MIRA
INFORM REPORT
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Report Date : |
12.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
TRONOX PIGMENTS LTD |
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Formerly Known As : |
KERR-MCGEE PIGMENT LTD |
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Registered Office : |
1 Brodie Hall Dr BENTLEY WA 6102 |
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Country : |
Australia |
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Date of Incorporation : |
22.07.1991 |
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Legal Form : |
Limited Company |
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Line of Business : |
Distribution of Titanium Dioxide Pigment |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
REGISTERED NAME
TRONOX PIGMENTS LTD
ACN: 052 533 829
ABN: 63 052 533 829
INCORPORATED
22 July 1991
REGISTERED ADDRESS
1 Brodie Hall Dr
BENTLEY WA 6102
SHARECAPITAL
Not shown
SHAREHOLDERS
Not shown
DIRECTORS
ADAMS,
Thomas William
Resident
overseas
KIRTON,
Robert
194
Kargotich Rd
OAKFORD, WA
6121
RAUH, John
Michael
Resident overseas
SECRETARY
Not shown
REGISTERED CHARGES
None on record
BUSINESS STRUCTURE
TRADING ADDRESS 1 Brodie Hall Dr
BENTLEY WA 6102
TELEPHONE (618) 9361 4700
FACSIMILE (618) 9361 1418
ASSOCIATED ENTITY TRONOX WESTERN AUSTRALIA P/L
ULTIMATE HOLDING ENTITY TRONOX INC
BANK ANZ BANKING GROUP
EMPLOYEES Nil – all employed through the listed Associated entity
20 to 30 (Australian Group)
BACKGROUND
The subject was incorporated as a foreign company operating in Australia on 22 July 1991 as Kerr-McGee Pigment Ltd, changing name on 30 August 1991 to Kerr McGee Pigments Ltd, before adopting the current style on 31 March 2006.
OPERATIONS
The subject operates in the distribution of titanium dioxide pigment; an inert, inorganic chemical used to brighten, whiten and opacify hundreds of everyday consumer products.
Activities are conducted from premises located at the above listed trading address.
ADVERSE
A search of the of Credit Advantage Limited 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.
During the current interview conducted with the subjects Financial Controller, she confirmed the subjects search and operational details, however declined to provide any financial information as a matter of strict company policy
From the subjects most recently lodged financial statements, it is noted that for the financial year ended 31 December 2005, the subject recorded revenue of US$303,310,723, which resulted in an operating loss before tax of $4,722,101 and an operating loss after tax of $4,325,867.
During fiscal 2005 the subject recorded a deficiency in Net cashflows from operating activities totalling $12,532,300.
As at 31 December 2005 the subject recorded total current assets of $108,160,808. They included cash of $21,757,303 and receivables of $84,218,444.
Current liabilities at the same date totalled $154,952,389 and included payables of $154,949,896.
As at 31 December 2005 the subject recorded a deficiency in Working Capital of $146,791,581 and a current ratio of 0.7 to 1 indicating tight liquidity levels.
Enquiries in trade quarters revealed satisfaction from suppliers contacted in dealing with the subject on a credit basis.
The subject recorded a deficiency in Net Assets of $3,332,909 as at 31 December 2005.
The subject is ultimately owned by Tronox Inc, a US based public listed corporation that employs 2,130 staff globally. For the financial year ended 31 December 2006, the global group recorded consolidated sales of US$1,411.6 million which resulted in a Net Loss of US$200,000.
TRADE SURVEY
A trade survey on the subject traced the following accounts:
(FCL) Purchases average $100,000 per month on 14 day terms. Payment is met in 14 days and the account is considered satisfactory, having been known since 1999.
Nominated supplier failed to respond to correspondence despite chasing.
SUMMARY
The subject was incorporated as a foreign company operating in Australia on 22 July 1991 as Kerr-McGee Pigment Ltd, changing name on 30 August 1991 to Kerr McGee Pigments Ltd, before adopting the current style on 31 March 2006.
For the financial year ended 31 December 2005, the subject recorded revenue of US$303,310,723, which resulted in an operating loss before tax of $4,722,101 and an operating loss after tax of $4,325,867.
During fiscal 2005 the subject recorded a deficiency in Net cashflows from operating activities totalling $12,532,300.
As at 31 December 2005 the subject recorded a deficiency in Working Capital of $146,791,581 and a current ratio of 0.7 to 1 indicating tight liquidity levels.
Enquiries in trade quarters revealed satisfaction from suppliers contacted in dealing with the subject on a credit basis.
The subject recorded a deficiency in Net Assets of $3,332,909 as at 31 December 2005.
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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%)