MIRA INFORM REPORT

 

 

Report Date :

13.02.2013

 

IDENTIFICATION DETAILS

 

Name :

SUZLON ENERGY AUSTRALIA PTY LTD

 

 

Registered Office :

Level 42, 80 Collins Street Melbourne Victoria 3000

 

 

Country :

Australia

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

15.01.2004

 

 

Com. Reg. No.:

107631176

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

Construction of wind farms and sales and service of wind turbines.

 

 

No. of Employees :

265 employees

 

RATING & COMMENTS

 

MIRA’s Rating :

C

 

RATING

STATUS

PROPOSED CREDIT LINE

<10

C

Absolute credit risk exists. Caution needed to be exercised

Credit not recommended

 

Status :

Poor

Payment Behaviour :

Unknown

Litigation :

---

 

 

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 :              SUZLON ENERGY AUSTRALIA PTY LTD

Business address :        Level 29, 80 Collins Street

Town :                           Melbourne

Province :                      Victoria

Zip/postal code :            3000

Country :                       Australia

Tel :                              +61 3 86606555

Fax :                             +61 3 86606500

Website :                      www.suzlon.com

 

Registered address :      Level 42, 80 Collins Street

Town                             Melbourne

Province :                      Victoria

Zip/postal code :            3000

Country :                       Australia

 

SUMMARY DETAILS

 

Executive Summary

Date founded or registered :        15/01/2004

Legal form :                               Australian Proprietary Company

Chief executive :                        Bhavna Lathigara

Issued & paid up capital :           AUD 5,550,001

Sales turnover :              AUD 216,753,000 (Non-consolidated 12 months, 31/03/2011)

Net income :                              AUD -34,363,000 (Non-consolidated 12 months, 31/03/2011)

Total fixed assets :                     AUD 254,348,000 (Non-consolidated 12 months, 31/03/2011)

Line of business :                       Construction of wind farms and sales and service of wind turbines.

Staff employed :                         265 employees (Subject); 13,000 employees (Suzlon Group)

 

CREDIT RISK OPINION

 

Company Analysis

Country risk :                             Country risk is minimal

Operation trend :                        Operational trend is declining

Management experience :           Management is inadequately experienced

Financial performance :              Financial performance is collapsing

Organization structure :              Organizational structure is flawed

Detrimental :                  Some detrimental found

Payment history :                      Payment punctuality is undetermined

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.

 

STATUTORY DETAILS

 

Registry Data

Registration date :                      15/01/2004

Legal form :                               Australian Proprietary Company

Registration no                          Australia Company Number: 107631176

Registered authority :                 Australian Securities and Investments Commission

Fiscal/ Tax no :                          Australia Business Number: 55107631176

Registry status :                        Live/Active

Previous name :                         None reported.

Change of legal form :                 None reported.

 

 

MANAGEMENT / DIRECTORS

 

Key Management

Name :              Chris Judd

Designation :     Chief Executive Officer

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

Name :                          Frans Hilbert Jan Visscher

Designation :                 Director

Appointment date :         07/06/10

Address :                      Kloosterlaan 10

1861 SE Bergen

Netherlands

Biography :                    Born on 24-06-1953 in The Hague, Netherlands.

 

Name :                          Kirti Jasvantlal Vagadia

Designation :                 Director

Appointment date :         17/04/12

Address :                      D-302, Kalpataru Regency II

Kalyani Nagar

Pune 411006

Maharashtra

India

Biography :                    Born on 12-03-1965 in Barwala, Ahmedabad, India.

 

Name :                          Bhavna Lathigara

Designation :                 Director and Company Secretary

Appointment date :         30/09/12

Address :                      149 Boundary Road

North Epping, NSW 2121

Australia

Biography :                    Born on 27-06-1976 in Rajkot, India.

Staff employed :             265 employees (Subject); 13,000 employees (Suzlon Group)

 

Key Advisors

Auditors :          ERNST & YOUNG

8 Exhibition Street

Melbourne, VIC 3000

Australia

 

SHARE CAPITAL

 

Composition

Authorized Capital :        AUD 5,550,001

No of shares :                5,550,001 Ordinary Shares

Share par value :            AUD 1

Issued capital :              AUD 5,550,001

Paid up capital :             AUD 5,550,001

 

OWNERSHIP / SHAREHOLDERS

 

How listed : Full List

 

Composition

Shareholder name :        SUZLON ENERGY A/S

Address :                      Bredskifte Alle 13

Hasle

8210 Århus V

Denmark

No. of shares :               5,550,001 Ordinary Shares

% of shares :                 100%

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

Name :                          SUZLON ENERGY LIMITED

Affiliation type :              Ultimate Holding Company

Address :                      One Earth, Opp. Magarpatta City

Hadapsar

Pune 411028

India

Comments :      Suzlon Energy Limited engages in the manufacture and sale of wind turbine

generators, wind power systems, and related components.

The Suzlon Group is ranked as the world’s fifth largest wind turbine supplier, in

terms of cumulative installed capacity, at the end of 2011. The company’s global

spread extends across Asia, Australia, Europe, Africa and North and South

America has over 21,500 MW of wind energy capacity installed in 30 countries,

operations across 33 countries and a workforce of over 13,000.

The Group offers one of the most comprehensive product portfolios – ranging

fromsub-megawatt on-shore turbines at 600 Kilowatts (KW), to the world’s

largest commercial 6.15 MW offshore turbine – with a vertically integrated,

low-cost,manufacturing base. The Group – headquartered at Suzlon One Earth in

Pune, India – comprises Suzlon Energy Limited and its subsidiaries, including

REpower Systems SE.

 

Name :              SUZLON ENERGY A/S

Affiliation type : Parent Company

Address :          Bredskifte Allé 13

Aarhus 8210

Denmark

 

Name :              SUZLON WIND ENERGY ESPANA, S.L

Affiliation type : Sister Company

Address :          C/ Rosario Pino, 14-16, 5ª Planta

28020 Madrid

Spain

 

Name :              REPOWER AUSTRALIA PTY LTD

Affiliation type : Sister Company

Address :          Level 29, 80 Collins Street

Melbourne, VIC 3000

Australia

 

Name :              SUZLON WIND ENERGY CORPORATION

Affiliation type : Sister Company

Address :          8750 W. Bryn Mawr Avenue, Suite 720

Chicago, IL 60631

United States

Related companies and corporate

affiliations comments:     Other companies of the Suzlon Group should be considered affiliates of the

Subject.

 

BANK & MORTGAGES

 

Bank Details

Name of bank : The Australia and New Zealand Banking Group 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.

 

FINANCIAL DATA

 

Description

Source of financial statement :    Commercial Registry Filings

Financial statement date :          31/03/11

Type of accounts :                     Full audited

Currency :                                 Australia Dollar (AUD)

Exchange rate :                         1 USD = AUD 0.97 as of 11-02-2013

 

Summarized Financial Information

Consolidation type :                   Non Consolidated          Non Consolidated           Group Consolidated

Currency :                                 Australia Dollar (AUD)   Australia Dollar (AUD)    India, Rupee (INR)

Denomination :                          (x1) One                        (x1) One                        (x1) One

Date of financial year end :          31/03/11                        31/03/10                        31/03/12

Length of accounts :                   12 months                     12 months                     12 months

Sale turnover / Income : 216,753,000                  295,217,000                  213,592,100,000

Gross profit :                             -3,507,000                     -2,336,000

Profit before tax :                       -25,236,000                  -20,400,000                  -1,417,900,000

Net income                                 -34,363,000                  -13,983,000                  -4,725,900,000

Non current assets :                   20,350,000                   31,061,000                   139,539,600,000

Current assets :                         233,998,000                  240,882,000                 184,733,200,000

Inventories :                                                                                                       55,798,000,000

Total assets :                            254,348,000                  271,943,000                  326,299,900,000

Current liabilities :                      279,500,000                  260,219,000                  191,293,900,000

Non current liabilities :                8,449,000                      10,961,000                    82,310,400,000

Total liabilities :                          287,949,000                  271,180,000                  273,604,300,000

Share equity :                            -33,601,000                   763,000                        52,695,600,000

Retained earning :                      -39,151,000                   -4,787,000

 

Comments :      The non-consolidated financial information above relates to the Subject only.

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

Ultimate Holding Company Suzlon Energy Limited and all its subsidiaries which

include the Subject.

In addition, financial statement of Suzlon Energy Limited states that the Subject’s

turnover for financial year end 31-03-2012 was INR 7,248,100,000 with loss

before tax of INR -212,400,000.


OPERATION DETAILS

 

Main activities :              The Subject is engaged in construction of wind farms and sales and

service of wind turbines.

The Subject is ultimately owned by Suzlon Energy Limited, a public listed

company based in India.

Suzlon Energy Limited engages in the manufacture and sale of wind

turbine generators, wind power systems, and related components. Its

product portfolio includes drive systems, annular generators, and grid

connection systems, as well as towers and foundations comprising tower

constructions, tubular steel towers, precast concrete towers, and

foundation constructions. The company is also involved in the

sale/sub-lease of land; infrastructure development; sale of foundry and

forging components; and generation and sale of power. In addition, it offers

project services, which consist of land sourcing and permitting, wind

resource assessment, and installation and commissioning services, as well

as operations and maintenance services. Suzlon Energy Limited operates

primarily in India, Europe, the United States, Canada, the People’s

Republic of China, and Australia. Suzlon Energy Limited was founded in

1995 and is headquartered in Pune, India.

 

Purchases

International : Mainly from Asia

 

Sales

Local : Yes

International : New Zealand, Pacific Islands

 

Property & Assets

Premises : The Subject operates from premises 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 :                      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%

 

PAYMENT HISTORY

 

Purchase Term

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

 

Sales Term

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

International : 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.

 

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.53.96

UK Pound

1

Rs.84.49

Euro

1

Rs.72.23

 

 

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.