MIRA INFORM REPORT

 

 

Report Date :

20.04.2012

 

IDENTIFICATION DETAILS

 

Name :

ENSHAM COAL SALES PTY. LTD.

 

 

Registered Office :

'Riparian Plaza KPMG' Level 16, 71 Eagle Street, Brisbane, Queensland, 4000

 

 

Country :

Australia

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

27.11.1990

 

 

Com. Reg. No.:

050411713

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

Marketing & sales of coal.

 

 

No. of Employees :

8,201 employees (Idemitsu Group)

 

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

 

Maximum Credit Limit :

USD 4,500,000

Status :

Good

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Australia

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


IDENTIFICATION DETAILS

 

Verified Address

Subject name                : ENSHAM COAL SALES PTY. LTD.

Business address          : Level 28, 10 Eagle Street

Town                             : Brisbane

Province                        : Queensland

Zip/postal code              : 4000

Country                         : Australia

Tel                                : +61 7 32225600

Fax                               : +61 7 30031900

Email                            : enquiries@ensham.com.au

Website                        : www.ensham.com.au

 

Registered address        : 'Riparian Plaza KPMG' Level 16

   71 Eagle Street

Town                             : Brisbane

Province                        : Queensland

Zip/postal code              : 4000

Country                         : Australia

Postal address              : GPO Box 1127

Town                             : Brisbane

Province                        : Queensland

Zip/postal code              : 4001

Country                         : Australia

 

 

SUMMARY DETAILS

Executive Summary

 

Date founded or registered : 27/11/1990

Legal form                          : Australian Proprietary Company

Chief executive                   : Peter Westerhuis

Issued & paid up capital      : AUD 1,000

Sales turnover                      : JPY 3,659,302,000,000 (Group-consolidated 12 months, 31/03/2011)

Net income                          : JPY 60,684,000,000 (Group-consolidated 12 months, 31/03/2011)

Total fixed assets                 : JPY 2,517,849,000,000 (Group-consolidated 12 months, 31/03/2011)

Line of business                   : Marketing & sales of coal.

Staff employed                      : 8,201 employees (Idemitsu Group)

 

 

Company Analysis

 

Country risk                   : Country risk is minimal

Operation trend             : Operational trend is progressing

Management experience: Management is adequately experienced

Financial performance    : Financial performance is good

Organization structure       : Organizational structure is consistent

Detrimental                     : No detrimental records found

Payment history               : No payment delays noted

Credit amount suggestion : USD 4,500,000

Credit amount asked         : Not described.

Comments                       : Larger credit can still be considered. The Subject is well positioned in the market

     and the financial stability of the group is positive.

 

 

STATUTORY DETAILS

 

Registry Data

Registration date                                        : 27/11/1990

Legal form                                                 : Australian Proprietary Company

Registration no                                          : Australian Company Number: 050411713

Registered authority                                   : Australian Securities and Investments Commission

Fiscal/ Tax no                                            : Australian Business Number: 13050411713

Registry status                                          : Live/Active

Previous name                                           : AVETON INVESTMENTS PTY. LTD. (initial)

Change of legal form                                   : None reported.

 

 

MANAGEMENT / DIRECTORS

 

Key Management

Name                            : Peter Westerhuis

Designation                   : Chief Executive Officer

 

Name                            : Allan Dawson

Designation                   : General Manager for Commercial

 

Name                            : Richard Bradshaw

Designation                   : General Manager for Marketing

 

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

Name                            : Tetsuya Furuno

Designation                   : Director

Appointment date           : 01/07/10

Address                        : Unit 3069, 3 Parkland Boulevard,

  Brisbane, QLD 4000

  Australia

Biography                      : Born on 05-03-1962 in Fukuoka, Japan.

 

Name                            : Koji Arai

Designation                   : Director

Appointment date           : 15/07/11

Address                        : Unit 82, 30 Macrossan Street

  Brisbane, QLD 4000

  Australia

Biography                      : Born on 16-04-1954 in Fukuoka, Japan.

 

Name                            : Jang Hee Cho

Designation                   : Director

Appointment date           : 17/02/12

Address                        : 106-302 E-pyeonhansesang Apt

  Seocho, 4-dong 1686-1

  Seocho-gu, Seoul

  South Korea

Biography                      : Born on 04/12/1962 in South Korea.

 

Name                            : Brian Wayne Cox

Designation                   : Alternate Director

Appointment date           : 02/04/08

Address                        : 9 Scarba Street, page 6 / 18

  Middle Park, QLD 4074

  Australia

Biography                      : Born on 10-09-1953 in Rockhampton, Queensland, Australia.

 

Name                            : Toshiro Shibahara

Designation                   : Alternate Director

Appointment date           : 15/07/11

Address                        : Unit 44, 501 Queen Street

  Brisbane, QLD 4000

  Australia

Biography                      : Born on 05-10-1956 in Japan.

 

Name                            : Hyek Seo Koo

Designation                   : Alternate Director

Appointment date           : 17/02/12

Address                        : 2608-501 Jai Apt Yoido-dong

  Youngdungpo-gu, Seoul

 South Korea

Biography                      : Born on 15-09-1967 in South Korea.

 

Staff employed               : 8,201 employees (Idemitsu Group)

 

 

KEY ADVISORS

Auditors                        : OSAMU UCHIMURA

  'Riverside Centre' Level 26

   123 Eagle Street

   Brisbane, QLD 4000

                                       Australia

 

 

SHARE CAPITAL

 

Composition

Authorized Capital          : AUD 1,000

No of shares                  : 1,000 Ordinary Shares

Share par value : AUD 1

Issued capital                : AUD 1,000

Paid up capital               : AUD 1,000

 

 

OWNERSHIP / SHAREHOLDERS

How listed                     : Full List

 

Composition

Shareholder name          : LG INTERNATIONAL (AUSTRALIA) PTY LIMITED

Address                        : Suite 3, Level 14, 201 Miller Street

  North Sydney, NSW 2060

  Australia

No. of shares                 : 150 Ordinary Shares

 

Shareholder name          : BLIGH COAL LIMITED

Address                        : Level 28, 10 Eagle Street

  Brisbane, QLD 4000

  Australia

No. of shares                 : 475 Ordinary Shares

 

Shareholder name          : IDEMITSU AUSTRALIA RESOURCES PTY LTD

Address                        : Level 28, 10 Eagle Street

  Brisbane, QLD 4000

  Australia

No. of shares                 : 375 Ordinary Shares

 

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

Name                            : IDEMITSU KOSAN CO., LTD.

Affiliation type                : Ultimate Holding Company

Address                        : 1-1 Marunouchi 3-chome

  Chiyoda-ku, Tokyo 100-8321

  Japan

Comments                    : Idemitsu Kosan Co., Ltd. engages in the exploration, development, refining,  

production, and sale of petroleum, petrochemical, and resources products. Its Petroleum Products segment manufactures and sells fuel oils and lubricant oils. This segment offers catalyst-based technologies for refining heavy oil and conserving fuel and energy; and engages in the refining and import of crude oil, and the sale of car-related products. The company’s Petrochemical Products segment is involved in manufacturing and selling basic chemicals as raw materials for various petrochemical products, as well as solvents and various functional materials. It develops materials for the manufacture of photoresists for semiconductors; functional materials needed to manufacture flat-panel displays; raw materials for adhesives and lubricants, and plasticizers; and engineering plastics comprising polycarbonate, syndiotactic polystyrene, and polyphenylene sulfide resins. This segment also offers plastic processing products, such as protein leather and other artificial leather, as well as products for the electronics market, such as liquid crystal display panel components. Its Resources segment engages in the exploration, development, production, and sale of energy resources, including crude oil and coal. This segment is also involved in geothermal energy and uranium mining activities. In addition, the company engages in the research and development, manufacture, and sale of electronic materials, such as organic light-emitting diode materials and transparent electrode materials; and uses technologies, which utilize micro-organisms and natural products for food safety and environmental protection in the fields of crops, livestock, greenery management, and healthcare. Idemitsu Kosan Co., Ltd. operates primarily in Japan, Asia, Oceania, North America, Europe, and internationally. The company, formerly known as Idemitsu Shokai, was founded in

1911 and is headquartered in Tokyo, Japan.

 

 

Name                            : IDEMITSU AUSTRALIA RESOURCES PTY LTD

Affiliation type                : Shareholder

Address                        : Level 28, 10 Eagle Street

 Brisbane, QLD 4000

 Australia

Comments                    : Wholly owned subsidiary of Idemitsu Kosan Co., Ltd.

 

Name                            : BLIGH COAL LIMITED

Affiliation type                : Shareholder

Address                        : Level 28, 10 Eagle Street

 Brisbane, QLD 4000

 Australia

Comments                    : Wholly owned subsidiary of Idemitsu Australia Resources Pty Ltd.

 

Name                            : IDEMITSU AUSTRALIA RESOURCES PTY LTD

Affiliation type                : Shareholder

Address                        : Suite 3, Level 14, 201 Miller Street

 North Sydney, NSW 2060

 Australia

 

Name                            : ENSHAM RESOURCES PTY. LIMITED

Affiliation type                : Sister Company

Address                        : Level 28, 10 Eagle Street

 Brisbane, QLD 4000

 Australia

 

Name                            : IDEMITSU BOGGABRI COAL PTY. LIMITED

Affiliation type                : Sister Company

Address                        : Level 28, 10 Eagle Street

 Brisbane, QLD 4000

 Australia

 

Name                            : IDEMITSU INTERNATIONAL (ASIA) PTE.LTD.

Affiliation type                : Sister Company

Address :                      163 Penang Road

 #06-01/05 Winsland House II

 Singapore 238463

 Singapore

 

Name                            : IDEMITSU LUBE (MALAYSIA) SDN. BHD.

Affiliation type                : Sister Company

Address                        : 3&5, Jalan PJU 3/47

 Sunway Damansara Technology Park

 47810 Petaling Jaya

 Selangor Darul Ehsan

 Malaysia

 

Name                            : P.T. IDEMITSU LUBE INDONESIA

Affiliation type                : Sister Company

Address                        : Jl. Perrmata Raya Lot BB-4A

 Kawasan Industri KIIC

 Karawang 41361, West Java

 Indonesia

 

Name                            : IDEMITSU LUBRICANTS AMERICA CORPORATION

Affiliation type                : Sister Company

Address                        : 701 Port Road

 Jeffersonville, IN 47130-8425

 United States

 

Related companies and corporate affiliations comments : Other companies of the Idemitsu Kosan Group should be considered affiliates ofthe Subject.

 

 

BANK & MORTGAGES

 

Bank Details

Name of bank                : National Australia Bank Limited

Address                        : Australia

Account details              : Current Account

Name of bank                : The Bank of Tokyo-Mitsubishi UFJ, Ltd

Address                        : Australia

Account details              : Current Account

Comments                    : It is generally not the policy of local banks to provide credit status information to

 non related parties, however interested parties would be advised to consult first with the     Subject if banker's references are required.

Mortgages                     : None reported.

 

Legal Fillings

Bankruptcy fillings          : None reported.

Court judgements           : None reported.

Tax liens                       : None reported.

Others                          : None reported.

 

 

FINANCIAL DATA

 

Description

Source of financial statement     : Public Record Sources

Financial statement date            : 31/03/11

Type of accounts                       : Full audited

Currency                                   : Japan, Yen (JPY)

Exchange rate                           : 1 USD = JPY 81.68 as of 19-04-2012

 

Summarized Financial Information

Consolidation type                     : Group Consolidated                  Group Consolidated

Currency                                   : Japan, Yen (JPY)                     Japan, Yen (JPY)

Denomination                            : (x1) One                                  (x1) One

Date of financial year end            : 31/03/11                                  31/03/10

Length of accounts                     : 12 months                               12 months

Sale turnover / Income                : 3,659,302,000,000                   3,112,305,000,000

Gross profit                               : 387,000,000,000                      293,968,000,000

Operating profit                          : 128,771,000,000                      44,463,000,000

Profit before tax                         : 101,244,000,000                      19,498,000,000

Net income                                : 60,684,000,000                        5,978,000,000

Non current assets                     : 1,370,770,000,000                   1,450,058,000,000

Current assets                           : 1,147,079,000,000                   1,026,084,000,000

Inventories                                 : 521,150,000,000                      432,344,000,000

Total assets                              : 2,517,849,000,000                   2,476,142,000,000

Current liabilities                        : 1,003,585,000,000                   981,733,000,000

Non current liabilities                  : 973,384,000,000                      997,123,000,000

Total liabilities                            : 1,976,969,000,000                   1,978,856,000,000

Share equity                              : 540,880,000,000                      497,286,000,000

Retained earning                        : 230,936,000,000                      179,955,000,000

Comments                                : The group’s consolidated financial information above relates to the Subject’s

Ultimate Holding Company Idemitsu Kosan Co., Ltd. and all its subsidiaries which include the Subject.

 

 

OPERATION DETAILS

 

Main activities                            : The Subject is engaged in marketing & sales of coal produced by Ensham

Resources Pty Limited. The Subject operates as the marketing arm of Ensham                    Resources Pty Limited.

 

Ensham Resources Pty Limited was established in 1993 as a joint venture among major international companies and their Australian subsidiaries.

 

Idemitsu Australia Resources Pty Ltd and its Australian subsidiary, Bligh Coal Limited together own 85% of the joint venture, and LG International (Australia) Pty Ltd makes up the remaining 15% of the joint venture.

 

Idemitsu is one of the world’s largest energy companies with major investments in oil refineries and petroleum products, primarily in Japan.

 

LG International is one of Korea’s largest diversified conglomerates with interests in a vast array of international businesses including electronics. Bligh Coal is a 100% subsidiary of Idemitsu.

 

Ensham Resources Pty Limited is one of Queensland’s largest and fastest growing thermal coal producers.

 

Ensham Resources Pty Limited produces around 7 million tonnes per annum of high energy low ash thermal coal. The coal is mainly exported to leading energy producers in Japan, Korea, Taiwan, India and China.

 

The Ensham project is a major open cut coal operation in the western Bowen Basin approximately 40 km northeast of the regional centre Emerald in the Central Queensland coalfields. Emerald is some 200 km west of Rockhampton.

 

The Bowen Basin is Queensland’s premier coal producing region, estimated to contain more than 70% of the state’s total coal reserves and accounting for approximately 85% of the state’s total coal exports.

 

Ensham has vast resources totalling 1 billion tonnes of mostly high energy, low ash thermal coal.

 

The Subject is ultimately owned by Idemitsu Kosan Co.,Ltd.

 

Idemitsu Kosan Co.,Ltd. is a Japanese petroleum company. It owns and operates oil platforms, refineries and produces and sells petroleum, oils, coal and petrochemical products products. Idemitsu is the 2nd largest petroleum refiner in Japan, after Nippon Oil.

 

Product & services                     : Coal

 

Purchases

International                               : Asian countries

 

Sales

Local                                        : Yes

International                               : Japan, Korea, China, Taiwan, India, Middle East, Europe,

Key events                                : 15 November 2011

Ensham Joint Venture Restructure Announced

Idemitsu Australia Resources Pty Ltd (IAR) and its Australian subsidiary Bligh Coal Limited have reached agreement with their partner LG International (Australia) Pty Limited to restructure the Ensham Joint Venture effective from 1 December 2011.

 

IAR and Bligh Coal are wholly?owned by Idemitsu Kosan Co Ltd which together hold an 85% interest in the Ensham Joint Venture, while LG International (Australia) Pty Ltd is a 15% participant in the joint venture.

 

Managing Director of IAR, Mr Koji Arai, said under the terms of the restructuring, IAR would become operator and undertake all management, administration and marketing activities related to Ensham’s major open cut coal project in the Bowen Basin in the Central Queensland coalfields.

 

Mr Arai said Ensham Resources Pty Ltd (ER) and Ensham Coal Sales Pty Ltd would remain the nominal operating and marketing companies respectively.

 

“We are pleased to announce this new structure, which demonstrates to Idemitsu’s stakeholders our long?term and firm commitment to our coal business in Australia,” Mr Arai said.

 

“ The restructure will enable IAR to operate its coal mines and projects in Australia more efficiently and strategically, providing benefit to its operations and its partner in Ensham.”

 

ER comprises a major open cut coal operation and an underground mine under construction in the Bowen Basin in Central Queensland. Other mining projects operated by IAR include Boggabri Coal Mine in Gunnedah Basin and Muswellbrook Coal Company in the Hunter Valley.

 

Ensham Resources Chief Executive Officer, Mr Peter Westerhuis, will continue his involvement with Ensham and will become an Executive Director of IAR.

 

The Ensham project is situated approximately 40 km northeast of the regional centre Emerald in Central Queensland. Ensham Resources produces around 7 million tonnes per annum of high energy low ash thermal coal. The coal is exported to leading energy producers in Japan, Korea, China, Taiwan, Malaysia, India and other countries.

 

Property & Assets

 

Premises                                  : The Subject operates from head office located at the verified heading

address consisting of an administrative office.

Branches                                  : None reported.

 

 

SUMMARIZED COUNTRY RISK

 

Gross Domestic Products (GDP) & Economic Overview

Central bank                                   : Reserve Bank of Australia

Reserve of foreign exchange & gold : US$ 43.879 billion

Gross domestic product - GDP        : US$ 1.448 trillion

GPP (Purchasing power parity)        : 918.529 billion of International dollars

GDP per capita - current prices       : US$ 64,351

GDP - composition by sector           : agriculture: 4.0%

Industry                                     : 26%

Services                                    : 70%

 

Inflation                                     : 2008: 4.4%

  2009: 1.8%

  2010: 2.8%

  2011: 3.0%

 

Unemployment rate                    : 2008: 4.2%

 2009: 5.6%

 2010: 5.2%

 2011: 5.0%

Public debt

(General Government gross debt as

a % GDP)

: 2008: 11.6%

 2009: 17.6%

 2010: 22.3%

 2011: 24.1%

 

Government bond ratings            : Standard & Poor's: AAA/Stable/A-1+

Moody's rating: Aaa

Moody's outlook : STA

Market value of publicly traded

Shares                                      : US$1.258 trillion

 

Largest companies in the country: Westpac Banking Group (Major Banks), BHP Billiton (Diversified Metals &

Mining), Commonwealth Bank (Major Banks), National Australia Bank

(Major Banks), ANZ Banking (Major Banks), Telstra (Telecommunications

services), Wesfarmers (Food Retail)

 

Trade & Competitiveness Overview

Total exports                             : US$210.7 billion

Exports commodities                 : coal, iron ore, gold, meat, wool, alumina, wheat

Total imports                             : US$187.2 billion

Imports commodities                  : machinery and transport equipment, computers and office machines,

  telecommunication equipment and parts, crude oil and petroleum products

Export - major partners               : Japan 18.9%, China 14.2%, South Korea 8%, US 6%, NZ 5.6%, India

  5.5%, UK 4.2%

Import - major partners               : China 15.5%, US 12.8%, Japan 9.6%, Singapore 5.6%, Germany 5.2%,

   UK 4.3%, Thailand 4.2%

FDI Inflows                                : 2008: US$46,722 million

  2009: US$22,572 million

  2010: US$32,472 million

FDI Outflows                              : 2008: US$32,819 million

  2009: US$18,426 million

  2010: US$26,431 million

Best countries for doing business : 10 out of 183 countries

Global competitiveness ranking     : 20 (ranking by country on a basis of 142, the first is the best)


 

Country and Population Overview

 

Total population                         : 22.23 million

Total area                                  : 7,692,024 km2

Capital                                      : Canberra

Currency                                   : Australian dollars (AUD)

Internet users as % of total

Population                                 : 76.00%

 

 

PAYMENT HISTORY

 

Purchase Term

International                               : L/C, Telegraphic transfer, Credit up to 120 days

 

Sales Term

International                               : L/C, D/P, D/A, , Telegraphic transfer, Credit up to 120 days

 

Trade Reference/ Payment

Behaviour

Comments                                : As local and international trade references were not supplied, the Subject's

 payment track record history cannot be appropriately determined but based

 on our research, payments are believed to be met without delay.

 

Investigation Note

Sources                                    : Interviews and material provided by the Subject

: Other official and local business sources

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.51.89

UK Pound

1

Rs.83.18

Euro

1

Rs.68.06

 

 

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.