MIRA INFORM REPORT
|
Report No. : |
304018 |
|
Report Date : |
24.01.2015 |
IDENTIFICATION DETAILS
|
Name : |
WOLLONGONG COAL LIMITED |
|
|
|
|
Formerly Known as : |
GUJARAT NRE COKING COAL LIMITED |
|
|
|
|
Registered Office : |
Lot 31 7 Princes Highway, cnr
Bellambi Lane, Corrimal, New South Wales, Zip code NSW 2518 |
|
|
|
|
Country : |
Australia |
|
|
|
|
Financials (as on) : |
30.09.2014 (Consolidated) |
|
|
|
|
Date of Incorporation : |
08.10.2004 |
|
|
|
|
Com. Reg. No.: |
ACN: 111244896 |
|
|
|
|
Legal Form : |
Australian Public Company |
|
|
|
|
Line of Business : |
· engaged in Mining, Producing, Selling, and Export of Coal. · Subject owns and operates Russell Vale Colliery and Wongawilli Colliery in the Southern Coalfields Region of New South Wales. |
|
|
|
|
No of Employees : |
·
200+ (Reported-including those working in the
mines) · 20,000 (Group-Reported) |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow but Correct |
|
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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
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
|
||||
|
|
||||
|
Subject name: |
||||
|
Address: |
7 Princes Highway, cnr Bellambi Lane |
|||
|
Town: |
||||
|
State/province: |
||||
|
Zip/postal code: |
||||
|
Country: |
||||
|
Telephone: |
||||
|
Fax: |
||||
|
Email: |
||||
|
Website: |
www.jindalsteelpower.com (Group) |
|||
|
|
|
|||
|
|
|
|||
EXECUTIVE SUMMARY
|
||||
|
|
|
|||
|
Date registered: |
||||
|
Legal form: |
||||
|
AUD 69,091,000 (Consolidated 12 months,
31-03-2014) INR
2,006,967,000 (Group consolidated 12 months, 31-03-2014) |
||||
|
Main activities: |
· engaged in Mining, Producing, Selling, and Export of Coal. ·
Subject owns
and operates Russell Vale Colliery and Wongawilli Colliery in the Southern
Coalfields Region of New South Wales. |
|||
|
Employees: |
200+ (Reported-including those working in the
mines) 20,000
(Group-Reported) |
|||
|
|
|
|||
|
Some indications
of financial and operational weakness. More caution advisable when considering
granting credit. Smaller credits plus guarantees an advantage. A strict
credit control policy applies. |
||||
|
|
|
|||
REGISTRY DATA
|
||||
|
Key Facts |
|
|||
|
Date registered: |
||||
|
Legal form: |
||||
|
Registration no: |
||||
|
Registry auth. |
||||
|
Tax number: |
||||
|
Registry status: |
||||
|
Previous names: |
GUJARAT NRE COKING COAL LIMITED GUJARAT NRE MINERALS
LIMITED INDIA NRE
MINERALS LIMITED GUJARAT NRE
AUSTRALIA LIMITED GUJARAT NRE
AUSTRALIA PTY LTD And changed to
the present style on 25/02/2014. |
|||
|
|
|
|||
|
|
|
|||
LEGAL FILINGS
|
||||
|
|
|
|||
|
Bankruptcy filings: |
||||
|
Court judgements: |
||||
|
Tax liens: |
||||
|
Other: |
||||
|
|
|
|||
|
|
|
|||
MANAGEMENT & STAFF
|
||||
|
|
||||
|
|
|
|||
|
Name: |
Richard Hutton |
|||
|
Job title: |
Chief Financial Officer |
|||
|
|
|
|||
|
Name: |
Jasbir Singh |
|||
|
Job title: |
Chairman and Chief Executive Officer |
|||
|
|
|
|||
|
Name: |
Sanjay Sharma |
|||
|
Job title: |
Chief Commercial Officer and Company
Secretary |
|||
|
|
|
|||
|
|
||||
|
Auditor: |
Level 33, Ernst
& Young Centre World Square 680 George
Street Sydney, NSW 2000 Australia |
|||
|
|
|
|||
|
|
||||
|
No of employees |
200+
(Reported-including those working in the mines) 20,000 (Group-Reported) |
|||
|
|
|
|||
|
|
|
|||
BOARD OF DIRECTORS / OTHER APPOINTMENTS
|
||||
|
|
||||
|
Marsfield, NSW
2122 Australia |
||||
|
Birth Place: Czestownola, Poland Non-Executive Director and Member of Audit
Committee & Remuneration Committee Dr Firek has been involved in mining and mineral
processing for over 26 years. His experience includes managing of process
development, construction, commissioning and operations of coal, base and
precious metals plants in Europe, Africa and Australia. He worked in Europe
and Africa as a United Nations expert in fossil fuels exploration, mineral
processing and energy generation. Dr Firek is also familiar with downstream
processing of oil and gas that helps in evaluating feasibility of fuel
resources. Dr Firek was a Group Leader at the CSIRO,
Division of Fossil Fuels in Sydney and was engaged in developing technologies
to produce liquid fuels from coal. He was Project Director at Memtec Ltd,
following which he joined Pancontinental Mining Ltd where he was Research and
Development Manager involved in substantial mineral resources projects
including base and precious metals, uranium and the development and
commissioning of a $220 million magnesia production facility near Rockhampton
in Queensland. He worked on site during construction and commissioning for 12
months. Dr Firek was a director of mineral residue
processing group Hydromet Technologies Ltd. He was a founding director in
three ASX listed companies and managed coal, iron ore, base and precious
metals exploration, feasibility studies and financial negotiations for
projects in Australia, South America, China (Inner Mongolia) and Indonesia. Dr Firek was also the Chief Executive
Officer and Managing Director of Coalworks Limited until June 2012 and
currently is a Technical Director at Orpheus Energy Limited. |
||||
|
|
|
|||
|
Name: |
Maurice Anghie |
|||
|
Board function: |
Director |
|||
|
Date appointed: |
10/05/2007 |
|||
|
Address: |
57 Glenorchy Crescent Hamersley, WA 6022 Australia |
|||
|
Biography: |
Born: 09/03/1942 Birth Place: Kandy, Sri Lanka Mr Anghie is an experienced and
financially qualified professional possessing a range of commercial and
financial skills. Having worked extensively in the listed corporate
environment, he possesses legal, regulatory and governance expertise. He has been an Audit and Corporate Finance
Partner in many chartered accounting firms over many years. He is currently
an Independent Corporate Consultant and a non-executive director of Aditya
Birla Minerals Limited. |
|||
|
|
|
|||
|
Name: |
Sanjay Sharma |
|||
|
Board function: |
Company Secretary |
|||
|
Date appointed: |
23-11-2004 |
|||
|
Address: |
112 Pioneer Drive Flinders, NSW 2529 Australia |
|||
|
Biography: |
Born: 124/09/1974 Birth Place: Kolkata, India |
|||
|
|
|
|||
|
Name: |
Jasbir Singh |
|||
|
Board function: |
Chairman and Chief Executive Officer |
|||
|
Date appointed: |
29/07/2013 |
|||
|
Address: |
'9' 278 Indooroopilly Road Indooroopilly, QLD 4068 Australia |
|||
|
Biography: |
Born: 20/07/1966 Birth Place: Chandigarh, India Mr Jasbir Singh took over as Chairman and
CEO of Wollongong Coal Ltd (WCL) on 28 October 2013 when the company was
facing challenges about its very existence. WCL has two coking coal mines
with a combined approved capacity of 3 Mtpa, with a plan to increase the
capacity to more than 6 Mtpa in three years. Mr Singh, who is a post-graduate
in Engineering and Finance, has over 25 years of experience in strategy,
corporate affairs, international business and trade, negotiations, project
development, capital market, including managing takeovers and project
finance. He has worked for leading public sector (POWERGRID and NTPC) and
private sector companies of India. Since 2009 he has been Business
Head-Australia for Jindal Group for investments and project development in
mining and energy sector companies in Australia. Mr Singh is also on the Board of the Port
Kembla Coal Terminal and an Executive Committee member of the Australia India
Business Council (AIBC) - Qld Chapter. He has been associated with various
business interactions between two countries such as Pravasi Bharatiya Divas
in Sydney and visits of various business delegations from India. He has been
speaker at various conferences, including Coaltrans, Brisbane and Asia Mining
Congress, and Singapore. Mr Singh has interest in various sports
activities such as cricket, tennis and yoga. |
|||
|
|
|
|||
|
|
|
|||
SHARE CAPITAL
|
||||
|
Composition |
|
|||
|
Authorised: |
||||
|
Number/type: |
||||
|
Issued: |
||||
|
Paid-up: |
||||
|
|
||||
|
|
||||
Shareholders/Owners
|
||||
|
|
|
|||
|
Major Shareholders only (all having more than 5%)
as at 31-03-2014 |
||||
|
|
|
|||
|
|
||||
|
|
|
|||
|
Name: |
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
(EUROCLEAR BANK SA NV A/C) |
|||
|
% of shares: |
7.08% |
|||
|
|
|
|||
|
The Subject is listed on the Australian
Securities Exchange. |
||||
|
|
||||
|
|
||||
CORPORATE AFFILIATIONS
|
||||
|
|
||||
|
12, Bhikaiji Cama Place New Delhi, 110066 India |
||||
|
|
|
|||
|
Name: |
JINDAL STEEL & POWER (MAURITIUS)
LIMITED |
|||
|
Affiliation
type: |
Parent Company |
|||
|
Address: |
Mauritius |
|||
|
|
|
|||
|
A list of major affiliated
companies is attached to this report. |
||||
|
|
||||
|
|
||||
BANKING & FINANCING
|
||||
Bankers
|
|
|||
|
|
|
|||
|
It is generally not the policy of local banks
to provide credit status information to non-bona fide applications, and
interested parties would be advised to consult first with the Subject if
banker's references are required. |
||||
|
|
|
|||
|
|
|
|||
FINANCIAL ACCOUNTS
|
||||
|
|
||||
|
Required to
file: |
||||
|
Source: |
||||
|
Presentation: |
||||
|
Date of
accounts: |
||||
|
Type of
accounts: |
||||
|
Currency: |
Australian Dollar (AUD) - Subject Indian Rupee
(INR) - Group |
|||
|
Exchange rate: |
USD 1 = AUD 1.22 as of 16-01-2015 USD 1 = INR 61.98 as of 16-01-2015 |
|||
|
|
|
|||
|
|
||||
|
|
||||
|
|
|
|
|
|
|
|
|
|||
|
The above group consolidated figures relate
to the Subject's Ultimate Holding Company JINDAL STEEL & POWER LIMITED
and its subsidiaries. |
||||
|
|
|
|||
|
|
|
|||
OPERATIONS & HISTORY
|
||||
|
|
||||
|
Full
description: |
The Subject is engaged in mining, producing,
selling, and export of coal. It owns and operates the Russell Vale Colliery
covering approximately 6,421 hectares; and the Wongawilli Colliery located in
the Southern Coalfields of New South Wales. |
|||
|
|
|
|||
|
|
||||
PROPERTY & ASSETS
|
||||
|
|
|
|||
|
The Subject
principally operates from premises located at the heading address, consisting
of administrative offices. |
||||
|
|
|
|||
|
|
||||
PAYMENTS
|
||||
|
|
||||
|
Local: |
Credits 14-30 days |
|||
|
Imports: |
Credits 30 days
net |
|||
|
|
|
|||
|
|
||||
|
Local: |
Credits 14-30 days |
|||
|
Exports: |
Credits 30 days
net |
|||
|
|
|
|||
|
|
|
|||
|
|
||||
|
As trade references were not supplied, the
Subject's payment track record history but Slow but Correct |
||||
|
|
||||
|
|
||||
INVESTIGATIVE
NOTES
|
||||
|
|
|
|||
|
Sources: |
Interviews and material provided by the Subject Other official
and local business sources |
|||
|
|
|
|||
|
|
|
|||
ATTACHMENTS
|
||||
|
|
|
|||
|
Attachments: |
Financial ratios Group
consolidated financial statements List of
affiliated companies |
|||
Financial Ratios
|
|
|
|
31-03-2014 |
|
PROFITABILITY
[%] |
|
|
Gross
Margin |
N/A |
|
Gross Profit / Sales Turnover * 100 |
|
|
Operating
Margin |
N/A |
|
Operating Profit / Sales Turnover * 100 |
|
|
Net
Profit Margin |
-132.86% |
|
Profit After Tax / Sales
Turnover * 100 |
|
|
Return
On Equity (ROE) |
-26.98% |
|
Profit After Tax / Equity * 100 |
|
|
Return
On Assets (ROA) |
-9.86% |
|
Profit After Tax / Total Assets *
100 |
|
|
Return
On Investment (ROI) |
-26.98% |
|
Profit Before Tax / Equity *
100 |
|
|
EFFICIENCY
[%] |
|
|
Asset
Turnover |
7.42% |
|
Sales Turnover / Total Assets * 100 |
|
|
Inventory
Turnover |
753.36% |
|
Sales Turnover / Inventory * 100 |
|
|
LIQUIDITY
[%] |
|
|
Current
Ratio (CR) |
18.37% |
|
Current Assets / Current
Liabilities * 100 |
|
|
Quick
Ratio (QR) |
16.74% |
|
(Current Assets – Inventory) /
Current Liabilities * 100 |
|
|
DEBT
[%] |
|
|
Debt
Ratio |
63.44% |
|
Total Liabilities / Total Assets *
100 |
|
|
Long-Term
Debt Ratio |
8.33% |
|
Long-Term Liabilities / Equity *
100 |
|
Interim
financials
Group consolidated
financial statements
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.50 |
|
UK Pound |
1 |
Rs.92.16 |
|
Euro |
1 |
Rs.69.62 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared by
: |
MNL |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.