MIRA INFORM REPORT

 

 

Report No. :

345722

Report Date :

27.10.2015

 

IDENTIFICATION DETAILS

 

Name :

SUZLON ENERGY AUSTRALIA PTY LTD

 

 

Registered Office :

Level 1, 182 Stawell St, Burnley, VIC 3121

 

 

Country :

Australia

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

15.01.2004

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

The subject in the service, maintenance and building of wind farms and turnkey wind power solutions.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 


 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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

 

Following two decades of continuous growth, low unemployment, contained inflation, very low public debt, and a strong and stable financial system, Australia enters 2015 facing a range of growth constraints, principally driven by a sharp fall in global prices of key export commodities. Although demand for resources and energy from Asia and especially China has grown rapidly, creating a channel for resources investments and growth in commodity exports, sharp drops in current prices have already impacted growth. 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, although this trend could reverse or slow due to falling 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 entered into free trade agreements (FTAs) with the Republic of Korea and Japan, and concluded an FTA with China, in 2014, adding to existing FTAs with Chile, Malaysia, New Zealand, Singapore, Thailand, and the US, and a regional FTA with ASEAN and New Zealand. Australia continues to negotiate bilateral agreements with India and Indonesia, as well as larger agreements with its Pacific neighbors and the Gulf Cooperation Council countries, and an Asia-wide Regional Comprehensive Economic Partnership that includes the ten ASEAN countries and China, Japan, Korea, New Zealand and India. Australia is also working on the Trans-Pacific Partnership Agreement with Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US, and Vietnam.

 

Source : CIA

 

cOMPANY nAME 

 

REGISTERED NAME                SUZLON ENERGY AUSTRALIA PTY LTD

ACN: 107 631 176

      ABN: 55 107 631 176

 

 

Summary Panel

 

Established

2004

 

Incorporated

2004

 

Line of Business

service, maintenance and building of wind farms

Status

Trading

 

 

EXECUTIVE SUMMARY

 

Suzlon Energy Australia Pty Ltd

 

As at 31 March 2015

As at 31 March 2014

Change (%)

Revenue

$20,887,000.00

$17,585,000.00

18.78%

Profit b/tax

($2,390,000.00)

($9,636,000.00)

-75.20%

Profit a/tax

($2,390,000.00)

($9,636,000.00)

-75.20%

Net Profit Margin

-11.44%

-54.80%

43.35%

 

During fiscal 2015, the subject recorded a deficiency in Net Cashflows from operating activities totalling $4,590,000.

 

As at 31 March 2015 the subject recorded total current assets of $149,140,000. They included cash of $26,074,000, receivables of $113,797,000 and inventories of $6,079,000.

 

Current liabilities at the same date totalled $203,953,000 and included payables of $191,651,000.

 

As at 31 March 2015 the subject recorded a deficiency in Working Capital of $54,813,000 and a current ratio of 0.73 to 1 indicating tight liquidity levels.

 

The subject recorded a deficiency in Net Assets totalling $54,813,000 as at 31 March 2015.

 

At 31 March 2015 the subject recorded operating Losses and deficiencies in working capital, Net Assets and Net Operating Cashflow.

 

 

CORPORATE SEARCH

 

Company Type             Australian Proprietary Company

 

Incorporation Date                     15 Jan 2004

 

Incorporation State                    Victoria

 

Registered Office                      Level 1, 182 Stawell St

                                                BURNLEY, VIC 3121

 

Number of Shares Issued          5,550,001

 

Paid Capital:                            5,550,001

 

Shareholders                             SUZLON ENERGY A/S

                                                Number of Shares: 5,550,001

 

Current Directors Total: 4

Director Name KOLHE, MUKESH RAMKRISHNA

Appointment Date 05 Mar 2015

Date of Birth 23 Oct 1962

Place of Birth JALGAON INDIA

Gender MALE

Resident Overseas N

Address 6, 14 TRAWALLA AVE, TOORAK

VIC 3142

Document Number 7E7191145

 

Director Name AGARWAL, AMIT AJAIKRISHNA

Appointment Date 30 Nov 2014

Date of Birth 24 Dec 1968

Place of Birth ALLAHABAD INDIA

Gender UNKNOWN

Resident Overseas Y

Address -

Document Number 2E1357544

 

Director Name MODI, ROHIT

Appointment Date 30 Nov 2014

Date of Birth 01 Oct 1962

Place of Birth ALWAR (RAJASTHAN) INDIA

Gender UNKNOWN

Resident Overseas Y

Address -

Document Number 2E1357544

 

Director Name VISSCHER, FRANS HILBERT

Appointment Date 07 Jun 2010

Date of Birth 24 Jun 1953

Place of Birth THE HAGUE NETHERLANDS

Gender UNKNOWN

Resident Overseas Y

Address -

Document Number 026686065

 

Current Secretaries Total: 1

Secretary Name LATHIGARA, BHAVNA

Appointment Date 30 Sep 2012

Date of Birth 27 Jun 1976

Place of Birth RAJKOT INDIA

Address 149 BOUNDARY ROAD NORTH

EPPING NSW, 2121

Document Number 7E4798910

SECURITY INTERESTS           Effective 30 January 2012 the Personal Property Securities Register (PPSR)  was introduced to give the different Commonwealth, State and Territory laws and registers regarding security interests in personal property under one national system.

As a result of PPS Reform a number of existing Commonwealth, State and Territory personal property security registers will close. Interests registered on existing security interest registers will be migrated to the national PPS Register. Subsequently Registered Charges are no longer lodged with the Australian Securities and Investments Commission (ASIC).
 
Please contact us should you require a search of the PPSR.

 

 

BUSINESS STRUCTURE

 

TRADING ADDRESS                 Level 1, 182-184

Stawell Street,

Burnley, Victoria 3121

 

TELEPHONE                             (613) 8415 8900

 

WEBSITE                                  http://www.suzlon.com/

 

EMAIL                                      sea.enquiry@suzlon.com

 

HOLDING ENTITY                                                                   SUZLON ENERGY A/S - Denmark

 

ULTIMATE HOLDING

ENTITY                                                                                                                                                 SUZLON ENERGY LTD

 

BANK                                       Not determined

                                               

EMPLOYEES                            Not determined

           

           


BACKGROUND

 

The subject was incorporated in Victoria on 15 January 2004 to commence operations in Australia as a new venture.

 

Global operations were established in India in 1995 with just 20 people.

 

The group began with a wind farm project in the Gujarat state of India in 1995 with a capacity of just 3 MW and has at the end of 2007, supplied over 7,500 MW world over.


Today Suzlon is ranked the 5th leading wind power equipment manufacturer with a global market share of 10.5%.

 

The company seized market leadership in India over 8 years ago, and has consistently maintained over 50% market share, installing over 3,000 MW of wind turbine capacity in the country.



OPERATIONS

 

The subject in the service, maintenance and building of wind farms and turnkey wind power solutions.

 

The global group employs over 7,000 people and has operations across the America, Asia, Australia and Europe.

 

Activities are conducted from premises located at the above listed trading address.

 

 

ADVERSE

                                               

 

A search of of on 26 October 2015 failed to trace any litigation listed against the subject at that date.

 

 

FINANCES

 

During the current investigation it was revealed that the subject part of its former Repower operations in April 2015.

 

Contact with the subject’s principals was unable to be established for the current enquiry. Upon calling the number continued to ring out without response.

 

From the subjects most recently lodged financial statements, it is noted that for the financial year ended 31 March 2015 the subject recorded revenue of $20,887,000, which resulted in an operating Loss before and after tax of $2,390,000.

 

Below is a summary of the subject’s income results for the past two financial years.

 

 

Suzlon Energy Australia Pty Ltd

 

As at 31 March 2015

As at 31 March 2014

Change (%)

Revenue

$20,887,000.00

$17,585,000.00

18.78%

Profit b/tax

($2,390,000.00)

($9,636,000.00)

-75.20%

Profit a/tax

($2,390,000.00)

($9,636,000.00)

-75.20%

Net Profit Margin

-11.44%

-54.80%

43.35%

 

During fiscal 2015, the subject recorded a deficiency in Net Cashflows from operating activities totalling $4,590,000.

 

As at 31 March 2015 the subject recorded total current assets of $149,140,000. They included cash of $26,074,000, receivables of $113,797,000 and inventories of $6,079,000.

 

Current liabilities at the same date totalled $203,953,000 and included payables of $191,651,000.

 

As at 31 March 2015 the subject recorded a deficiency in Working Capital of $54,813,000 and a current ratio of 0.73 to 1 indicating tight liquidity levels.

 

The subject recorded a deficiency in Net Assets totalling $54,813,000 as at 31 March 2015.

 

At 31 March 2015 the subject recorded operating Losses and deficiencies in working capital, Net Assets and Net Operating Cashflow.

 

The major liabilities of the subject are related party payables of $189,029,141.

 

The Directors have sought and obtain a letter of support from the Ultimate Holding Entity, Suzlon Energy Group Ltd. This letter of support is effective until 30 June 2016.

 

Suzlon Energy Group Ltd has defaulted on certain debt repayments and also has overdue amounts payable to creditors and certain lenders. There is material uncertainty whether it will continue as a going concern and whether it will release its assets and extinguish its liabilities in the normal course of business. As such there is uncertainty as the whether the ultimate parent will be in a position to provide ongoing support to the subject.

 

 

 

Suzlon Energy Australia Pty Ltd

 

As at 31 March 2015

As at 31 March 2014

Change (%)

Revenue

$20,887,000.00

$17,585,000.00

18.78%

Profit b/tax

($2,390,000.00)

($9,636,000.00)

-75.20%

Profit a/tax

($2,390,000.00)

($9,636,000.00)

-75.20%

Net Profit Margin

-11.44%

-54.80%

43.35%

Current Assets

$149,140,000.00

$138,517,000.00

7.67%

Non Current Assets

$648,000.00

$2,850,000.00

-77.26%

Total Assets

$149,788,000.00

$141,367,000.00

5.96%

Current Liabilities

$203,953,000.00

$191,416,000.00

6.55%

Non Current Liabilities

 

$1,350,000.00

-100.00%

Total Liabilities

$203,953,000.00

$192,766,000.00

5.80%

Net Assets

($54,165,000.00)

($51,399,000.00)

5.38%

Working Capital

($54,813,000.00)

($52,899,000.00)

3.62%

Current Ratio

0.73

0.72

1.05%

Debt to Equity

-3.77

-3.75

0.40%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TRADE SURVEY

 

Trade payment from further sources in the past 4 months have traced the following data for the subject. 

 

Total Owing: $62,589

Total Past Due: $6,465

Average Late Payment Days: 9

All Industries Late Payment Days: 7

 

-      Within terms: $56,124

-      1 – 30 days past due: $6,450

-      31 – 60 days past due: $15

-      61 – 90 days past due: $0

-      91+ days: $0

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.96

UK Pound

1

Rs.99.55

Euro

1

Rs.71.62

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIT

 

               

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.