MIRA INFORM REPORT

 

 

Report Date :

11.02.2013

 

IDENTIFICATION DETAILS

 

Name :

TRENCH LIMITED

 

 

Registered Office :

71 Maybrook Drive, Scarborough, Ontario M1V 4B6

 

 

Country :

Canada

 

 

Date of Incorporation :

01.10.1997

 

 

Legal Form :

Ontario Corporation - Profit

 

 

Line of Business :

Designs and manufactures high-voltage equipment for utility and industrial customers internationally.

 

 

No. of Employees :

600

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Canada

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

CANADA - ECONOMIC OVERVIEW

 

As an affluent, high-tech industrial society in the trillion-dollar class, Canada resembles the US in its market-oriented economic system, pattern of production, and affluent living standards. Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. The 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase in trade and economic integration with the US its principal trading partner. Canada enjoys a substantial trade surplus with the US, which absorbs about three-fourths of Canadian exports each year. Canada is the US's largest foreign supplier of energy, including oil, gas, uranium, and electric power. Given its great natural resources, highly skilled labor force, and modern capital plant, Canada enjoyed solid economic growth from 1993 through 2007. Buffeted by the global economic crisis, the economy dropped into a sharp recession in the final months of 2008, and Ottawa posted its first fiscal deficit in 2009 after 12 years of surplus. Canada''s major banks, however, emerged from the financial crisis of 2008-09 among the strongest in the world, owing to the financial sector''s tradition of conservative lending practices and strong capitalization. Canada achieved marginal growth in 2010 and 2011 and plans to balance the budget by 2015. In addition, the country''s petroleum sector is rapidly becoming an even larger economic driver with Alberta''s oil sands significantly boosting Canada''s proven oil reserves, ranking the country third in the world behind Saudi Arabia and Venezuela.

Source : CIA


 

Company name and address

 

Company name:            TRENCH LIMITED

 

Address:                        71 Maybrook Drive, Scarborough, Ontario M1V 4B6 - Canada

 

 

Telephone:                     +1 416-298-8108

 

Fax:                               +1 416-298-2209

 

Website:                        www.trenchgroup.com

 

 

Corporate ID#:                ON-001258297

 

State:                           Ontario

 

 

Judicial form:                 Ontario Corporation - Profit

 

Date incorporated:          October 1, 1997

 

Stock:                           -

 

Value:                            -

 

 

Name of manager:   Howard POULSON

 

 

ACTIVITIES & OPERATIONS

 

IST

 

Business:

 

Trench Limited designs and manufactures high-voltage equipment for utility and industrial customers internationally.

The company offers instrument transformers, bushings, and coil products, as well as communication equipment for electric utility applications.

The company is based in Scarborough, Canada.

Trench, Ltd. operates as a subsidiary of Trench Electric B.V.

 

 

Staff:     600

 

Operations & branches:

 

At the headquarters, we find a factory, warehouse and office, owned.

The Company maintains several branches in Canada including:

 

432 Monarch Avenue

L1S 2G7 Ajax, Ontario

Tel +1-905-426-2665

Fax +1-905-426-2671

 

390 Midwest Road

M1P 3B5 Scarborough, Ontario

Tel +1-416-751-8570

Fax +1-416-751-6952

 

330 Finchdene Square

M1X 1A5 Scarborough, Ontario.

Tel +1-416-847-5400

Fax +1-416-291-5581

 

1865 Clements Rd

Pickering, Ontario L1W 3V4

Ph: 905-619-3246

 

 

SHAREHOLDERS & MANAGERS

 

Shareholders:

 

Trench Electric B.V.

Profjh Bavincklaan

Amstelveen, 1083 AT

Netherlands

 

Trench Electric B.V. engages in the design and production of electrical equipment for high voltage applications in the transmission and distribution of electricity. The company’s electrical transmission and distribution equipment transforms, regulates, conditions, and measures electricity for utilities and industrial customers worldwide.

Trench Electric’s power engineering products include instrument transformers, bushings, composite insulators, reactors, line traps, power line carrier, and reactor and electronic control systems.

The company primarily operates in Austria, Brazil, Canada, China, England, France, Germany, and Switzerland.

Trench Electric B.V. was founded in 1962 by Anthony Trench. The company is based in Amstelveen, The Netherlands.

Trench Electric B.V. now operates as a subsidiary of Siemens Power Transmission & Distribution, Inc.

 

 

Management:

 

Howard POULSON is the Chairman and CEO.

Howard Poulson has been Chairman of Trench Electric BV since March 1998.

On June 1st 1999, Mr. Poulson took over the post of Chief Executive following the retirement of Ron Montgomery from that office.

Prior to joining Trench, Mr. Poulson has had a long career as a director and Chief Executive of a number of public companies largely operating in the electronics industry and is currently the Chairman of Aramis Ltd.

 John H. FINLAY is the President

John H.G. Finlay has been Executive Vice President, North America & International of Trench Electric BV since April 2000. Mr. Finlay also serves as a Director of Trench Electric BV and Trench Electric Holdings BV. Mr. Finlay became Executive Vice President and Chief Financial Officer of Trench Electric at the time of its formation in September 1997.

Mr. Finlay joined Trench Limited in Canada in 1988 as Chief Financial Officer. He was Chief Financial Officer and Executive Vice President of Trench and its predecessors from its formation in 1993.

 

 

Subsidiaries &

Partnership:       None (in Canada)

 

 

FINANCIALS

 

In Canada, privately held corporations are not required to publish any financials.

 

On a direct call, a financial assistant controlled the present report but deferred any financials.

We sent a fax but no answer received.

 

However, sales estimate for year 2012 is in the range of CAD 100,000,000=

 

 

Banks:  Royal Bank of Canada

                        HSBC

 

 

LEGAL FILINGS

 

Legal filings & complaints:

 

As of today date, there is no legal filing pending with the Courts.

 

 

Secured debts summary:   None

 

 

COMPANY CREDIT HISTORY

 

Trade references:

 

Date reported:                December 2012

High credit:                    CAD 30,000

Now owing:                    0

Past due:                      0

Last purchase:               November 2012

Line of business:            Office supply

Paying status:               15 days beyond terms

Date reported:                December 2012

High credit:                    CAD 800,000+

Now owing:                    0

Past due:                      0

Last purchase:               November 2012

Line of business:            Payroll

Paying status:               As agreed

           

Date reported:                December 2012

High credit:                    CAD 4,000

Now owing:                    0

Past due:                      0

Last purchase:               November 2012

Line of business:            Telecommunications

Paying status:               12 days beyond terms

 

 

Domestic credit history:

 

Domestic credit history appears as follow:

 

Monthly Payment Trends - Recent Activity

 

Date

Balance

Current

Up to 30 DBT

31-60 DBT

61-90 DBT

>90 DBT

07/12

$251,700

81%

19%

0%

0%

0%

08/12

$237,500

82%

18%

0%

0%

0%

09/12

$238,500

82%

18%

0%

0%

0%

10/12

$258,800

81%

19%

0%

0%

0%

11/12

$251,100

82%

18%

0%

0%

0%

12/12

$261,200

82%

18%

0%

0%

0%

 

 

National Credit Bureaus gave a medium credit rating.

 

According to our credit analysts, during the last 6 months, 82% of trade experience indicates a regular payment.

 

Domestic payments are currently made with an average of 15+ days beyond terms.

 

 

International credit history:

 

Payments of imports are currently made with an average of 5 to 10 days beyond terms.

 

The Company is improving its payments, but the cash is low, due to high inventories and conditions of the market.

 

 

 

Other comments:

 

The Company maintains its business.

 

The Company is in good standing.

This means that all local and federal taxes were paid on due date.

 

The risk is medium.

 

 

Our opinion:

 

 

A business connection may be conducted but we suggest you to check regularly the way of payments.

 

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.57

UK Pound

1

Rs.71.79

Euro

1

Rs.84.25

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.