MIRA INFORM REPORT

 

 

Report Date :           

27.04.2011

 

IDENTIFICATION DETAILS

 

Name :

RECOCHEM INC

 

 

Registered Office :

18, 300 Queen St, Brisbane Qld 4000

 

 

Country :

Australia

 

 

Financials (as on) :

30.04.2010

 

 

Date of Incorporation :

28.11.1983

 

 

Legal Form :

Foreign Registered Company

 

 

Line of Business :

manufacture, packaging and distribution of a wide range of chemical products

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

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 – December 31, 2010

 

Country Name

Previous Rating

                   (30.09.2010)                  

Current Rating

(31.12.2010)

Australia

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

                                   

 

REGISTERED NAME 

 

RECOCHEM INC

ARBN: 010 485 999

ABN: 69 010 485 999

 

 

CORPORATE SEARCH

 

INCORPORATED                       28 November 1983

 

REGISTERED ADDRESS           18, 300 Queen St

                                                BRISBANE QLD 4000

 

SHARECAPITAL                        Not shown                    

 

SHAREHOLDERS                     Not shown

 

DIRECTORS                              LORD, Martin

                                                Resident overseas

 

                                                WRIGHT, Joseph

                                                Resident overseas

 

                                                BOUDREAUX, Richard

                                                Resident overseas

 

                                                KONDONIS, Spiros

                                                Resident overseas

 

                                                CAMPBELL, James Donald

                                                Resident overseas

           

REGISTERED CHARGES          Registered Charge Number                 : 1806222

                                                Date Registered                         : 25.06.2009

                                                Status                                                   : Fixed and floating

                                                Creditor                                                 : Business Development                                                                                                                                     Bank of China

 

                                                Registered Charge Number                 : 21806225

                                                Date Registered                         : 25.06.2009

                                                Status                                                   : Fixed & Floating

                                                Creditor                                                 : MG Stratum Fund

 

                                                Registered Charge Number                 : 1806224

                                                Date Registered                         : 25.06.2009

                                                Status                                                   : Fixed and Floating

                                                Creditor                                                 : La Caisse Populaire

           

                                                Registered Charge Number     : 1806226

                                                Date Registered                         : 25.06.2009

                                                Status                                                   : Fixed Floating

                                                Creditor                                     : Royal Bank of Canada

 

 

BUSINESS STRUCTURE

 

TRADING ADDRESS                 1809 Lytton Rd

                                                LYTTON, QLD 4178

 

TELEPHONE                             (617) 3396 7033

 

FACSIMILE                                   (617) 3396 7329

 

BRANCHES                                  PADSTOW, NSW

                                                    EPPING, NSW

                                                     WINGFIELD SA

                                                      KEWDALE, SA

 

BANK                                       ANZ BANKING GROUP

                                               

EMPLOYEES                150

           

 

BACKGROUND

 

The subject was registered as a foreign company operating in Australia on 28 November 1983.

 

The company was originally incorporated in Canada in 1951.

 

 

OPERATIONS

 

The subject operates in the manufacture, packaging and distribution of a wide range of chemical products to both retail chains and commercial markets.

 

Products include industrial solvents, paint thinners, cleaning fluids and automotive chemicals

 

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

 

 

ADVERSE

                                               

A search of failed to trace any litigation listed against the subject at that date.

 

FINANCES

 

From the subjects most recently lodged financial statements, it is noted that for the financial year ended 30 April 2010 the subject recorded sales of $92,113,988 which resulted in an operating profit before tax of $5,509,988 and an operating profit after tax of $3,848,908 representing a Net Profit Margin of 4.18%.

 

During the current interview conducted with the subject’s financial controller he advised that for the current financial year ending 30 April 2011 the subject expects to trade profitably and record revenue of between $100 million and $150 million.

 

 

Recochem Inc - consolidated

 

 

As at 30 April 2010

As at 30 June 2008

Change (%)

Revenue

$92,113,988

$91,604,493

0.56%

Profit b/tax

$5,509,563

$3,037,659

81.38%

Profit a/tax

$3,848,908

$2,285,835

68.38%

Net Profit Margin

4.18%

2.50%

1.68%

 

During fiscal 2010, the subject recorded Net Cashflows from operating activities totalling $441,628.

 

As at 30 April 2010, the subject recorded total current assets of $26,647,299. They included cash of $2,027,509, receivables of $16,090,008 and inventories of $8,150,861.

 

Current liabilities at the same date totalled $12,313,379 and included payables of $7,255,050 and provisions of $3,744,313.

 

As at 30 April 2010, the subject recorded Working Capital of $14,333,920 and a current ratio of 2.16 to 1 indicating a strong liquidity position.

 

Net Assets totalled $13,434,407 as at 30 April 2010. At this date, the subject further recorded a Debt to Equity ratio of 2.02 to 1.

 

 

Recochem Inc - consolidated

 

 

As at 30 April 2010

As at 30 June 2008

Change (%)

Revenue

$92,113,988

$91,604,493

0.56%

Profit b/tax

$5,509,563

$3,037,659

81.38%

Profit a/tax

$3,848,908

$2,285,835

68.38%

Net Profit Margin

4.18%

2.50%

1.68%

Current Assets

$26,647,299

$27,210,143

-2.07%

Non Current Assets

$13,949,905

$13,912,355

0.27%

Total Assets

$40,597,204

$41,122,498

-1.28%

Current Liabilities

$12,313,379

$16,451,785

-25.15%

Non Current Liabilities

$14,849,418

$15,085,214

-1.56%

Total Liabilities

$27,162,797

$31,536,999

-13.87%

Net Assets

$13,434,407

$9,585,499

40.15%

Working Capital

$14,333,920

$10,758,358

33.24%

Current Ratio

2.16

1.65

30.85%

Debt to Equity

2.02

3.29

-38.55%

 

 

TRADE SURVEY

 

A trade survey on the subject traced the following accounts:

 

1.                   (Queensland Blow Moulders) Purchases average $200,000 to $300,000 per month on 30 day terms. Payment is met in 28 days and the account is considered satisfactory, having been known over 10 years.

 

2.                   (NCI Packaging) Nominated supplier failed to respond to correspondence despite chasing.

 

 

SUMMARY

 

The subject was registered as a foreign company operating in Australia on 28 November 1983.

 

The company was originally incorporated in Canada in 1951.

                       

For the financial year ended 30 April 2010 the subject recorded sales of $92,113,988 which resulted in an operating profit before tax of $5,509,988 and an operating profit after tax of $3,848,908 representing a Net Profit Margin of 4.18%.

 

For the current financial year ending 30 April 2011 the subject expects to trade profitably and record revenue of between $100 million and $150 million.

 

During fiscal 2010, the subject recorded Net Cashflows from operating activities totalling $441,628.

 

As at 30 April 2010, the subject recorded Working Capital of $14,333,920 and a current ratio of 2.16 to 1 indicating a strong liquidity position.

 

Net Assets totalled $13,434,407 as at 30 April 2010. After deducting intangibles of $8,300,536 this results in a Net Worth of $5,133,871.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.59

UK Pound

1

Rs.73.44

Euro

1

Rs.64.81

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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

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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

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%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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