MIRA INFORM REPORT

Report No. :	484561
Report Date :	10.01.2018

IDENTIFICATION DETAILS

Name :	DENSO AUTOMOTIVE SYSTEMS AUSTRALIA P/L
Registered Office :	2-46 Merrindale Drive Croydon VIC, 3136
Country :	Australia
Financials (as on) :	31.03.2017
Date of Incorporation :	21.11.1988
Legal Form :	Australian Proprietary Company
Line of Business :	The subject operates in the design, manufacture and distribution of automotive components and air conditioning units to the automotive industry. Other products include radiators and air cleaning systems.
No. of Employees :	296

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A++

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default

Status :	Excellent
Payment Behaviour :	Regular
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

Country Name	Previous Rating (30.06.2017)	Current Rating (30.09.2017)
Australia	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
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 2017 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.

Source : CIA

Company NAME

DENSO AUTOMOTIVE SYSTEMS AUSTRALIA P/L

ACN 007110929

ABN 46007110929

Summary Panel

Established	1988
Incorporated	1991
Line of Business	Manufacture of automotive components
Status	Trading
Adverse Listings	Nil

EXECUTIVE SUMMARY

	Denso Automotive Systems Australia P/L
	As at 31 March 2017	As at 31 March 2016	Change (%)
Revenue	$185,534,000.00	$198,377,000.00	-6.47%
Profit b/tax	$8,345,000.00	$13,350,000.00	-37.49%
Profit a/tax	$5,624,000.00	$10,302,000.00	-45.41%
Net Profit Margin	3.03%	5.19%	-2.16%

During fiscal 2017, the subject recorded Net Cashflows from operating activities totalling $17,803,000.

As at 31 March 2017 the subject recorded Working Capital of $58,031,000 and a current ratio of 1.89 to 1 indicating satisfactory liquidity levels.

Net Assets totalled $86,928,000 as at 31 March 2017.

CORPORATE SEARCH

Company Type Australian Proprietary Company

Status Registered

Incorporation Date 21 Nov 1988

Incorporation State VIC

Registered Office 2-46 MERRINDALE DRIVE

CROYDON VIC, 3136

Current Directors Total: 4

Director Name NISHIHATA, SHINYA

Appointment Date 01 Apr 2017

Date of Birth 23 Sep 1959

Place of Birth HIGASHINE CITY JAPAN

Gender UNKNOWN

Resident Overseas Y

Director Name KAJITA, YOSHITAKA

Appointment Date 01 Apr 2017

Date of Birth 04 Apr 1957

Place of Birth JAPAN

Gender UNKNOWN

Resident Overseas Y

Director Name KEENAN, GAVAN PATRICK

Appointment Date 01 Apr 2016

Date of Birth 03 Jul 1968

Place of Birth GREENSBOROUGH VIC

Gender MALE

Resident Overseas N

Address 5 TAYLOR RD, HURSTBRIDGEVIC 3099

Director Name JOPSON, RUSSELL GORDON

Appointment Date 13 Feb 2007

Date of Birth 12 Nov 1956

Place of Birth MOUNT GAMBIER SA

Gender MALE

Resident Overseas N

Address 86 PASCOE VALE RD, MOONEE

PONDS VIC 3039

Current Secretaries Total: 1

Secretary Name JENKINS, WAYNE LESLIE

Appointment Date 18 Apr 2005

Date of Birth 29 Jul 1958

Place of Birth MELBOURNE VIC

Address 22 BENT STREET NORTHCOTE

VIC, 3070

Document Number 7E5735633

Current Other Officers Total: 3

Officer Role Alternate Director

Officer Name KOJIMA, HIROJI

Appointment Date 01 Apr 2017

Date of Birth 22 Dec 1959

Place of Birth NISHIO CITY JAPAN

Address UNIT 6A, 29 QUEENS ROAD

MELBOURNE VIC, 3004

Officer Role Alternate Director

Officer Name YOSHIDA, TAKEHIRO

Appointment Date 01 Apr 2017

Date of Birth 28 Oct 1974

Place of Birth MIE JAPAN

Address UNIT 1C, 18 GLENIFFER AVENUE

BRIGHTON EAST VIC, 3187

Officer Role Appointed Auditor

Officer Name DELOITTE, TOUCHE TOHMATSU

Appointment Date 01 Oct 1989

Date of Birth -

Address LEVEL 10, 550 BOURKE STREET

MELBOURNE VIC, 3000

Document Number 7E2370738

Current Other Organisation Officers Total: 1

Officer Role Ultimate Holding Company

Officer Name DENSO CORPORATION

Company Shares Total: 17000000 Amount: $33,000,000

Class ORDINARY SHARES [ORD]

Number of Shares Issued 17000000

Paid Capital $33,000,000.00

Total Amount Due and Payable $0.00

Current Shareholders

Shareholder Name DENSO INTERNATIONAL

AUSTRALIA PTY LTD

ACN 081951402

ABN 72081951402

Address 255 MELROSE DRIVE

TULLAMARINE VIC, 3043

Class ORD

Number Held 17000000

Beneficially Held Y

Fully Paid Y

Jointly Held N

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 2/46 Merrindale Dr,

Croydon South VIC 3136

TELEPHONE (613) 8761 1100

WEBSITE www.denso.com.au

HOLDING ENTITY DENSO INTERNATIONAL AUSTRALIA PTY LTD

ULTIMATE HOLDING

ENTITY DENSO CORPORATION

BANK Not determined

EMPLOYEES 296

BACKGROUND

The subject was incorporated in Victoria on 21 November 1988 as Consonant P/L, changing name to Australian Automotive Air P/L on 17 August 1989 before adopting the current style on 1 April 2010.

Operations commenced in Australia as a new venture in 1991.

The Australian operations of Denso Corporation, commenced at the Altona site in Melbourne, Australia in 1972.

The subject is Ultimately owned by Denso Corporation of Japan, a public listed corporation, which employs over 80,000 staff worldwide and was established on 16 December 1949.

OPERATIONS

The subject operates in the design, manufacture and distribution of automotive components and air conditioning units to the automotive industry. Other products include radiators and air cleaning systems.

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

ADVERSE

A search of of on 5 January 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.

	Denso Automotive Systems Australia P/L
	As at 31 March 2017	As at 31 March 2016	Change (%)
Revenue	$185,534,000.00	$198,377,000.00	-6.47%
Profit b/tax	$8,345,000.00	$13,350,000.00	-37.49%
Profit a/tax	$5,624,000.00	$10,302,000.00	-45.41%
Net Profit Margin	3.03%	5.19%	-2.16%

During fiscal 2017, the subject recorded Net Cashflows from operating activities totalling $17,803,000.

As at 31 March 2017 the subject recorded total current assets of $123,227,000. They included cash of $71,464,000 and receivables of $28,825,000.

Current liabilities at the same date totalled $65,196,000 and included payables of $28,244,000 and provisions of $36,952,000.

As at 31 March 2017 the subject recorded Working Capital of $58,031,000 and a current ratio of 1.89 to 1 indicating satisfactory liquidity levels.

Net Assets totalled $86,928,000 as at 31 March 2017. At this date, the subject further recorded a Debt to Equity ratio of 0.76 to 1.

	Denso Automotive Systems Australia P/L
	As at 31 March 2017	As at 31 March 2016	Change (%)
Revenue	$185,534,000.00	$198,377,000.00	-6.47%
Profit b/tax	$8,345,000.00	$13,350,000.00	-37.49%
Profit a/tax	$5,624,000.00	$10,302,000.00	-45.41%
Net Profit Margin	3.03%	5.19%	-2.16%
Current Assets	$123,227,000.00	$122,423,000.00	0.66%
Non Current Assets	$29,788,000.00	$34,990,000.00	-14.87%
Total Assets	$153,015,000.00	$157,413,000.00	-2.79%
Current Liabilities	$65,196,000.00	$37,847,000.00	72.26%
Non Current Liabilities	$891,000.00	$27,960,000.00	-96.81%
Total Liabilities	$66,087,000.00	$65,807,000.00	0.43%
Net Assets	$86,928,000.00	$91,606,000.00	-5.11%
Working Capital	$58,031,000.00	$84,576,000.00	-31.39%
Current Ratio	1.89	3.23	-41.57%
Debt to Equity	0.76	0.72	5.83%

TRADE SURVEY

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

Total Owing: $349,238

Total Past Due: $7,569

Average Late Payment Days: 14

All Industries Late Payment Days: 9

Within terms: $341,670

1 – 30 days past due: $0

31 – 60 days past due: $0

61 – 90 days past due: $0

91+ days: $7,569

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.47
UK Pound	1	INR 86.15
Euro	1	INR 75.92
AUD	1	INR 49.85

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	TRU

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
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)

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