MIRA INFORM REPORT

 

 

Report Date :

21.02.2012

 

IDENTIFICATION DETAILS

 

Name :

ALLOY STEEL AUSTRALIA (INT) PTY LTD

 

 

Registered Office :

93 Mulgul Road, Malaga, Western Australia, 6090

 

 

Country :

Australia

 

 

Financials (as on) :

30.09.2011

 

 

Date of Incorporation :

08.09.2000

 

 

Com. Reg. No.:

094428887

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

Manufacturing and distribution of Arcoplate, a wear-resistant alloy overlay wear plate.

 

 

No. of Employees :

63

 

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 400,000

Status :

Satisfactory

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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

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                :   ALLOY STEEL AUSTRALIA (INT) PTY LTD

Business address          :   93 Mulgul Road

Town                             :   Malaga

Province                        :   Western Australia

Zip/postal code              :   6090

Country                         :   Australia

 

Tel                                :   +61 8 92483188

Fax                               :   +61 8 92483166

Email                            :   info@alloysteel.net

Website                                    :   www.alloysteel.net

 

Registered address        :   93 Mulgul Road

Town                             :   Malaga

Province                        :   Western Australia

Zip/postal code              :   6090

Country                         :   Australia

Postal address              :   P.O. Box 3087

Town                             :   Malaga

Province                        :   Western Australia

Zip/postal code              :   6945

Country                         :   Australia

 

Comments                              :   The provided address 42 Mercantile Way, Malaga, WA 6090, Australia belongs to the Subject's production facilities.

 

 

SUMMARY DETAILS

 

Executive Summary

 

Date founded or registered          :   08/09/2000

Legal form                                 :   Australian Proprietary Company

Chief executive                          :   Gene Kostecki

Issued & paid up capital             :   AUD 391,312

Sales turnover                            :   USD 21,977,139 (Group-consolidated 12 months, 30/09/2011)

Net income                                :   USD 2,440,138 (Group-consolidated 12 months, 30/09/2011)

Total fixed assets                       :   USD 19,595,423 (Group-consolidated 12 months, 30/09/2011)

Line of business                         :   Manufacturing and distribution of Arcoplate, a wear-resistant alloy overlay wear plate.

Staff employed                                                                        :   63 employees (Subject)

 

 

 

 

Company Analysis

 

Country risk                               :   Country risk is minimal

Operation trend                          :   Operational trend is steady

Management experience :   Management is reasonably experienced

Financial performance                :   Financial performance is good

Organization structure                :   Organizational structure is stable

Detrimental                    :   No detrimental records found

Payment history                                    :   No payment delays noted

Credit amount suggestion     :   USD 400,000

Credit amount asked                                      :   Not described.

 

 

STATUTORY DETAILS

 

Registry Data

 

Registration date                                                :   08/09/2000

Legal form                                                         :   Australian Proprietary Company

Registration no  Australian Company Number       : 094428887

Registered authority                                           :   Australian Securities and Investments Commission

Fiscal/ Tax no                                                    :   Australian Business Number: 98094428887

Registry status                                                  :   Live/Active

Previous name                                                   :   None reported.

Change of legal form                                           :   None reported.

 

 

MANAGEMENT / DIRECTORS

 

Key Management

 

Name                :           Gene Kostecki

Designation       :           Managing Director

 

Name                :           Barry Joseph Woodhouse

Designation    :                       Chief Financial Officer

 

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

 

Name                            :           Alan Scott

Designation                   :           Director

Appointment date           :           08/08/08

Address                        :           34 Mill Point Road

South Perth, WA 6151

Australia

 

Biography                      :           Born on 30-08-1948 in Sydney, New South Wales, Australia.

 

Name                            :           Gene Kostecki

Designation                   :           Director

Appointment date           :           08/09/00

Address                        :           48 Boddington Circuit

Dianella, WA 6059

Australia

 

Biography                      :           Born on 20-06-1945 in Germany.

 

Mr. Gene Kostecki is Director of Alloy Steel International Inc. From July 1995 to July 1997, Mr. Kostecki served as Managing Director of the Collier Unit Trust, an engineering business and distributor based in Western Australia. He was the company's President and Chief Executive Officer on a full-time basis.

 

Name                            :           Barry Joseph Woodhouse

Designation                   :           Director and Company Secretary

Appointment date           :           09/12/11

Address                        :           60 Lansdowne Road

Kensington, WA 6151

Australia

 

Biography                      :           Born on 28-01-1966 in Maffra, Victoria, Australia.

Staff employed                                                :                       63 employees (Subject)

 

 

Key Advisors

 

Auditors                        :           UHY HAINES NORTON

16 Lakeside Corporate

24 Parkland Road

Osborne Park, WA 6017

Australia

 

 

SHARE CAPITAL

 

Composition

 

Authorized Capital          :   AUD 391,312

 

No of shares                  :   391,312 Ordinary Shares

 

Share par value              :   AUD 1

 

Issued capital                :   AUD 391,312

 

Paid up capital                                                :   AUD 391,312

 

 

OWNERSHIP / SHAREHOLDERS

 

How listed                     :   Full List

 

Composition

Shareholder name          :   ALLOY STEEL INTERNATIONAL, INC.

Address                        :   93 Mulgul Road

Malaga, WA 6090

Australia

 

No. of shares                 :   391,310 Ordinary Shares

Shareholder name          :   Alan Charles Winduss

Address                        :   102 Stanley Street

Scarborough, WA 6019

Australia

No. of shares                 :   1 Ordinary Share

Shareholder name          :   Gene Kostecki

Address                        :   48 Boddington Circuit

Dianella, WA 6059

Australia

 

No. of shares                          :   1 Ordinary Share

 

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

 

Name                :   ALLOY STEEL INTERNATIONAL, INC.

Affiliation type    :   Parent Company

Address            :   93 Mulgul Road

Malaga, WA 6090

Australia

 

Comments        :   The company is registered in Delaware, United States.

 

Alloy Steel International Inc. is engaged in the manufacture and distribution of Arcoplate, a wear-resistant alloy overlay wear plate. The company offers fused-alloy steel plates for installation and use in structures and machinery that suffer wear and hang-up problems. Its customer base consists of companies involved in the mining industries primarily in Australia, the United States, South America, India, Indonesia, Singapore, South Africa, Japan, China, Canada, and Malaysia. Alloy Steel International markets its Arcoplate products primarily to consultant engineers to incorporate Arcoplate materials into their equipment and plant designs.

 

Alloy Steel International Inc. is listed on OTCBB since July 2001.

Name                :   PT ALLOY MANUFACTURING INDONESIA

Affiliation type    :   Sister Company

Address            :   Indonesia

 

Name                :   MOSSVILLE SECURITIES LLC

Affiliation type    :   Sister Company

Address            :   United States

 

Name                :   ALLOY STEEL NORTH AMERICA LLC

Affiliation type    :   Sister Company

Address            :   United States

 

Name                :   ALLOY STEEL MONGOLIA LLC

Affiliation type    :   Sister Company

Address          :   Mongolia

 

 

BANK & MORTGAGES

 

Bank Details

 

Name of bank    :   Commonwealth Bank Of Australia

 

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.

 

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            : 30/09/11

Type of accounts                       : Full audited

Currency                                   : US Dollar (USD)

Consolidation type                     Group Consolidated

 

Currency           :

US Dollar (USD)

US Dollar (USD)

Denomination    :

(x1) One

(x1) One

Date of financial year end            :

30/09/11

30/09/10

Length of accounts         :

12 months

12 months

Sale turnover / Income    :

21,977,139

24,544,217

Gross profit       :

8,547,901

13,073,693

Operating profit  :

3,086,219

7,439,203

Profit before tax :

3,259,507

7,372,302

Net income        :

2,440,138

4,873,558

Non current assets         :

8,605,765

6,983,879

Current assets   :

10,989,658

12,479,739

Inventories         :

5,187,261

3,287,138

Total assets      :

19,595,423

19,463,618

Current liabilities            :

4,568,888

6,782,009

 

Non current liabilities      :

583,386

770,773

Total liabilities    :

5,152,274

7,552,782

Share equity      :

14,443,149

11,910,836

Retained earning            :

10,144,416

7,704,279

 

Comments        :   The group’s consolidated financial information above relates to the Subject’s Parent / Ultimate Holding Company Alloy Steel International, Inc. and all its subsidiaries which include the Subject.

 

 

OPERATION DETAILS

 

Main activities    :   The Subject is engaged in manufacturing and distribution of Arcoplate, a wear-resistant alloy overlay wear plate.

 

In mining processing industries, wear is the primary cause of down time, the period of time where machinery is not in operation because of the necessity of repairs or refurbishment. The Arcoplate product line substantially lowers down time and the resulting lost production. Arcoplate is widely accepted in the mining and mineral processing industries to protect a host of fixed plant and mobile equipment applications.

 

Arcoplate was first manufactured in 1991 and was the invention of Mr. Gene Kostecki.

 

The Subject is a subsidiary of Alloy Steel International Inc., a company incorporated in Delaware, USA in September 2000 and listed on the OTCBB in July 2001.

 

Product & services         :   Arcoplate, a wear-resistant alloy overlay wear plate

 

Brand                            :   Arcoplate

 

Purchases

 

International       :   United States, China, Europe

 

Sales

 

International       :   Chile, Indonesia, India, United States, Brazil

 

Key events        :   Alloy Steel International Inc Announces Resignation Of Chairman

Tuesday, 6 Sep 2011

Alloy Steel International Inc announced the resignation of Chairman Mr. Michael Minosora. The Company will advise shareholders of the revised organization structure in due course.

 

Alloy Steel International Inc Announces Resignation Of CEO Wednesday, 8 Jun 2011

Alloy Steel International Inc announced that the departure of CEO John Cleland. Following a review of the Company organization structure CEO John Cleland has departed the Company effective May 27, 2011. The Company will advise shareholders of the revised organization structure in due course.

 

Alloy Steel International Inc Announces Appointment Of Chief Executive

Officer And Chairman

Friday, 25 Feb 2011

Alloy Steel International Inc announced the appointment of three new Board Members and a new Chief Executive Officer (CEO). The new Board Members are Michael Minosora, David Mofflin and Brian McMaster. Mr. Minosora has been appointed as Chairman and replaces Mr. Gene Kostecki. Mr. Kostecki has resigned as Chairman of the Board and CEO,

 

but remains as a member of the Board and Technical Director. Mr. John

Cleland has been appointed as CEO.

 

Alloy Steel International Inc Announces Voluntary Filing Of Form 15 To

Suspend SEC Reporting Obligations

Monday, 27 Sep 2010

Alloy Steel International Inc announced that it intends to file Form 15 with the Securities and Exchange Commission (the SEC) in order to effect a termination of registration of its common stock under the Securities and Exchange Act of 1934. Upon the filing of Form 15, Alloy's obligation to file periodic and current reports with the SEC, including Forms 10-K, 10-Q and

8-K, will be immediately suspended. Alloy expects the registration of its common stock will be terminated 90 days after the filing of Form 15 with the SEC.

 

Property & Assets

 

Premises          :   The Subject operates from head office located at the verified heading address consisting of administrative office.

Branches          :   In addition, the Subject operates from production facilities located at:

 

42 Mercantile Way

Malaga, WA 6090

Australia

 

 

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: 4.1%

industry: 26%

services: 70%

 

Inflation:                                                2008: 4.4%

2009: 1.8%

2010: 2.8%

 

Unemployment rate:                               2008: 4.2%

2009: 5.6%

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

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)

 

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, Prepayment, Credit 30-60 days

 

Sales Term

 

Local                :   Prepayment, Credit 30-60 days

 

International       :   L/C, Prepayment, Credit 30-60 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.49.21

UK Pound

1

Rs.77.75

Euro

1

Rs.64.58

 

 

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.