MIRA
INFORM REPORT
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Report Date : |
05.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
DRIVETRAIN SYSTEMS INTERNATIONAL PTY LTD |
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Formerly Known As : |
DRIVELINE SYSTEMS INTERNATIONAL P/L |
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Registered Office : |
1661 Centre Rd, Springvale, Vic 3171 |
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Country : |
Australia |
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Financials (as on) : |
30.06.2007 |
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Date of Incorporation : |
10.11.2005 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacture of Automotive transmission. |
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 : |
Regular |
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Litigation : |
Clear |
CORPORATE REPORT
REGISTERED NAME DRIVETRAIN SYSTEMS INTERNATIONAL PTY LTD
ACN : 117 069 404
ABN : 79 117 069 404
CORPORATE SEARCH
INCORPORATED 10 November 2005
REGISTERED ADDRESS 1661 Centre Rd
SPRINGVALE, VIC 3171
SHARECAPITAL
$9,999,900
SHAREHOLDERS
MING-HE AUTOMOTIVE PARTS Holds 2,100,000
GLOBALLY ALLIANCES Holds 1,212,766
BLB NOMINEES Holds 1,000,000
HANSWOOD P/L Holds 710,620
WB NOMINEES P/L Holds 580,000
TEAM NOMINEES P/L Holds 550,000
JAPAN ASIA PACIFIC SUPPOR Holds 500,000
OOLA P/L Holds 450,000
JILONG P/L Holds 337,671
MROWA P/L Holds 298,176
DIRECTORS
v
CHIKOSH,
Simon
7 Dongara Cl
ELANORA, QLD 4221
v
LINNEY,
Dale Andrew
25 Birdwood St
ESSENDON NORTH, VIC 3041
v
TURNER,
Michael James
5 Solley Rd
CARRUM DOWNS, VIC 320`
SECRETARY
SALTHOUSE, Matthew Jonathon Rayden
REGISTERED CHARGES
Registered Charge Number : 1511780
Date Registered : 11.09.2007
Status : Fixed and floating
Creditor : BOS International
Registered Charge Number : 1504148
Date Registered : 27.08.2007
Status : Fixed and floating
Creditor : TRBS P/L
BUSINESS STRUCTURE
HEAD OFFICE 22 Tarlington Place
Smithfield, NSW, 2164
TELEPHONE (612) 9604 8566
TRADING ADDRESS Lavington
Kaitlers
Rd
ALBURY,
NSW
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E-mail : |
CONTROLLED
ENTITIES
v
DRIVETRAIN SYSTEMS INTERNATIONAL (KOREA) P/L
v
DRIVETRAIN SYSTEMS INTERNATIONAL (CHINA) P/L
v
DIVETRAIN SYSTEMS INTERNATIONAL (INDIA) P/L
BANK
v BOS INTERNATIONAL
v TRBS PTY LTD
EMPLOYEES
411
BACKGROUND
The subject was incorporated in Victoria on 10 November 2005 as Driveline Systems International P/L, before adopting the current style on 24 November 2005.
The subject was formed to take over the Albury Manufacturing plant from Ion Automotive effective 23 February 2006.
The subject has origins that date back 30 years.
OPERATIONS
The subject operates in the manufacture of automotive transmissions.
Activities are conducted from premises located at the above listed trading address.
ADVERSE
A search of the of Credit Advantage Limited on 30 January 2008 failed to trace any litigation listed against the subject at that date.
FINANCES
The subject was formed to take over the Albury Manufacturing plant from Ion Automotive effective 23 February 2006. Consideration for the acquisition was $42,000,000.
From the subjects most recently lodged financial statements, it is noted that for the financial year ended 30 June 2007, the subject recorded revenue of $145,410,000, which resulted in an operating profit before tax of $7,925,000 and an operating profit after tax of $6,844,000 representing a Net Profit Margin of 4.71%.
During the last financial year 140 staff were made redundant as a result of challenging local and international conditions that included below budgeted sales to Ford.
At 30 June 2007 the subject had supply agreements for 4-speed transmissions with customers; Ford, Ssang Yong and Taganrog Automobile Plant. The subject has further secured supply agreements of 6 speed automatic rear wheel drive transmissions to Ssangyong and Mahindra & Mahindra from December 2007.
Below is a summary of the subject’s income results for the past two financial years.
Drivetrain Systems international Pty Ltd
As at 30 June 2007 As at 30 June 2006 Change (%)
Revenue $145,410,000 $58,245,000 149.65%
Profit b/tax $7,925,000 $5,469,000 44.91%
Profit a/tax $6,844,000 $4,004,000 70.93%
Net Profit Margin 4.71% 6.87% -2.17%
During fiscal 2007, the subject recorded a deficiency in Net Cashflows from operating activities totalling $1,493,000.
As at 30 June 2007, the subject recorded total current assets of $35,014,000. They included cash of $4,940,000 receivables of $18,640,000 and inventories of $9,082,000.
Current liabilities at the same date totalled $49,467,000 and included payables of $24,291,000 and borrowings of $16,519,000.
As at 30 June 2007, the subject recorded a deficiency in Working Capital of $14,453,000 and a current ratio of 0.71 to 1 indicating some tightness in liquidity levels.
On 27 July 2007, facility agreements were signed with TRBS P/L (Assetsecure) and BOS International (the lenders).The facility with Assetsecure provides with a $20,000,000 limit and is designed to fund on going working capital requirements. The separate facility with HBOS has a $37,500,000 limit.
Net Assets totalled $20,848,000 as at 30 June 2007. At this date, the subject further recorded a Debt to Equity ratio of 3.25 to 1.
In regards to asset backing, the subject is noted to own the premises located at the above listed trading address. A property search can be conducted at your request to confirm ownership.
Drivetrain Systems international Pty Ltd
As at 30
June 2007 As at 30 June 2006 Change (%)
Revenue $145,410,000 $58,245,000
149.65%
Profit b/tax $7,925,000 $5,469,000 44.91%
Profit a/tax $6,844,000 $4,004,000 70.93%
Net Profit
Margin 4.71% 6.87% -2.17%
Current Assets $35,014,000 $38,076,000 -8.04%
Non Current
Assets $53,585,000 $45,728,000 17.18%
Total Assets $88,599,000 $83,804,000 5.72%
Current
Liabilities $49,467,000 $43,352,000 14.11%
Non Current
Liabilities $18,284,000 $26,448,000 -30.87%
Total
Liabilities $67,751,000 $69,800,000 -2.94%
Net Assets $20,848,000 $14,004,000 48.87%
Working Capital ($14,453,000) ($5,276,000) 173.94%
Current Ratio 0.71 0.88 -19.41%
Debt to Equity 3.25 4.98 -34.80%
TRADE SURVEY
During the current investigation, contact with the subjects principals was unable to be established.
Subsequently details pertaining to the company’s suppliers were unable to be obtained and a trade survey could not be conducted.
SUMMARY
The subject was incorporated in Victoria on 10 November 2005 as Driveline Systems International P/L, before adopting the current style on 24 November 2005.
The subject was formed to take over the Albury Manufacturing plant from Ion Automotive effective 23 February 2006.
For the financial year ended 30 June 2007, the subject recorded revenue of $145,410,000, which resulted in an operating profit before tax of $7,925,000 and an operating profit after tax of $6,844,000 representing a Net Profit Margin of 4.71%.
As at 30 June 2007, the subject recorded a deficiency in Working Capital of $14,453,000 and a current ratio of 0.71 to 1 indicating some tightness in liquidity levels.
Net Assets totalled $20,848,000 as at 30 June 2007. At this date, the subject further recorded a Debt to Equity ratio of 3.25 to 1.
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)