|
Report Date : |
29.06.2012 |
IDENTIFICATION DETAILS
|
Name : |
ARGYLE DIAMONDS
LIMITED |
|
|
|
|
Formerly Known As : |
PEGARAH PTY. LTD. (initial) |
|
|
|
|
Registered Office : |
The Quadrant Level 8, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
11.07.1984 |
|
|
|
|
Com. Reg. No.: |
009102621 |
|
|
|
|
Legal Form : |
Unlisted Australian Public Company |
|
|
|
|
Line of Business : |
Exploration, mining and processing of diamonds. |
|
|
|
|
No. of Employees : |
67,930 (Rio Tinto Group) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
|
Payment Behaviour : |
Unknown |
|
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 |
Verified Address
Subject name : ARGYLE DIAMONDS LIMITED
Business address :
The Quadrant
Level 8, 1 William Street
Town : Perth
Province : Western Australia
Zip/postal code : 6000
Country : Australia
Tel : +61 8 94821166
Fax : +61 8 94821161
Website : www.argylediamonds.com.au
Registered address
: The Quadrant
Level 8, 1 William Street
Town : Perth
Province : Western Australia
Zip/postal code : 6000
Country : Australia
Executive Summary
Date founded or
registered : 11/07/1984
Legal form : Unlisted
Australian Public Company
Chief executive : Kim Truter
Issued & paid
up capital : AUD 1,602,000,000
Sales turnover : AUD 193,877,000
(Non-consolidated 12 months, 31/12/2010)
Net income : AUD -390,078,000
(Non-consolidated 12 months, 31/12/2010)
Total fixed assets
: AUD 727,300,000
(Non-consolidated 12 months, 31/12/2010)
Line of business :
Exploration, mining
and processing of diamonds.
Staff employed : 67,930 (Rio Tinto Group)
Company Analysis
Country risk : Country risk is
minimal
Operation trend : Operational trend is
declining
Management
experience : Management is
modestly experienced
Financial
performance : Financial performance
is poor
Organization
structure : Organizational
structure is flawed
Detrimental : Some detrimental records found
Payment history : No payment delays noted
Credit amount
suggestion : Fully secured terms.
Credit amount
asked : Not described.
Comments : It is strictly
advisable to conduct business dealing on prepayment or L/C basis
due to the Subject's share equity deficit.
Registry Data
Registration date
: 11/07/1984
Legal form : Unlisted
Australian Public Company
Registration no Australian Company
Number: 009102621
Registered
authority : Australian
Securities and Investments Commission
Fiscal/ Tax no : Australian Business
Number: 36009102621
Registry status : Live/Active
Previous name : CAPRICORN DIAMONDS
LIMITED
CAPRICORN DIAMONDS PTY. LIMITED
CRA DIAMONDS PTY. LIMITED
ARGYLE CANTEEN SERVICES PTY. LIMITED
PEGARAH PTY. LTD. (initial)
Change of legal
form : None reported.
Key Management
Name : Kim Truter
Designation : Managing Director
Appointments
Name : Shane Nicholas Johnson
Designation : Director
Appointment date :
13/04/11
Address : 14 Plum Court
Kununurra, WA 6743
Australia
Biography : Born on 24-06-1973 in Hobart,
Tasmania, Australia.
Name : Giles Hamilton Lenz
Designation : Director
Appointment date :
15/09/10
Address : 250 Aldersyde Road
Bickley, WA 6076
Australia
Biography : Born on 05-06-1968 in Sydney,
New South Wales, Australia.
Name : Paul William Mullins
Designation : Director
Appointment date : 23/08/11
Address : 60 Jenkins Avenue
Nedlands, WA 6009
Australia
Biography : Born on 18-07-1959 in Mary
Kathleen, Queensland, Australia.
Name :
John Michael Kirkwood
Designation : Company Secretary
Appointment date :
01/08/08
Address : Unit 4, 24 Cook Street
Crawley, WA 6009
Australia
Biography : Born on 26-05-1961 in
Newcastle Upon Tyne, United Kingdom.
Staff employed : 67,930 (Rio Tinto Group)
Key Advisors
Auditors : PRICE WATERHOUSE COOPERS
Unit QV1, 250 St Georges Terrace
Perth, WA 6000
Australia
Composition
Authorized Capital
: AUD 1,602,000,000
No of shares : 2 Class A Shares / 1,601,999,998
Class B Shares
Share par value : AUD 1
Issued capital : AUD 1,602,000,000
Paid up capital : AUD 1,602,000,000
How listed : Full
List
Composition
Shareholder name :
RIO TINTO LIMITED
Address : Level 33 , 120 Collins
Street
Melbourne, VIC 3000
Australia
No. of shares : 2 Class A Shares / 1,601,999,998
Class B Shares
% of shares : 100%
Structure
Name : Jointly held by RIO
TINTO LIMITED / RIO TINTO PLC
Affiliation type :
Parent Company
Address : Level 33 120 Collins Street
Melbourne, VIC 3000
Australia
2 Eastbourne Terrace
London W2 6LG
United Kingdom
Comments : RIO TINTO LIMITED / RIO TINTO
PLC together is engaged in minerals
exploration, development, production and processing. The Company’s
product
groups include aluminum, copper, diamonds and minerals, energy, and iron
ore.
Its major products are aluminum, copper, diamonds, coal, iron ore,
uranium,
molybdenum, gold, borates, titanium dioxide, salt and talc. The
Company’s
businesses include open pit and underground mines, mills, refineries and
smelters, as well as a number of research and service facilities.
Name : COAL & ALLIED
INDUSTRIES LIMITED
Affiliation type :
Sister Company
Address : 123 Albert Street
Brisbane, 4000 Australia
Australia
Comments : Coal mining.
Name : HAMERSLEY IRON PTY
LIMITED
Affiliation type :
Sister Company
Address : 152-158 St Georges Terrace
Perth, WA 6000
Australia
Comments : Iron ore mining.
Name : RIO TINTO DIAMONDS NV
Affiliation type :
Sister Company
Address : Diamond Exchange Building
Hoveniersstraat 53
2018 Antwerpen
Belgium
Comments : Sales of diamonds.
Name : IRON ORE COMPANY OF
CANADA INC.
Affiliation type :
Sister Company
Address : 1000 Sherbrooke Street
West, Suite 1920
Montreal, QC H3A 3G4
Canada
Comments : Iron ore mining
Name : KESTREL COAL PTY
LIMITED
Affiliation type :
Sister Company
Address : 123 Albert Street
Brisbane, QLD 4000
Australia
Comments : Operator of Kestrel Mines.
Name : KESTREL COAL SALES PTY
LIMITED
Affiliation type :
Sister Company
Address : 123 Albert Street
Brisbane, QLD 4000
Australia
Comments : Export & distribution of
coal produced from Kestrel Mine, Queensland.
Name : QUEENSLAND COAL PTY.
LIMITED
Affiliation type : Sister Company
Address : 123 Albert Street
Brisbane, QLD 4000
Australia
Comments : Queensland Coal Pty. Limited
engages in coal mining and exploration. The
company was incorporated in 1909 and is based in Brisbane, Australia.
Queensland Coal Pty. Limited operates as a subsidiary of Rio Tinto
Group.
Name : RIO TINTO ALCAN INC.
Affiliation type :
Sister Company
Address : Canada
Comments : Bauxite mining; alumina
refining; production of specialty alumina; aluminium
smelting; engineered products
Name : RIO TINTO ALUMINIUM
(HOLDINGS) LIMITED
Affiliation type :
Sister Company
Address : Australia
Comments : Bauxite mining; alumina
production; primary aluminium smelting.
Related companies
and corporate
affiliations
comments: Other companies of the Rio
Tinto Group should be considered affiliates of the
Subject.
Bank Details
Name of bank : National Australia Bank 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 : None reported.
Legal Fillings
Bankruptcy
fillings : None reported.
Court judgements :
None reported.
Tax liens : None reported.
Others : None reported.
Description
Source of
financial statement : Commercial
Registry Filings
Financial
statement date : 31/12/10
Type of accounts :
Full audited
Currency : Australia Dollar
(AUD)
Exchange rate : 1 USD = AUD 0.99 as of
27-06-2012
Summarized Financial Information
Consolidation type
: Non Consolidated Non Consolidated Group Consolidated
Currency : Australia Dollar
(AUD) Australia Dollar (AUD) US Dollar (USD)
Denomination : (x1) One (x1) One (x1) One
Date of financial
year end : 31/12/10 31/12/09 31/12/11
Length of accounts
: 12 months 12 months 12 months
Sale turnover /
Income : 193,877,000 159,460,000 60,537,000,000
Profit before tax
: -562,397,000 -429,830,000 13,214,000,000
Net income : -390,078,000 -297,436,000 4,365,000,000
Non current assets
: 544,124,000 734,026,000 97,559,000,000
Current assets : 183,177,000 237,333,000 21,986,000,000
Inventories : 61,765,000 113,776,000 5,307,000,000
Total assets : 727,301,000 971,359,000 119,545,000,000
Current
liabilities : 724,629,000
1,011,528,000 14,966,000,000
Non current
liabilities : 230,042,000 198,915,000 45,371,000,000
Total liabilities
: 954,671,000 1,210,443,000 60,337,000,000
Share equity : -227,370,000 -239,084,000 59,208,000,000
Reserve : 6,922,000 5,130,000
Retained earning : -1,036,292,000 -646,214,000 27,784,000,000
Comments : The non consolidated financial information
above relates to the Subject only.
The group’s consolidated financial information above relates to the
Subject’s
jointly Ultimate Holding Company TINTO LIMITED / RIO TINTO PLC and all
its
subsidiaries which include the Subject.
Main activities : The Subject engages in exploration
and mining of diamonds.
The diamonds produced by the Argyle mine are found in a range of colours
including white, champagne and pink. Argyle is the world's primary
source
of rare pink diamonds, which have become Argyle’s signature stone.
The diamonds recovered at the mine are sent to Rio Tinto Diamonds’
sales and marketing office in Antwerp Belgium, where they are sorted and
prepared for sale. The majority of the diamonds from the Argyle mine are
sold as rough diamonds, primarily to an Indian customer base comprising
diamond traders and manufacturers.
The rare pink diamonds from the Argyle mine are all cut and polished and
sold as loose polished diamonds to an international customer base. The
Argyle Pink Diamonds business has its headquarters in Perth, Western
Australia, also the location of its state-of-the art cutting factory.
The Perth
factory cuts and polishes the finest pink diamonds from the Argyle Mine
that are then sold via an exclusive tender.
The Subject is ultimately owned by Rio Tinto Limited. Rio Tinto Limited
is
one of the world's largest mining company.
Rio Tinto Limited engages in exploring, developing, processing, and
producing minerals primarily in Australia. The company offers bauxite,
alumina, and aluminum; copper, gold, silver, and molybdenum; diamonds,
borates, titanium dioxide feed stocks, high purity iron, metal powders,
zircon, and rutile; thermal and coking coal, and uranium; and iron ore
and
salt. It also has operations in Europe, South America, Asia, and Africa.
Rio
Tinto Limited was founded in 1873 and is headquartered in Melbourne,
Australia.
Product &
services : Rough diamonds
Argyle Pink Diamonds
Purchases
International : Asia, Europe
Sales
Local : Yes
International : Belgium
Key events : 20 June 2012
Rio names new chief for Argyle mine
Rio Tinto has appointed a new managing director for Australia's premier
diamond mine, adding further intrigue to the company's review of its
diamond operations.
Canadian-based executive Kim Truter was this afternoon announced as
the new managing director of the Argyle diamond mine in Western
Australia's Kimberley region, despite that mine being one of three under
consideration for divestment.
Rio announced in late March that it was reviewing the future of its
diamond
business - and while it may retain the assets - most analysts expect
divestments.
Mr Truter has been working as the chief operating officer at the Diavik
diamond mine in Canada – which Rio runs in a joint venture with Canadian
diamond company Harry Winston.
Rio is understood to want to run the assets in a business-as-usual mode
while the review is taking place, and Mr Truter's experience in
underground
mining is considered to be ideal for Argyle as it transitions from an
open pit
into and underground mine.
Harry Winston is considered to be a prime suitor for the diamond assets
that both Rio and BHP Billiton have put into the shop window over the
past
seven months.
Harry Winston chief executive Robert Gannicott recently indicated he did
not expect a resolution for either Rio or BHP's diamond reviews until
the
end of 2012.
21 February 2012
Rio Tinto discovers Australia’s biggest rough pink diamond at Argyle
Australia’s biggest pink rough diamond has been discovered at Rio
Tinto’s Argyle mine, the world’s largest producer of rare pink diamonds.
The 12.76 carat diamond was unearthed at the Argyle open pit in the East
Kimberley region of Western Australia.
The diamond will be known as The Argyle Pink Jubilee.
The Argyle Pink Jubilee is a light pink diamond, similar in colour to
The
Williamson Pink, which is the diamond that Her Majesty The Queen
received as a wedding gift and was subsequently set into a brooch for
her
Coronation.
Expert diamond polisher Richard How Kim Kam, who has worked for
Argyle for 25 years, started work on polishing the amazing pink diamond
in
Perth today.
After two months of careful assessment and planning, it will take about
10
days to cut and polish the diamond as a single stone. Richard said “I’m
going to take it very carefully. I know the world will be watching.”
When the diamond has been cut and polished it will be graded by a team
of
international experts and showcased to the world before being sold as
part
of the iconic Argyle Pink Diamonds Tender later this year.
Argyle Pink Diamonds Manager Josephine Johnson said “This rare
diamond is generating incredible excitement. A diamond of this calibre
is
unprecedented – it has taken 26 years of Argyle production to unearth
this
stone and we may never see one like this again. The individual who gets
to
wear this remarkable pink diamond will be incredibly lucky indeed.”
More than 90 per cent of the world’s pink diamonds come from the Argyle
mine.
Large pink diamonds tend to go to museums, are gifted to royalty or end
up
at auction houses like Christie’s auctions. Christie’s has only auctioned
18
polished pink diamonds over 10 carats in its 244 year history.
About Rio Tinto
Rio Tinto is a leading international mining group headquartered in the
UK,
combining Rio Tinto plc, a London and New York Stock Exchange listed
company, and Rio Tinto Limited, which is listed on the Australian
Securities
Exchange.
Rio Tinto's business is finding, mining, and processing mineral
resources.
Major products are aluminium, copper, diamonds, thermal and
metallurgical coal, uranium, gold, industrial minerals (borax, titanium
dioxide and salt) and iron ore. Activities span the world and are
strongly
represented in Australia and North America with significant businesses
in
Asia, Europe, Africa and South America.
27 September 2011
Diamonds not forever for Rio Tinto
Diamonds are increasingly friendless among the world’s big miners, with
Rio Tinto following BHP Billiton’s example and investigating an exit
from
the precious stones sector.
Rio Tinto said this afternoon that it would review its diamond business
and
would consider divesting its three mines, including the Argyle diamond
mine in Australia’s Kimberley Region.
Unlike the aluminium and nickel businesses that the major miners are
struggling to make profits from, diamonds continue to be profitable, but
the
sector tends to be small and the big miners appear to think their
efforts are
better focused on larger scale commodities.
'Valuable business'
Rio’s diamonds spokesman Harry Kenyon-Slaney stressed that diamonds
were far from a struggling sector.
“The diamonds market outlook is very positive, with demand growing
strongly and lack of new discoveries limiting supply. We have a
valuable,
high-quality diamonds business, but given its scale we are reviewing
whether we can create more value through a different ownership
structure,’’ he said.
Rio’s other two mines are in Zimbabwe and Canada and they have an
interest in a diamond project in India.
BHP revealed late last year that it wants to exit the diamonds business,
and is still seeking a buyer for its Ekati mine in Canada.
“It makes sense to divest the diamond business because they need to
focus on their increased spending on the other bigger projects,” said
Stan
Shamu, a Melbourne-based market strategist at IG Markets. “Rio’s main
business is iron ore and copper.”
Costs weigh on profit
An industry analyst estimated Rio Tinto's diamonds business could fetch
around $US2 billion ($1.9 billion), though this is well north of its
book value
of $US1.2 billion. The analyst declined to be named as he is not the
lead
analyst on the company.
Earlier this month, Bank of America put a $US2.5 billion price tag on
the
unit.
Net earnings from Rio Tinto's diamonds business slumped 86 per cent to
$US10 million last year on revenue of $US727 million, as the group was
hit
by lower production and higher costs at Argyle. The previous year was
also
boosted by a tax benefit.
The open-pit Argyle mine, undergoing a $US2.1 billion expansion
underground, is the largest diamond producer in the world by volume and
the largest source for pink diamonds, however only 0.1 per cent are
actually considered pink.
Diamond price jumps
Diamond prices jumped 22 per cent last year, as measured by the
Rapaport Diamond Trade Index. De Beers, the supplier of about a third of
the world’s rough diamonds, reported a 27 per cent increase in sales
last
year on higher demand for the luxury gems in the US, China and India.
Harry Winston Diamond Corp and groups led by KKR and Apollo Global
Management are in talks to buy BHP’s Ekati diamond mine in Canada,
said two people with knowledge of the matter this month.
The sale may fetch $US500 million to $US750 million and an agreement
could be struck in about a month, said the people, who declined to be
identified as the process is private.
The Ekati project, which produces about 11 per cent of the world’s
diamonds by value, according to BHP’s website, is near Rio’s Diavik
mine, 40 per cent-owned by Harry Winston.
Rio and BHP should spin off their diamond units because they are “major
cash drains”, Citigroup said in a report in September. “They are cash
intensive and if floated they would have a higher multiple than
currently
exists within a larger mining house,” the report said.
Rio shares were up 15 cents, or 0.3 per cent, at $63.90 in afternoon
trade,
on par with BHP's gains but slightly underperforming a 0.5 per cent rise
in
the broader market.
14 September 2010
Rio invests $803m in Argyle underground diamond mine
PERTH (miningweekly.com) – Global diversified giant Rio Tinto will
invest
$803-million to complete the underground development of its Argyle
diamond mine, in Western Australia, it announced on Tuesday.
The underground operation would extend the life of Argyle, which is an
openpit mine, until at least 2019.
Construction activity at the underground project, which was slowed in
2009
during the global economic downturn, would ramp up during the first half
of
next year, with targeted production rates of nine-million tons a year
forecasted within two years.
“This investment in the Argyle underground underlines our commitment to,
and confidence in the world diamond industry,” said Rio Tinto diamonds
and minerals CEO Harry Kenyon-Slaney on Tuesday.
Kenyon-Slaney said that the diamond market continued to recover after
the
global financial crisis and that long-term industry fundamentals
remained
healthy.
“A significant supply gap is expected to emerge in the medium to long
term
and the outlook for demand is strong, driven by the growth of emerging
markets. Argyle is well positioned to capture the new demand,” he added.
The $803-million funding will cover project development and construction
of
extraction services, crushers, a conveyor and pump stations at the mine
in
the Kimberley region of Western Australia.
Kenyon-Slaney said that the extended mine life from the underground
project would also generate enduring benefits for this region, building
on
Argyle’s significant contribution to economic development of the past
quarter of a century.
The Argyle mine is the world’s largest producer of pink diamonds,
producing more than 90% of global supplies. It also produces a
significant
amount of champagne and cognac diamonds, as well as white diamonds.
CEO Tom Albanese has said earlier this year that growth was the group’s
“first priority” for its cash flow and that it remains keen to invest in
Australia.
The miner expects capital expenditure to approach $6-billion this year,
growing to $9-billion in 2011.
History : An Australian company,
Ashton Mining Ltd, started exploring for diamonds
in the Kimberley in 1972, under the Kalumburu Joint Venture (the name
Kalumburu was adopted from a nearby settlement). The project
commenced following a proposal from a geologist with diamond exploration
experience in Africa, to explore the Kimberley region for diamonds.
The geologist was employed to devise an exploration program that was
based on geology studies at the University of Western Australia. These
studies suggested there were similarities between a rock known to exist
in
northern Western Australia (and later known as lamproite) and
kimberlite,
the diamond-bearing rock found in other parts of the world.
The exploration program began in 1972 and over the next few years small
diamond and alluvial deposits were discovered.
In 1976 CRA Ltd (later to become Rio Tinto Ltd) took over management of
the group, which became known as the Ashton Joint Venture. CRA
introduced a number of specific exploration objectives, including
finding a
diamond that was larger than a quarter of a carat, then to find a
diamond-bearing pipe and finally a diamond-bearing pipe with a diamond
grade high enough to justify a mine.
The basic search method used was to collect sediment samples from the
bottom of the Kimberley waterway beds. The theory was that, as the area
is well watered in the wet season, if it did contain any exposed pipes,
they
might be crossed by creeks or rivers. As a result diamonds and indicator
minerals would have been washed downstream as the tops of the pipes
were eroded.
Helicopters were used extensively due to the remote nature of the
Kimberley and lack of roads and infrastructure.
In 1977 testing of the diamond-bearing Big Spring No.1 pipe and others
nearby found small diamonds. Big Spring contributed to the explorers'
knowledge of the geology of Australian diamonds, particularly with
regard
to the presence of diamonds in lamproite.
Between 1977 and 1980 significant effort went into assessing a series of
pipes in the Ellendale area. A central treatment plant was constructed,
and
12,000 diamonds were recovered from 230,000 tonnes of lamproite.
However, it was decided that the grade of the Ellendale deposits was not
high enough to warrant the establishment of a mine.
In August 1979, diamonds were found in a sample collected from Smoke
Creek, in the Ragged Ranges. Smoke Creek runs 35kms from the Matsu
Range to Lake Argyle. Exploration crews began to work their way along
the
creek, finding an increasing number of stones as they progressed.
By October 1979 they had discovered the main Argyle mine pipe known as
the AK1 pipe, after one of the geologists first spotted a small diamond
embedded in an anthill. Following the October 1979 find, it took three
years
to assess the deposit.
In 1983 a decision was taken to establish a mine. The Argyle Diamond
Mines Joint Venture and the Ashton Exploration Joint Venture were formed
to replace the Ashton Joint Venture.
Alluvial mining commenced at Smoke Creek in 1983, and the construction
of the nearby Argyle mine began in 1984. Argyle Diamonds was named
after Lake Argyle, which lies to the north of the site.
The $450 million construction of the AK1 process plant and associated
infrastructure took just 18 months, and the fact that it was completed
on
schedule and on budget was a tribute to the skills and engineering feats
of
the workforce.
The Argyle Diamond Mine was commissioned in December 1985.
Property & Assets
Premises : The Subject operates from
premises located at the verified heading
address consisting of an administrative office.
Branches : In addition, the Subject
operates from a diamond mine located at:
Argyle House
PO Box 508, Kununurra WA, Australia 6743
Telephone: +61 8 91684901
Fax: +61 8 91684902
page 19 / 22
Gross Domestic Products (GDP) & Economic
Overview
Central bank : Reserve
Bank of Australia
Reserve of foreign
exchange & gold : US$ 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%
Purchase Term
International :
Prepayment, Telegraphic transfer, D/P, Credit 30-120 days
Sales Term
International :
Telegraphic transfer, Prepayment, 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
DIAMOND INDUSTRY –
INDIA
-
From time immemorial, India is well known in the world
as the birthplace for diamonds. It is difficult to trace the origin of
diamonds but history says that in the remote past, diamonds were mined only in
India. Diamond production in India can be traced back to almost 8th
Century B.C. India, in fact, remained undisputed leader till 18th
Century when Brazilian fields were discovered in 1725 followed by emergence of
S. Africa, Russia and Australia.
-
The achievement of the Indian diamond industry was
possible only due to combination of the manufacturing skills of the Indian workforce
and the untiring and unflagging efforts of the Indian diamantaires, supported
by progressive Government policies.
-
The area of study of family owned diamond businesses
derives its importance from the huge conglomerate of family run organizations which
operate in the diamond industry since many generations.
-
Some of the basic traits of family run business
enterprises include spirit of entrepreneurship, mutual trust lowers transaction
costs, small, nimble and quick to react, information as a source of advantage
and philanthropy.
-
Family owned diamond businesses need to improve on
many fronts including higher standard of corporate governance, long-term
performance – focused strategies, modern management and technology.
-
The diamond jewellery industry in India today may be
more than Rs 60000 mil and is rated amongst the fastest growing in the
world. Indi ranks third in the world in domestic diamond consumption.
-
Utmost caution is to be exercised while dealing with
some medium and large diamond traders which are usually engaged in fictitious
import – export, inter-company transactions, financially assisted by banks. In
the process, several public sector banks lost several hundred million rupees.
They mostly diverted borrowed money for diamond business into real estate and
capital markets.
-
Excerpts from Times of India dated 30th
October 2010 is as under –
DIAMOND
SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT
This could be the biggest credibility crisis
the Indian diamond industry has ever faced. Fifteen banks run the risk of
losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two
months ago, they had not repaid these dues. Bankers believe many
diamantaires borrowed money during the economic downturn two years ago and
diverted funds to businesses like real estate and capital markets. Many of
themselves made money from these businesses but their diamond companies have
gone sick and declared insolvency.
-
Most of the money borrowed from the banks in the name of
their diamond business has been diverted in real estate and the share market.
The banks are not in a position to seize their properties because in many
cases, these were purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.56.92 |
|
|
1 |
Rs.88.91 |
|
Euro |
1 |
Rs.71.25 |
INFORMATION DETAILS
|
Report Prepared
by : |
PRL |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.