MIRA INFORM REPORT

 

 

Report Date :

20.05.2013

 

IDENTIFICATION DETAILS

 

Name :

VLI PTY LIMITED

 

 

Formerly Known As :

VALLEY LONGWALL INTERNATIONAL PTY LTD (until 10-05-2013)

 

 

Registered Office :

8 Balook Drive, Beresfield New South Wales 2322

 

 

Country :

Australia

 

 

Date of Incorporation :

24.06.2005

 

 

Com. Reg. No.:

114932311

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

Holding company for its subsidiaries that engages in in-seam directional drilling

services & systems, underground diesel technology, bulk materials handling technology and equipment hire.

 

 

No. of Employees :

500 employees (VLI 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 :

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 :                          VLI PTY LIMITED

Other style / Business name :     VALLEY LONGWALL

Business address :                    8 Balook Drive

Town :                                       Beresfield

Province :                                  New South Wales

Zip/postal code :                        2322

Country :                                   Australia

Tel :                                          +61 2 49642300

Fax :                                        +61 2 40286796

Website :                                  www.valleylongwall.com.au

 

Registered address :                  8 Balook Drive

Town :                                       Beresfield

Province :                                  New South Wales

Zip/postal code :                        2322

Country :                                   Australia

 

 

SUMMARY DETAILS

 

Executive Summary

 

Date founded or registered :        24/06/2005

Legal form :                               Australian Proprietary Company

Chief executive :                        Brett Laurence Lynch

Issued & paid up capital :           AUD 58,674,186.74

Line of business :                       Holding company for its subsidiaries that engages in in-seam directional drilling

services & systems, underground diesel technology, bulk materials handling technology and equipment hire.

Staff employed :             500 employees (VLI Group)

 

 

CREDIT RISK OPINION

 

Company Analysis

 

Country risk :                             Country risk is minimal

Operation trend :                        Operational trend is steady

Management experience :           Management is reasonably experienced

Financial performance :              Financial performance is undetermined

Organization structure :              Organizational structure is stable

Detrimental :                  No detrimental found

Payment history :                      No payment delays noted

Comments :                              Larger credit can still be considered.

 

STATUTORY DETAILS

 

Registry Data

 

Registration date :                                              24/06/2005

Legal form :                                                       Australian Proprietary Company

Registration no Australian Company Number:       114932311

Registered authority :                                         Australian Securities and Investments Commission

Fiscal/ Tax no : Australian Business Number:      20114932311

Registry status :                                                Live/Active

 

Previous name :                                                 VALLEY LONGWALL INTERNATIONAL PTY LTD (until 10-05-                                                                               2013)

A.C.N. 114 932 311 PTY LIMITED (initial)

Change of legal form :                                         None reported.

Other registration :                                             VALLEY LONGWALL is a business name owned by the Subject registered on 13/01/2006 under the business registration no: BN98191648.

 

 

MANAGEMENT / DIRECTORS

 

Key Management

 

Name :                          Brett Laurence Lynch

Designation :                 Chief Executive Officer

 

Name :                          Neil Robert Guest

Designation :                 Chief Financial Officer

 

Name :                         Rosalind Bailey

Designation :                 Group Human Resources Manager

 

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

 

Name :                          Christopher John Freer

Designation :                 Director

Appointment date :         24/06/05

Address :                      21 Palace Street

Denman, NSW 2328

Australia

Biography :                    Born on 19/10/1955 in Hamley Bridge, South Australia, Australia.

Chris Freer has been involved in the mining industry in Australia for over 20 years. He has been a Director of Valley Longwall since 1996 and acted as General Manager from 2002 until he was appointed to the position of Managing Director of the Valley Longwall International Group in 2005.

 

Name :                          Brett Laurence Lynch

Designation :                 Director

Appointment date :         31/10/08

Address :                      2 Central Avenue

Ivanhoe, VIC 3079

Australia

Biography :                    Born on 12/06/1963 in Melbourne, Victoria, Australia.

B.Eng (Mining) Melbourne University Grad.

Dip (Business) Monash University

Memberships:                AUSIMM (Aust Institute of Mining and Metallurgy)

AICD (Aust Institute of Company Directors)

Brett is Chief Executive Officer and Managing Director of Valley Longwall International. Brett has over 20 years experience in the international mining industry. He has held various management roles in Australia coal mines with M.I.M Ltd and the mining services sectors with Orica Mining Services across the Asia pacific region.

 

Name :                          Pei Dong Yang

Designation :                 Director

Appointment date :         01/04/11

Address :                      Unit 3-3-44, 289 Shengli Street

Xinghualing District

Taiyuan

Shanxi

China

Biography :                    Born 17/11/1970 in China.

 

Name :                          Tao Meng

Designation :                 Director

Appointment date :         01/04/11

Address :                      Unit 101 Building 4 5 Area

Xinghualing District

Taiyuan

Shanxi

China

Biography :                    Born on 08/12/1959 in China.

 

Name :                          Ke Bin Zhang

Designation :                 Director

Appointment date :         01/04/11

Address :                      Unit 19 Building 19, North 1 Lane

Xi Kuang Street

Wan Bai Lin District

Taiyuan

Shanxi

China

Biography :                    Born on 26/05/1963 in China.

 

Name :                          Chuangmin Wang

Designation :                 Director

Appointment date :         23/03/12

Address :                      C/o TAIYUAN HEAVY INDUSTRY CO., LTD.

No. 53, Yuhe Street

Wanbolin District

Taiyuan 030024

Shanxi

China

Biography :                    Born 14/04/1962 in China.

 

Name :                          Neil Robert Guest

Designation :                 Company Secretary

Appointment date :         23/03/12

Address :                      Unit 13, 200-212 Hunter Street

Newcastle, NSW 2300

Australia

Biography :                   Born on 18/01/1955 in Sydney, New South Wales, Australia.

Staff employed :             500 employees (VLI Group)

 

Key Advisors

 

Auditors :                      PRICEWATERHOUSECOOPERS

Level 6, 26 Honeysuckle Drive

Newcastle, NSW 2300

Australia

 

 

SHARE CAPITAL

 

Composition

 

Authorized Capital :        AUD 58,674,186.74

No of shares :                7,765,617 IP Contribution Shares / 5,355,598 Management Shares / 40,166,986 Ordinary Shares

Share par value :            No par value

Issued capital :              AUD 58,674,186.74

Paid up capital :             AUD 58,674,186.74

 

 

OWNERSHIP / SHAREHOLDERS

 

How listed :                   Full List

 

Composition

 

Shareholder name :        PACIFIC CUSTODIANS PTY LIMITED

Address :                      Level 12, 680 George Street

Sydney, NSW 2000

Australia

No. of shares :              7,765,617 IP Contribution Shares / 5,355,598 Management Shares

Shareholder name :                    THYGCMC SPV PTY LTD

Address :                                  8 Balook Drive

Beresfield, NSW 2322

Australia

No. of shares :                           40,166,986 Ordinary Shares

 

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

 

Name :              TAIYUAN HEAVY MACHINERY GROUP COAL MACHINE CO., LTD.

Affiliation type : Ultimate Holding Company

Address :          No. 53, Yuhe Street

Wanbolin District

Taiyuan 030024

Shanxi

China

 

Name :              THYGCMC SPV PTY LTD

Affiliation type : Parent Company

Address :          8 Balook Drive

Beresfield, NSW 2322

Australia

 

Name :              VLI CONVEYORS PTY LIMITED

Affiliation type : Wholly-owned Subsidiary

Address :          8 Balook Drive

Beresfield, NSW 2322

Australia

 

Name :              VLI DRILLING PTY LIMITED

Affiliation type : Wholly-owned Subsidiary

Address :          24 Wallarah Road

Muswellbrook, NSW 2333

Australia

 

Name :              VLI DIESEL PTY LIMITED

Affiliation type : Wholly-owned Subsidiary

Address :          8 Balook Drive

Beresfield, NSW 2322

Australia

 

Name :              VLI DIESEL HIRE PTY LIMITED

Affiliation type : Wholly-owned Subsidiary

Address :          8 Balook Drive

Beresfield, NSW 2322

Australia

Related companies and corporate affiliations comments : Other companies of the Taiyuan Heavy Machinery

Group should be considered affiliates of the Subject.

 

 

BANK & MORTGAGES

 

Bank Details

 

Name of bank :              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

 

Comments :                 The Subject is classified as a small proprietary company by the Australian Securities & 

Investments Commission hence is not required to disclose their financial statement.

A proprietary company is defined as small for a financial year if it satisfies at least two of the following:

- The consolidated revenue for the financial year of the company and any entities it controls is less than $25 million;

-The value of the consolidated gross assets at the end of the financial year of the company and any entities it controls is less than $12.5 million, and -The company and any entities it controls have fewer than 50 employees at the end of the financial year.

The Subject meets the above criteria however is still exempted from disclosing their financial information to the public by the Government of Australia.

 

 

OPERATION DETAILS

 

Main activities :              The Subject is a holding company for its subsidiaries that engages in in-seam directional drilling services & systems, underground diesel technology, bulk materials handling technology and equipment hire.

The Subject operates as a subsidiary of Taiyuan Heavy Machinery Group Coal Machine Co., Ltd.

Purchases

 

Local :              None reported.

International :     None reported.

 

Sales

Local :              None reported.

International :     None reported.

 

Property & Assets

 

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

Branches :                    In addition, the VLI Group operates through branches located in Queensland, Western Australia, New South Wales and Victoria, Australia.

 

 

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

 

Local :              None

International :     None

 

Sales Term

 

Local :              None

International :     None

 

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.54.88

UK Pound

1

Rs.83.66

Euro

1

Rs.70.58

 

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.