MIRA INFORM REPORT

 

 

Report Date :

27.09.2012

 

IDENTIFICATION DETAILS

 

Name :

CHEMNET PTY LIMITED

 

 

 

 

Formerly Known As :

HALOGEN PTY LIMITED (initial)

 

 

Registered Office :

 

Level 3, 1 Nicholson Street East Melbourne Victoria 3002

 

 

 

 

Country :

Australia

 

 

 

 

Financials (as on) :

30.09.2011

 

 

 

 

Date of Incorporation :

06.01.1998

 

 

 

 

Com. Reg. No.:

081190954

 

 

 

 

Legal Form :

Australian Proprietary Company

 

 

 

 

Line of Business :

Import and distribution of industrial and specialty chemicals.

 

 

 

 

No. of Employees :

14,000 employees (Orica Group)

 

 

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

 

Status :

Good

Payment Behaviour :

Regular

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 :              CHEMNET PTY LIMITED

Business address :        Level 8, 1 Nicholson Street

Town :                           East Melbourne

Province :                      Victoria

Zip/postal code :            3002

Country :                       Australia

Tel :                              +61 3 96657111

Fax :                             +61 3 96657908

Email :                          chemicals.orders@orica.com

Website :                      www.orica-chemnet.com

 

Registered address :      Level 3, 1 Nicholson Street

Town :                           East Melbourne

Province :                      Victoria

Zip/postal code :            3002

Country :                       Australia

Comments :                  The provided name ORICA CHEMNET AUSTRALIA PTY. LTD. is not registered

in Australia.

 

SUMMARY DETAILS

 

Executive Summary

Date founded or registered :        06/01/1998

Legal form :                               Australian Proprietary Company

Chief executive :                        Gregory John Witcombe

Issued & paid up capital :           AUD 1

Sales turnover :                          AUD 6,182,300,000 (Group-consolidated 12 months, 30/09/2011)

Net income :                              AUD 663,400,000 (Group-consolidated 12 months, 30/09/2011)

Total fixed assets :                     AUD 7,628,200,000 (Group-consolidated 12 months, 30/09/2011)

Line of business :                       Import and distribution of industrial and specialty chemicals.

Staff employed :                         14,000 employees (Orica Group)

 

CREDIT RISK OPINION

 

Company Analysis

Country risk :                             Country risk is minimal

Operation trend :                        Operational trend is steady

Management experience :           Management is adequately experienced

Financial performance :              Financial performance is very good

Organization structure :              Organizational structure is stable

Detrimental :                              No detrimental found

Payment history :                      No payment delays noted

Comments :                              Larger credit can be granted if guaranteed by Ultimate Holding Company.

 

STATUTORY DETAILS

 

Registry Data

Registration date :                      06/01/1998

Legal form :                               Australian Proprietary Company

Registration no                          Australian Company Number: 081190954

Registered authority :                 Australian Securities and Investments Commission

Fiscal/ Tax no :                          Australian Business Number: 93081190954

Registry status :                                    Live/Active

Previous name :                         HALOGEN PTY LIMITED (initial)

Change of legal form :                 None reported.

 

MANAGEMENT / DIRECTORS

 

Key Management

Name :                                      Gregory John Witcombe

Designation :                             Managing Director

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

Name :                          Gregory John Witcombe

Designation :                 Director

Appointment date :         07/10/08

Address :                      10 Salisbury Street

Balwyn, VIC 3103

Australia

Biography :                    Born on 18-04-1954 in Brisbane, Queensland, Australia.

Mr. Greg J. Witcombe, B.Sc. serves as the Chief Executive Officer of

Chemicals at Orica Ltd. Mr. Witcombe served as Group General

Manager of Chemicals at Orica Ltd. since September 2008. Mr.

Witcombe served as General Manager of People, SH&E and

Community of Orica Ltd. Mr. Witcombe served as General Manager

of business transformation and human resources of Orica Ltd., a

Parent company of Incitec Ltd. since June 3, 2005. He served as the

Managing Director of IncitecPivot Limited, a business of Orica Ltd.

from June 2003 to August 2005 and also its Chief Executive Officer

until August 2005. Mr. Witcombe served as the Managing Director of

Incitec Ltd. since October 1998 and serves as Chief Executive

Officer. Mr. Witcombe was General Manager of Polyethylene Group

of Orica Limited, with responsibility for the Polythene and Films

divisions. Mr. Witcombe held several marketing and business

management positions during his career with Orica. He has been with

Orica Ltd. for more than 29 years. He joined in 1977 as a research

chemist with the Agricultural Products business before moving into a

series of commercial roles that took him around Australia as well as

on secondment to the United Kingdom. His senior management

positions have also included four years as General Manager Mining

and Trading Division (ICI) and two years as General Manager

Polyethylene Group. He served as a Director of Incitec Ltd. since

September 1997. He served as a Director of IncitecPivot Ltd. until

August 2005.

 

Name :                          Richard Charles Betts

Designation :                 Director

Appointment date :         21/12/10

Address :                      4 Gray Street

Brighton, VIC 3186

Australia

Biography :                    Born on 21-08-1967 in Sydney, New South Wales, Australia.

 

Name :                          Annette Margaret Cook

Designation :                 Company Secretary

Appointment date :         23/01/03

Address :                      26 Maling Road

Canterbury, VIC 3126

Australia

Biography :                    Born on 16-07-1955 in Melbourne, Victoria, Australia.

Staff employed :             14,000 employees (Orica Group)

 

SHARE CAPITAL

 

Composition

Authorized Capital :        AUD 1

No of shares :                1 Ordinary Share

Share par value :            AUD 1

Issued capital :              AUD 1

Paid up capital :             AUD 1

 

OWNERSHIP / SHAREHOLDERS

 

How listed : Full List

 

Composition

Shareholder name :        ORICA INVESTMENTS PTY LTD

Address :                      Level 3, 1 Nicholson Street

East Melbourne, VIC 3002

Australia

No. of shares :               1 Ordinary Share

% of shares :                 100%

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

Name :                          ORICA LIMITED

Affiliation type :              Ultimate Holding Company

Address :                      Level 3, 1 Nicholson Street

East Melbourne, VIC 3002

Australia

Comments :                  Orica Limited manufactures and distributes mining products, consumables, and

chemical products, as well as provides mining services. The company’s Mining

Services segment manufactures and supplies commercial explosives, initiating

systems, and blasting technology to the mining, quarrying, construction, and

exploration industries, as well as provides mining services. Its Minova segment

manufactures and supplies chemical-based consumables, bolts, equipment,

accessories, and services for ground consolidation, roof support, ventilation, and

water control to the underground mining, tunneling, and civil construction markets.

The company’s DuluxGroup segment manufactures and supplies paints and

other surface coatings to the decorative and technical markets; and a range of

home handyman, car care, and garden care products. Its Chemicals segment

engages in the manufacture, distribution, and trade of a range of industrial and

specialty chemicals for use in various industries, including water treatment, pulp

and paper, food and beverage, construction, and mining industries, as well as

industrial, dairy, and agriculture markets. Orica Limited also involves in the

remediation activities, including the operation of a groundwater treatment plant.

The company primarily operates in Australia, New Zealand, Asia, North America,

Latin America, and Europe. Orica Limited is headquartered in East Melbourne,

Australia.

 

Name :                          ORICA INVESTMENTS PTY LTD

Affiliation type :              Parent Company

Address :                      Level 3, 1 Nicholson Street

East Melbourne, VIC 3002

Australia

 

Name :                          BRONSON & JACOBS PTY LTD

Affiliation type :              Sister Company

Address :                      70 Marple Avenue

Villawood, NSW 2163

Australia

 

Name :                          MINOVA AUSTRALIA PTY LTD

Affiliation type :              Sister Company

Address :                      102 Albatross Road

Nowra, NSW 2541

Australia

 

Name :                          ORICA NEW ZEALAND LTD

Affiliation type :              Sister Company

Address :                      123 Carlton Gore Road

Newmarket, Auckland 1023

New Zealand

Related companies and corporate

affiliations comments:     Other companies of the Orica Group should be considered affiliates of the Subject.

 

BANK & MORTGAGES

 

Bank Details

Name of bank :              National Australia Bank

Address :                      Australia

Account details :            Current Account

 

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.

 

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 :          30/09/11

Type of accounts :                     Full audited

Currency :                                 Australia Dollar (AUD)

Exchange rate :                         1 USD = AUD 0.96 as of 25-09-2012

 

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 :          30/09/11                                    30/09/10

Length of accounts :                   12 months                                 12 months

Sale turnover / Income : 6,182,300,000                            5,812,100,000

Operating profit :                        1,028,300,000                           933,600,000

Profit before tax :                       904,800,000                             814,000,000

Net income :                              663,400,000                             1,354,700,000

Non current assets :                   5,643,000,000                            5,157,500,000

Current assets :                         1,985,200,000                            1,831,900,000

Inventories :                               614,500,000                              541,300,000

Total assets :                            7,628,200,000                            6,989,400,000

Current liabilities :                      1,457,400,000                            1,558,900,000

Non current liabilities :                2,295,200,000                           1,797,900,000

Total liabilities :                          3,752,600,000                            3,356,800,000

Share equity :                            3,875,600,000                           3,632,600,000

Retained earning :                      2,363,400,000                            2,096,200,000

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

Ultimate Holding Company Orica Limited and all its subsidiaries which include the Subject.

 

OPERATION DETAILS

 

Main activities :                          The Subject engages in import and distribution of industrial and specialty

chemicals.

It serves the water treatment, pulp and paper, agriculture, automotive,

building and construction, detergents and cleaning, general chemicals,

mining and polymer additives markets.

The Subject is ultimately owned by Orica Ltd. Orica is an Australian-owned,

publicly-listed global company with headquarters in Melbourne, Australia.

Orica Limited shares are listed on the Australian Securities Exchange

(ASX) and are traded under the code ORI.

Orica Limited manufactures and distributes mining products, consumables,

and chemical products, as well as provides mining services.

The company’s Mining Services segment manufactures and supplies

commercial explosives, initiating systems, and blasting technology to the

mining, quarrying, construction, and exploration industries, as well as

provides mining services.

Its Minova segment manufactures and supplies chemical-based

consumables, bolts, equipment, accessories, and services for ground

consolidation, roof support, ventilation, and water control to the

underground mining, tunneling, and civil construction markets.

Its Chemicals segment engages in the manufacture, distribution, and trade

of a range of industrial and specialty chemicals for use in various

industries, including water treatment, pulp and paper, food and beverage,

construction, and mining industries, as well as industrial, dairy, and

agriculture markets.

Orica Limited also involves in the remediation activities, including the

operation of a groundwater treatment plant. The company primarily

operates in Australia, New Zealand, Asia, North America, Latin America,

and Europe.

 

Product & services :                   Industrial and specialty chemicals

 


Purchases

International :                             Worldwide

 

Sales

Local :                                      Yes

International :                             Pacific Islands

 

Property & Assets

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

heading address consisting of an administrative office.

Branches :                                None reported.

 

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 :                      2009: 16.9%

2010: 20.4%

2011: 22.9%

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%

 

PAYMENT HISTORY

 

Purchase Term

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

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

 

Sales Term

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

International : L/C, Prepayment, 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.53.58

UK Pound

1

Rs.86.60

Euro

1

Rs.68.94

 

 

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.