MIRA INFORM REPORT

 

 

Report Date :            

14.12.2012

 

IDENTIFICATION DETAILS

 

Name :

PENRICE SODA PRODUCTS PTY. LTD.

 

 

Formerly Known As :

MOLIT (NO.52) PTY. LTD.

 

 

Registered Office :

Solvay Road, Osborne, Australia, Zip/postal code : 5017

 

 

Country :

Australia

 

 

Financials (as on) :

30.06.2012 (Group Consolidated)

 

 

Date of Incorporation :

27.02.1989

 

 

Com. Reg. No.:

008206942

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

Manufacturer of soda ash, sodium bicarbonate & limestone.

 

 

No. of Employees :

243 employees (Group)

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Australia

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Australia - ECONOMIC OVERVIEW

 

Australia's abundant and diverse natural resources attract high levels of foreign investment and include extensive reserves of coal, iron ore, copper, gold, natural gas, uranium, and renewable energy sources. A series of major investments, such as the US$40 billion Gorgon Liquid Natural Gas project, will significantly expand the resources sector. Australia also has a large services sector and is a significant exporter of natural resources, energy, and food. Key tenets of Australia''s trade policy include support for open trade and the successful culmination of the Doha Round of multilateral trade negotiations, particularly for agriculture and services. The Australian economy grew for 17 consecutive years before the global financial crisis. Subsequently, the former RUDD government introduced a fiscal stimulus package worth over US$50 billion to offset the effect of the slowing world economy, while the Reserve Bank of Australia cut interest rates to historic lows. These policies - and continued demand for commodities, especially from China - helped the Australian economy rebound after just one quarter of negative growth. The economy grew by 1.4% during 2009 - the best performance in the OECD - by 2.7% in 2010, and by 1.8% in 2011. Unemployment, originally expected to reach 8-10%, peaked at 5.7% in late 2009 and fell to 5.0% in 2011. As a result of an improved economy, the budget deficit is expected to peak below 4.2% of GDP and the government could return to budget surpluses as early as 2015. Australia was one of the first advanced economies to raise interest rates, with seven rate hikes between October 2009 and November 2010. The GILLARD government is focused on raising Australia''s economic productivity to ensure the sustainability of growth, and continues to manage the symbiotic, but sometimes tense, economic relationship with China. Australia is engaged in the Trans-Pacific Partnership talks and ongoing free trade agreement negotiations with China, Japan, and Korea.

 

Source : CIA


 

 Bottom of Form

Identification details  Bottom of Form

 

 

Verified Address

Subject name :              PENRICE SODA PRODUCTS PTY. LTD.

 

Business address :        Solvay Road

Town :                          Osborne

Province :                     South Australia

Zip/postal code :           5017

Country :                       Australia

Tel :                              +61 8 84027000

Fax :                             +61 8 84027266

Email :                          enquiries@penrice.com.au

Website :                      www.penrice.com.au

 

Registered address :     Solvay Road

Town :                          Osborne

Province :                     South Australia

Zip/postal code :           5017

Country :                       Australia

 

 

Summary details

 

Executive Summary

Date founded or registered :      27/02/1989

Legal form :                              Australian Proprietary Company

Chief executive :                       Guy Redvers Roberts

Issued & paid up capital :          AUD 2

Sales turnover :                         AUD 149,869,000 (Group-consolidated 12 months, 30/06/2012)

Net income :                             AUD -63,552,000 (Group-consolidated 12 months, 30/06/2012)

Total fixed assets :                    AUD 139,487,000 (Group-consolidated 12 months, 30/06/2012)

Line of business :                      Manufacturer of soda ash, sodium bicarbonate & limestone.

Staff employed :                       243 employees (Group)

 

 

Credit risk opinion

 

Company Analysis

Country risk :                             Country risk is minimal

Operation trend :                       Operational trend is declining

Management experience :          Management is modestly experienced

Financial performance :             Group financial performance is deteriorating

Organization structure : Organizational structure is acceptable

Detrimental :                             No detrimental found

Payment history :                      No payment delays noted

 

Statutory details

 

Registry Data

Registration date :         27/02/1989

Legal form :                  Australian Proprietary Company

Registration no              Australian Company Number: 008206942

Registered authority :    Australian Securities and Investments Commission

Fiscal/ Tax no :             Australian Business Number: 62008206942

Registry status :            Live/Active

Previous name :            MOLIT (NO.52) PTY. LTD. (initial)

Change of legal form :   None reported.

 

 

Management / directors

 

Key Management

Name :              Guy Redvers Roberts

Designation :                Chief Executive Officer

 

Name :              Rob Webb

Designation :                Chief Financial Officer

 

 

Board of directors / other appointments

 

Appointments

Name :              Andrew Fletcher

Designation :                Director

Appointment date :        28/10/05

Address :                      26 Scott Creek Road

Heathfield, SA 5153

Australia

Biography :                   Born on 18/12/1948 in Adelaide, South Australia, Australia.

Mr. Andrew V. Fletcher serves as Non-Executive Independent Deputy

Chairman of the Board of Penrice Soda Holdings Limited since April

1, 2005. He holds a Bachelor of Engineering in Civil Engineering from

University of Adelaide, is a Fellow of the Institution of Engineers

Australia, Fellow of American Society of Civil Engineers and a

Foundation Fellow of Australian Institute of Company Directors. He is

the Chief Executive Officer of Defence SA and serves on the board of

SA Environment Protection Authority Board. He was Senior Vice

President for Global Infrastructure and Asia Pacific of Kellogg Brown

& Root Services from 1998 to 2000. He is the Chairman of Audit and

Risk committee and a member of Nomination committee.


Name :              Guy Redvers Roberts

Designation :                Director

Appointment date :        19/12/06

Address :                      5 Hatherley Avenue

Hyde Park, SA 5061

Australia

Biography :                   Born on 22/07/1962 in Adelaide, South Australia, Australia.

Mr. Guy R. Roberts serves as Chief Executive Officer, Managing

Director and Executive Director of Penrice Soda Holdings Limited

since December 19, 2006. He holds a Bachelor of Law (LLB) from

University of Adelaidea and a Graduate Diploma in Legal Practice

from University of Adelaide. He was with the Orica Australia group

(formerly ICI Australia) for 15 years. He has experience in chemical,

plastics and consumer markets in Australia, New Zealand, Asia and

the United States. He was General Manager of Orica Watercare,

Solicitor with Minter Ellison Lawyers and Senior Legal Counsel with

Orica. He also serves on the Board of Adelaide Festival Centre

Foundation, Business SA, Committee for Economic Development of

Australia sA (CEDA) and National Lime Association of Australia.

 

Name :              David Trebeck

Designation :                Director

Appointment date :        15/12/09

Address :                      9 Rous Crescent

Forrest, ACT 2603

Australia

Biography :                   Born on 05/06/1947 in Sydney, New South Wales, Australia.

Mr. David B. Trebeck serves as Non-Executive Independent

Chairman of the Board of Penrice Soda Holdings Limited since

October 29, 2009. He was Non-Executive Independent Director from

September 20, 2007 until October 29, 2009. He holds Bachelor of

Science in Agriculture from University of Sydney and Master of

Economics from University of England. He is a Director of Graincorp

Limited, PrimeAg Australia Ltd and Maersk Australia Pty Ltd. He was

a Director of Institute of Public Affairs, National Water Commissioner

and Brumbies Rugby - Audit and Risk committee. He was the

Managing Director of ACIL Consulting Pty Ltd, Director of Incitec

Pivot Limited, Incitec Limited and Pipers Brook Vineyard Limited. He

is a member of Audit and Risk committee, Chairman of Nomination

committee and member of Remuneration committee.

 

Name :                          Marnie Brokenshire

Designation :                Company Secretary

Appointment date :        18/09/12

Address :                      28 East Terrace

Henley Beach, SA 5022

Australia

Biography :                   Born on 17/07/1971 in Adelaide, South Australia, Australia.

Ms. Marnie Brokenshire, BBus, Grad Dip, HRM/IR (RMIT), Grad Cert,

Change Mgmt (AGSM), serves as Company Secretary of Penrice

Soda Holdings Limited since September 18, 2012. She was

previously the General Manager of Human Resources of Penrice

Soda Holdings Limited. She is a Human Resource Specialist with

more than 15 years experience in senior generalist roles. She has

worked with GM Holden, Sensis, Deloitte Consulting and Monsanto.

Staff employed : 243 employees (Group)

 

Key Advisors

Auditors :                      ERNST & YOUNG

Level 12, Ernst & Young Building

121 King William Street

Adelaide, SA 5000

Australia

 

 

Share capital

 

Composition

Authorized Capital :       AUD 2

No of shares :               2 Ordinary Shares

Share par value :           AUD 1

Issued capital :              AUD 2

Paid up capital :            AUD 2

 

 

ownership / shareholders

 

How listed :                   Full List

 

Composition

Shareholder name :       PENRICE HOLDINGS PTY LTD

Address :                      Solvay Road

Osborne, SA 5017

Australia

No. of shares :              2 Ordinary Shares

% of shares :                100%

 

 

Related companies & corporate Affiliations

 

Structure

Name :              PENRICE SODA HOLDINGS LIMITED

Affiliation type :            Ultimate Holding Company

Address :          Solvay Road

Osborne, SA 5017

Australia


Comments :      Penrice Soda Holdings Limited engages in the manufacture, distribution, and sale

of soda ash and sodium bicarbonate in Australia and internationally. Its soda ash

is used as ingredient in products, such as glass containers, flat glass for building

and construction, and washing powders, as well as used in the mining and water

treatment industries. The company’s sodium bicarbonate is used in various

applications, including pharmaceutical, food, stock feed, medical, and personal

care products, as well as in industrial applications, such as detergents, cleaning

products, and flue gas treatment. It is also involved in the mining, distribution, and

sale of quarry and mineral products. The company owns and operates a marble

and limestone mine in the Barossa Valley in South Australia that supplies

limestone into the chemical process, as well as supplies aggregates and other

materials to various end uses, such as civil and construction, roads, landfill, glass,

mineral processing, agriculture, stock feed, and landscaping. Penrice Soda

Holdings Limited was founded in 1935 and is based in Osborne, Australia.

 

Name :              PENRICE HOLDINGS PTY LTD

Affiliation type : Parent Company

Address :          Solvay Road

Osborne, SA 5017

Australia

 

Name :              PSP SPV PTY LTD

Affiliation type : Sister Company

Address :          Solvay Road

Osborne, SA 5017

Australia

 

Name :              PENRICE FINANCE PTY LTD

Affiliation type : Sister Company

Address :          Solvay Road

Osborne, SA 5017

Australia

 

Name :              PENRICE PTY LTD

Affiliation type : Sister Company

Address :          Solvay Road

Osborne, SA 5017

Australia

 

 

Bank & mortgages

 

Bank Details

Name of bank :             National Australia Bank

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 :          30/06/12

Type of accounts :                    Full audited

Currency :                                 Australia Dollar (AUD)

Exchange rate :                         1 USD = AUD 0.95 as of 13-12-2012

 

Summarized Financial Information

 

Consolidation type :                  Group Consolidated      Group Consolidated

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

Denomination :                          (x1) One                        (x1) One

Date of financial year end :        30/06/12                        30/06/11

Length of accounts :                 12 months                     12 months

 

Sale turnover / Income :             149,869,000                  153,923,000

Gross profit :                            31,965,000                    38,879,000

Profit before tax :                      -60,376,000                   -33,063,000

Net income :                             -63,552,000                   -26,206,000

Non current assets :                  91,219,000                    143,682,000

Current assets :                         48,268,000                    51,642,000

Inventories :                              25,944,000                    26,161,000

Total assets :                            139,487,000                 195,324,000

Current liabilities :                      44,106,000                   46,362,000

Non current liabilities :               93,661,000                    81,139,000

Total liabilities :                         137,767,000                  127,501,000

Share equity :                            1,720,000                      67,823,000

Retained earning :                     -78,731,000                   -13,039,000

 

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

Ultimate Holding Company Penrice Soda Holdings Limited and all its subsidiaries

which include the Subject.

 


Operation details

 

Main activities :                         The Subject engages as a manufacturer of soda ash, sodium bicarbonate

& limestone, vital ingredient in products ranging from wine bottles, washing

powder & stock feed.

 

The Subject is part of Penrice Soda Holdings Ltd an Australian public

company, headquartered in Adelaide, South Australia, Penrice is listed on

the Australian Securities Exchange, with the Company’s origins dating

back to 1935. Penrice Soda Holdings Limited is engaged in the

manufacture, distribution and sale of soda ash and sodium bicarbonate. It

is also engaged in mining, distribution and sale of quarry and mineral

products. The Company operates in two segments: Chemicals business

and Quarry and Mineral business. Its Chemicals business includes soda

ash and sodium bicarbonate. Soda Ash produced is sold in the Australian

market as an ingredient in products ranging from glass containers, which

include wine and beer bottles; flat glass for building and construction and

washing powder. It is also used in the mining and water treatment

industries. Sodium bicarbonate is used in pharmaceuticals, food, stock

feed, personal care products and industrial applications, such as

detergents, cleaning products and flue gas treatment. Its Quarry and

Mineral business owns and operates a marble and limestone mine in South

Australia.

 

Product & services :

Chemicals

Manufactures soda ash and sodium bicarbonate using the Solvay process.

Quarry & Mineral

 

The mine supplies limestone into the chemical process at Penrice’s

Osborne Chemicals business. It is also a supplier of functional inputs to

glass and cement manufacture, mineral processing and stock feed, and a

supplier of aggregates and other materials to a variety of end-uses, such

as civil and construction, roading, landfill, and landscaping.

 

Purchases

International :                Mainly from Asia

 

Sales

Local :                          Yes

International :                Worldwide

 

Property & Assets

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

address consisting of a production facility, warehouse and administrative

office.

Branches :                    None reported.

 


Summarized country risk

 

Central bank                                          :   Reserve Bank of Australia

Reserve of foreign exchange & gold      :   US$ 43.879 billion

Gross domestic product – GDP             :   US$ 1.586 trillion

 

GPP (Purchasing power parity)              :   954.296 billion of International dollars

 

GDP per capita - current prices              :   US$ 68,916

 

GDP - composition by sector                :   agriculture: 4% industry: 25.6% services: 70.4%

 

Inflation            :                                               2009: 1.8%

2010: 2.8%

2011: 3.4%

 

Unemployment rate                               2009: 5.6 %

2010: 5.2 %

2011:5.1 %

 

Public debt

(General Government gross

debt as a % GDP)                                 2009:  16.9%

2010:  20.4%

2011:    22.9 %

 

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                                           2009: US$46,843 million

2009: US$25,716 million

2010: US$32,472 million

 

 

 

FDI Outflows                                         2008: US$33,604 million

2009: US$ 16,160 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%

 

 

Payment history

 

Purchase Term

Local :                          Prepayment, Bank transfer, D/P, Credit 30-120 days

International :                L/C, Telegraphic transfer, D/P, Credit 30-120 days

 

 

Sales Term

Local :                          Prepayment, Bank transfer, D/P, Credit 30-120 days

International :                L/C, Telegraphic transfer, D/P, Credit 30-120 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.54.23

UK Pound

1

Rs.87.53

Euro

1

Rs.70.94

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.