MIRA INFORM REPORT
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Report Date : |
07.01.2013 |
IDENTIFICATION DETAILS
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Name : |
TRL CHINA LTD. |
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Registered Office : |
Sitaizi
Metallurgical & Chemical Industrial Park, Bayuquan District (Economic Technological
Development Zone), Yingkou, Liaoning Province, 115212 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
09.01.2006 |
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Com. Reg. No.: |
210800400022645 |
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Legal Form : |
Wholly Foreign Owned Enterprise |
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Line of Business : |
Subject engaged
in manufacturing and selling refractory materials |
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No. of Employees : |
145 |
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 : |
Slow but correct |
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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 – June 30th,
2012
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
china - ECONOMIC OVERVIEW
Since the late 1970s China has moved from a closed, centrally planned system to a more market-oriented one that plays a major global role - in 2010 China became the world's largest exporter. Reforms began with the phasing out of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, creation of a diversified banking system, development of stock markets, rapid growth of the private sector, and opening to foreign trade and investment. China has implemented reforms in a gradualist fashion. In recent years, China has renewed its support for state-owned enterprises in sectors it considers important to "economic security," explicitly looking to foster globally competitive national champions. After keeping its currency tightly linked to the US dollar for years, in July 2005 China revalued its currency by 2.1% against the US dollar and moved to an exchange rate system that references a basket of currencies. From mid 2005 to late 2008 cumulative appreciation of the renminbi against the US dollar was more than 20%, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing allowed resumption of a gradual appreciation. The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2010 stood as the second-largest economy in the world after the US, having surpassed Japan in 2001. The dollar values of China's agricultural and industrial output each exceed those of the US; China is second to the US in the value of services it produces. Still, per capita income is below the world average. The Chinese government faces numerous economic challenges, including: (a) reducing its high domestic savings rate and correspondingly low domestic demand; (b) sustaining adequate job growth for tens of millions of migrants and new entrants to the work force; (c) reducing corruption and other economic crimes; and (d) containing environmental damage and social strife related to the economy's rapid transformation. Economic development has progressed further in coastal provinces than in the interior, and by 2011 more than 250 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of population control policy is that China is now one of the most rapidly aging countries in the world. Deterioration in the environment - notably air pollution, soil erosion, and the steady fall of the water table, especially in the North - is another long-term problem. China continues to lose arable land because of erosion and economic development. The Chinese government is seeking to add energy production capacity from sources other than coal and oil, focusing on nuclear and alternative energy development. In 2010-11, China faced high inflation resulting largely from its credit-fueled stimulus program. Some tightening measures appear to have controlled inflation, but GDP growth consequently slowed to near 9% for 2011. An economic slowdown in Europe is expected to further drag Chinese growth in 2012. Debt overhang from the stimulus program, particularly among local governments, and a property price bubble challenge policy makers currently. The government's 12th Five-Year Plan, adopted in March 2011, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent on exports in the future. However, China has made only marginal progress toward these rebalancing goals.
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Source : CIA |
COMPANY NAME & ADDRESS
TRL CHINA
LTD.
SITAIZI
METALLURGICAL & CHEMICAL INDUSTRIAL PARK, BAYUQUAN DISTRICT (Economic Technological Development ZONE),
YINGKOU,
LIAONING PROVINCE, 115212 PR CHINA
TEL: 86 (0) 417-7233933 FAX:
86 (0) 417-7233922
EXECUTIVE SUMMARY
INCORPORATION
DATE : JAN. 9, 2006
REGISTRATION
NO. :
210800400022645
REGISTERED
LEGAL FORM : WHOLLY FOREIGN OWNED ENTERPRISE
STAFF
STRENGTH :
145
REGISTERED
CAPITAL :
USD 8,200,000
BUSINESS
LINE :
MANUFACTURING
TURNOVER :
cny 196,880,000 (AS OF DEC. 31, 2011)
EQUITIES :
cny 47,350,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION :
average
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND :
fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.24= USD1
Adopted abbreviations
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by
you)
NA - not available
CNY - China Yuan Ren Min Bi
SC was registered as a wholly foreign owned enterprise at
local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Jan. 9, 2006.
Company Status: Wholly foreign-owned enterprise
This form of business in PR
China is defined as a legal person. It is a limited co. established within
the territories of PR China with capital provided totally by the foreign
investors. More than one foreign investor may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon
approval of Examination and Approval Authorities.
SC’s registered
business scope includes manufacturing refractory materials.
SC is mainly engaged in manufacturing and
selling refractory materials.
Mr. Arup Kumar Chattopadhyay is now acting as chairman of SC.
SC is known to have approx. 145 employees at present.
SC is currently operating
at the above stated address, and this address houses its operating office and
factory in the development zone of Yingkou. Our checks reveal that SC owns the
total premise about 50,000 square meters.
http://www.tataref.com It is the website of
SC’s ultimate parent company TRL Krosaki Refractories Limited (India). The
design is professional and the content is well organized. At present it is in
English version.
Changes of SC’s registered information:
|
Date |
Item |
Before changed |
After changed |
|
Unknown |
Registered number |
001544 |
Present one |
|
Legal rep. |
C.D. Kamath |
Present one |
MAIN SHAREHOLDERS:
Name %
of Shareholding
TRL Asia Private Limited (Singapore) 100
TRL)
TRL Asia Private Limited, a Special Purpose Company, was formed by TRL Krosaki
Refractories Limited and Magus (Hong Kong) Limited in Singapore.
l
Chairman:
Mr. Arup Kumar Chattopadhyay, Indian, born in 1952. He is currently responsible for the overall management
of SC.
Working Experience(s):
Now Working
in SC as chairman
Also working in TRL Asia Private Limited as Chairman, and in
TRL Krosaki Refractories Limited as Managing Director.
SC is mainly engaged in manufacturing and
selling refractory materials.
SC’s products mainly include: refractory
material.
SC sources its materials 100% from domestic
market. SC sells 5% of its products in domestic market, and 95% to the overseas
market, mainly India and European countries.
The buying terms of
SC include Check, T/T and Credit of 30-60 days. The payment terms of SC include
T/T, L/C and Credit of 30-60 days.
*Major Client:
==========
TRL Krosaki Refractories Limited
Ultimate parent: TRL Krosaki Refractories Limited (India)
Mr. P.K.Patel
Vice President
(Engineering)
Belpahar, Jharsuguda,
Odisha - 768218 India
Off Phone: 06645 258345
Email: pkp@trlkrosaki.com
Dr. A. K. Chattopadhyay
MANAGING DIRECTOR
Tata Center, 11th Floor,
43 J.L Neheru Road, Kolkata, India
Overall payment
appraisal:
( ) Excellent (
) Good (X) Average (
) Fair ( ) Poor
( ) Not yet determined
The appraisal serves
as a reference to reveal SC's payments habits and ability to pay. It is based on the 3 weighed factors: Trade payment experience (through current
enquiry with SC's suppliers), our delinquent payment and our debt collection
record concerning SC.
Trade payment experience: SC did not provide any name of
trade/service suppliers and we have no other sources to conduct the enquiry at
present.
Delinquent payment record: None
in our database.
Debt collection
record: No overdue amount
owed by SC was placed to us for collection within the last 6 years.
Bank of China
Yingkou Development Zone Sub-branch
AC#：288256320528
Relationship: Normal.
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
|
Cash & bank |
2,420 |
2,290 |
|
Inventory |
15,290 |
31,590 |
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Accounts receivable |
73,620 |
78,210 |
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Advances to suppliers |
12,940 |
2,260 |
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Other receivables |
110 |
390 |
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Other current assets |
20 |
20 |
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|
------------------ |
--------------- |
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Current assets |
104,400 |
114,760 |
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Fixed assets net value |
54,680 |
103,620 |
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Projects under construction |
40,480 |
80 |
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Long term investment |
0 |
0 |
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Long-term deferred expenses |
520 |
4,230 |
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Intangible assets |
6,080 |
5,950 |
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Other assets |
20 |
0 |
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------------------ |
--------------- |
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Total assets |
206,180 |
228,640 |
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|
============= |
============ |
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Short loans |
50,650 |
62,400 |
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Accounts payable |
38,430 |
69,040 |
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Advances from clients |
840 |
1,510 |
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Taxes payable |
-240 |
-720 |
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Other payable |
2,300 |
300 |
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Other current liabilities |
530 |
230 |
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------------------ |
------------------- |
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Current liabilities |
92,510 |
132,760 |
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Long term liabilities |
42,560 |
48,530 |
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------------------ |
------------------- |
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Total liabilities |
135,070 |
181,290 |
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Equities |
71,110 |
47,350 |
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|
------------------ |
------------------- |
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Total liabilities & equities |
206,180 |
228,640 |
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|
============= |
=========== |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2011 |
|
Turnover |
196,880 |
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Cost of goods sold |
193,660 |
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Sales expense |
15,470 |
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Management expense |
7,060 |
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Finance expense |
7,800 |
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Non-operating income |
4,520 |
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Other expenses |
1,160 |
|
Profit before tax |
-23,750 |
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Less: profit tax |
0 |
|
Profits |
-23,750 |
Important Ratios
=============
|
|
2010 |
2011 |
|
*Current ratio |
1.13 |
0.86 |
|
*Quick ratio |
0.96 |
0.63 |
|
*Liabilities to assets |
0.66 |
0.79 |
|
*Net profit margin (%) |
/ |
-12.06 |
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*Return on total assets (%) |
/ |
-10.39 |
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*Inventory /Turnover ×365 |
/ |
59 days |
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*Accounts receivable/Turnover ×365 |
/ |
145 days |
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*Turnover/Total assets |
/ |
0.86 |
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* Cost of goods sold/Turnover |
/ |
0.98 |
PROFITABILITY: FAIR
l
The
turnover of SC appears fairly good in its line.
l
SC’s net
profit margin is poor.
l
SC’s
return on total assets is poor.
l
SC’s cost
of goods sold is high, comparing with its turnover.
LIQUIDITY: FAIR
l
The
current ratio of SC is maintained in a fair level in 2011.
l
SC’s
quick ratio is maintained in a fair level in 2011.
l
The
inventory of SC is average in both years.
l
The
accounts receivable of SC is large in both years.
l
The
short loans of SC appear large in both years.
l
SC’s
turnover is in a fair level, comparing with the size of its total assets.
LEVERAGE: FAIR
l
The debt
ratio of SC is fairly high in 2011.
l
The risk
for SC to go bankrupt is average.
Overall financial condition of the SC: Fair.
SC is considered
medium-sized in its line with fair financial conditions. The large amount of
account receivable and short loans could be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian
Rupees |
|
US Dollar |
1 |
Rs.54.84 |
|
UK Pound |
1 |
Rs.88.16 |
|
Euro |
1 |
Rs.71.54 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
RATING EXPLANATIONS
|
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 |
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.