MIRA INFORM REPORT
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Report Date : |
06.05.2014 |
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 is engaged in manufacturing and selling refractory materials |
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No. of Employees : |
145 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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, growth of the private sector,
development of stock markets and a modern banking system, 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 considered important to "economic security,"
explicitly looking to foster globally competitive industries. After keeping its
currency tightly linked to the US dollar for years, in July 2005 China 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 and expanded the daily trading
band within which the RMB is permitted to fluctuate. 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 2013 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 consumption; (b) facilitating higher-wage job
opportunities for the aspiring middle class, including rural migrants and
increasing numbers of college graduates; (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. Several factors are converging to slow China's growth, including
debt overhang from its credit-fueled stimulus program, industrial overcapacity,
inefficient allocation of capital by state-owned banks, and the slow recovery
of China's trading partners. The government's 12th Five-Year Plan, adopted in
March 2011 and reiterated at the Communist Party's "Third Plenum"
meeting in November 2013, emphasizes continued economic reforms and the need to
increase domestic consumption in order to make the economy less dependent in
the future on fixed investments, exports, and heavy industry. However, China
has made only marginal progress toward these rebalancing goals. The new
government of President XI Jinping has signaled a greater willingness to
undertake reforms that focus on China's long-term economic health, including
giving the market a more decisive role in allocating resources.
|
Source
: CIA |
Company
name and 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
CHIEF EXECUTIVE :
MR. ARUP KUMAR CHATTOPADHYAY (CHAIRMAN)
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 (AS OF DEC. 31, 2011)
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.25= 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.
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
|
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As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
Cash & bank |
2,420 |
2,290 |
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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
|
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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 |
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Profit before tax |
-23,750 |
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Less: profit tax |
0 |
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Profits |
-23,750 |
Important
Ratios
|
|
2010 |
2011 |
|
*Current ratio |
1.13 |
0.86 |
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*Quick ratio |
0.96 |
0.63 |
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*Liabilities to assets |
0.66 |
0.79 |
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*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 |
Note: SC’s
management declined to release the latest financial information.
PROFITABILITY:
FAIR
·
The turnover of SC appears fairly good in its line.
·
SC’s net profit margin is poor.
·
SC’s return on total assets is poor.
·
SC’s cost of goods sold is high, comparing with its
turnover.
LIQUIDITY: FAIR
·
The current ratio of SC is maintained in a fair
level in 2011.
·
SC’s quick ratio is maintained in a fair level in
2011.
·
The inventory of SC is average in both years.
·
The accounts receivable of SC is large in both
years.
·
The short loans of SC appear large in both years.
·
SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: FAIR
·
The debt ratio of SC is fairly high in 2011.
·
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.60.05 |
|
|
1 |
Rs.101.32 |
|
Euro |
1 |
Rs.83.34 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
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Report Prepared
by : |
NNA |
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 |
|
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.