MIRA
INFORM REPORT
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Report Date : |
26.09.2007 |
IDENTIFICATION DETAILS
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Name : |
TAILIN ABRASIVES CORPORATION |
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Registered Office : |
Phase 1, # 25 Innovative Corner Efficiency Avenue, Subic Bay
Industrial Park, Subic Bay Freeport Zone, Olongapo City |
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Country : |
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Date of Incorporation : |
June 10,1997 |
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Com. Reg. No.: |
A1997-9100 |
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Legal Form : |
Corporation |
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Line of Business : |
Manufacturer and exporter of abrasives specifically type
27 D.C. grinding and cutting wheels, flap discs, flexible grinding wheels,
type 1 cutting wheels, sanding disc parer and straight grinding wheels. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
Company Details
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Company Name: |
TAILIN ABRASIVES CORPORATION |
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Supplied Name: |
TAILIN ABRASIVES CORP |
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Trading Address: |
PHASE 1, # 25 INNOVATIVE CORNER EFFICIENCY AVENUE, SUBIC BAY
INDUSTRIAL PARK, SUBIC BAY FREEPORT ZONE, OLONGAPO CITY, PHILIPPINES |
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Supplied Address: |
INDUSTRIAL PARK PHASE 1, 25 INNOVATIVE |
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Telephone Number: |
+63-47-252-63-18/252-63-19 |
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Fax Number: |
+63-47-252-63-21 |
Credit Summary
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Credit Rating: |
Maximum credit USD 50,000 |
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Credit Opinion: |
Business connections are permissible. |
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Risk Analysis: |
Average creditworthiness |
Payment Summary
No information.
Company Identification
Details
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Company Name: |
TAILIN ABRASIVES CORPORATION |
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Registered Number: |
A1997-9100 |
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TINVAT Number: |
004-076-512-000 |
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Legal Form: |
Corporation |
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Date Incorporated: |
June 10,1997 |
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Authorized Capital Stock: |
PHP 20,000,000 (USD 443,262) (As of 2007.09, 1 PHP = 0.0221631 USD) |
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Subscribed Capital Stock: |
PHP 20,000,000 (USD 443,262) |
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Paid-up Capital: |
PHP 20,000,000 (USD 443,262) |
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Par Value Per Share: |
PHP 10 |
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Listed at Stock Exchange: |
No |
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Principal Activities: |
Manufacturer/exporter - abrasives |
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Sales Turnover: |
USD 5,059,805 (2005) |
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Net Worth: |
USD 1,261,564 (2005.12.31) |
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SIC: |
D26994 |
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Staff: |
342 Employees (Consisting of office personnel and plant workers. 60% of the
total workforce are regular employees.) |
Note: Amounts in Philippine Peso unless otherwise specified.
History
Company Background
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Regulatory Agency |
Date Registered |
Registration No. |
Term |
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Securities and Exchange Commission |
June 10,1997 |
A1997-9100 |
50 Years |
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As of 12.31.2005 |
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Common |
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Authorized capital stock |
20,000,000 |
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Subscribed capital stock |
20,000,000 |
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Paid-up capital |
20,000,000 |
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Par value per share |
10 |
Latest capital structure not developed.
Decrease in authorized capital stock from 35,000,000 to
20,000,000 was approved by the Securities and Exchange Commission on December
28, 2005. Further details are not available.
Shareholders
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Name: |
Taiwan Resibon Abrasive Products Co. Ltd. ( |
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% of Shares: |
100% |
Management
Information
Management (04.01.2007):
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6-1 |
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Name: |
WU, CHI LONG |
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Position: |
Chairman |
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6-2 |
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Name: |
WU, CHI HONG |
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Position: |
President / Director |
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6-3 |
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Name: |
ROMANBAN, LIGAYA L. |
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Position: |
Corporate Secretary |
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6-4 |
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Name: |
LEE JIN YUAN |
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Position: |
Director |
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6-5 |
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Name: |
KO, TING CHAI |
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Position: |
Director |
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6-6 |
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Name: |
LU, SHENG CHUAN |
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Position: |
Director |
Confirmed officers as of September 19, 2007 were Chi Long
Wu, Chairman; Chi Hong Wu, President/Director; Chi Chen Chen a.k.a. Bryan Chen,
Vice President; and Ligaya L. Romanban, Corporate Secretary.
Operation
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Activities |
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Manufacturer and exporter of abrasives specifically type
27 D.C. grinding and cutting wheels, flap discs, flexible grinding wheels,
type 1 cutting wheels, sanding disc parer and straight grinding wheels. |
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Brand carried, Tailin. |
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Production capacity is about 100,000 various products
monthly. |
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Sales/Purchases
Information |
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Import: |
Imports raw materials from |
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Export: |
Exports products to Taiwan Resibon Abrasive Products Co.
Ltd. Taiwan, its parent company. |
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Territory: |
International. |
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Premises |
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Headquarters, administration office, production plant and
warehouse at captioned address. Located within an export industrial zone. |
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Occupies a lot area of about 1.5 hectares improved with a
two storey concrete building and a single storey warehouse type building in
good condition. |
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Building and lot is being leased from the |
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Maintains several company vehicles. |
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Financial Figures
Following are subject’s financial highlights:
Unit: USD
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2005 |
2004 |
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Current Assets |
2,340,114
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3,320,532 |
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Current Liabilities |
1,911,122
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3,235,419 |
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Accounts Receivable |
568,446 |
1,544,846 |
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Inventory |
1,374,168
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1,556,269 |
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Total Assets |
3,953,396
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4,994,084 |
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Total Liabilities |
2,691,832
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4,904,029 |
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Total Equities |
1,261,564
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90,055 |
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Sales/Revenues |
5,059,805
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3,358,604 |
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Cost of Sales |
4,694,520
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3,132,569 |
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Operating Expense |
419,723 |
222,360 |
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Interest and Depreciation |
12,382 |
10,535 |
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Income before Income Tax |
138,162 |
2,706 |
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Working Capital (ca-cl) |
428,992 |
85,113 |
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EBITDA |
125,780 |
(7,829) |
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Net Income |
117,627 |
(2,053) |
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Ratios |
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Current Ratio |
1.22 |
1.03 |
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Quick Ratio |
0.51 |
0.55 |
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Receivable Turnover |
8.90 |
2.17 |
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Inventory Turnover |
3.42 |
2.01 |
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Gross Profit Margin |
0.07 |
0.07 |
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Net Profit Margin |
0.02 |
0.00 |
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Return on Equity |
0.09 |
-0.02 |
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Return on Assets |
0.03 |
0.00 |
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Debt to Equity |
2.13 |
54.46 |
Attached are the 2005 audited financial statements, the
latest currently available. No 2006 financial statements currently found
available at the SEC.
Payment
Company source did not provide any of their current trade
references. Likewise a trade survey among several likely suppliers of subject
did not reveal any trading information.
Bankers
Chinatrust
No dealings based on credit exposure report with one million
and above dealings as of March 31, 2007.
Verification of deposits, if any, prohibited under
Philippine laws.
Public Records
No negative records found under TAILIN ABRASIVES CORPORATION
in available database as of September 17, 2007.
TAILIN ABRASIVES CORPORATION appeared as respondent in
database of companies with labor related cases as of September 17, 2007.
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Respondent: |
TAILIN ABRASIVES CORPORATION |
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Case No.: |
03-8535-05 |
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Complainant: |
JAMES PALANA |
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Action Taken: |
SUBMISSION OF POSITION PAPER |
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Labor arbiter: |
LEANDRO M. JOSE |
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Branch: |
REGION 3 |
Special Note
ECONOMIC
OVERVIEW (as of Second Quarter 2007)
Economic output is estimated to have grown by 6.6% (IDEA) in
the first half of the year, 1 percentage point higher than the first-half
outcome in 2006. Consequently, the government and various private entities have
upgraded their GDP projections, indicating strong expectations of a solid
finish in 2007 and heightened optimism in the Philippine economy. The
government, for example, has raised its GDP growth forecast to 6.1-6.8% from
5.8-6.6%.
IDEA’s estimates show that economic output is poised to grow
at around 6.4% for 2007 and 2008. On the production side, the largest
contribution to growth will come from the Services sector, which is projected
to grow at 9.0% this year and the following year. This sector, in turn, is
pulled up by good prospects in the Finance, Trade, and Transport, Storage and
Communication sectors.
On the demand side, personal consumption demand will
continue to push growth forward. Government expenditures are also expected to
increase with the approval of the P1.1T budget and the wage increase of
government employees.
Capital formation, however, seems to be the weak link in the
output demand equation. Although the trend has improved from the registered
8.8% decline in 2005 to 2.7% growth in 2006, the share of capital formation to
GDP has decreased from 18% in 2005 to 17% in 2006. Moreover, a concern is
raised on the sustainability of public construction given the unmet revenue
targets and the goal of a balanced budget by 2008.
In sum, although the progress of the economy is slower than
that of most other economies in the region, the sustained and improving picture
of overall economic activity is notable considering the observed boom-and-bust
behavior of the economy in the past. A sustained decent growth will hopefully
facilitate the trickling down of economic gains to the micro-level. Analysis of
figures at the household level, however, will have to wait until the release of
the 2006 Family Income and Expenditure Survey.
All in all, there is no reason for the government to relax
and take refuge in the comforting economic figures and the continuously
increasing inflow of remittances. It remains to be seen if the government can
deliver on its promises of infrastructure and a balanced budget by 2008. The
good economic prospect is, as always, conditional on the events that will
transpire in the next semester of the year.
Source: Institute for Development and Econometric Analysis
(IDEA)
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)