MIRA INFORM REPORT

 

 

Report Date :

17.08.2012

 

IDENTIFICATION DETAILS

 

Name :

ATLAS SPECIALTY METALS PTY LTD

 

 

Registered Office :

13-23 Lynch Road, Brooklyn, Victoria 3012

 

 

Country :

Australia

 

 

Financials (as on) :

21.10.1960

 

 

Date of Incorporation :

21.10.1960

 

 

Com. Reg. No.:

004496128

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

Processing and distributor of stainless and specialty steel products.

 

 

No. of Employees :

100

 

 

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 :

Slow

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 :                          ATLAS SPECIALTY METALS PTY LTD

Other style / Business name :     ATLAS SPECIALTY METALS

Business address :                    13-23 Lynch Road

Town :                                       Brooklyn

Province :                                  Victoria

Zip/postal code :                        3012

Country :                                   Australia

Tel :                                          +61 3 92729999

Fax :                                         +61 3 92729950

Email :                                      vicsales@atlassteels.com.au

Website :                                  www.atlassteels.com.au

Registered address :                  13-23 Lynch Road

Town :                                       Brooklyn

Province :                                  Victoria

Zip/postal code :                        3012

Country :                                   Australia

 

 

SUMMARY DETAILS

 

Executive Summary

Date founded or registered :                    21/10/1960

Legal form :                                           Australian Proprietary Company

Chief executive :                                    Steven James Annear

Issued & paid up capital :                       AUD 12,042,001

Sales turnover :                          AUD 214,833,000 (Consolidated 12 months, 30/06/2011)

Net income :                                          AUD -13,069,000 (Consolidated 12 months, 30/06/2011)

Total fixed assets :                                 AUD 127,647,000 (Consolidated 12 months, 30/06/2011)

Line of business :                                   Processing and distributor of stainless and specialty steel products.

Staff employed :                                     100 employees

 

 

CREDIT RISK OPINION

 

Credit Risk Interpretation

Credit risk rating :                      PASSABLE

Credit risk theory :                     Some indications of financial and operational stress. More caution is recommended when considering granting credit. Smaller credits plus loan guarantees is an advantage. A strict credit control policy applies.

Company Analysis

Country risk :                             Country risk is minimal

Operation trend :                        Operational trend is declining

Management experience :           Management is reasonably experienced

Financial performance :              Financial performance is deteriorating

Organisation structure :              Organisational structure is acceptable

Detrimental :                              No detrimental found

Payment history :                      No payment delays noted

Comments :                              It is advisable to conduct business dealing on prepayment or L/C for larger credit transaction than suggested. The Subject faced losses in 2010 & 2011 and caution is needed as equity balance could face a deficit if large losses incurred for following financial year end.

 

 

STATUTORY DETAILS

 

Registry Data

Registration date :                                              21/10/1960

Legal form :                                                       Australian Proprietary Company

Registration no Australian Company Number:       004496128

Registered authority :                                         Australian Securities and Investments Commission

Fiscal/ Tax no : Australian Business Number:      13004496128

Registry status :                                                Live/Active

Previous name :                                                 The Subject was established on 21-10-1960 under the name ATLAS STEELS

(AUSTRALIA) PTY. LIMITED and changed its name to ATLAS SPECIALITY

METALS PTY LTD on 01-12-2007. ATLAS SPECIALITY METALS PTY LTD then changed to the current style on 01-03-2008.

Change of legal form :                                         None reported.

Other registration :                                             ATLAS SPECIALTY METALS is a business name owned by the Subject registered in 6 different provinces in Australia under business registration no: VIC

B1692235D, TAS BN01384650, SA BN04182730, WA BN09758318, NT BN00946990 and QLD BN18539907.

 

 

MANAGEMENT / DIRECTORS

 

Key Management

Name :                                      Steven James Annear

Designation :                             Managing Director

Name :                                      Malcolm Charles Innes Mitchell

Designation :                             Chief Financial Officer

 

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

Name :                          Steven James Annear

Designation :                 Director

Appointment date :         05/11/08

Address :                      20 May Street

Hampton, VIC 3188

Australia

Biography :                    Born on 18/03/1961 in Rosebery, Tasmania, Australia.

Name :                          Barry King

Designation :                 Director

Appointment date :         30/03/12

Address :                      6 Pyrford Woods Close

Woking GU22 8QN

United Kingdom

Biography :                    Born on 07/06/1957 in United Kingdom.

Name :                          Stuart Robinson

Designation :                 Director

Appointment date :         30/03/12

Address :                      110 Main Street

Kinoulton, Nottingham NG12 3EN

United Kingdom

Biography :                    Born on 09/04/1950 in Sheffield, United Kingdom.

Name :                          Malcolm Charles Innes Mitchell

Designation :                 Company Secretary

Appointment date :         24/01/12

Address :                      221 Church Street

Brighton, VIC 3186

Australia

Biography :                    Born on 02/10/1956 Lagos, Nigeria.

Staff employed :             100 employees

 

Key Advisors

 

Auditors :                      HLB MANN JUDD

160 Queen Street

Melbourne, VIC 3000

Australia

 

 

SHARE CAPITAL

 

Composition

Authorized Capital :                    AUD 12,042,001

No of shares :                            11,852,000 Ordinary Shares

Share par value :                        No par value

Issued capital :                          AUD 12,042,001

Paid up capital :                         AUD 12,042,001

 

 

OWNERSHIP / SHAREHOLDERS

 

How listed :                               Full List

Composition

Shareholder name :                    AMARI METALS AUSTRALIA LTD

Address :                                  Suite 555, 555 Skokie Boulevard

Northbrook, Illinois 60062

United States

No. of shares :                           11,852,000 Ordinary Shares

% of shares : 100%

 

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

Name :                                      HENLEY MANAGEMENT COMPANY

Affiliation type :                          Ultimate Holding Company

Address :                                  Suite 555, 555 Skokie Boulevard

Northbrook, Illinois 60062

United States

Name :                                      AMARI METALS LIMITED

Affiliation type :                          Intermediate Holding Company

Address :                                  25 High Street

Cobham

Surrey KT11 3DH

United Kingdom

Comments :                              The company distributes stainless steel, aluminum, brass, copper, and high value metals. The company is said to be one of Europe's largest independent multi-metals stockholders. The company was incorporated in 1986 and is based in Cobham, United Kingdom.

The company also acts as a holding company.

 

Name :                                      AMARI METALS AUSTRALIA LTD

Affiliation type :                          Parent Company

Address :                                  Suite 555, 555 Skokie Boulevard

Northbrook, Illinois 60062

United States

Name :                                      GILBERT LODGE (N.Z.) LIMITED

Affiliation type :                          Wholly-owned Subsidiary

Address :                                  66 Harris Road

East Tamaki, 2013 Auckland

New Zealand

Name :                                      ATLAS SPECIALTY METALS LIMITED

Affiliation type :                          Wholly-owned Subsidiary

Address :                                  66 Harris Road

East Tamaki, 2013 Auckland

New Zealand

Name :                                      ATLAS METAL PROCESSORS PTY LTD

Affiliation type :                          Wholly-owned Subsidiary

Address :                                  13-23 Lynch Road

Brooklyn, VIC 3012

Australia

Name :                                      AALCO METALS LIMITED

Affiliation type :                          Sister Company

Address :                                  25 High Street

Cobham

Surrey KT11 3DH

United Kingdom

Comments :                              Aalco is a independent metal stockholders with an extensive inventory of aluminium, stainless Steel, copper, brass and bronze in all semi-finished forms.

Name :                                      DALSTEEL METALS PTY LIMITED

Affiliation type :                          Sister Company

Address :                                  Suite 1503, Level 15

1 Alfred Street

Sydney, NSW 2000

Australia

Comments :                              Independent stockist/distributor of stainless steel & aluminium products in Australia.

Name :                                      AMARI AEROSPACE LTD

Affiliation type :                          Sister Company

Address :                                  Unit 1, Mauretania Road

Nursling, Southampton SO16 OYS

United Kingdom

Comments :                              Amari Aerospace, a division of Amari Metals, specialises in the supply of semi finished metal products such as bar, sheet, plate and forgings to the Aerospace, Defence, Motorsport and High Tech industries.

Name :                                      CASHMORES METAL LIMITED

Affiliation type :                          Sister Company

Address :                                  25 High Street

Cobham

Surrey KT11 3DH

United Kingdom

Comments :                              Metal stockholding.

Related companies and corporate affiliations comments

: Other companies of the Amari Group should be considered affiliates of the Subject.

 

 

BANK & MORTGAGES

 

Bank Details

Name of bank :                          Australia And New Zealand Banking Group Limited

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 :                               Satisfied Charges:

ASIC Charge Number:                65034

Date Registered:                        29-09-1981

Date Created:                            16-09-1981

Chargee Name:              CBC HOLDINGS LTD

ASIC Charge Number:                307359

Date Registered:                        08-08-1991

Charge type:                              Both Fixed & Floating

Date Created:                            09-07-1991

Chargee Name:              WESTPAC BANKING CORPORATION

ASIC Charge Number:                371232

Date Registered:                        06-01-1993

Charge type:                              Both Fixed & Floating

Date Created:                            30-12-1992

Chargee Name:              AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

ASIC Charge Number:                371257

Date Registered:                        06-01-1993

Charge type:                              Both Fixed & Floating

Date Created:                            23-12-1992

Chargee Name:              AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

ASIC Charge Number:                371275

Date Registered:                        06-01-1993

Charge type:                              Both Fixed & Floating

Date Created:                            23-12-1992

Chargee Name:              AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

ASIC Charge Number:                371280

Date Registered:                        06-01-1993

Charge type:                              Both Fixed & Floating

Date Created:                            23-12-1992

Chargee Name:              AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

ASIC Charge Number:                371291

Date Registered:                        06-01-1993

Charge type:                              Both Fixed & Floating

Date Created:                            23-12-1992

Chargee Name:              AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

ASIC Charge Number:                838827

Date Registered:                        28-12-2001

Charge type:                              Both Fixed & Floating

Date Created:                            27-12-2001

Chargee Name:              GE CAPITAL FINANCE PTY LTD & GE CAPITAL NZ LIMITED

ASIC Charge Number:                840193

Date Registered:                        08-01-2002

Charge type:                              Both Fixed & Floating

Date Created:                            27-12-2001

Chargees Name:                        PERPETUAL TRUSTEE COMPANY LIMITED

ASIC Charge Number:                996482

Date Registered:                        18-11-2003

Charge type:                              Both Fixed & Floating

Date Created:                            23-10-2003

Chargees Name:                        GE COMMERCIAL CORPORATION (AUSTRALIA) PTY LTD

ASIC Charge Number:                1049978

Date Registered:                        07-06-2004

Charge type:                              Both Fixed & Floating

Date Created:                            01-06-2004

Chargees Name:                        LESCO LIMITED COMPANY NO. 9975

ASIC Charge Number:                1169746

Date Registered:                        14-06-2005

Charge type:                              Both Fixed & Floating

Date Created:                            10-06-2005

Chargees Name:                        COMMONWEALTH BANK OF AUSTRALIA

Unsatisfied Charges:

ASIC Charge Number:                1319809

Date Registered:                        30-06-2006

Charge type:                              Both Fixed & Floating

Date Created:                            30-06-2006

Chargees Name:                        GE COMMERCIAL CORPORATION (AUSTRALIA) PTY LTD & GE COMMERCIAL FINANCE NZ

Legal Fillings

Bankruptcy fillings :                    None reported.

Court judgements :                     None reported.

Tax liens :                                 None reported.

Others :                                    None reported.

 

 

FINANCIAL DATA

 

Description

Source of financial statement :                Commercial Registry Filings

Financial statement date :                      30/06/11

Type of accounts :                                 Full audited

Currency :                                             Australia Dollar (AUD)

Exchange rate :                                     1 USD = AUD 0.95 as of 14-08-2012

 

Summarized Financial Information

Consolidation type :                               Consolidated                             Consolidated

Currency :                                             Australia Dollar (AUD)                Australia Dollar (AUD)

Denomination :                                      (x1) One                                    (x1) One

Date of financial year end :                      30/06/11                                    30/06/10

Length of accounts :                               12 months                                 12 months

Sale turnover / Income :              214,833,000                              200,700,000

Gross profit :                                         37,425,000                                38,931,000

Profit before tax :                                   -15,765,000                               -14,453,000

Net income :                                          -13,069,000                               -14,470,000

Non current assets :                               14,784,000                                19,061,000

Current assets :                                     112,863,000                              135,620,000

Inventories :                                           74,115,000                                94,423,000

Total assets :                                        127,647,000                              154,681,000

Current liabilities :                                  94,949,000                                111,225,000

Non current liabilities :                            28,832,000                                25,909,000

Total liabilities :                                      123,781,000                              137,134,000

Share equity :                                        3,866,000                                  17,547,000

Reserve :                                               -3,952,000                                 -3,646,000

Retained earning :                                  7,438,000                                  20,813,000

Comments :                                          The consolidated financial information above relates to the Subject and its subsidiaries.

 

 

OPERATION DETAILS

 

Main activities :

 

The Subject distributes stainless steel, aluminum, engineering steel bars   and carbon tubes, and pipes and fittings. It offers stainless steel flat products, including sheets, coils, and plates; stainless steel tubular products, including tubes, tube fittings, pipes, and pipe fittings; aluminum sheets, coils, plates, and tread plates; and quenched and tempered steel plates. The company also provides engineering steel bars, including carbon steel, alloy steel, chrome, hollow, cast iron, and stainless steel bars; and carbon steel tubular products, including welded pipes, pipes, fittings, flanges, tubes, and RHS and pipes. In addition, it offers processing services, including length based processing, plasma processing, and sheet and coil processing; and project services, including supply, logistics, warehousing and management, and support services. The company serves oil and gas, pulp and paper manufacturing, energy generation, water and waste control, pharmaceutical processing, construction, food and beverage, petrochemical processing, mining, minerals processing, transportation, and defense sectors. Product & services : 1) Stainless steel flat products: sheet, coil, and plate

2) Stainless steel/aluminum tubular products: tubes, tube fittings, pipes and

pipe fittings; aluminum sheets, coils, plates and tread plates

3) Engineering Steel Bars Products: carbon steel, alloy steel, chrome,

hollow, cast iron and stainless steel bars

4) Carbon steel tubular products: welded pipes, pipes, fittings, flanges and

tubes

5) Processing services including length based processing, plasma

processing and sheet and coil processing

Purchases

International : China, Taiwan, Korea, India, Germany

Sales

Local : Yes

International : Inter company exports to New Zealand

 

Property & Assets

Premises : The Subject operates from headquarters located at the verified heading

address consisting of warehouse and administrative office.

Branches : In addition, the Subject operates from branch offices located at:

14 Mcharry Place

Shepparton, VIC 3630

Australia

Tel: +61 3 58315499

page 14 / 18

16 Moloney Drive

Wodonga, VIC 3690

Australia

Tel: +61 2 60567211

41 Lyn Parade

Prestons, NSW 2170

Australia

Tel: +61 2 98257500

12 Pippita Close

Beresfield, NSW 2322

Australia

Tel: +61 2 49225566

40 Coulson Street

Wacol, QLD 4076

Australia

Tel: +61 7 32469999

15 Bassett Street

Gladstone, QLD 4680

Australia

Tel: +61 7 49769088

42A Commercial Avenue

Paget, QLD 4740

Australia

Tel: +61 7 49523455

27-41 Toll Street

Bohle, QLD 4818

Australia

Tel: +61 7 47747316

9 Capelli Road

Wingfield, SA 5013

Australia

Tel: +61 8 83591100

2-4 Derby Street

Mowbray, TAS 7248

Australia

Tel: +61 3 63266055

407 Victoria Road

Malaga, WA 6090

Australia

Tel: +61 8 92099699

Lot 2847 Pruen Road

Berrimah, NT 0828

Australia

Tel: +61 8 89472717

 

 

SUMMARIZED COUNTRY RISK

 

Gross Domestic Products (GDP) & Economic Overview

Central bank :                                        Reserve Bank of Australia

Reserve of foreign exchange & gold :       US$ 41.385 billion

Gross domestic product - GDP :             US$ 1.235 trillion

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

GDP per capita - current prices :             US$ 55,590

GDP - composition by sector :                agriculture: 4.1%

industry: 26%

services: 70%

Inflation :                                               2008: 4.4%

2009: 1.8%

2010: 2.8%

Unemployment rate :                              2008: 4.2%

2009: 5.6%

2010: 5.2%

Public debt

(General Government gross debt as

a % GDP)

: 2008: 11.6%

2009: 17.6%

2010: 22.3%

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 :          Commonwealth Bank (Banking), BHP Billiton (Materials), Westpac Banking

Group (Banking), Rio Tinto (Materials), National Australia Bank (Banking),

ANZ Banking (Banking), Telstra (Telecommunications)

 

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 :                              2007: US$45,477 million

2008: US$46,722 million

2009: US$22,572 million

FDI Outflows :                            2007: US$16,822 million

2008: US$32,819 million

2009: US$18,426 million

Best countries for doing business : 10 out of 183 countries

Global competitiveness ranking : 16 (ranking by country on a basis of 133, 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

: 74.00%

 

 

PAYMENT HISTORY

 

Purchase Term

International :                             Credit up to 120 days

Sales Term

Local :                                      Credit 30-90 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.55.98

UK Pound

1

Rs.87.55

Euro

1

Rs.68.68

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.