MIRA INFORM REPORT

 

 

Report Date :           

16.03.2011

 

IDENTIFICATION DETAILS

 

Name :

PROCHEM PIPELINE PRODUCTS PTY LTD

 

 

Registered Office :

27 Lisbon St, Villawood, NSW 2163

 

 

Country :

Australia

 

 

Date of Incorporation :

28.09.1960

 

 

Legal Form :

Proprietary Company

 

 

Line of Business :

manufacture and distribution of stainless steel products

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

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      

 

PROCHEM PIPELINE PRODUCTS PTY LTD

ACN: 000 337 824

ABN: 74 000 337 824

 

 

CORPORATE SEARCH

 

INCORPORATED                       28 September 1960

 

REGISTERED ADDRESS           27 Lisbon St

                                                VILLAWOOD, NSW 2163

 

SHARECAPITAL                                    $400                

 

SHAREHOLDERS                     Prochem Pipeline Products (NSW) P/L    Holds 200 shares

 

DIRECTORS                              WINTER, Peter John

                                                60A Gunbower Rd

                                                ARDROSS, WA 6163

 

                                                RICHMOND, Philip Lawrence

                                                1, 4 Pacific St

                                                CARINGBAH SOUTH, NSW 2229

                                                           

SECRETARY                            LEVY, Gerard

           

REGISTERED CHARGES          Registered Charge Number     : 981682

                                                Date Registered             : 02.10.2003

                                                Status                                       : Fixed and floating

                                                Creditor                                     : ANZ Bank

 

 

BUSINESS STRUCTURE

 

HEAD OFFICE                          27 Lisbon St

                                                VILLAWOOD, NSW 2163

 

TELEPHONE                             (612) 9727 0044

 

FACSIMLE                                (612) 9728 6766

 

BRANCHES                               VIRGINIA, QLD

DERWENT PARK, TAS

DANDENONG SOUTH, VIC

HINDMARSH, SA

WELSHPOOL, WA

 

ASSOCIATES                           The subject maintains a controlled entity in Singapore and a joint venture company in Thailand.

 

HOLDING ENTITY            PROCHEM PIPELINE PRODUCTS (NSW) P/L

 

ULTIMATE HOLDING

ENTITY                                   PROCHEM GROUP HOLDINGS P/L                                                                     

 

BANK                                       ANZ BANKING GROUP 

                                               

EMPLOYEES                            110

 

           

BACKGROUND

 

The subject was incorporated in New South Wales on 28 September 1960, before adopting the current style on 12 July 2005.

 

The subject was formed to take over the assets and operations of an existing business, in a management buyout in 2003.

 

Operations were established in 1956.

 

                       

OPERATIONS

 

 

 

The subject operates in the manufacture and distribution of stainless steel products including pipe fittings, flanges and associated products.

 

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

 

 

ADVERSE

                                               

A search of the 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 Company Secretary Jed Levy, he advised that it was more relevant to look at the group’s financial results as opposed to the subject’s individual financial performance. Only details in this regard were subsequently provided for the current enquiry.

 

For the last financial year ended 30 June 2010, the group recorded revenue of just under $50,000,000 and traded profitably.

 

Mr Levy advised that the groups operating results were lower than the previous two financial years as a result of the effects of the global financial crisis.

 

Improved results are forecast for the current financial year ending 30 June 2011.

 

At the end of January 2011 the group maintains total current assets of $21.9 million.

 

Current liabilities at this time totalled $8,400,000.

 

Furthermore at 31 January 2011 the group recorded Working Capital of $13,500,000 and a current ratio of 2.6 to 1.

 

At this time the group recorded total assets of $32.4 million and Net Assets of $21.7 million.

 

Enquiries in trade quarters revealed satisfaction from suppliers contacted in dealing with the subject on a credit basis.

 

 

TRADE SURVEY

 

A trade survey on the subject traced the following accounts:

 

1.       (WA Freightlines) Purchases average $12,000 per month on 30 day terms. Payment is met in 30 days and the account is considered satisfactory, having been known over 8 years.

 

2.       (Geordi Stainless) Purchases average 32,000 per month on 30 day terms. Payment is met in 30 to 40 days and the account is considered satisfactory, having been known over 20 years.

 

 

SUMMARY

 

The subject was incorporated in New South Wales on 28 September 1960, before adopting the current style on 12 July 2005.

 

Operations were established in 1956.

                       

For the last financial year ended 30 June 2010, the group recorded revenue of just under $50,000,000 and traded profitably.

 

Improved results are forecast for the current financial year ending 30 June 2011.

 

At 31 January 2011 the group recorded Working Capital of $13,500,000 and a current ratio of 2.6 to 1.

 

At this time the group recorded total assets of $32.4 million and Net Assets of $21.7 million.

 

Enquiries in trade quarters revealed satisfaction from suppliers contacted in dealing with the subject on a credit basis.

                                               

                                               

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.15

UK Pound

1

Rs.72.59

Euro

1

Rs.62.95

 

 

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

 

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%)

 

 

 

 

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