MIRA INFORM REPORT

 

 

Report Date :

19.10.2012

 

IDENTIFICATION DETAILS

 

Name :

QRSCIENCES SECURITY PTY LTD

 

 

 

 

Registered Office :

Unit 5, 435 Williamstown Road Port Melbourne Victoria 3207

 

 

Country :

Australia

 

 

Financials (as on) :

30.06.2012 (Group Consolidated)

 

 

Date of Incorporation :

19.07.2006

 

 

Com. Reg. No.:

120813292

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

Distributor of surveillance and monitoring equipment including CCTV cameras,

digital video recorders and security video management systems.

 

 

No. of Employees :

50 employees  

 

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

(31.03.2011)

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


IDENTIFICATION DETAILS

 

Verified Address

Subject name :                          QRSCIENCES SECURITY PTY LTD

Other style / Business name :     Q VIDEO SYSTEMS / Q ALARM SUPPLIES

Business address :                    Unit 5, 435 Williamstown Road

Town :                                      Port Melbourne

Province :                                 Victoria

Zip/postal code :                       3207

Country :                                   Australia

Tel :                                          +61 3 96469016

Fax :                                         +61 3 96469086

Website :                                  www.qvideosystems.com.au

 

Registered address :                 Unit 5, 435 Williamstown Road

Town :                                      Port Melbourne

Province :                                 Victoria

Zip/postal code :                       3207

Country :                                   Australia

 

SUMMARY DETAILS

 

Executive Summary

Date founded or registered :      19/07/2006

Legal form :                              Australian Proprietary Company

Chief executive :                       Richard James Stokes

Issued & paid up capital :          AUD 5,672,971

Sales turnover :                         AUD 49,083,000 (Group-consolidated 12 months, 30/06/2012)

Net income :                             AUD -2,168,000 (Group-consolidated 12 months, 30/06/2012)

Total fixed assets :                    AUD 28,262,000 (Group-consolidated 12 months, 30/06/2012)

Line of business :                      Distributor of surveillance and monitoring equipment including CCTV cameras,

digital video recorders and security video management systems.

Staff employed :                       50 employees

 

CREDIT RISK OPINION

 

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 gradually declining

Organization structure :              Organizational structure is stable

Detrimental :                             No detrimental found

Payment history :                      No payment delays noted

STATUTORY DETAILS

 

Registry Data

Registration date :                     19/07/2006

Legal form :                              Australian Proprietary Company

Registration no                          Australian Company Number: 120813292

Registered authority :                Australian Securities and Investments Commission

Fiscal/ Tax no :                                     Australian Business Number: 99120813292

Registry status :                        Live/Active

Previous name :                        None reported.

Change of legal form :               None reported.

 

MANAGEMENT / DIRECTORS

 

Key Management

Name :                          Richard James Stokes

Designation :                Managing Director

 

Name :                          Adrian Francis Mckenzie

Designation :                Chief Financial Officer

 

Name :                          Cliff Simons

Designation :                General Manager

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

Name :                          Richard James Stokes

Designation :                Director

Appointment date :        15/03/07

Address :                      1 Baylie Place

Geelong, VIC 3220

Australia

Biography :                   Born on 12-12-1962 in Geelong, Victoria, Australia.

 

Mr. Richard (Rick) James Stokes is Chief Executive Officer and Executive Director of Q Technology Group Ltd. He has been on the Company's Board since December 19, 2007. He joined the Company in a Consulting role on 9 February 2007 where he was the CEO of the acquired business Baxall Australia. Mr. Stokes became the CEO and a Director of Q Technology Group Limited on 19 December 2007. Mr. Stokes has been involved in the electrical and security industry for some 24 years where he has developed and operated

numerous electrical contracting and security distribution businesses. He was the founder of Vicam CCTV systems which revolutionised the delivery of CCTV products in the Australian market.

 

Name :                          Adrian Francis McKenzie

Designation :                Company Secretary

Appointment date :        25/05/11

Address :                      115 Marlborough Street

Bentleigh East, VIC 3165

Australia

Biography :                   Born on 24-05-1968 in Ballarat, Victoria, Australia.

Mr. Adrian McKenzie has been Chief Financial Officer and Company

Secretary of Q Technology Group Ltd since May 23, 2011. He has

over 20 years’ experience as a senior financial executive with PWC

and ASX listed, IDT Australia Limited.

 

Staff employed :           50 employees

 

Key Advisors

Auditors :                      MOORE STEPHENS ACCOUNTANT & ADVISORS

Level 10, 530 Collins Steet

Melbournes, VIC 3000 Australia

 

SHARE CAPITAL

 

Composition

Authorized Capital :       AUD 5,672,971

No of shares :               5,672,971 Ordinary Shares

Share par value :           AUD 1

Issued capital :              AUD 5,672,971

Paid up capital :            AUD 5,672,971

 

OWNERSHIP / SHAREHOLDERS

 

How listed : Full List

 

Composition

Shareholder name :       Q TECHNOLOGY GROUP LIMITED

Address :                      Unit 5, 435 Williamstown Road

Port Melbourne, VIC 3207

Australia

No. of shares :              5,672,971 Ordinary Shares

% of shares :                100%


RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

Name :                          Q TECHNOLOGY GROUP LIMITED

Affiliation type :                        Parent Company

Address :                      Unit 5, 435 Williamstown Road

Port Melbourne, VIC 3207

Australia

Comments :                  Q Technology Group Limited (formerly QRSciences Holdings Limited) is an

Australia-based company. The Company develops, designs and sells systems,

components and software for use in global commercial security markets. It is a

re-seller in the Australian region of detection, surveillance and alarm products. It

focuses on the global security market with emphasis on the United States,

Australia, the United Kingdom, Europe and Asia. It operates in two segments:

Investment and Closed Circuit Television (CCTV) Distribution. On 21 December

2009, its investment in Spectrum SDI (USA) was sold. On 23 March 2010, its

97% owned listed company Shell in the USA DVOP-OB was sold. On 22 April

2010, its QRSciences Pty Ltd, the research and development (R&D) business,

assets and associated Internet protocol (IP) was sold to Rapiscan Systems Inc.

On 25 June 2010, its 20.4% ownership of Tek84 (residual assets in Spectrum

SDI) was sold.

 

Name :                          API SERVICES AND SOLUTIONS PTY LTD

Affiliation type :                        Sister Company

Address :                      Unit 5, 435 Williamstown Road

Port Melbourne, VIC 3207 Australia

 

BANK & MORTGAGES

 

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 : On 18 June 2012 the independent Commission Against Corruption (ICAC) in New South Wales commenced an enquiry into the security Industry in New South Wales and in particular in relation to corrupt benefits being provided to parties and

collusive tendering in numerous government contracts, of which Q Video Systems was a supplier of one of these projects, the Arts Gallery of New South Wales. The enquiry has been extended to include whether Q Technology Group, via officers of Q Video Systems provided corrupt benefits to one individual in relation to the Art Gallery of New South Wales. The company does not expect adverse findings to occur which will have a material effect on the on going performance of the Q Video Systems business. The Company has incurred legal expenses of AUD 150,000 in relation to this matter as at the end of August 2012.

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 0.97 as of 18-10-2012

 

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 :             49,083,000                                39,842,000

Profit before tax :                      -2,018,000                                 -5,804,000

Net income :                             -2,168,000                                 -4,998,000

Non current assets :                  8,526,000                                  8,816,000

Current assets :                         19,736,000                                20,915,000

Inventories :                              9,495,000                                  10,358,000

Total assets :                            28,262,000                               29,731,000

Current liabilities :                      16,326,000                                19,736,000

Non current liabilities :               5,251,000                                 1,142,000

Total liabilities :                                     21,577,000                                20,878,000

Share equity :                            6,685,000                                  8,853,000

Reserve :                                  52,000                                      52,000

Retained earning :                     -65,773,000                              -63,605,000

 

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

Parent Company Q Technology Group Limited and all its subsidiaries which

include the Subject.

 

For financial year end 30-06-2012, the Subject achieved growth of 8.6% with AUD

24.5m in revenue and an EBIT of AUD 1.0m with the corresponding year AUD 22.6m in revenue and an EBIT of AUD 1.6m.


OPERATION DETAILS

 

Main activities :                         The Subject is engaged as an importer and distributor of surveillance and

monitoring equipment including CCTV cameras, digital video recorders and

security video management systems.

The Subject is a subsidiary of publicly listed Q Technology Group Limited based in Australia.

 

Product & services :      Products

CCTV

CCTV Hardware

IP Network Products

Monitors

Power Systems

Cables

Access Control

Alarm & Intrusion

 

Brand :                                     SAMSUNG

ALTRONIX

AXIS

SANYO

BIWAVE

DSC

TAKEX

ALEXOR

KANTECH

NVT

VERINT

TAMRON

MODEMPAK

GARRETT

VOGEL’S

FUJINON

AMERICAN DYNAMICS

EATON

WINSTED

 

Purchases

International : United States, South Korea, China, Taiwan, Japan, Europe

 

Sales

Local : Yes

International : New Zealand, Pacific Islands

 

Property & Assets

 

Premises :        The Subject operates from the verified heading address consisting of a warehouse and an administrative office.

 

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

Unit 1, 7 Millennium Court

Silverwater, NSW 2128 Australia

Tel: +61 2 97370977

 

Unit 2, 1 Ross Street

Newstead, QLD 4006 Australia

Tel: +61 7 32571700

 

Unit 11, 7 King Edward Road

Osborne Park, WA 6017 Australia

Tel: +61 8 92179200

 

Unit 2, 60 Grove Avenue

Marleston, SA 5033 Australia

Tel: +61 8 81932020

 

 

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$ 1.586 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 :                                         2008: 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:                                           76.00%

 

PAYMENT HISTORY

 

Purchase Term

International : Prepayment, L/C Telegraphic transfer, D/P, Credit 30-90 days

 

Sales Term

Local : Prepayment, Bank transfer, D/P, Credit 30-90 days

International : Prepayment, Telegraphic transfer, D/P, 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.52.97

UK Pound

1

Rs.85.45

Euro

1

Rs.69.45

 

 

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%)

 

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.