MIRA INFORM REPORT

 

 

Report Date :

31.07.2013

 

IDENTIFICATION DETAILS

 

Name :

ORICA AUSTRALIA PTY LTD

 

 

Formerly Known As :

ORICA SPECIALTY EMULSIFIERS

 

 

Registered Office :

Level 3, 1 Nicholson Street, East Melbourne, Victoria 3002

 

 

Country :

Australia

 

 

Financials (as on) :

30.09.2012

 

 

Date of Incorporation :

23.06.1925

 

 

Com. Reg. No.:

004117828

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

Manufactures and distributes mining products, consumables, and chemical products.

 

 

No. of Employees :

15,000 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 – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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

 

The Australian economy has experienced continuous growth and features low unemployment, contained inflation, very low public debt, and a strong and stable financial system. By 2012, Australia had experienced more than 20 years of continued economic growth, averaging 3.5% a year. Demand for resources and energy from Asia and especially China has grown rapidly, creating a channel for resources investments and growth in commodity exports. The high Australian dollar has hurt the manufacturing sector, while the services sector is the largest part of the Australian economy, accounting for about 70% of GDP and 75% of jobs. Australia was comparatively unaffected by the global financial crisis as the banking system has remained strong and inflation is under control. Australia has benefited from a dramatic surge in its terms of trade in recent years, stemming from rising global commodity prices. Australia is a significant exporter of natural resources, energy, and food. Australia's abundant and diverse natural resources attract high levels of foreign investment and include extensive reserves of coal, iron, 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 is an open market with minimal restrictions on imports of goods and services. The process of opening up has increased productivity, stimulated growth, and made the economy more flexible and dynamic. Australia plays an active role in the World Trade Organization, APEC, the G20, and other trade forums. Australia has bilateral free trade agreements (FTAs) with Chile, Malaysia, New Zealand, Singapore, Thailand, and the US, has a regional FTA with ASEAN and New Zealand, is negotiating agreements with China, India, Indonesia, Japan, and the Republic of Korea, as well as with its Pacific neighbors and the Gulf Cooperation Council countries, and is also working on the Trans-Pacific Partnership Agreement with Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the US, and Vietnam.

Source : CIA

 


IDENTIFICATION DETAILS

 

Verified Address

 

Subject name :                          ORICA AUSTRALIA PTY LTD

Other style / Business name :     ORICA SPECIALTY EMULSIFIERS

Business address :                    Level 3, 1 Nicholson Street

Town :                                      East Melbourne

Province :                                 Victoria

Zip/postal code :                       3002

Country :                                   Australia

Tel :                                          +61 3 96657111

Fax :                                         +61 3 96657937

Website :                                  www.orica.com

 

Registered address :                 Level 3, 1 Nicholson Street

Town :                                      East Melbourne

Province :                                 Victoria

Zip/postal code :                       3002

Country :                                   Australia

Comments :                              The provided address Gate 6, Tilburn Road, Deer Park, VIC 3023, Australia

belongs to the Subject's production facility.

 

 

SUMMARY DETAILS

 

Executive Summary

 

Date founded or registered :      23/06/1925

Legal form :                              Australian Proprietary Company

Chief executive :                       Ian Smith

Issued & paid up capital :          AUD 180,200,000

Sales turnover :                         AUD 6,674,100,000 (Group-Consolidated 12 months, 30/09/2012)

Net income :                             AUD 423,800,000 (Group-Consolidated 12 months, 30/09/2012)

Total fixed assets :                    AUD 7,623,600,000 (Group-Consolidated 12 months, 30/09/2012)

Line of business :                      Manufactures and distributes mining products, consumables, and chemical products.

Staff employed :                       15,000 employees (Orica Group)

 

 

CREDIT RISK OPINION

 

Company Analysis

 

Country risk :                             Country risk is minimal

Operation trend :                       Operational trend is progressing

Management experience :          Management is adequately experienced

Financial performance :             Financial performance is very good

Organization structure :              Organizational structure is consistent

Detrimental :                             No detrimental found

Payment history :                      No payment delays noted

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

 

 

STATUTORY DETAILS

 

Registry Data

 

Registration date :                                             23/06/1925

Legal form :                                                      Australian Proprietary Company

Registration no Australian Company Number:     004117828

Registered authority :                                        Australian Securities and Investments Commission

Fiscal/ Tax no :                                                Australian Business Number: 99004117828

Registry status :                                                Live/Active

Previous name :                                                ICI AUSTRALIA OPERATIONS PROPRIETARY LIMITED

NOBEL (AUSTRALASIA) PROPRIETARY LIMITED

NOBEL (AUSTRALASIA) LIMITED (initial)

Change of legal form :                                       None reported.

Other registration :                                             ORICA SPECIALTY EMULSIFIERS is a business name owned by the Subject registered on 15/11/2011 under the business registration no: B2422917Y.

 

 

MANAGEMENT / DIRECTORS

 

Key Management

 

Name :                          Ian Smith

Designation :                Chief Executive Officer

 

Name :                          Alison Moira Andrew

Designation :                Executive Global Head Chemicals

 

Name :                          Richard Hoggard

Designation :                Executive Global Head of Manufacturing

 

Name :                          Eileen Burnett-Kant

Designation :                Executive Global Head Human Resources

 

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

 

Name :                          Gavin Roger Jackman

Designation :                Director

Appointment date :                    19/11/12

Address :                                  28 Warburton Road

Canterbury, VIC 3126

Australia

Biography :                               Born on 01-11-1971 in Hobart, Tasmania, Australia.

Mr. Gavin Jackman is Executive Global Head - Corporate Affairs and Social Responsibility of Orica Ltd. He commenced with Orica in July2012, bringing with him a wide range of private and public sectorexperience. Most recently, he worked as Group Executive PublicAffairs for Santos Limited. Prior to that, Gavin was Director of Government Affairs for BP Australia and held senior executive roles in the federal government and public service.

 

Name :                                      Eileen Burnett-Kant

Designation :                            Director

Appointment date :                   29/05/13

Address :                                  67 Graham Street

Albert Park, VIC 3206

Australia

Biography :                               Born on 26-04-1968 in Edinburgh, United Kingdom.

Ms. Eileen Burnett-Kant serves as Executive Global Head Human Resources of Orica Ltd since March 11, 2013. She was Executive Manager, People & Communication at Jetstar Airways. She has worked with Wesfarmers, McKinsey and Coles Myer.

 

Name :                                      Alison Moira Andrew

Designation :                            Director

Appointment date :                    20/02/13

Address :                                  11 Norana Avenue

Remuera, Auckland 1050

New Zealand

Biography :                               Born on 17-01-1962 in Warkworth, New Zealand.

 

Name :                                      Richard Charles Betts

Designation :                            Director

Appointment date :                    17/12/12

Address :                                  45 Windermere Crescent

Brighton, VIC 3186

Australia

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

 

Name :                                      Richard Hoggard

Designation :                            Director

Appointment date :                    17/12/12

Address :                                  Unit 1802, 505 St Kilda Road

Melbourne, VIC 3004

Australia

Biography :                               Born on 21-10-1964 in Huddersfield, United Kingdom.

Mr. Richard Hoggard has been Executive Global Head of Manufacturing of Orica Ltd since October 1, 2012. He has been with the Company for 25 years and has held both global manufacturing and business facing roles. Since 1987 he has worked for ICI UK, ICI Australia, Incitec and Orica in a variety of manufacturing, engineering and commercial roles. Most recently he completed a four year assignment in Latin America.

 

Name :                                      Ronald James Douglas

Designation :                            Director

Appointment date :                    17/12/12

Address :                                  144 Sydney Street

New Farm, QLD 4005

Australia

Biography :                               Born on 22-05-1957 in Kalgoorlie, Western Australia, Australia.

Mr. Ron Douglas is Executive Global Head Projects and Technology of Orica Ltd effective February 2013. He brings to Orica 30 years experience in management of operational performance and capital development throughout Australia, United Kingdom, the United States, South East Asia and Africa across the mineral processing and petrochemical industries. In his most recent role as Executive

General Manager Projects and Development at Newcrest Mining, Ron was accountable for delivery of all studies and capital development for the Newcrest organisation.

 

Name :                                      Annette Margaret Cook

Designation :                            Company Secretary

Appointment date :                    17/12/02

Address :                                  26 Maling Road

Canterbury, VIC 3126

Australia

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

Ms. Annette M. Cook, CPA, has been Company Secretary of Orica Limited since February 16, 2005.Pprior to this post, she was assistant Company Secretary from August 2002. She joined Orica in July 1987 and has had a variety of roles in Business Services, IT and Finance. She holds a Diploma of Business in Accounting and a Diploma of Business in Data Processing.

Staff employed :                       15,000 employees (Orica Group)

 

Key Advisors

 

Auditors :                                  KPMG

Level 4, KPMG House

161 Collins Street

Melbourne, VIC 3000

Australia

 

 

SHARE CAPITAL

 

Composition

 

Authorized Capital :                   AUD 180,200,000

No of shares :                           340,000,000 Ordinary Shares

Share par value :                       No par value

Issued capital :                          AUD 180,200,000

Paid up capital :                        AUD 180,200,000

 

 

OWNERSHIP / SHAREHOLDERS

 

How listed :                   Full List

 

Composition

 

Shareholder name :       ORICA LIMITED

Address :                      Level 3, 1 Nicholson Street

East Melbourne, VIC 3002

Australia

No. of shares :              340,000,000 Ordinary Shares

% of shares :                100%

 

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

 

Name :                          ORICA LIMITED

Affiliation type :                        Parent 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 :                          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 LIMITED

Affiliation type :                        Sister Company

Address :                      166 Totara Street

Mt Maunganui, Tauranga 3116

New Zealand

Name :                          CHEMNET PTY LIMITED

Affiliation type :                        Sister Company

Address :                      Level 8, 1 Nicholson Street

East Melbourne, VIC 3002

Australia

 

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 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 :   Public Record Sources

Financial statement date :          30/09/12

Type of accounts :                    Full audited

Currency :                                 Australia Dollar (AUD)

Exchange rate :                         1 USD = AUD 1.10 as of 30-07-2013

 

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 :        30/09/12                                    30/09/11

Length of accounts :                 12 months                                 12 months

Sale turnover / Income :             6,674,100,000                            6,182,300,000

Operating profit :                       655,400,000                              1,028,300,000

Profit before tax :                      527,200,000                              904,800,000

Net income :                             423,800,000                              663,400,000

Non current assets :                  5,585,600,000                            5,643,000,000

Current assets :                         2,038,000,000                            1,985,200,000

Inventories :                              693,600,000                              614,500,000

Total assets :                            7,623,600,000                            7,628,200,000

Current liabilities :                      1,580,300,000                            1,457,400,000

Non current liabilities :               2,796,800,000                            2,295,200,000

Total liabilities :                                     4,377,100,000                            3,752,600,000

Share equity :                            3,246,500,000                            3,875,600,000

Retained earning :                     2,376,200,000                            2,363,400,000

Comments :                  The group’s consolidated financial information above relates to the Subject’s Parent / Ultimate Holding Company Orica Limited and all its subsidiaries which include the Subject.

 

 

OPERATION DETAILS

 

Main activities :             The Subject is engaged in manufacture and distribution of mining products,  consumables, and chemical products.

The Subject is ultimately owned by Orica Limited. 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.

Purchases

Local :                          Yes

International :                Worldwide

Sales

Local :                          Yes

International :                Worldwide

Property & Assets

Premises :                    The Subject operates from group headquarters at the verified headingaddress consisting of an administrative office.

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

Gate 6, Tilburn Road

Deer Park, VIC 3023

Australia

 

 

SUMMARIZED COUNTRY RISK

 

Gross Domestic Products (GDP) & Economic Overview

 

Central bank :                                        Reserve Bank of Australia

Reserve of foreign exchange & gold :    US$ 46.714 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 :                                              2010: 2.8%

2011: 3.4%

2012: 2.7%

Unemployment rate :                             2010: 5.2%

2011: 5.1%

2012: 5.2%

Public debt

(General Government gross debt as

a % GDP):                                            2010: 20.4%

2011: 22.9%

2012: 24%

Government bond ratings :                    Standard & Poor's: AAA

Moody's rating: Aaa

Moody's outlook: STA

Market value of publicly traded

shares:                                                             US$1.198 trillion

Largest companies in the country :         Qantas Airways (Airline),Coca-Cola Amatil (Beverages), CSL (Biotechs),

Brambles (Business & Personal Services),Crown Ltd (Casinos & Gaming), Amcor (Containers & Packaging),Suncorp-Metway (Diversified Insurance), BHP Billiton (Diversified Metals & Mining),Newcrest Mining (Diversified Metals & Mining), Orica (Diversified Metals & Mining), Iluka

Resources(Diversified Metals & Mining), Origin Energy (Electric Utilities), AGL Energy (Electric Utilities), Wesfarmers (Food Retail), Woolworths (Food Retail), Metcash (Food Retail), Macquarie Group (Investment

services), AMP (Investment services), Challenger Ltd (Investment services), Fortescue Metals Group (Iron & Steel), Bluescope Steel (Iron & Steel), Commonwealth Bank (Major Banks), Westpac Banking Group

(Major Banks), National Australia Bank (Major Banks), ANZ (Major Banks), Woodside Petroleum (Oil & Gas Operations), Santos (Oil & Gas Operations), Caltex Australia (Oil & Gas Operations), WorleyParsons (Oil

Services & Equipment), Toll Holdings (Other Transportation), Transurban Group (Other Transportation), QBE Insurance Group (Property & Casualty Insurance), Insurance Australia Group (Property & Casualty Insurance),

QR National (Railroads), Westfield Group (Real Estate), Stockland Australia (Real Estate), Westfield Retail Trust (Real Estate), Lend Lease (Real Estate), CFS Retail Property Trust (Real Estate), Goodman Group

(Real Estate), Bendigo & Adelaide Bank (Regional Banks), Bank of Queensland (Regional Banks), Incitec Pivot (Specialized Chemicals), Telstra (Telecommunications Services)

 

 

Trade & Competitiveness Overview

 

Total exports :                                       US$263.9 billion

Exports commodities :                          Coal, iron ore, gold, meat, wool, alumina, wheat, machinery and transport equipment

Total imports :                                       US$239.7 billion

Imports commodities :                           Machinery and transport equipment, computers and office machines,

telecommunication equipment and parts; crude oil and petroleum products

Export - major partners :                        China 27.4%, Japan 19.2%, South Korea 8.9%, India 5.8%

Import - major partners :                        China 18.5%, US 11.4%, Japan 7.9%, Singapore 6.3%, Germany 4.7%

FDI Inflows :                                         2009: US$26,554 million

2010: US$35,556 million

2011: US$41,317 million

FDI Outflows :                                       2009: US$16,693 million

2010: US$12,791 million

2011: US$19,999 million

Best countries for doing business :        10 out of 185 countries

Global competitiveness ranking :            20 (ranking by country on a basis of 144, the first is the best)

 

Country and Population Overview

 

Total population :                                  22.68 million

Total area :                                            7,692,024 km2

Capital :                                                Canberra

Currency :                                             Australian dollars (AUD)

Internet users as % of total

population:                                           79%

 

PAYMENT HISTORY

 

Purchase Term

 

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

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

 

Sales Term

 

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

International :                L/C, 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 basedon 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.59.83

UK Pound

1

Rs.91.76

Euro

1

Rs.79.33

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.