MIRA
INFORM REPORT
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Report Date : |
27.10.2008 |
IDENTIFICATION DETAILS
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Name : |
ORICA AUSTRALIA PTY LTD |
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Registered Office : |
10, 35 Spring St Melbourne, VIC 3000 |
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Country : |
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Date of Incorporation : |
23.06.1925 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Supplier of Chemical Products and Specialist Services to
Industrial Markets in |
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 : |
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.49.77 |
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UK Pound |
1 |
Rs.79.78 |
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Euro |
1 |
Rs.63.36 |
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%)