MIRA INFORM REPORT

 

 

Report Date :

10.05.2013

 

IDENTIFICATION DETAILS

 

Name :

Cellnet Group LIMITED 

 

 

Formerly Known As :

CELLNET TELECOMMUNICATIONS GROUP LIMITED

 

 

Registered Office :

59-61 Qantas Drive, Eagle Farm, Queensland 4009

 

 

Country :

Australia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

27.05.1987

 

 

Com. Reg. No.:

010721749

 

 

Legal Form :

Australian Public Listed Company

 

 

Line of Business :

The Subject is engages in wholesale distribution of mobile phones and mobile phone accessories.

 

 

No. of Employees :

350

 

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 :

Satisfactory

 

 

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 – 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 :              CELLNET GROUP LIMITED

Business address :        59-61 Qantas Drive

Town :                          Eagle Farm

Province :                     Queensland

Zip/postal code :           4009

Country :                       Australia

Tel :                              +61 7 38535555

Fax :                             +61 7 38535600

Email :                          info@cellnet.com.au

Website :                      www.cellnet.com.au

 

Registered address :     59-61 Qantas Drive

Town :                          Eagle Farm

Province :                     Queensland

Zip/postal code :           4009

Country :                       Australia

  

    

SUMMARY DETAILS

 

Executive Summary

 

Date founded or registered :      27/05/1987

Legal form :                              Australian Public Listed Company

Chief executive :                       Walter Stuart MacMillan Smith

Issued & paid up capital :          AUD 35,997,826

Sales turnover :                         AUD 64,142,000 (Consolidated 12 months, 30/06/2012)

Net income :                             AUD 1,241,000 (Consolidated 12 months, 30/06/2012)

Total fixed assets :                    AUD 25,191,000 (Consolidated 12 months, 30/06/2012)

Line of business :                      Wholesale distributor of mobile phones and mobile phone accessories.

Staff employed :                       350 employees (Subject)

  

    

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 good

Organization structure :              Organizational structure is stable

Detrimental :                             No detrimental found

Payment history :                      No payment delays noted

Credit amount asked :                Not described.

  

    

STATUTORY DETAILS

 

Registry Data

 

Registration date :                     27/05/1987

Legal form :                              Australian Public Listed Company

Registration no                          Australian Company Number: 010721749

Registered authority :                Australian Securities and Investments Commission

Fiscal/ Tax no :                         Australian Business Number: 97010721749

Registry status :                        Live/Active

Previous name :                        CELLNET TELECOMMUNICATIONS GROUP LIMITED

CELLNET CELLULAR PTY. LTD.

B.C.S. (WHOLESALE) PTY. LTD.

IXINALOW PTY. LTD. (initial)

Change of legal form :               None reported.

    

     

MANAGEMENT / DIRECTORS

 

Key Management

 

Name :                                      Walter Stuart MacMillan Smith

Designation :                            Chief Executive

Officer Name :                          Christopher Barnes

Designation :                            Financial Controller and Company Secretary

Name :                                      J. Phua

Designation :                            General Manager Product Development & Supply Chain

Name :                                      M. Wallace

Designation :                            General Manager Retail Sales

 

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

 

Name :                                      Mel Ashley Max Brookman

Designation :                            Director

Appointment date :                    04/06/92

Address :                                  102 Virginia Avenue Hawthorne, QLD 4171 Australia

Biography :                               Born on 26/03/1963 in Bristol, United Kingdom.

Mr. Mel Brookman is Non-Executive Director of Cellnet Group Limited since November 28, 2002. He was first appointed to the Board on June 4, 1992 and co-founded the Company in 1992. He has over 17 years experience in the mobile phone and IT distribution industries. Previous Managing Director of the Company from 1999 to November 28, 2002. He is Chairman of the Audit and Risk Management Committee. Currently serves on the Board of Mnet Group Ltd.

 

Name :                                      Alexander Damien Harry Beard

Designation :                            Director

Appointment date :                    15/12/06

Address :                                  7 Pacific Road Palm Beach, NSW 2108 Australia

Biography :                               Born on 14/11/1965 in Manly, New South Wales, Australia.

Mr. Alexander Damien Harry (Sandy) Beard is Non-Executive Chairman of the Board of Cellnet Group Limited since August 20, 2007. He was first appointed as Director on December 15, 2006. He holds a Bachelor of Commerce from the University of New South Wales. He is Member of the Australian Institute of Company Directors and Fellow of the Institute of Chartered Accountants. He is current Director and Chief Executive Officer of CVC Limited. He has investment and financial experience, particularly with emerging companies. He is Member of the Audit and Risk Management Committee. He currently serves on the Board of the following listed companies: Mnet Group Ltd, Amadeus Energy Ltd, CVC Property Fund and Villa World Group. He formerly served the Board of Cyclopharm Ltd.

 

Name :                                      Walter Stuart MacMillan Smith

Designation :                            Director and Company Secretary

Appointment date :                    28/10/09

Address :                                  21 Sefton Avenue Clayfield, QLD 4011 Australia

Biography :                               Born on 11/11/1963 in Durban, South Africa.

 

Name :                                      Christopher Barnes

Designation :                            Company Secretary

Appointment date :                    09/03/11

Address :                                  6 Rahona Street Wooloowin, QLD 4030 Australia

Biography :                               Born on 21/06/1981 in Rockhampton, Queensland, Australia.

Mr. Christopher Barnes is Financial Controller and Company Secretary at Cellnet Group Limited since March 9, 2011. He was appointed as Company Secretary on March 9, 2011. He has been with the Company since 2006. He holds a Bachelor of Accounting Degree and is Certified Practising Accountant.

 

Staff employed :                       350 employees (Subject)

 

Key Advisors

Auditors :                                  ERNST & YOUNG Ground Floor, 111 Eagle Street Brisbane, QLD 4000 Australia

    

     

SHARE CAPITAL

 

Composition

 

Authorized Capital :                   AUD 35,997,826

No of shares :                           55,707,111 Ordinary Shares

Share par value :                       No par value

Issued capital :                          AUD 35,997,826

Paid up capital :                        AUD 35,997,826

 

 

OWNERSHIP/ SHAREHOLDERS

 

How listed :                               Major Shareholders Only

 

Composition

 

Shareholder name :                   CVC LIMITED

Address :                                  Level 42, Suncorp Place 259 George Street Sydney, NSW 2000 Australia

No. of shares :                          28,472,046 Ordinary Shares

% of shares :                            49.36%

 

Shareholder name :                   MCNEIL NOMINEES PTY LTD

Address :                                  Sydney, NSW 2000 Australia

No. of shares :                          3,702,155 Ordinary Shares

% of shares :                            6.42%

 

Shareholder name :                   HESLEY CONSULTANTS LIMITED

Address :                                  British Virgin Islands

No. of shares :                          2,800,000 Ordinary Shares

% of shares :                            4.85%

 

Shareholder name :                   BYWATER INVESTMENTS LIMITED

Address :                                  8 South Cliff Bexhill-On-Sea East Sussex TN39 3EL United Kingdom

No. of shares :                          2,139,800 Ordinary Shares

% of shares :                            3.71%

 

Shareholder name :                   Walter Stuart MacMillan Smith 

Address :                                  21 Sefton Avenue Clayfield, QLD 4011 Australia

No. of shares :                          2,000,000 Ordinary Shares

% of shares :                            3.47%

 

Comments :                              The Subject is listed on the Australian Stock Exchange since 17 November,  1999.

 

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

 

Name :                                      CELLNET LIMITED

Affiliation type :                                    Wholly-owned Subsidiary

Address :                                  10A Orbit Drive Albany, Auckland 0632 New Zealand

 

Name :                                      C & C WAREHOUSE (HOLDINGS) PTY LTD

Affiliation type :                                    Wholly-owned Subsidiary

Address :                                  59-61 Qantas Drive Eagle Farm, QLD 4009 Australia

 

Name :                                      REGADGET PTY. LTD.

Affiliation type :                                    Subsidiary

Address :                                  59-61 Qantas Drive Eagle Farm, QLD 4009 Australia

 

Name :                                      CELLNET ONLINE PTY LIMITED

Affiliation type :                                    Wholly-owned Subsidiary

Address :                                  59-61 Qantas Drive Eagle Farm, QLD 4009 Australia

 

Name :                                      OYT PTY LTD

Affiliation type :                                    Wholly-owned Subsidiary

Address :                                  59-61 Qantas Drive Eagle Farm, QLD 4009 Australia

    

    

BANK & MORTGAGES

 

Bank Details

 

Name of bank :                         Westpac Bank Corporation

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 :          30/06/12

Type of accounts :                    Full audited

Currency :                                 Australia Dollar (AUD)

Exchange rate :                         1 USD = AUD 0.98 as of 08-05-2013

 

Summarized Financial Information

Consolidation type :                 Consolidated                Consolidated                Consolidated

Currency :                                Australia Dollar (AUD) Australia Dollar (AUD) Australia Dollar (AUD)

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

Date of financial year end :       31/12/12                        30/06/12                        30/06/11

Length of accounts :                6 months                      12 months                    12 months

Sale turnover / Income :             38,083,000                    64,142,000                    74,669,000

Gross profit :                            8,835,000                      16,532,000                    16,396,000

Profit before tax :                      563,000                        1,334,000                      1,117,000

Net income :                             563,000                         1,241,000                      1,204,000

Non current assets :                  3,698,000                      3,874,000                      4,271,000

Current assets :                         27,023,000                    21,317,000                    34,661,000

Inventories :                              9,047,000                      5,194,000                      5,259,000

Total assets :                            30,721,000                    25,191,000                    38,932,000

Current liabilities :                      15,698,000                    10,491,000                    9,807,000

Non current liabilities :               410,000                         412,000                         327,000

Total liabilities :                         16,108,000                    10,903,000                    10,134,000

Share equity :                            14,613,000                   14,288,000                    28,798,000

Reserve :                                  537,000                         752,000                         700,000

Retained earning :                     -17,623,000                   -18,163,000                   -9,763,000

 

Comments :                              The consolidated financial information above relates to the Subject and all its  subsidiaries.

  

    

OPERATION DETAILS

 

Main activities :                         The Subject engages in wholesale distribution of mobile phones and mobile  phone accessories.

 

The Subject distributes its products directly to retailers, mass merchants, consultants, system integrators, and value added resellers involved in the telecommunications, retail, and information technology industries.

 

The Subject is listed on the Australian Stock Exchange.

 

Product & services :                  - Distributes flash memory, mobile phone accessories, and CE equipment and  accessories, as well as telecommunication and retail products.

- Provides telco accessories and multiple product packs; and Bluetooth dongle drivers for windows platforms with Intel and AMD processors, as well as warehousing and third party logistics services.

 

Brand :                                     LEXAR

OTTER BOX

BELKIN

CASE MATE

LIFEPROOF

 INCIPIO

PLANTRONICS

MERC

BEACON

BUILT

MOSHI

STM

LIQUID

IMAGE

GOLLA

GEAR4

MERCURYAV

PUREGEAR

KRUSELL

SAMSUNG

NOKIA

JAYS

WHITE DIAMONDS

IHOME

ANGRY BIRDS

SONY

HTC

MIMOCO

JMB

RFI

AVANTALK

ENERGIZER

 

Purchases

International :                            Mainly from Asia, Europe

   

Sales

Local :                                      Yes

International :                            New Zealand

 

Property & Assets

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

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:           2009: 16.9%

as a % GDP)                                         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              US$1.258 trillion

shares :

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                    76%

population :

  

    

PAYMENT HISTORY

 

Purchase Term

International :                            L/C, 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 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.54.24

UK Pound

1

Rs.84.30

Euro

1

Rs.71.36

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIT

 

 

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.