MIRA INFORM REPORT

 

 

Report Date :

16.09.2013

 

IDENTIFICATION DETAILS

 

Name :

AVERY DENNISON MATERIALS PTY LTD

 

 

Registered Office :

Level 18, Grosvenor Place 225 George Street Sydney New South Wales 2000

 

 

Country :

Australia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

22.07.1970

 

 

Com. Reg. No.:

007706934

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

Manufacturing & sales of adhesive labels.

 

 

No. of Employees :

400

 

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 :                          AVERY DENNISON MATERIALS PTY LTD

Other style / Business name :     FASSON

 

Business address :                    1104-1124 Centre Road

Town :                                      Oakleigh South

Province :                                 Victoria

Zip/postal code :                       3167

Country :                                   Australia

Tel :                                          +61 3 92710300

Fax :                                         +61 3 92710333

Website :                                  www.fasson.com.au

 

Registered address :                 C/o NORTON ROSE AUSTRALIA

Level 18, Grosvenor Place

225 George Street

Town :                                      Sydney

Province :                                 New South Wales

Zip/postal code :                       2000

Country :                                   Australia

 

 

SUMMARY DETAILS

 

Executive Summary

 

Date founded or registered :                  22/07/1970

Legal form :                                          Australian Proprietary Company

Chief executive :                                   David Roland Martin

Issued & paid up capital :                      AUD 9,000,000

Sales turnover :                                     USD 6,035,600,000 (Group-Consolidated 12 months, 31/12/2012)

Net income :                                         USD 215,400,000 (Group-Consolidated 12 months, 31/12/2012)

Total fixed assets :                                USD 5,105,300,000 (Group-Consolidated 12 months, 31/12/2012)

Line of business :                                  Manufacturing & sales of adhesive labels.

Staff employed :                                   400 employees (Subject); 29,800 employees (Avery Dennison Group)

 

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 stable

Detrimental :                                         No detrimental found

Payment history :                                  No payment delays noted

Comments :                                          Larger credit can still be considered. The Subject is well positioned in the market and the financial stability of the group is positive.

 

 

STATUTORY DETAILS

 

Registry Data

Registration date :                                             22/07/1970

Legal form :                                                      Australian Proprietary Company

Registration no Australian Company Number:     007706934

Registered authority :                                        Australian Securities and Investments Commission

Fiscal/ Tax no :                                                             Australian Business Number: 92007706934

Registry status :                                                Live/Active

Previous name :                                                FASSON PTY. LIMITED (initial)

Change of legal form :                                       None reported.

Other registration :                                             FASSON is a business name owned by the Subject registered on 22/09/2000

under business registration no:                          BN03809821.

 

 

MANAGEMENT / DIRECTORS

 

Key Management

 

Name :                          David Roland Martin

Designation :                Managing Director

Name :                          Ian David Brown

Designation :                Financial Director

 

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

 

Name :                          Karyn Elizabeth Rodriguez

Designation :                Director

Appointment date :        21/08/01

Address :                      750 Hastings Ranch Drive

Pasadena, CA 91107

United States

Biography :                   Born on 31-08-1959 in New York, United States.

Name :                          David Roland Martin

Designation :                Director

Appointment date :        01/01/06

Address :                      1 Carrington Grove

Brighton East, VIC 3187

Australia

Biography :                   Born on 18-06-1964 in Adelaide, South Australia, Australia.

Name :                          Ian David Brown

Designation :                Director

Appointment date :        15/12/08

Address :                      276 Galston Road

Galston, NSW 2159

Australia

Biography :                   Born on 24-09-1964 in Boxford, United Kingdom.

Name :                          Georges Gravanis

Designation :                Director

Appointment date :        01/08/10

Address :                      Flat B, 1/F., 127 Repulse Bay Road

Repulse                        Bay

Hong Kong

Biography :                   Born on 01-01-1958 in Le Piree, France.

 

Name :                          Vikas Arora

Designation :                Director

Appointment date :        30/06/10

Address :                      3905 Alta Mesa Drive

Studio City, CA 91604

United States

Biography :                   Born on 14/10/1973 in Michigan, United States.

Staff employed :           400 employees (Subject); 29,800 employees (Avery Dennison Group)

 

 

SHARE CAPITAL

 

Composition

 

Authorized Capital :                   AUD 9,000,000

No of shares :                           9,000,000 Ordinary Shares

Share par value :                       AUD 1

Issued capital :                          AUD 9,000,000

Paid up capital :                        AUD 9,000,000

 

 

OWNERSHIP / SHAREHOLDERS

 

How listed :                               Full List

Composition

Shareholder name :                   AVERY DENNISON AUSTRALIA GROUP HOLDINGS PTY LIMITED

Address :                                  1104-1124 Centre Road

Oakleigh South, VIC 3167

Australia

No. of shares :                          9,000,000 Ordinary Shares

% of shares :                            100%

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

Name :                                      AVERY DENNISON CORPORATION

Affiliation type :                                    Ultimate Holding Company

Address :                                  Miller Corporate Center

150 North Orange Grove Boulevard

Pasadena, CA 91103

United States

Comments :                              Avery Dennison Corporation engages in the production and sale of

pressure-sensitive materials worldwide. Its Pressure-sensitive Materials segment

offers pressure-sensitive label and packaging materials, graphics and graphic

films, reflective products, and tapes and performance polymers. This segment

markets its products under the Fasson, JAC, Avery Dennison, and Avery brands

to label printers and converters for labeling, decorating, fastening, and electronic

data processing applications in the home and personal care, beer and beverage,

durables, pharmaceutical, wine and spirits, and food market industries. The

company’s Retail Branding and Information Solutions segment provides branding

and information solutions, including creative services, brand embellishments,

graphic tickets, tags, labels, and sustainable packaging solutions; and information solutions, such as radio-frequency identification-enabled inventory accuracy,

visibility and loss prevention solutions, price ticketing and marking, brand

protection, and security solutions, as well as care, content, and country or origin

compliance solutions. This segment serves retailers, brand owners, apparel

manufacturers, distributors, and industrial customers. It also offers specialty

tapes, engineered films, pressure-sensitive postage stamps, and other converted

products to original equipment manufacturers, tier suppliers, and packaging

converters; and pressure-sensitive adhesive products to medical supply and

device manufacturers, and healthcare providers. In addition, Avery Dennison

provides printable media and other products comprising copiers, ink-jet and laser

printer labels, related computer software, laser printer cards, and index products,

as well as binders, dividers, and sheet protectors. The company was formerly

known as Avery International Corporation and changed its name to Avery

Dennison Corporation in 1990. Avery Dennison Corporation was founded in 1935

and is headquartered in Pasadena, California.

 

Name :                                      AVERY DENNISON AUSTRALIA GROUP HOLDINGS PTY LIMITED

Affiliation type :                                    Parent Company

Address :                                  1104-1124 Centre Road

Oakleigh South, VIC 3167

Australia

 

Name :                                      AVERY DENNISON MATERIALS SDN BHD

Affiliation type :                                    Sister Company

Address :                                  Lot 6 Jalan P/2 Kawasan Perusahaan Bangi

43650 Bandar Baru Bangi

Selangor Darul Ehsan

Malaysia

Name :                                      AVERY DENNISON OFFICE PRODUCTS PTY LIMITED

Affiliation type :                                    Sister Company

Address :                                  11 Carrington Road

Castle Hill, NSW 2154

Australia

 

Name :                                      AVERY DENNISON MATERIALS NEDERLAND B.V.

Affiliation type :                                    Sister Company

Address :                                  Rijndijk 86

2394AJ Hazerswoude-Rijndijk

Netherlands

 

Name :                                      AVERY DENNISON MATERIALS NEW ZEALAND LIMITED

Affiliation type :                                    Sister Company

Address :                                  40 Vestey Drive

Westfield, Auckland 1060

New Zealand

 

Name :                                      AVERY DENNISON (INDIA) PRIVATE LIMITED

Affiliation type :                                    Sister Company

Address :                                  Narsinghpur Industrial Area

Six Kilometre Stone, Delhi - Jaipur Highway

District Gurgaon - 122001

Haryana

India

 

Name :                                      AVERY DENNISON SINGAPORE (PTE) LTD

Affiliation type :                                    Sister Company

Address :                                  151 Pasir Panjang Road

Pasir Panjang Distripark #03–13

Singapore 118480

Singapore

 

Name :                                      AVERY DENNISON MATERIALS GMBH

Affiliation type :                                    Sister Company

Address :                                  Bembergstraße 1

D-42103 Wuppertal

Germany

 

Name :                                      AVERY DENNISON (THAILAND) LTD.

Affiliation type :                                    Sister Company

Address :                                  49/51-54 Kingkaew Road, Moo 12

Tambol Rajathewa

Bangplee District, Samutprakam Province

Thailand

 

Related companies and corporate

affiliations comments :              Other companies of the Avery Dennison 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 :                      31/12/12

Type of accounts :                                Full audited

Currency :                                             US Dollar (USD)

Consolidation type :                              Group Consolidated      Group Consolidated

Currency :                                             US Dollar (USD)            US Dollar (USD)

Denomination :                                      (x1) One                        (x1) One

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

Length of accounts :                             12 months                     12 months

Sale turnover / Income :                         6,035,600,000                6,026,300,000

Gross profit :                                        1,577,100,000                1,521,400,000

Profit before tax :                                  255,500,000                  232,900,000

Net income :                                         215,400,000                  190,100,000

Non current assets :                              2,693,600,000                2,753,900,000

Current assets :                                     2,411,700,000                2,218,800,000

Inventories :                                          473,300,000                  475,100,000

Total assets :                                        5,105,300,000                4,972,700,000

Current liabilities :                                  2,074,500,000                1,647,100,000

Non current liabilities :                           1,449,900,000                1,667,100,000

Total liabilities :                                                 3,524,400,000                3,314,200,000

Share equity :                                        1,580,900,000                1,658,500,000

Retained earning :                                1,910,800,000                1,810,500,000

Comments :                                          The group’s consolidated financial information above relates to the Subject’s Ultimate Holding Company Avery Dennison Corporation and all its subsidiaries which include the Subject.

 

OPERATION DETAILS

 

Main activities :                                                 The Subject is engaged in manufacturing of adhesive labels used on

packaging and other items. The Subject develops pressure-sensitive adhesives and self- adhesive

base materials. Its products include pressure-sensitive and non-adhesive

coated papers, films and foils.

The Subject is ultimately owned by Avery Dennison Corporation. Avery

Dennison Corporation is a global manufacturer and distributor of

pressure-sensitive adhesive materials (such as self-adhesive labels). The

company is headquartered in Pasadena, California.

Avery Dennison Corporation a Fortune 500 company with pivotal lines of

products are found in its Pressure-Sensitive Materials segment,

responsible for 54 percent of sales.

The company employs 36,000 people worldwide, with manufacturing and

distribution facilities in over 60 countries.

The company operates through 4 segments:

The Pressure-Sensitive Materials segment manufactures and sells

pressure-sensitive roll-label materials, films for graphic applications,

reflective highway-safety products, performance polymers, and extruded

films.

The Office and Consumer Products segment manufactures and sells

various office and consumer products, including labels, binders, dividers,

sheet protectors, and writing instruments.

The Retail Information Services segment designs, manufactures, and sells

various price-marking and brand-identification products, including tickets,

graphic and barcode tags and labels, woven and printed labels, and related

supplies and equipment.

Other Specialty Products segment provides automotive and industrial

products, radio-frequency identification (RFID) tags and inserts, specialty

tape, security printing and performance films.

 

Product & services : -                            Pressure-sensitive and non-adhesive coated papers, films and foils

- Self adhesive base materials

Brand :                                                             Avery Dennison

Fasson

Purchases

Local :                                                  Yes

International :                                        Worldwide

 

Sales

Local :                                                  Yes

International :                                        Worldwide

 

Property & Assets

 

 

Premises :                                The Subject operates from premises at the verified heading address

consisting of a warehouse and an administrative office.

Branches :                               In addition, the Subject operates from branch offices and production facility

located at:

 

Production facility:

16 Hewittson Road

Elizabeth West, SA 5113

Australia

Tel: +61 8 82093201

 

Queensland Distribution Centre

1/67 Colebard St W

Acacia Ridge, QLD 4110

Australia

Tel: +61 7 37151700

 

New South Wales Distribution Centre

Unit D, 21 Loyalty Road

North Rocks, NSW 2151

Australia

Tel: +61 2 88398100

 

Western Australia Distribution Center

2 Pavers Circle

Malaga, WA 6090

Australia

Tel: +61 8 92096400

 

 

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, Credit up to 120 days

International :                            L/C, Telegraphic transfer, D/P, Credit up to 120 days

 

Sales Term

 

Local :                                      Prepayment, Bank transfer, Credit up to 120 days

International :                            L/C, Telegraphic transfer, D/P, Credit up to 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


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.79

UK Pound

1

Rs.100.70

Euro

1

Rs.84.67

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.