MIRA INFORM REPORT
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Report Date : |
14.03.2011 |
IDENTIFICATION DETAILS
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Name : |
QUEENSLAND COTTON CORPORATION PTY LTD |
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Registered Office : |
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Country : |
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Financials (as on) : |
30.06.2010 |
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Date of Incorporation : |
13.06.1989 |
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Legal Form : |
Proprietary Company |
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Line of Business : |
supplier of premium cotton to the world's textile markets |
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 : |
No Complaints |
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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
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Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
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a1 |
a1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
REGISTERED NAME
QUEENSLAND COTTON
CORPORATION PTY LTD
ACN:
010 944 591
ABN: 26 010 944 591
CORPORATE SEARCH
Incorporation
Date: 13 Jun 1989
Registered Office 55
WYANDRA Street
NEWSTEAD,
Number
of Shares Issued: 9391065
Paid
Capital: 9391065
Shareholders QUEENSLAND
COTTON HOLDINGS PTY LTD
Number
of Shares: 9391065
Directors PARIHAR,
JAGDISH ACHLESHWAR
Appointment Date: 31 Jul 2007
Date of Birth: 06 Aug 1957
Gender: Unknown
Address:
Resident Overseas: Yes
VERGHESE, SUNNY GEORGE
Appointment Date: 31 Jul 2007
Date of Birth: 19 Nov 1959
Gender: Unknown
Address:
Resident Overseas: Yes
HAIRE, RICHARD GEORGE
Appointment Date: 13 Jun 1989
Date of Birth: 08 Jan 1959
Gender: Male
Address: MILLBROOK ESTATE 63 THE PROMENADE HENDRA,
Resident Overseas: No
Secretary BRYCE,
Damian
Appointment
Date: 27 Feb 2008
Proprietor of Business MT. TYSON SEEDS
Registered State:
Business Registration Number: BN18722295
Australian Business Number:
Appointment Date: 03 Nov 2003
COTTON WEEK
Registered State:
Business Registration Number: BN5859785
Australian Business Number:
Appointment Date: 04 Oct 1995
COTTCO AG SALES
Registered State:
Business Registration Number: BN3012475
Australian Business Number:
Appointment Date: 09 Oct 1989
Registered State:
Business Registration Number: BN3162783
Australian Business Number:
Appointment Date: 09 Oct 1989
BUSINESS STRUCTURE
TRADING ADDRESS 55 Wyandra St
NEWSTEAD,
QLD 4006
TELEPHONE (617) 3250 3300
FACSIMILE (617) 3852 1600
WOOL OFFICE
HOLDING ENTITY
AUSTRALIAN HOLDING
ENTITY OLAM
INVESTMENTS
ULTIMATE HOLDING
ENTITY OLAM
INTERNATIONAL LTD
BRANCHES GOONDAWINDI,
QLD
WARREN,
NSW
HEMMANT, QLD
LAVERTON NORTH, VIC
WEE WAA, NSW
MOURA, QLD
COLLYMONGLE, NSW
MT TYSON, QLD
DALBY, QLD
MUNGINDI, NSW
DIRRANBANDI, QLD
ST GEORGE, QLD
EMERALD, QLD
THEODORE, NSW
WALGETT, NSW
BANK Not determined
EMPLOYEES 730 (Australian Group)
BACKGROUND
The subject was incorporated in
Established in 1921, Queensland Cotton has its origins in the Australian Cotton Growing Association Limited, the British Australian Cotton Association and the Cotton Marketing Board.
Queensland Cotton Holdings Limited was incorporated in May 1989 following deregulation of the Australian cotton industry and listed on the Australian Stock Exchange in 1992.
In 2007, Olam Australia Pty Ltd secured control of Queensland Cotton,
following which Queensland Cotton Holdings Limited was de-listed from the
Australian Stock Exchange.
OPERATIONS
The subject operates in the supplier of premium cotton to the world's
textile markets
Services include:
·
Crop financing and merchandising of cotton and
pulse planting seed, fertilisers and chemicals
·
Raw cotton transport and cotton ginning
·
Classing, warehousing and shipping
·
White seed trading
·
Pulse and specialty grain operations
·
Marketing and risk management
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 noted to have entered into a Deed of Cross Guarantee pursuant to a Class Order with its Australian Holding entity Olam Investments Australia Limited and other entities within the group. The effect of the Deed is that each party that forms part of the closed group guarantee the debts of each other.
From the most recently lodged financial statements, it is noted that for the financial year ended 30 June 2010 the Australian group recorded revenue of $1,712,526,000, which resulted in an operating Profit before tax of $96,865,000 and an operating profit after tax of $78,997,000, representing a Net Profit Margin of 4.61%.
For the same period the closed group recorded an operating Profit before tax of $2,176,000 and an operating Loss after tax and discontinued operations of $1,889,000.
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Olam Investments Australia Pty Ltd -
consolidated |
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As at 30 June 2010 |
As at 30 June 2009 |
Change (%) |
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Revenue |
$1,712,526,000 |
$1,105,019,000 |
54.98% |
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Profit b/tax |
$96,865,000 |
$3,792,000 |
2454.46% |
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Profit a/tax |
$78,997,000 |
$7,885,000 |
901.86% |
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Net Profit Margin |
4.61% |
0.71% |
3.90% |
In fiscal 2010, the Australian Group recorded a deficiency in Net Cashflows from operating activities totalling $212,453,000.
On 17 August 2010 Olam Farming completed the purchase of
approximately 1,300 acres of almond orchards in
On 31 August 2010 Olam Holdings Partnership announced that
it had completed a US$350 million debt facility in the
As at 30 June 2010 the Australian Group recorded total current assets of $841,239,000. They included cash of $20,253,000, receivables of $238,239,000 and inventories of $498,959,000.
Current liabilities at the same date totalled $492,430,000 and included payables of $134,578,000 and borrowings of $257,357,000.
As at 30 June 2010 the Australian Group recorded Working Capital of $348,809,000 and a current ratio of 1.71 to 1 indicating sound liquidity levels.
At the same date the closed group recorded a deficiency in Working Capital of $100,505,000 and a current ratio of 0.84 to 1.
Net Assets totalled $149,850,000 at 30 June 2010. At this date, the Australian Group further recorded a Debt to Equity ratio of 7.72 to 1.
At the same date the closed group recorded Net Assets of $26,950,000. After deducting intangibles of $14,002,000 this results in a Net Worth of $12,948,000.
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Olam Investments Australia Pty Ltd -
consolidated |
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As at 30 June 2010 |
As at 30 June 2009 |
Change (%) |
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Revenue |
$1,712,526,000 |
$1,105,019,000 |
54.98% |
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Profit b/tax |
$96,865,000 |
$3,792,000 |
2454.46% |
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Profit a/tax |
$78,997,000 |
$7,885,000 |
901.86% |
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Net Profit Margin |
4.61% |
0.71% |
3.90% |
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Current Assets |
$841,239,000 |
$577,638,000 |
45.63% |
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Non-Current Assets |
$464,985,000 |
$346,652,000 |
34.14% |
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Total Assets |
$1,306,224,000 |
$924,290,000 |
41.32% |
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Current Liabilities |
$492,430,000 |
$528,411,000 |
-6.81% |
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Non-Current Liabilities |
$663,944,000 |
$325,866,000 |
103.75% |
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Total Liabilities |
$1,156,374,000 |
$854,277,000 |
35.36% |
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Net Assets |
$149,850,000 |
$70,013,000 |
114.03% |
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Working Capital |
$348,809,000 |
$49,227,000 |
608.57% |
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Current Ratio |
1.71 |
1.09 |
56.28% |
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Debt to Equity |
7.72 |
12.20 |
-36.76% |
TRADE SURVEY
During the current investigation, contact with the subject’s 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
In 2007, Olam Australia Pty Ltd secured control of Queensland Cotton.
The subject is noted to have entered into a Deed of Cross Guarantee pursuant to a Class Order with its Australian Holding entity Olam Investments Australia Limited.
For the financial year ended 30 June 2010 the Australian group recorded revenue of $1,712,526,000, which resulted in an operating Profit before tax of $96,865,000 and an operating profit after tax of $78,997,000, representing a Net Profit Margin of 4.61%.
For the same period the closed group recorded an operating Profit before tax of $2,176,000 and an operating Loss after tax and discontinued operations of $1,889,000.
As at 30 June 2010 the closed group recorded a deficiency in Working Capital of $100,505,000 and a current ratio of 0.84 to 1.
At the same date the closed group recorded Net Assets of $26,950,000. After deducting intangibles of $14,002,000 this results in a Net Worth of $12,948,000.
Despite the deficiency in Working Capital the at the time of the 2010 report the Directors believe that there are reasonable grounds to believe that the members of the closed group will be able to meet any obligations or liabilities to which they are or may become subject, by virtue of the Deed of Cross Guarantee.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.45.21 |
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1 |
Rs.72.55 |
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Euro |
1 |
Rs.62.43 |
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 |
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 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.