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MIRA INFORM REPORT
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Report No. : |
501450 |
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Report Date : |
10.04.2018 |
IDENTIFICATION DETAILS
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Name : |
ARGYLE DIAMONDS LTD |
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Registered Office : |
'THE QUADRANT' LEVEL 18, 152 to 158 St Georges Tce Perth WA 6000 |
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Country : |
Australia |
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Financials (as on) : |
31.12.2016 |
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Date of Incorporation : |
11.07.1984 |
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Legal Form : |
Australian Proprietary Company |
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Line of Business : |
The subject operates in the mining, processing
and distribution of diamonds. |
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No. of Employees : |
Not available |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
C |
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Credit Rating |
Explanation |
Rating Comments |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Australia |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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 2018 facing a range of growth constraints, principally driven by the sharp fall in global prices of key export commodities. Demand for resources and energy from Asia and especially China has stalled and sharp drops in current prices have 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 benefited from a dramatic surge in its terms of trade in recent years, although this trend has reversed 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 WTO, APEC, the G20, and other trade forums. Australia’s free trade agreement (FTA) with China entered into force in 2015, adding to existing FTAs with the Republic of Korea, Japan, 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 10 ASEAN countries and China, Japan, Korea, New Zealand and India.
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Source : CIA |
Company
name
REGISTERED NAME ARGYLE
DIAMONDS PTY LTD
ACN:
009 102 621
ABN:
36 009 102 621
Summary
Panel
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Established |
1985 |
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Incorporated |
1984 |
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Line of Business |
Diamond mining and processing |
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Status |
Trading |
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EXECUTIVE
SUMMARY
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Argyle
Diamonds Ltd |
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As at 31
Dec 2016 |
As at 31
Dec 2015 |
Change
(%) |
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Revenue |
$311,827,000.00
|
$370,255,000.00
|
-15.78% |
|
Profit
b/tax |
($391,033,000.00) |
($13,378,000.00) |
2822.96% |
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Profit
a/tax |
($284,974,000.00) |
($4,460,000.00) |
6289.55% |
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Net
Profit Margin |
-91.39% |
-1.20% |
-90.18% |
The loss for the last financial year included
impairment charges totalling $323,287,000.
During fiscal 2016, the subject
recorded Net Cashflows from operating activities totalling $40,667,000.
As at 31 December 2016 the subject
recorded a deficiency in Working Capital of $965,821,000 and a current ratio of
0.22 to 1 indicating tight liquidity levels.
The subject recorded a deficiency in
Net Assets totalling $825,322,000 as at 31 December 2016. Nil intangibles were
recorded at this time.
CORPORATE SEARCH
Company Type Australian Proprietary Company
Status Registered
Incorporation Date 11 July 1984
Incorporation State WA
Registered Office 'THE QUADRANT' LEVEL 18, 152 to 158 St
Georges Tce Perth WA 6000
Current Directors
Total: 3
Director
Name BILLINGSLEY, IAN
Appointment
Date 16 Oct 2017
Date of
Birth 25 Dec 1962
Place of
Birth WHISTON UNITED
KINGDOM
Gender MALE
Resident
Overseas N
Address FRASER SUITES, 10
ADELAIDE
TCE, EAST PERTH WA 6004
Director
Name QUELLMANN, ULF
Appointment
Date 18 Jan 2017
Date of
Birth 10 Apr 1965
Place of
Birth HAMBURG GERMANY
Resident
Overseas Y
Director
Name ROURKE, PATRICK HUGH
Appointment
Date 27 Jan 2016
Date of
Birth 18 Feb 1985
Place of
Birth CAPE TOWN SOUTH
AFRICA
Gender MALE
Resident
Overseas N
Address 143 STUBBS TCE, DAGLISH
WA6008
Current Secretaries
Total: 1
Secretary
Name AGRAWAL, RAJESH KUMAR
Appointment
Date 30 Jan 2015
Date of
Birth 16 Jan 1970
Place of
Birth ALAMNAGAR INDIA
Address 83A MANNING ROAD
MANNINGWA, 6152
Company Shares
Total:
-1842967296 Amount:
$2,452,000,000
Class A
SHARES [A]
Number of
Shares Issued 2
Paid
Capital $2.00
Total
Amount Due and Payable $0.00
Class B
SHARES [B]
Number of
Shares Issued 2451999998
Paid
Capital $2,451,999,998.00
Total
Amount Due and Payable $0.00
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).
BUSINESS STRUCTURE
TRADING ADDRESS LEVEL 18, 152 to 158 St Georges
Tce
Perth WA 6000
TELEPHONE (618) 9482 1166
WEBSITE www.argylediamonds.com.au
CONTROLLED ENTITIES ARGYLE DIAMOND SALES LTD
CAPRICORN
DIAMONDS
ULTIMATE
HOLDING ENTITY RIO TINTO LTD
BANK Not
determined
EMPLOYEES Not determined
BACKGROUND
The subject was incorporated in
Western Australia on 11 July 1984 as Pegarah P/L changing name to Argyle
Canteen Services P/L changing name to CRA Diamonds P/L changing name to Capricorn
Diamonds P/L before adopting the current style on 18 May 2004.
The Argyle Diamond Mine is one of the
world's largest producers of diamonds and the world’s largest producer of
natural coloured diamonds. Argyle Diamonds is 100 per cent owned and managed by
Rio Tinto Limited.
The Argyle Diamond Mine was
commissioned in 1985, and has since produced more than 791 million carats of
diamonds.
For more than 26 years the iconic
Argyle ore body has been mined as an open pit. As the ore continues at great
depth Argyle is focussed on its future as an underground mine. The Argyle
Diamonds underground mine was officially commissioned on 30 April, 2013 and
will be fully operational by Q1 2015. The underground mine will extend the mine
life until at least 2020.
OPERATIONS
The subject operates in the mining,
processing and distribution of diamonds.
The diamonds recovered at the mine are
sent to Rio Tinto Diamonds’ sales and marketing office in Antwerp Belgium, where
they are sorted and prepared for sale. The majority of the diamonds from the
Argyle mine are sold as rough diamonds, primarily to an Indian customer base
comprising diamond traders and manufacturers.
The rare pink diamonds from the Argyle
mine are all cut and polished and sold as loose polished diamonds to an
international customer base. The Argyle Pink Diamonds business has its
headquarters in Perth, Western Australia, also the location of its state-of-the
art cutting facility. The Perth facility cuts and polishes the finest pink
diamonds from the Argyle Mine that are then sold via an exclusive tender.
Activities are conducted from premises
located at the above listed trading address.
ADVERSE
A search of of on 3 April 2018 failed
to trace any litigation listed against the subject at that date.
FINANCES
Below is a summary of the subject’s
income results for the past two financial years.
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Argyle
Diamonds Ltd |
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As at 31
Dec 2016 |
As at 31
Dec 2015 |
Change
(%) |
|
Revenue |
$311,827,000.00
|
$370,255,000.00
|
-15.78% |
|
Profit
b/tax |
($391,033,000.00) |
($13,378,000.00) |
2822.96% |
|
Profit
a/tax |
($284,974,000.00) |
($4,460,000.00) |
6289.55% |
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Net
Profit Margin |
-91.39% |
-1.20% |
-90.18% |
The loss for the last financial year
included impairment charges totalling $323,287,000.
During fiscal 2016, the subject
recorded Net Cashflows from operating activities totalling $40,667,000.
On 20 April 2017 the subject issued
850,000,000 at $1 per share to the existing shareholder. The proceeds were used
to partly repay an existing loan.
As at 31 December 2016 the subject
recorded total current assets of $273,370,000. They included cash of $6,000,
receivables of $70,103,000 and inventories of $127,067,000.
Current liabilities at the same date
totalled $1,239,191,000 and included payables of $56,793,000 and interest
bearing liabilities of $1,164,137,000.
As at 31 December 2016 the subject
recorded a deficiency in Working Capital of $965,821,000 and a current ratio of
0.22 to 1 indicating tight liquidity levels.
The subject recorded a deficiency in
Net Assets totalling $825,322,000 as at 31 December 2016. Nil intangibles were
recorded at this time.
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Argyle
Diamonds Ltd |
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As at 31 Dec
2016 |
As at 31
Dec 2015 |
Change
(%) |
|
Revenue |
$311,827,000.00
|
$370,255,000.00
|
-15.78% |
|
Profit
b/tax |
($391,033,000.00) |
($13,378,000.00) |
2822.96% |
|
Profit
a/tax |
($284,974,000.00) |
($4,460,000.00) |
6289.55% |
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Net
Profit Margin |
-91.39% |
-1.20% |
-90.18% |
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Current
Assets |
$273,370,000.00
|
$231,476,000.00
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18.10% |
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Non
Current Assets |
$459,779,000.00
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$787,281,000.00
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-41.60% |
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Total
Assets |
$733,149,000.00
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$1,018,757,000.00
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-28.03% |
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Current
Liabilities |
$1,239,191,000.00
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$1,287,850,000.00
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-3.78% |
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Non
Current Liabilities |
$319,280,000.00
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$271,350,000.00
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17.66% |
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Total
Liabilities |
$1,558,471,000.00
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$1,559,200,000.00
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-0.05% |
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Net
Assets |
($825,322,000.00) |
($540,443,000.00) |
52.71% |
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Working
Capital |
($965,821,000.00) |
($1,056,374,000.00) |
-8.57% |
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Current
Ratio |
0.22 |
0.18 |
22.74% |
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Debt to
Equity |
-1.89 |
-2.89 |
-34.55% |
TRADE
SURVEY
During the current investigation,
contact with the subject’s principals was unable to be established.
Subsequently details pertaining to the
company’s suppliers were unable to be obtained and a trade survey could not be
conducted.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 64.93 |
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|
1 |
INR 91.50 |
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Euro |
1 |
INR 79.69 |
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AUD |
1 |
INR 49.96 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
NIY |
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Report Prepared
by : |
SYL |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.