MIRA INFORM REPORT

Report No. :	490865
Report Date :	13.02.2018

IDENTIFICATION DETAILS

Name :	GLENCORE AGRICULTURE P/L
Registered Office :	'Gateway' Level 44, 1 Macquarie Place Sydney, NSW, 2000
Country :	Australia
Date of Incorporation :	18.09.2003
Legal Form :	Australian Proprietary Company
Line of Business :	· The subject operates in the as one of the leading exporters of Australian grain nationally. · The company originate, handle, store, transport and market wheat, barley, oilseeds, pulses, meals, and cotton, operating in all Australian states
No. of Employees :	16,600 (Australian group)

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A+

Credit Rating	Explanation	Rating Comments
A+	Low Risk	Business dealings permissible with low risk of default

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

Country Name	Previous Rating (30.06.2017)	Current Rating (30.09.2017)
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

Following two decades of continuous growth, low unemployment, contained inflation, very low public debt, and a strong and stable financial system, Australia enters 2018 facing a range of growth constraints, principally driven by the sharp fall in global prices of key export commodities. Demand for resources and energy from Asia and especially China has stalled and sharp drops in current prices have impacted growth.

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 benefited from a dramatic surge in its terms of trade in recent years, although this trend has reversed due to falling 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 WTO, APEC, the G20, and other trade forums. Australia’s free trade agreement (FTA) with China entered into force in 2015, adding to existing FTAs with the Republic of Korea, Japan, Chile, Malaysia, New Zealand, Singapore, Thailand, and the US, and a regional FTA with ASEAN and New Zealand. Australia continues to negotiate bilateral agreements with India and Indonesia, as well as larger agreements with its Pacific neighbors and the Gulf Cooperation Council countries, and an Asia-wide Regional Comprehensive Economic Partnership that includes the 10 ASEAN countries and China, Japan, Korea, New Zealand and India.

Source : CIA

Company name

REGISTERED NAME GLENCORE AGRICULTURE P/L

ACN 106378885

ABN 29106378885

Summary Panel
Established	2005
Incorporated	2005
Line of Business	Commodity trading company
Status	Trading

EXECUTIVE SUMMARY

	Glencore Grain Holdings Australia P/L
	As at 31 Dec 2016
Revenue	$1,165,572,000.00
Profit b/tax	$27,627,000.00
Profit a/tax	$19,947,000.00
Net Profit Margin	1.71%

In November 2016 the subject entered into a Deed of Cross Guarantee with its holding entity Glencore Grain Holdings Australia P/L. The effect of the Deed is that each party that forms part of the closed group guarantee the debts of each other.

For the same period the closed group recorded revenue of $1,080,828,000 which resulted in an operating profit before tax of $22,112,000 and an operating profit after tax of $13,838,000.

As at 31 December 2016 the closed group recorded a deficiency in working capital of $107,642,000 and a current ratio of 0.93 to 1.

At the same date the closed group recorded Net Assets of $54,362,000.

CORPORATE SEARCH

Company Type Australian Proprietary Company

Status Registered

Incorporation Date 18 Sep 2003

Incorporation State VIC

Registered Office 'GATEWAY' LEVEL 44

1 MACQUARIE PLACE SYDNEY

NSW, 2000

Current Directors

Total: 4

Director Name HUGHES, RUSSELL PHILLIP

Appointment Date 24.10.2016

Date of Birth 17.04.1967

Gender MALE

7 BINNAK WAY MOOROODUC VIC 3933

Director Name REES, JASON FRANK

Appointment Date 05 Aug 2014

Date of Birth 09 Mar 1975

Place of Birth MOUNT GAMBIER SA

Gender MALE

Resident Overseas N

97A SUNNYSIDE RD, GLEN OSMOND SA 5064

Director Name MATTISKE, DAVID

Appointment Date 01 Jun 2011

Date of Birth 16 Oct 1976

Place of Birth BOX HILL VIC

Gender MALE

Resident Overseas Y

Director Name MOSTERT, ERNEST CHRISTIAN

Appointment Date 17 Feb 2006

Date of Birth 18 Aug 1964

Place of Birth PRETORIA SOUTH AFRICA

Gender UNKNOWN

Resident Overseas Y

Current Secretaries

Total: 1

Secretary Name RITTER, IAN WILLIAM

Appointment Date 17 Oct 2011

Date of Birth 13 Oct 1977

Place of Birth MELBOURNE VIC

Address 5 SKYLINE DRIVE KEILOR VIC, 3036

Document Number 1F0383530

Current Other Organisation Officers

Total: 2

Officer Role Appointed Auditor

Officer Name DELOITTE TOUCHE TOHMATSU

ACN 059637802

Appointment Date 31 Jan 2006

Address 550 BOURKE STREET

Company Shares

Total: 18000000 Amount: $18,000,000

Class ORDINARY SHARES [ORD]

Number of Shares Issued 18000000

Paid Capital $18,000,000.00

Total Amount Due and Payable $0.00

Current Shareholders

Shareholder Name GLENCORE GRAIN HOLDINGS AUSTRALIA PTY LIMITED

SECURITY INTERESTS

Effective 30 January 2012 the Personal Property Securities Register (PPSR) was introduced to give the different Commonwealth, State and Territory laws and registers regarding security interests in personal property under one national system.

As a result of PPS Reform a number of existing Commonwealth, State and Territory personal property security registers will close. Interests registered on existing security interest registers will be migrated to the national PPS Register. Subsequently Registered Charges are no longer lodged with the Australian Securities and Investments Commission (ASIC).

BUSINESS STRUCTURE

TRADING ADDRESS Level 8
484 St Kilda Road
Melbourne VIC 3004

POSTAL ADDRESS PO BOX 7656
Melbourne VIC 3004

TELEPHONE (613) 9864 2000

FACSIMILE (613) 9864 2002

WEBSITE www.glencoregrain.com.au

HOLDING ENTITY GLENCORE GRAIN HOLDINGS AUSTRALIA PTY LIMITED

ULTIMATE HOLDING

ENTITY GLENCORE AGRICULTURE BV - NETHERLANDS

BANK Not determined

EMPLOYEES 16,600 (Australian group)

BACKGROUND

The subject was incorporated in Victoria on 18 September 2003 as Brooks Grain P/L changing name to Glencore Grain P/L p 1 August 2005 before adopting the current style on 30 Jun e2017.

The subject acquired Viterra in 2012, a grain storage and handling network that spans key growing regions in South Australia and Western Victoria. Viterra’s network of upcountry receival sites and strategically located port terminals has a total storage capacity of more than 10 million tonnes.

In August 2016 the subject along with AACL P/L and Glencore Land (Australia) P/L, were acquired by Glencore Grain Holdings Australia P/L

OPERATIONS

The subject operates in the as one of the leading exporters of Australian grain nationally.

The company originate, handle, store, transport and market wheat, barley, oilseeds, pulses, meals, and cotton, operating in all Australian states.

The subject is backed by the strength of the global Glencore business. Glencore is one of the world’s largest global diversified natural resource companies and a major producer and marketer of more than 90 commodities.

Activities are conducted from premises located at the above listed trading address.

ADVERSE

A search of records of on 8 February 2018 failed to trace any litigation listed against the subject at that date.

FINANCES

The subject is not required to lodge financial statements with the Australian Securities and Investments Commission.

In November 2016 the subject entered into a Deed of Cross Guarantee with its holding entity Glencore Grain Holdings Australia P/L. The effect of the Deed is that each party that forms part of the closed group guarantee the debts of each other.

Below is a summary of the Group’s income results.

	Glencore Grain Holdings Australia P/L
	As at 31 Dec 2016
Revenue	$1,165,572,000.00
Profit b/tax	$27,627,000.00
Profit a/tax	$19,947,000.00
Net Profit Margin	1.71%

For the same period the closed group recorded revenue of $1,080,828,000 which resulted in an operating profit before tax of $22,112,000 and an operating profit after tax of $13,838,000.

During fiscal 2016, the subject recorded a deficiency in Net Cashflows from operating activities totaling $380,565,000.

As at 31 December 2016 the Group recorded total current assets of $1,433,593,000. They included cash of $10,226,000, receivables of $438,459,000 and inventories of $888,781,000.

Current liabilities at the same date totaled $1,546,900,000 and included payables of $375,054,000 and borrowings of $1,098,855,000.

As at 31 December 2016 the Group recorded a deficiency in Working Capital of $107,642,000 and a current ratio of 0.93 to 1.

At the same date the closed group recorded a decificny in working capital of $107,642,000 and a current ratio of 0.93 to 1.

Group Net Assets totaled $54,362,000 as at 31 December 2016. At this date, the subject further recorded a Debt to Equity ratio of 28 to 1.

At the same date the closed group recorded Net Assets of $54,362,000.

	Glencore Grain Holdings Australia P/L
	As at 31 Dec 2016
Revenue	$1,165,572,000.00
Profit b/tax	$27,627,000.00
Profit a/tax	$19,947,000.00
Net Profit Margin	1.71%
Current Assets	$1,396,630,000.00
Non Current Assets	$162,431,000.00
Total Assets	$1,559,061,000.00
Current Liabilities	$1,504,272,000.00
Non Current Liabilities	$427,000.00
Total Liabilities	$1,504,699,000.00
Net Assets	$54,362,000.00
Working Capital	($107,642,000.00)
Current Ratio	0.93
Debt to Equity	27.68

TRADE SURVEY

Details pertaining to the subjects suppliers were not provided for the current enquiry.

A trade survey on the subject was subsequently unable to be conducted.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 64.28
UK Pound	1	INR 89.02
Euro	1	INR 78.93
AUD	1	INR 50.54

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	SYL

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.