MIRA INFORM REPORT

 

 

Report No. :

310772

Report Date :

10.03.2015

 

IDENTIFICATION DETAILS

 

Name :

RICHARDS PACKAGING INC.

 

 

Registered Office :

6095 Ordan Drive, Mississauga, Ontario L5T 2M7

 

 

Country :

Canada

 

 

Date of Incorporation :

29.07.2005

 

 

Legal Form :

Federal Corporation – Profit

 

 

Line of Business :

Manufacturer and distributor of glass containers for the retail drug trade and pharmaceutical industries.

 

 

No of Employees :

200+

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Canada

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

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 & address

 

Company name:                        RICHARDS PACKAGING INC. (in English)

                                                EMBALLAGES RICHARDS INC. (in French)

 

Address:                                               6095 Ordan Drive, Mississauga, Ontario L5T 2M7 - Canada

 

Telephone:                                +1 905-670-7760

 

Fax:                                          +1 905-670-1961

 

Website:                                               www.richardspackaging.com

 

 

Company details

 

Corporate ID#:                          4319133

 

State:                                       Federal

 

 

Judicial form:                            Federal Corporation – Profit

 

Date incorporated:                    07-29-2005

 

Stock:                                       -

 

Value:                                       -

 

 

Name of manager:                     Gerry GLYNN

 

 

ACTIVITIES & OPERATIONS

 

History:

 

The company was formed in 1912 as Richards Glass Co. Ltd., a manufacturer and distributor of glass containers for the retail drug trade and pharmaceutical industries.

 

 

IST

 

Business:

 

Richards Packaging, Inc. manufactures and distributes plastic and glass containers for retail drug trade and pharmaceutical industries in North America.

 

Its products include glass bottles, plastic bottles, cosmetic jars, metal caps, plastic caps, maple syrup bottles, food jars, sauce bottles, vinegars/olive oil bottles, pails and lids, plastic jars, plastic caps, pails and lids, plastic drums, steel drums, IBC totes, ointment jars, and vials.

The company also distributes various injection molded containers and packaging systems; and metal and plastic closures.

It offers its products through distributors.

 

 

Foreign suppliers include:

 

GUANGDONG HUAXING GLASS CO., LTD.

WUZHUANG, LUOCUN, NANHAI,G UANGDONG, CHINA

 

 

Staff:    200+

 

Operations & branches:

 

At the headquarters, we find a factory, warehouse and office, owned.

 

The Company maintains several manufacturing plants in Canada and the U.S. including

 

REXPLAS

500 Barmac Drive, Unit 1, North York, Ontario M9L 2X8

Ph: +1 416-745-6643

Fx: +1 416-745-6139

 

 

SHAREHOLDERS & MANAGERS

 

Shareholders:

 

RICHARDS PACKAGING INCOME FUND

6095 Ordan Drive, Mississauga, Ontario L5T 2M7

Public Company listed with the TSX under symbol RPI.

 

On March 5, 2015, Richards Packaging Income Fund reported earnings results for the year ended December 31, 2014.

 

For the year, the company reported revenue growth of 3% and EBITDA as a percentage of sales at 11%. The dollar depreciation of 6.5 cents to U.S./CAD 0.91 added an additional 4% to revenue and $1.2 million to EBITDA.

Net income was $8.0 million, or $0.75 per Unit, up $3.1 million from the same period in 2013 which mainly reflects the expiry of intangible amortization and the absence of patent defense legal costs in 2014. The $4.2 million in free cash flow for the year was utilized to pay down $3.0 million in debt.

 

 

 

 

Management:

 

Gerry GLYNN has been the Chief Executive Officer at Richards Packaging Income Fund. and Richards Packaging, Inc. since November 2002.

Mr. Glynn served as the Chief Financial Officer of Data Business Forms Ltd. from 1994 to 2000, and Director for Finance of Wang Canada Limited from 1991 to 1994. He has been a Director of Richards Packaging Inc., since November 2002. Mr. Glynn has been a Trustee of Richards Packaging Income Fund since April 7, 2004. Mr. Glynn is a Chartered Accountant and holds a Master of Science in Engineering from Queen's University and an Honours Business Administration degree from the University of Western Ontario.

 

David PRUPAS has been the Chief Operating Officer at Richards Packaging Income Fund since April 2004 and also serves as its President. Mr. Prupas serves as the Chief Operating Officer and President at Richards Packaging Inc.

Mr. Prupas has been with the Richards Packaging Inc., since 1977.

Mr. Prupas is an original owner who sold the Richards Packaging Inc., to the Existing Security holders in 2002. Mr. Prupas holds a Bachelor of Arts from Concordia University.

 

Enzio DI GENNARO is the CFO.

 

The Board of Directors includes Gerry GLYNN, Wayne McLEOD, Derek RIDOUT,

Donald WRIGHT, and Rami YOUNES.

 

 

FINANCIALS

 

In Canada, privately held corporations are not required to publish any financials.

 

On a direct call, a financial assistant controlled the present report and confirmed that all financials are consolidate into the parent company.

(10K on attachment)

 

 

Banks:  Scotia Bank

           

 

 

LEGAL FILINGS

 

Legal filings & complaints:

 

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

 

 

Secured debts summary:   None

 

 

 

COMPANY CREDIT HISTORY

 

Trade references:

 

Date reported:               January 2015

High credit:                   CAD 30,000

Now owing:                   0

Past due:                      0

Last purchase:              December 2014

Line of business:           Office supply

Paying status:               On terms

 

Date reported:               January 2015

High credit:                   CAD 300,000

Now owing:                   0

Past due:                      0

Last purchase:              December 2014

Line of business:           Payroll

Paying status:               As agreed

 

Date reported:               January 2015

High credit:                   CAD 6,000

Now owing:                   0

Past due:                      0

Last purchase:              December 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 a strong 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 January 7, 2015.

 

 

The risk is low.

 

 

Our opinion:

 

A business connection may be conducted.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 62.61

UK Pound

1

Rs. 94.39

Euro

1

Rs. 67.96

 

INFORMATION DETAILS

 

Analysis Done by :

RSM

 

 

Report Prepared by :

DPT

 

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.