3decades

MIRA INFORM REPORT

Report No. :	486447
Report Date :	16.01.2018

IDENTIFICATION DETAILS

Name :	ELLEX MEDICAL P/L

Registered Office :	82 Gilbert Street Adelaide Sa, 5000

Country :	Australia

Date of Incorporation :	1985

Legal Form :	Australian Proprietary Company

Line of Business :	The subject operates in the development and distribution of medical supplies specialising in eye laser and ultrasound devices to treat glaucoma, diabetic eye disease, secondary cataract, and age-related macular degeneration (AMD) and vitreous opacities.

No. of Employees :	Not Available

RATING & COMMENTS

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

MIRA’s Rating :

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Good

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

Country Name

Previous Rating

(30.06.2017)

Current Rating

(30.09.2017)

Australia

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

REGISTERED NAME ELLEX MEDICAL P/L

ACN 008276060

ABN 35008276060

Summary Panel
Established	1985
Incorporated	1989
Line of Business	Development and manufacture of medical products
Status	Trading
Chief Executive	Tom Spurling

EXECUTIVE SUMMARY

	Ellex Medical Lasers Ltd - consolidated
	As at 30 June 2017	As at 30 June 2016	Change (%)
Revenue	$71,635,000.00	$72,913,000.00	-1.75%
Profit b/tax	($1,959,000.00)	$4,190,000.00	-146.75%
Profit a/tax	($894,000.00)	$3,027,000.00	-129.53%
Net Profit Margin	-1.25%	4.15%	-5.40%

The subject is noted to have entered into a Deed of Cross Guarantee pursuant to a Class Order with its Holding entity Ellex Medical Lasers Limited.

For the same period the closed group recorded revenue of $36,296,000 which resulted in an operating Loss before tax of $3,107,000 and an operating loss after tax of $2,244,000.

During fiscal 2017, the Group recorded a deficiency in Net Cashflows from operating activities totalling $3,496,000.

As at 30 June 2017 the closed group recorded working capital of $12,619,000 and a current ratio of 1.68 to 1.

At the same date the closed group recorded Net Assets of $62,589,000. After deducting intangibles of $859,000 this results in a Net Worth of $61,730,000.

CORPORATE SEARCH

Company Type Australian Proprietary Company

Status Registered

Incorporation Date 28 Nov 1989

Incorporation State SA

Registered Office 82 GILBERT STREET ADELAIDE

SA, 5000

Current Directors Total: 2

Director Name CANALA, GIUSEPPE

Appointment Date 20 Oct 2008

Date of Birth 21 Mar 1947

Place of Birth ASCOLI PICENCO ITALY

Gender MALE

Resident Overseas N

Address 40 VALLEY RD, MONTACUTE SA5134

Director Name PREVIN, VICTOR KONRAD

Appointment Date 08 Jan 1990

Date of Birth 05 Aug 1958

Place of Birth ADELAIDE SA

Gender MALE

Resident Overseas N

Address 30 MARLBOROUGH ST,

COLLEGE PARK SA 5069

Current Secretaries Total: 1

Secretary Name MAIELI, MARIA MADDALENA

Appointment Date 01 Jan 2013

Date of Birth 12 Nov 1967

Place of Birth LANZINA, CALABRIA ITALY

Address 25 FIFTH AVENUE CHELTENHAMSA, 5014

Current Other Organisation Officers Total: 1

Officer Role Appointed Auditor

Officer Name DELOITTE TOUCHE TOHMATSU

ACN 059513987

Appointment Date 25 Nov 2001

Address LEVEL 17, 11 WAYMOUTH

STREET ADELAIDE SA, 5000

Document Number 7E2090100

Company Shares Total: 27032 Amount: $27,032

Class ORDINARY [ORD]

Number of Shares Issued 27032

Paid Capital $27,032.00

Total Amount Due and Payable $0.00

Document Number 0E4026319

Current Shareholders

Shareholder Name ELLEX MEDICAL LASERSLIMITED

ACN 007702927

ABN 15007702927

Address 82 GILBERT STREET ADELAIDE

SA, 5000

Class ORD

Number Held 27032

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 3-4 Second Avenue
Mawson Lakes, SA 5095 Australia

TELEPHONE (618) 7074 8200

WEBSITE http://www.ellex.com/

HOLDING ENTITY ELLMEX MEDICAL LASERS LTD

BANK Not determined

EMPLOYEES Not determined

BACKGROUND

The subject was incorporated in South Australia on 28 November 1989 before adopting the current style on 6 December 2001.

Operations were founded in 1985 when Quentron Electronics, an Australian-based scientific laser company, is awarded a grant by the Australian government to develop its laser technology for use in ophthalmology.

In 1990 Ellex spins off the laser technology from Quentron as a result of a management buyout, and begins operating as an independent company.

In Ellex enters into an Original Equipment Manufacturer (OEM) agreement with Alcon (Alcon Laboratories Ltd.) to develop and supply the Alcon 3000LE laser system based on the Laserex photodisruptor platform. More than 2,000 of these 3000LE systems were delivered to market under this agreement, which ended in 2012.

In 1995 llex establishes a direct sales and service subsidiary in Minneapolis, USA.

In 1999 Ellex enters into an OEM agreement with Coherent (now Lumenis) to develop and supply the Aura photodisruptor based on the Laserex photodisruptor platform. More than 900 of these systems were delivered to market under this agreement, which ended in 2004.

In 2001 the group released an IPO for listing on the Australian Stock Exchange.

OPERATIONS

The subject operates in the development and distribution of medical supplies specialising in eye laser and ultrasound devices to treat glaucoma, diabetic eye disease, secondary cataract, and age-related macular degeneration (AMD) and vitreous opacities

During the 2017 financial year the group commenced reporting our business in three segments; the core lasers and ultrasound business, the Ellex iTrack minimally invasive glaucoma surgery (MIGS) business and 2RT for early/intermediate age related macular degeneration

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

ADVERSE

A search of of on 15 January 2018 failed to trace any litigation listed against the subject at that date.

FINANCES

The subject is not required to lodge financial statements with the Australian Securities and Investments Commission.

The subject is noted to have entered into a Deed of Cross Guarantee pursuant to a Class Order with its Holding entity Ellex Medical Lasers Limited, an entity listed on the ASX. The effect of the Deed is that each party that forms part of the closed group guarantee the debts of each other.

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

	Ellex Medical Lasers Ltd - consolidated
	As at 30 June 2017	As at 30 June 2016	Change (%)
Revenue	$71,635,000.00	$72,913,000.00	-1.75%
Profit b/tax	($1,959,000.00)	$4,190,000.00	-146.75%
Profit a/tax	($894,000.00)	$3,027,000.00	-129.53%
Net Profit Margin	-1.25%	4.15%	-5.40%

For the same period the closed group recorded revenue of $36,296,000 which resulted in an operating Loss before tax of $3,107,000 and an operating loss after tax of $2,244,000.

During the year the group invested in the establishment, and move to, a state-of-the-art laser and ultrasound manufacturing facility and precision machine shop at Mawson Lakes in South Australia.

During fiscal 2017, the Group recorded a deficiency in Net Cashflows from operating activities totalling $3,496,000.

As at30 June 2017 the Group recorded total current assets of $48,692,000. They included cash of $9,244,000, receivables of $15,121,000 and inventories of $23,416,000.

Current liabilities at the same date totalled $28,321,000 and included payables of $9,016,000 and borrowings of $15,536,000.

As at 30 June 2017 the Group recorded Working Capital of $20,371,000 and a current ratio of 1.72 to 1 indicating satisfactory liquidity levels.

At the same date the closed group recorded working capital of $12,619,000 and a current ratio of 1.68 to 1.

Group Net Assets totalled $56,933,000 as at 30 June 2017. At this date, the Group further recorded a Debt to Equity ratio of 0.52 to 1.

At the same date the closed group recorded Net Assets of $62,589,000. After deducting intangibles of $859,000 this results in a Net Worth of $61,730,000.

	Ellex Medical Lasers Ltd - consolidated
	As at 30 June 2017	As at 30 June 2016	Change (%)
Revenue	$71,635,000.00	$72,913,000.00	-1.75%
Profit b/tax	($1,959,000.00)	$4,190,000.00	-146.75%
Profit a/tax	($894,000.00)	$3,027,000.00	-129.53%
Net Profit Margin	-1.25%	4.15%	-5.40%
Current Assets	$48,692,000.00	$42,825,000.00	13.70%
Non Current Assets	$37,850,000.00	$29,165,000.00	29.78%
Total Assets	$86,542,000.00	$71,990,000.00	20.21%
Current Liabilities	$28,321,000.00	$18,642,000.00	51.92%
Non Current Liabilities	$1,288,000.00	$5,091,000.00	-74.70%
Total Liabilities	$29,609,000.00	$23,733,000.00	24.76%
Net Assets	$56,933,000.00	$48,257,000.00	17.98%
Working Capital	$20,371,000.00	$24,183,000.00	-15.76%
Current Ratio	1.72	2.30	-25.16%
Debt to Equity	0.52	0.49	5.75%

TRADE SURVEY

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

Total Owing: $1,179

Total Past Due: $283

Average Late Payment Days: 2

All Industries Late Payment Days: 12

Within terms: $896

1 – 30 days past due: $283

31 – 60 days past due: $0

61 – 90 days past due: $0

91+ days: $0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.41
UK Pound	1	INR 87.17
Euro	1	INR 77.44
AUD	1	INR 50.92

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

INFORMATION DETAILS

Analysis Done by :	VAR

Report Prepared by :	DNS

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)

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.