ========

 

LIABILITIES

Current liabilities                                                            1,813,624              1,622,949

Long-term liabilities

     Loans from banks                                                       226,929                 248,187

     Debentures                                                              1,058,098              1,027,340

     Other long-term liabilities                                             133,105                 154,273

                                                                                    1,418,132              1,429,800

Equity                                                                          1,636,416              1,404,152

                                                                                    4,868,172              4,456,901

                                                                                  ========            ========

 

The ChemChina transaction includes, besides the sum paid for the shareholders, a non-recourse loan of US$ 960 million for KOOR for 7 years from Import & Export Bank of China (backed by HSBC Bank), in consideration of KOOR's shares, which will be transferred to ChemChina in the end of the period if the parties would not agree otherwise. In accordance to the agreement, ADAMA published a prospectus in August 2014 in view of raising some US$ 400 million on the NYSE based on a market value of US$ 4 billion, however demands were low (due to the unfavorable market conditions), and with an average company value of mere US$ 2.35 billion ADAMA's shareholders decided to cancel the issuance, and postpone it to a better period, announcing it will consider the timing of the public issuance based on market conditions.

 

Subject is an “Approved Enterprise” and as such entitled for State incentives and tax relieves. In 1997 subject received approval from the Israeli Investment Centre (IIC) for an expansion plan for its Ramat Hovav plant (some US$ 60 million). In 1998, 2000 and 2001 the IIC approved investments plans for the expansion of the Ramat Hovav plant of US$ 4.2, US$ 25 and US$ 14.8 million respectively.

In August 2010 the IIC approved a NIS 20 million investment plan for subject's plant in Ramat Hovav, of which up to 24% a grant.

 

There are 6 charges for unlimited amounts registered on the company's assets, in favor of the State of Israel and a foreign company (last charge placed 2010).

 

 

REVENUES

                                                             ADAMA AGRICULTURAL SOLUTIONS LTD.

                                                                    Consolidated Statement of Income

                                                                                      US$ (million)

                                                                                  Year ended 31.12

                                                                           2011              2012              2013

Sales                                                                 2,691.4          2,834.5          3,076.3

 

Gross profit                                                          841.5             899.6             968.1

 

Operating income                                                  243.1             281.6             309.0

 

Profit before taxes on income                                126.8             161.7             171.6

 

Net income                                                           120.7             122.6             127.1

                                                                        ======         ======         ======

 

94% of ADAMA’s sales are attributed to its core activities of chemicals for the agricultural fields (incl. subject and subsidiaries). Other fields (food additives, industrial chemicals, etc.) captured the rest of sales.

 

ADAMA's consolidated sales for the first 9 months of 2014 were US$ 2,547.1 million (5% increase compared the parallel period in 2013), making a gross profit US$ 840.7 million, an operating profit of US$ 300.6 million, and a net profit of US$ 182.1 million.

Subject ended 2010 with a net loss of US$ 40,476,000 (consolidated).

Subject ended 2011 with a net profit of US$ 65,735,000 (consolidated).

Subject ended 2012 with a net profit of US$ 49,638,000 (consolidated).

Subject ended 2013 with a net profit of US$ 88,241,000 (consolidated).

 

 

OTHER COMPANIES

 

MAKHTESHIM CHEMICAL WORKS TRADE & MARKETING LTD., 100%,

TARGETGENE BIOTECHNOLOGIES LTD., 50.1%,

ENERGIN.R TECHNOLOGIES 2009 LTD., 15%.

Subject also has direct holdings in ADAMA's subsidiaries below.

 

ADAMA AGRICULTURAL SOLUTIONS LTD., parent company, also owns some 50 subsidiaries worldwide, among them (all fully owned unless otherwise stated):

ADAMA AGAN LTD., which together with subject is responsible for the Group's main activities. Manufacturers, exporters and marketers of chemicals for agricultural purposes, i.e. plant growth regulators, plant protection chemicals, herbicides, etc.

CELSIUS PROPERTY B.V., 100%, Holland, holds 100% in IRVITA PLANT PROTECTION N.V., MAKHTESHIM AGAN INDUSTRY VIETNAM LTD CO. AND MAKHTESHIM AGAN AGROVITA SLOVAKIA S.R.O, 50% in JK MAGAN INC.

FAHRENHEIT HOLDINGS B.V., holds 50% in INNOVA AROMA S.A., Switzerland, and 100% in QUENA PLANT PROTECTION N.V.

ADAMA (AGAN) MARKETING CHEMICALS LTD.

AGAN AROMA & FINE CHEMICALS LTD., developers, manufacturers, marketers and exporters of aroma substances for detergents

INTERCONNECT AROMA LTD.

NEGEV AROMA (RAMAT HOVAV) LTD., 50%, manufacturing aroma products.

LYCORED LTD., holds 100% of LYCORED BIO LTD., jointly leading ADAMA Group's non-agro activities (e.g. natural food additives, micro encapsulation of natural health materials), DALIDAR PHARMA ISRAEL (1995) LTD., developers, manufacturers of photo pharmaceuticals (herbal based remedies), and 100% in ALB HOLDINGS U.K.,

MILENIA AGROCIENCIAS S.A., main Brazilian subsidiary,

MAKHTESHIM AGAN NORTH AMERICA INC., main American subsidiary,

MAGAN HB B.V.

ARAGONESAS AGRO S.A., Spain

MAGAN ARGENTINA S.A., Argentina

MAKHTESHIM AGAN HOLDING B.V.

MAKHTESHIM AGAN PARTICIPACOES

C.F.M. B.V., Holland

MAKHTESHIM AGAN OF NORTH AMERICA CANADA INC.

MAKHTESHIM AGAN COSTA RICA SA; MAKHTESHIM AGAN ESPANA SA; MAKHTESHIM AGAN FRANCE SARL; MAKHTESHIM AGAN ROMANIA SRL;

MAKHTESHIM AGAN THILAND LTD.; MAKHTESHIM AGAN PORTUGAL LTD.;

MAKHTESHIM AGAN ITALIA SRL; MAKHTESHIM AGAN INDIA PRIVATE LTD; MAKHTESHIM AGAN U.K. LTD.; MAKHTESHIM AGAN POLAND SP.ZO.O; MAKHTESHIM AGAN SWITZERLAND LTD.; MAKHTESHIM AGAN PERU SA, MAKHTESHIM ACAN HUNGARIA K.F.T.; MAKHTESHIM AGAN SERBIA LTD; MAKHTESHIM AGAN GUATEMALA LTD; MAKHTESHIM AGAN UKRAINE LTD; MAKHTESHIM AGAN SOUTH AFRICA PTY LTD., and in other countries.

PROFICOL S.A., holding PROFICOL ANDINA N.V. and PROFICOL VENEZUELA S.A.

MAGAN JAPAN CO. LTD.

MAGAN ITALIA SRL

MAGAN HOLDING GERMANY GmbH, holds 100% in FEINCHEMIE SCHWEBDA GmbH, and MAKHTESHIM AGAN DEUTCHLAND GmbH

MAGAN KOREA CO. LTD.

AGRONICA AUSTRALASIA PTY LTD. and FARMOZ PTY LTD., Australia

MILENIA AGRO CIENCIAS S.A.

MA U.S. HOLDING INC., USA

FARM SAVER GROUP

CONTROL SOLUTIONS INC., 67%

ALLIGARE LLC, 80%

AGROVITA Spel (SRO) (Czech Republic), and several more subsidiaries.

KOOR INDUSTRIES LTD., holding company, has other subsidiaries, owned by:

DISCOUNT INVESTMENT CO. LTD., also publicly traded on TASE (current market value US$ 135 million), controlled by IDB DEVELOPMENT CORP. LTD. (current market value US$ 103.3 million), controlled by Eduardo Elsztain (26.65%, via DOLPHIN NETHERLANDS), Motty Ben-Moshe (26.65%) and 20.75% held by Trustees in favor of IDB's bonds holders.

IDB DEVELOPMENT CORP. has many other holdings.

 

 

BANKERS

 

Bank Leumi Le’Israel Ltd., Beer Sheva Business Branch (No. 607), Beer Sheva.

Bank Hapoalim Ltd., Beer Sheva Business Branch (No. 177), Beer Sheva

Above 2 are the main branches, also working with local banks CITIBank N.V., HSBC Bank Plc, Israel Discount Bank Ltd. and Mizrahi Tefahot Bank Ltd.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Subject is certified with TI 18000, ISO 14001, ISO 9002 and other standard.

 

ADAMA is considered as the world’s largest producer of generic products for plant conservation and one of the leading companies in the agro-chemical sector, ranked 7th in world sales terms in 2013 (same as in 2012 and 2011), with estimated global market share of 5%.

 

ADAMA expects to benefit from the transaction with ChemChina, as leverage for entering the Chinese market valued US$ 4 billion, as well as Asian other markets. A major move in that direction is ADAMA's preparation to purchase 40% of Chinese agro-chemical manufacturing and marketing company HUBEI SANONDA, for estimated US$ 155 million. SANONDA is publicly traded on Shenzen Stock Exchange, and is controlled by ChemChina.

ADAMA also announced in August 2013 on negotiations with Chinese distribution company NOPOSION, for cooperation in distribution in China.

In October 2014 it was announced that ChemChina will sell ADAMA 4 Chinese companies in total value of US$ 624 million.

 

As to IDB Concern, as a holding company it went through a major shaking in 2013 due to liquidity problems, special court nominated managers were appointed, which received bids for new controlling owners for IDB. In December 2013 the Court approved a creditors' arrangement for IDB Group, in which ELSZTAIN-EXTRA Group will take over control. ELSZTAIN-EXTRA Group is comprised of businessmen Eduardo Elsztain of Argentine and Motty Ben-Moshe (who owns EXTRA Group). In April 2014 the debt arrangement was finally completed, and the new controlling shareholders fueled over NIS 1 billion, which allowed IDB Concern to survive, where the bond holders will be able to receive money and in addition – they received some 21% in IDB DEVELOPMENT. It should be noted, that due to unfavorable market conditions, IDB still remains with a huge debt, to be paid partly already in 2015, seen in the financial markets as somewhat problematic, leading to pressure on Elsztain and Ben Moshe to solve the situation (main option is to dissolve their partnership, as relations between them are shaky, and only one of them to lead).

As part of re-organization in IDB, KOOR merged into parent/sister company DISCOUNT INVESTMENT CO., following which KOOR turned private and its shares were de-listed from trade on Nasdaq and TASE.

 

In 2000 ADAMA acquired Brazilian MILENIA PARTICPACOES S.A. for US$ 45 million, through which ADAMA operates in Brazil, one of its strongest markets.

In June 2002, ADAMA completed the acquisition of FEINCHIMI, of Germany, for a sum of US$ 21 million. Also in 2002, ADAMA acquired several products (including stock, licenses, distribution rights, etc.) from BAYER, for a sum of over €200 million. In 2005, ADAMA signed a strategic deal to distribute BAYER CropScience’s agricultural insecticides.

During 2004-2007, ADAMA made several acquisitions:

* 3 Agro-chemical American Companies of the FARM SAVER Group, for a total sum of US$ 60 million.

* 67% in CONTROL SOLUTIONS INC. (CSI), an American pesticide company, for around US$ 15 million.

* FARMOZ, Australia 4th larges Agrochemical Company for US$ 16 million.

* 50.1% of RICECO of the USA, developers and manufacturers of herbicides for rice growing.

* 49% of Dutch company MABENO in shares swap deal (and later in 2008 increased stakes to 55%).

* 70% of Hungarian distribution company BIOMARK TRADING (and later in 2007 increased stakes to 100%).

* 30% of ALLIGARE, non-agricultural pesticide manufacturer of the USA in 2006 (later increased to 80%)

* 60% of Italian KOLLANT, non-agricultural pesticide manufacturer, for US$ 15 million in 2006 (in October 2008 increased stake to 100%).

* The activities from FARMACHEM/ REISMAN in 2006 for US$ 15.7 million.

* In 2006 75% of distribution of plant protection products company AGROVITA of Czech Republic (in 2009 reached 100%). In December 2013 acquired also the parallel sister company in Slovakia AROVITA SPOL.

* In January 2007 100% of marketing firm in Ecuador for US$ 6 million.

 

In 2009, ADAMA completed the acquisition of 2 companies in Poland (ROKITA, established 1946, plant protection products manufacturers, US$ 50 million annual turnover) and in Serbia (MAGAN YU) for US$ 20 million.

In addition, ADAMA acquired in 2009 the American company BOLD FORMULATORS LLC, dealing in formulation of products for plant protection.

 

ADAMA announced in September 2009 on a strategic cooperation agreement with CIBUS GLOBAL, according to which ADAMA will invest up to US$ 37 million over five years in a Joint Venture with CIBUS to develop proprietary crop traits in five major crops with a European focus. Separately, in another agreement, ADAMA entered into a Strategic Equity Alliance with CIBUS that allows ADAMA to gradually acquire up to 50.1% of CIBUS equity.

 

In October 2010 ADAMA announced it signed a cooperation agreement with its global rival MONSANTO, in which ADAMA will be sole supplier to some of MONSANTO's key products.

In November 2010 ADAMA announced on 2 acquisitions, one is 100% of BRAVO Group of Mexico (US$ 30 million sales), and the other is 51% of JK INC. of Korea (US$ 10 million sales).

 

In June 2011 ADAMA signed an exclusive license agreement with Italian ISAGRO, for using the Italian company's developed active substance.

 

In sake of major saving in energy costs, ADAMA launched its initiative for the erection of private power plants based on natural gas in subject and AGAN's plants, with an investment of US$ 200 million (erected jointly with EDELTEK and Turkish company ZORLO). In April 2011 subject started operating its 120mW power plant in Ramat Hovav site. In April 2012 the supply of gas stopped after EMG annulled the gas supply (due to political motives; ADAMA considers suing due to the breach of agreement). In April 2013 supply of natural gas was renewed from the new local "Tamar" resource (7 years contract). ADAMA investment in the natural gas systems amounts to NIS 70 million.

 

In March 2013 ADAMA and Australian STARPHRAMA announced a collaboration program, where STARPHARMA’s Priostar dendrimer technology will be applied to novel crop protection formulations across its product portfolio.

 

ADAMA has a cooperation agreement with Swiss partner FIRMENICH for development, manufacturing and marketing aroma products. The joint venture, called NEGEV AROMA, established jointly in 2010 and is erecting a production facility in ADAMA Group compound in Ramat Hovav, with investment of US$ 34 million.

 

In May 2013 ADAMA signed an agreement to acquire control in ChileAgro of Chile, which provides the Group access to the Latin American agro-chemical market.

 

In October 2013 ADAMA acquired the agricultural activities of AGRON, which markets pesticides based on natural environmental friendly materials and are not toxic for human, thus could be sprayed days prior to the fruit-picking.

 

In March 2014 ADAMA reached full ownership in Colombian PROFICOL S.A., paying US$ 30 million in acquiring the remaining 25% from its owner. ADAMA first invested in PROFICOL in 1998, in view of expanding into the Latin American market, and since then increased its stakes till reaching full ownership.

 

 

SUMMARY

 

Good for trade engagements.


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.50

UK Pound

1

Rs.92.16

Euro

1

Rs.69.62

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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%)

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.