MIRA INFORM REPORT

 

 

Report Date :

06.05.2014              

 

IDENTIFICATION DETAILS

 

Name :

CATHAY INDUSTRIES AUSTRALASIA PTY LTD

 

 

Formerly Known As :

CATHAY PIGMENTS (AUSTRALASIA) PTY LTD

 

 

Registered Office :

Level 1, 103 Vanessa Street Kingsgrove New South Wales 2208

 

 

Country :

Australia

 

 

Date of Incorporation :

05.01.1998

 

 

Com. Reg. No.:

081186174

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

Import & distribution of synthetic iron oxide pigments, food coloring, water

treatment chemicals, ilmenite and manufacturing of commercial pigments.

 

 

No. of Employees

36

 

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Australia

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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

 

 

 


Company name and address

 

Verified Address

 

Subject name :              CATHAY INDUSTRIES AUSTRALASIA PTY LTD

Business address :        Level 1, 103 Vanessa Street

Town : Kingsgrove

Province : New South Wales

Zip/postal code : 2208

Country : Australia

Tel : +61 2 93361000

Fax : +61 2 91506677

Email : info@cathayindustries.com.au

Website : www.cathayindustries.com.au

 

Registered address :     Level 1, 103 Vanessa Street

Town : Kingsgrove

Province : New South Wales

Zip/postal code : 2208

Country : Australia

Postal address : P.O. Box 42

Town : Kingsgrove

Province : New South Wales

Zip/postal code : 2208

Country : Australia

 

 

SUMMARY DETAILS

 

Executive Summary

Date founded or registered :      05/01/1998

Legal form :                              Australian Proprietary Company

Chief executive :                       Steven Leo Joseph Spackman

Issued & paid up capital :          AUD 3,491,880

Sales turnover :                         AUD 36,548,160 (Non-consolidated 12 months, 31/12/2013)

Net income :                             AUD 255,494 (Non-consolidated 12 months, 31/12/2013)

Total fixed assets :                    AUD 16,942,616 (Non-consolidated 12 months, 31/12/2013)

Line of business :                      Import & distribution of synthetic iron oxide pigments, food coloring, water

treatment chemicals, ilmenite and manufacturing of commercial pigments.

Staff employed :                       36 employees

 

 

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 fair

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 :                                             05/01/1998

Legal form :                                                      Australian Proprietary Company

Registration no Australian Company Number:     081186174

Registered authority :                                        Australian Securities and Investments Commission

Fiscal/ Tax no :                                                             Australian Business Number: 23081186174

Registry status :                                                            Live/Active

Previous name :                                                CATHAY PIGMENTS (AUSTRALASIA) PTY LTD (initial)

Change of legal form :                                       None reported.

 

 

MANAGEMENT / DIRECTORS

 

Key Management

Name : Steven Leo Joseph Spackman

Designation :    Managing Director

 

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

Name                :           Kwan Yau Yu

Designation :                Director

Appointment date :        27/04/06

Address :                      Flat D, 19 Floor, 4 Broadwood Road

Happy Valley

Hong Kong

Biography :                   Born on 07-08-1952 in Hong Kong.

 

 

Name :                          Steven Leo Joseph Spackman

Designation :                Director

Appointment date :        01/07/08

Address :                      30 Norma Avenue

Eastwood, NSW 2122

Australia

Biography :                   Born on 19-06-1964 in Manly, New South Wales, Australia.


 

Name :                          Kwan Ping Yu

Designation :                Director

Appointment date :        01/07/08

Address :                      Flat D, 19 Floor, 4 Broadwood Road

Happy Valley

Hong Kong

Biography :                   Born on 26-12-1953 in Hong Kong.

 

Name :                          Danny Succar

Designation :                Company Secretary

Appointment date :        01/07/08

Address :                      94 Permanent Avenue

Earlwood, NSW 2206

Australia

Biography :                   Born on 04-08-1971 in Marrickville, New South Wales, Australia.

Staff employed :           36 employees

 

 

SHARE CAPITAL

 

Composition

Authorized Capital :       AUD 3,491,880

No of shares :               4,157 Ordinary Shares

Share par value :           No Par Value

Issued capital :              AUD 3,491,880

Paid up capital :                        AUD 3,491,880

 

 

OWNERSHIP / SHAREHOLDERS

 

How listed : Full List

 

 

Composition

Shareholder name :       CATHAY PIGMENTS HOLDINGS LIMITED

Address :                      C/o COMMENCE OVERSEAS LIMITED

P.O. Box 2208

Road Town, Tortola

British Virgin Islands

No. of shares :              4,157 Ordinary Shares

% of shares :                100%

 


 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

Name :              CATHAY PIGMENTS HOLDINGS LIMITED

Affiliation type : Parent Company

Address :          C/o COMMENCE OVERSEAS LIMITED

P.O. Box 2208

Road Town, Tortola

British Virgin Islands

 

Name :              CATHAY INDUSTRIES NZ PTY LIMITED

Affiliation type : Wholly-owned Subsidiary

Address :          C/o BDO AUCKLAND

Level 8, 120 Albert Street

Auckland Central, Auckland 1010

New Zealand

 

Name :              CATHAY PIGMENTS (USA), INC.

Affiliation type : Sister Company

Address :          4901 Evans Avenue

Valparaiso, IN 46383

United States of America

 

Name :              CATHAY INDUSTRIES (AFRICA) (PTY) LTD

Affiliation type : Sister Company

Address : Unit 3, Jet Park

Caravelle Street

Walmer, 6070

Port Elizabeth

South Africa

 

Name :              CATHAY COLORS & PIGMENTS LIMITED

Affiliation type : Sister Company

Address : Suite 901A, 9/F, Chinachem Golden Plaza

77 Mody Road

Tsimshatsui East, Kowloon

Hong Kong

Related companies and corporate

affiliations comments : Other companies of the Cathay Group should be considered affiliates of the Subject.

 


 

BANK & MORTGAGES

 

Bank Details    

Name of bank :                         HSBC Bank Australia

Address :                      Australia

Account details :           Current Acccount

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 :          31/12/13

Type of accounts :                    Full audited

Currency :                                Australia Dollar (AUD)

Exchange rate : 1 USD =           AUD 1.09 as of 02-05-2014

 

 

Summarized Financial Information

 

Consolidation type :                  Non Consolidated         Non Consolidated

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

Denomination :                          (x1) One                       (x1) One

Date of financial year end :        31/12/13                        31/12/12

Length of accounts :                 12 months                     12 months

Sale turnover / Income :             36,548,160                    33,597,517

Gross profit :                            7,998,779                      7,562,419

Profit before tax :                      369,599                         615,145

Net income :                             255,494                         432,290

Non current assets :                  451,895                         480,974

Current assets :                         16,490,721                   14,863,129

Inventories :                              5,856,782                     5,242,757

Total assets :                            16,942,616                    15,344,103

Current liabilities :                      9,900,961                      9,123,778

Non current liabilities :               63,698 69,                     902

Total liabilities :                                     9,964,659                      9,193,680

Share equity :                            6,977,957                      6,150,423

Retained earning :                     3,486,077                     3,230,583

 

 

OPERATION DETAILS

 

Main activities :             The Subject engaged in import & distribution of synthetic iron oxide pigments, food coloring, water treatment chemicals, Ilmenite and manufacturing of commercial pigments.

The Subject has four main divisions:

- Construction: This division provides Iron Oxide Pigment as well as

associated products to the concrete, masonry, roof tile and asphalt

industries.

- Industrial: This division supplies the Subject's own micronized and non

micronized iron oxide pigment as well as exclusively distributing the

Huntsman range of quality Titanium Dioxides.

- Food, Pharmaceutical & Cosmetic: This division supplies Oxide pigment

from sister company's Valparaiso plant in the USA, as well as regulated

food colour from sister company's plant in China and from partners in India

and natural colour solutions from its global partners.

- Chemicals: This division supplies industrial raw material ingredients to all

industries in the Australasian region including the supply of the

"Mayoquest" brand of phosphonates to the water treatment industry.

Product & services : Synthetic iron oxide pigments

Commercial pigments

Food coloring

Water treatment chemicals: Phosphonates (Compass Chemical)

Ilmenite

Activated Carbon

Chemicals

Additives (Food & Industrial)

Colourants

Plasticizers

Resins

Waxes

Colours (Artificial & Natural)

 

Purchases

International : Worldwide

 

Sales

Local : Yes

International : Pacific Islands, Australia

 

Property & Assets

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

address consisting of a production facility, warehouse and an

administrative office.

 

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

18-20 Ventura Place

Dandenong South, VIC 3175

Australia

Tel: +61 3 87874400

Level 1, 3972 Pacific Highway

Loganholme, QLD 4129

Australia

Tel: +61 7 33870128

 

Other property : Total NBV of property, plant and equipment as of 31-12-2013 was AUD

240,503

 

 

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

 

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

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

 

Sales Term

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

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

 

Trade Reference/ Payment

Behaviour

Comments : As local and international trade references were not supplied, the Subject's

payment track record history cannot be appropriately determined but 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.60.05

UK Pound

1

Rs.101.32

Euro

1

Rs.83.34

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.