MIRA
INFORM REPORT
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Report Date : |
03.11.2008 |
IDENTIFICATION
DETAILS
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Name : |
ORICA AUSTRALIA PTY LTD |
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Formerly Known as : |
ICI AUSTRALIA OPERATIONS PTY LTD |
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Registered Office : |
10, 35 Spring St Melbourne, VIC 3000 |
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Country : |
Australia |
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Financials (as on) : |
30.09.2007 |
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Date of Incorporation : |
23.06.1925 |
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Legal Form : |
Propriety Limited |
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Line of Business : |
Supplier of Chemical Products and Specialist Services to Industrial
Markets in Australia, New Zealand, Fiji, and Papua New Guinea. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Very Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
REGISTERED NAME
ORICA AUSTRALIA PTY LTD
ACN: 004 117 828
ABN: 99 004 117 828
CORPORATE SEARCH
INCORPORATED 23 June
1925
REGISTERED ADDRESS 10, 35
Spring St
MELBOURNE,
VIC 3000
SHARECAPITAL $518,634,609
SHAREHOLDERS ORICA
LTD Holds
340,000,000 shares
ORICA
INVESTMENTS (NZ) Holds 210,000,000
shares
ORICA
CANADA INC Holds
140,000,000 shares
DIRECTORS WITCOMBE, Gregory
John
10
Salisbury St
BALWYN,
VIC 3103
MEEHAN,
Noel Anthony
1 Larnoo Dr
DONCASTER EAST, VIC 3109
LIEBELT, Graeme Richard
30 Florence Ave
KEW, VIC 3101
SECRETARY COOK, Annette
Margaret
REGISTERED CHARGES None on
record
BUSINESS STRUCTURE
TRADING ADDRESS 9, 1 Nicholson St
EAST
MELBOURNE, VIC 3002
TELEPHONE (613) 9665 7111
FACSIMILE (613) 9655 7937
HOLDING ENTITY ORICA LIMITED
BANK Not
determined
EMPLOYEES over
10,000 (Group)
BACKGROUND
The subject was
incorporated in Victoria on 23 June 1925 as Nobel (Australasia) Ltd, changing
name on 18 April 1929 to Nobel (Australasia) Pty Ltd, changing name on 21
November 1977 to ICI Australia Operations Pty Ltd, adopting the current style
on 2 February 1998.
The Holding entity Orica
Limited is listed on the Australian Stock Exchange and employs 10,000 staff
globally.
Group operations originated
as Jones, Scott and Co in 1874.
The company was later
acquired by Nobel, which went on to merge with a number of other entities to
form Imperial Chemical Industries Plc.
In 1971, the company became
ICI Australia.
In July 1997, the subject
became an independent Australian Company after its holding entity, Imperial
Chemical Industries Plc divested its shareholding in the company.
In February 1998, the group
changed name to Orica.
DIRECTORS PROFILES
O’SULLIVAN,
Shaun, Director was born on 22 October 1955 and was appointed to the subjects
board on 1 August 2002. He joined
the Group in September 2001 and became General Manager, Business Development in
May 2002. He has worked in the Australian resources sector, initially for six
years at MIM Holdings Ltd in various senior finance roles and then for 13 years
at North Limited. He is active in the Groups operations as General Manager of
Business Development.
LIEBELT, Graeme Richard,
Director was born on 2 March 1954 and was appointed to the subjects board on 1
July 1997. He joined the group in1989 and is active in the daily operations as
CEEO of Orica Mining Services.
OPERATIONS
The
subject operates as a supplier of chemical products and specialist services to
industrial markets in Australia, New Zealand, Fiji, and Papua New Guinea.
The
subject has significant investments in strategic supply chain assets and access
to some of the world’s best producers of chemicals. With an import distribution
of more than 500,000 tonnes per year, the company deliver a broad range of
products and services at internationally.
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.
The Holding entity Orica
Limited is listed on the Australian Stock Exchange and employs 10,000 staff
globally.
The subject is noted to have entered into a Deed of Cross Guarantee
pursuant to a Class Order with its Holding entity Orica Limited. The effect of the Deed is that each
party that forms part of the closed group guarantee the debts of each other.
For the financial year ended 30 September 2007, the group recorded
consolidated sales revenue of $5,527,200,000 which resulted in an operating
profit from continuing operations before tax of $667,800,000 and after tax of $513,400,000
representing a Net Profit Margin of 9.29%.
Below is a summary of the groups consolidated results for the past two
financial years.
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Orica Limited -
consolidated |
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As at 30
September 2007 |
As at 30
September 2006 |
Change (%) |
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Revenue |
$5,527,200,000 |
$4,745,600,000 |
16.47% |
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Profit b/tax |
$667,800,000 |
$166,900,000 |
300.12% |
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Profit a/tax |
$513,400,000 |
$120,500,000 |
326.06% |
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Net Profit
Margin |
9.29% |
2.54% |
6.75% |
During fiscal 2007, the parties which form part of the closed group,
which form part of Deed of Cross Guarantee recorded an operating profit before
tax of $178,500,000 and after tax of $122,200,000.
As at 30 September 2007, the group recorded consolidated total current
assets of $1,945,100,000. They included receivables of $915,900,000 and cash of
$370,700,000.
Current liabilities at the same date totaled $1,947,600,000 and included
payables of $1,032,600 and interest bearing liabilities of $582,700,000.
As at 30 September 2007 the group recorded a deficiency in consolidated
Working Capital of $2,500,000 and a current ratio of 1 to 1.
At the same date, the closed group recorded a deficiency in Working
capital of $897,000,000 and a current ratio of 0.71 to 1.
The Group recorded consolidated Net Assets of $2,627,600,000 as at 30
September 2007.
At the same date, the closed group recorded Net Assets of
$2,445,200,000.
For the six months ended 31 March 2008 the group recorded revenue of
$3,029.9 million which resulted in EBIT of $423 million and Net Profit after
tax of $224.5 million.
Other Financial Information
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Orica Limited -
consolidated |
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As at 30
September 2007 |
As at 30 September
2006 |
Change (%) |
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Revenue |
$5,527,200,000 |
$4,745,600,000 |
16.47% |
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Profit b/tax |
$667,800,000 |
$166,900,000 |
300.12% |
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Profit a/tax |
$513,400,000 |
$120,500,000 |
326.06% |
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Net Profit
Margin |
9.29% |
2.54% |
6.75% |
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Current Assets |
$1,945,100,000 |
$2,479,700,000 |
-21.56% |
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Non Current
Assets |
$4,259,200,000 |
$3,233,100,000 |
31.74% |
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Total Assets |
$6,204,300,000 |
$5,712,800,000 |
8.60% |
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Current
Liabilities |
$1,947,600,000 |
$1,300,100,000 |
49.80% |
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Non Current
Liabilities |
$1,629,100,000 |
$1,744,500,000 |
-6.62% |
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Total
Liabilities |
$3,576,700,000 |
$3,044,600,000 |
17.48% |
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Net Assets |
$2,627,600,000 |
$2,668,200,000 |
-1.52% |
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Working Capital |
($2,500,000) |
$1,179,600,000 |
-100.21% |
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Current Ratio |
1.00 |
1.91 |
-47.64% |
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Debt to Equity |
1.36 |
1.14 |
19.29% |
TRADE SURVEY
During the current investigation, contact with the
subject’s principals was unable to be established. As a result, details
pertaining to the subject’s suppliers were unable to be obtained and a trade
survey could not be conducted.
SUMMARY
The subject was
incorporated in Victoria on 23 June 1925 before adopting the current style on 2
February 1998. Records disclose Share capital of $518,634,609.
The subject is noted to have entered into a Deed of Cross Guarantee
pursuant to a Class Order with its Holding entity Orica Limited.
For the financial year ended 30 September 2007, the group recorded
consolidated sales revenue of $5,527,200,000 which resulted in an operating
profit from continuing operations before tax of $667,800,000 and after tax of
$513,400,000 representing a Net Profit Margin of 9.29%.
During fiscal 2007, the parties which form part of the closed group,
which form part of Deed of Cross Guarantee recorded an operating profit before
tax of $178,500,000 and after tax of $122,200,000.
As at 30 September 2007, the closed group recorded a deficiency in Working
capital of $897,000,000 and a current ratio of 0.71 to 1.
At the same date, the closed group recorded Net Assets of
$2,445,200,000.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.48.96 |
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UK Pound |
1 |
Rs.80.26 |
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Euro |
1 |
Rs.63.08 |
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%)