MIRA INFORM REPORT

 

 

Report Date :

23.09.2013

 

IDENTIFICATION DETAILS

 

Name :

PPG INDUSTRIES AUSTRALIA PTY LIMITED

 

 

Registered Office :

14 McNaughton Road, Clayton, Victoria 3168

 

 

Country :

Australia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

08.04.1992

 

 

Com. Reg. No.:

055500939

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

Manufacture, import and sale of coating for the transportation and architectural industries.

 

 

No. of Employees :

1146

 

 

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 :

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 :              PPG INDUSTRIES AUSTRALIA PTY LIMITED

Business address :        14 McNaughton Road

Town :                          Clayton

Province :                     Victoria

Zip/postal code :           3168

Country :                       Australia

Tel :                              +61 3 92636000

Fax :                             +61 3 92636991

Website :                      www.ppgpmc.com.au

Registered address :     14 McNaughton Road

Town :                          Clayton

Province :                     Victoria

Zip/postal code :           3168

Country :                       Australia

 

 

SUMMARY DETAILS

 

Executive Summary

Date founded or registered :      08/04/1992

Legal form :                              Australian Proprietary Company

Chief executive :                       Timothy Andrew Welsh

Issued & paid up capital :          AUD 88,489,487

Sales turnover :                         AUD 461,649,000 (Consolidated 12 months, 31/12/2012)

Net income :                             AUD 13,802,000 (Consolidated 12 months, 31/12/2012)

Total fixed assets :                    AUD 433,169,000 (Consolidated 12 months, 31/12/2012)

Line of business :                      Manufacture, import and sale of protective and marine coatings.

Staff employed :                       1,146 employees (Subject); 39,200 employees (PPG 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 consistent

Detrimental :                             No detrimental found

Payment history :                      No payment delays noted

 

 


STATUTORY DETAILS

 

Registry Data

Registration date :                                             08/04/1992

Legal form :                                                      Australian Proprietary Company

Registration no Australian Company Number:     055500939

Registered authority :                                        Australian Securities and Investments Commission

Fiscal/ Tax no :                                                             Australian Business Number: 82055500939

Registry status :                                                Live/Active

Previous name :                                                UNDERGLEN PTY. LIMITED (initial)

Change of legal form :                                       None reported.

 

 

MANAGEMENT / DIRECTORS

 

Key Management

Name :              Timothy Andrew Welsh

Designation :    Managing Director

 

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

Name :                          Nicholas Andrew Bruce Galloway

Designation :                Director and Company Secretary

Appointment date :        09/01/12

Address :                      78 Falconer Street

Fitzroy North, VIC 3068

Australia

Biography :                   Born on 20/11/1968 in Melbourne, Victoria, Australia.

Name :                          Emmanuel Vaselios Bikakis

Designation :                Director

Appointment date :        25/06/12

Address :                      432 Tooronga Road

Hawthorn East, VIC 3123

Australia

Biography :                   Born on 01/09/1965 in Melbourne, Victoria, Australia.

Name :                          Timothy Andrew Welsh

Designation :                Director

Appointment date :        01/10/12

Address :                      39 Dalmont Street

Highett, VIC 3190

Australia

Biography :                   Born on 09/03/1973 in Melbourne, Victoria, Australia.

Staff employed :           1,146 employees (Subject); 39,200 employees (PPG Group)

 


Key Advisors

Auditors :                      DELOITTE TOUCHE TOHMATSU

Level 17, 550 Bourke Street

Melbourne, VIC 3000

Australia

 

 

SHARE CAPITAL

 

Composition

Authorized Capital :                   AUD 88,489,487

No of shares :                           95,168,877 Ordinary Shares

Share par value :                       No par value

Issued capital :                          AUD 88,489,487

Paid up capital :                        AUD 88,489,487

 

 

OWNERSHIP / SHAREHOLDERS

 

How listed :                   Full List

Composition

Shareholder name :       PPG INDUSTRIES SECURITIES, INC.

Address :                      One PPG Place

Pittsburgh, PA 15272

United States

No. of shares :              95,168,877 Ordinary Shares

% of shares :                100%

 

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

Name :                          PPG INDUSTRIES, INC.

Affiliation type :                        Ultimate Holding Company

Address :                      One PPG Place

Pittsburgh, PA 15272

United States

Comments :                  PPG Industries, Inc. (PPG) is a global supplier of protective and decorative coatings. PPG operates in six business segments. The Performance Coatings, Industrial Coatings and Architectural Coatings-EMEA segments supply protective and decorative finishes for customers in a range of end use markets, including industrial equipment, appliances and packaging; factory-finished aluminum extrusions and steel and aluminum coils; marine and aircraft equipment; automotive original equipment; and other industrial and consumer products. The Optical and Specialty Materials segment consist of the optical products and silicas businesses. It is a producer and supplier of basic chemicals. Glass segment produces flat glass and continuous-strand fiber glass. The Glass business segment consists of the flat glass and fiber glass businesses. In January 2013, the combined company formed by uniting Georgia Gulf with PPG's former commodity chemicals business is named Axiall Corporation.

 

Name :                          PPG INDUSTRIES SECURITIES, INC.

Affiliation type :                        Parent Company

Address :                      One PPG Place

Pittsburgh, PA 15272

United States

Name :                          BARRIER CHEMICALS PTY. LIMITED

Affiliation type :                        Wholly-owned Subsidiary

Address :                      14 McNaughton Road

Clayton, VIC 3168

Australia

Name :                          PPG INDUSTRIES (SINGAPORE) PTE., LTD.

Affiliation type :                        Sister Company

Address :                      63 Tuas Avenue 1

Singapore 639507

Singapore

Name :                          PPG COATINGS (MALAYSIA) SDN. BHD.

Affiliation type :                        Sister Company

Address :                      No. 3, Jalan 205

46700 Petaling Jaya

Selangor Darul Ehsan

Malaysia

Related companies and corporate affiliations comments

: Other companies of the PPG Industries 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 :   Commercial Registry Filings

Financial statement date :          31/12/12

Type of accounts :                    Full audited

Currency :                                 Australia Dollar (AUD)

Exchange rate :                         1 USD = AUD 1.05 as of 19-09-2013

 

Summarized Financial Information

 

Consolidation type :                  Consolidated                Consolidated Group                  Consolidated

Currency :                                 Australia Dollar (AUD)   Australia Dollar (AUD)                US Dollar (USD)

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

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

Length of accounts :                 12 months                     12 months                                 12 months

Sale turnover / Income :             461,649,000                  448,945,000                              15,200,000,000

Gross profit :                            234,066,000                  213,258,000

Profit before tax :                      21,737,000                    22,803,000                                1,402,000,000

Net income :                             13,802,000                    16,242,000                                1,064,000,000

Non current assets :                  255,274,000                  258,955,000                              8,163,000,000

Current assets :                         177,895,000                  200,424,000                              7,715,000,000

Inventories :                              70,262,000                    82,643,000                                1,687,000,000

Total assets :                            433,169,000                  459,379,000                              15,878,000,000

Current liabilities :                      100,990,000                  110,718,000                              4,461,000,000

Non current liabilities :               94,353,000                    111,437,000                              7,095,000,000

Total liabilities :                                     195,343,000                  222,155,000                              11,556,000,000

Share equity :                            237,826,000                  237,224,000                              4,322,000,000

Retained earning :                     124,826,000                  124,224,000                              9,871,000,000

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

 

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

Ultimate Holding Company PPG Industries, Inc. and all its subsidiaries which include the Subject.

 

 

OPERATION DETAILS

 

Main activities :             The Subject is engaged in manufacture, import and sale of coating for the transportation and architectural industries.

The Subject, a wholly owned subsidiary of PPG Industries Inc., a coatings

and specialty products company. PPG Industries Inc. Performance

Coatings segment offers coatings products for automotive and commercial

transport/fleet repair and refurbishing, light industrial coatings, and

specialty coatings for signs; supplies sealants, coatings, technical cleaners

and transparencies for commercial, military, regional jet and general

aviation aircraft and transparent armor for military land vehicles; and

coatings and finishes for the protection of metals and structures to metal

fabricators, heavy duty maintenance contractors, and manufacturers of

ships, bridges, rail cars, and shipping containers.

Its Industrial Coatings segment offers industrial and automotive coatings for

manufacturing companies; and packaging coatings and inks to the

manufacturers of aerosol, food, and beverage containers. The company's

Architectural Coatings – Europe, Middle East, and Africa segment provides

coatings used by painting and maintenance contractors and by consumers

for decoration and maintenance of residential and commercial building

structures, as well as purchased sundries to painting contractors and

consumers.

Its Optical and Specialty Materials segment offers Transitions lenses,

optical lens materials, and sunlenses; amorphous precipitated silicas for

tire, battery separator, and other end-use markets; and Teslin substrate

used in applications, such as radio frequency identification tags and labels,

e-passports, drivers’ licenses, and identification cards.

It's Glass segment supplies flat glass and continuous-strand fiber glass

products for commercial and residential construction and the wind energy,

energy infrastructure, transportation, and electronics industries. PPG

Industries sells its products through company-owned stores, home centers,

paint dealers, and independent distributors, as well as directly to customers

worldwide.

PPG Industries was founded in 1883 and is headquartered in Pittsburgh,

Pennsylvania.

 

Product & services :      Marine Coatings

- Antifoulings

- Single Pack Primers & Finish

- Epoxy Primers

- Two Pack Finish

- Tank Coatings

- Thinners

Protective Coatings

- Single Pack Alkyd Range

- Prefabrication Primers

- Zinc Primer Range

- Re-Coatable Epoxy Range

- Fast Curing Range

- Durable Finish Range

- Tank Lining Range

- Heavy Duty Reinforced Range

- Heat Resistant Range

- Fire Protection, Intumescent Coatings

- Additional Primers and Coatings

- Moisture Curing Range

 

Purchases

Local :                          Yes

International :                Worldwide

 

Sales

Local :                          Yes

International :                Worldwide

Property & Assets

 

Premises : The Subject operates from the verified heading address consisting of a

production facility, warehouse and administrative office.

Branches : In addition, the Subject operates from the following sales offices located at:

37-41 Mark Anthony Drive

Dandenong, VIC 3175

Australia

Tel: +61 1300 659 666

427 Swift Street

Albury, NSW 2640

Australia

Tel: +61 2 60234891

Corner Cobalt & Mica Streets

Carole Park, QLD 4300

Australia

Tel: +61 7 37123000

24-26 Hudson Street

Hamilton, NSW 2303

Australia

Tel: +61 2 49615246

4 Modal Street

Canningvale, WA 6155

Australia

Tel: +61 8 93533788

111 Airds Road

Minto, NSW 2566

page 12 / 16

Australia

Tel: +61 1300 659 666

33 Bolam Street

Garbutt, QLD 4814

Australia

Tel: +61 7 47757933

 

 

SUMMARIZED COUNT    RY 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 :              Bank transfer, D/P, Credit 30-120 days

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

 

Sales Term

Local :              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 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.62.24

UK Pound

1

Rs.99.89

Euro

1

Rs.84.22

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.