MIRA INFORM REPORT

Report No. :	510969
Report Date :	24.05.2018

IDENTIFICATION DETAILS

Name :	TSRC (NANTONG) INDUSTRIES LTD

Registered Office :	No. 22 Tongwang Road Economic and Technological Development Zone, Nantong Jiangsu Province, Pr

Country :	China

Financials (as on) :	31.12.2017

Date of Incorporation :	05.09.2006

Credibility Code :	91320691782716723D

Legal Form :	Wholly foreign-owned enterprise

Line of Business :	The subject’s registered business scope includes wholesaling second types of compressed gases and liquefied gases and third types of flammable liquids; develop, manufacture, sale of thermal plastic rubber and its related products, styrene isoprene styrene rubber; providing after-sale service; import and export, wholesale, commission agents (except auction) business of the above products and styrene butadiene styrene; supplying water, steam, compressed air, instrument air for enterprises invested by TSRC in Nantong economic and Technological Development Zone; provide rental services such as housing, buildings, venues and equipment. (with permit if needed)

No. of Employees :	244

RATING & COMMENTS

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

MIRA’s Rating :

A+

Credit Rating	Explanation	Rating Comments
A+	Low Risk	Business dealings permissible with low risk of default

Status :	Good

Payment Behaviour :	Regular

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

(30.09.2017)

Current Rating

(31.12.2017)

China

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

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. China has implemented reforms in a gradualist fashion, resulting in efficiency gains that have contributed to a more than tenfold increase in GDP since 1978. Reforms began with the phaseout 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 continues to pursue an industrial policy, state support of key sectors, and a restrictive investment regime. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2016 stood as the largest economy in the world, surpassing the US in 2014 for the first time in modern history. China became the world's largest exporter in 2010, and the largest trading nation in 2013. Still, China's per capita income is below the world average.

After keeping its currency tightly linked to the US dollar for years, China in July 2005 moved to an exchange rate system that references a basket of currencies. From mid-2005 to late 2008, the renminbi appreciated more than 20% against the US dollar, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing announced it would allow a resumption of gradual liberalization. From 2013 until early 2015, the renminbi (RMB) appreciated roughly 2% against the dollar, but the exchange rate fell 13% from mid-2015 until end-2016 amid strong capital outflows in part stemming from the August 2015 official devaluation; in 2017 the RMB resumed appreciating against the dollar – roughly 7% from end-of-2016 to end-of-2017. From 2013 to 2017, China had one of the fastest growing economies in the world, averaging slightly more than 7% real growth per year. In 2015, the People’s Bank of China announced it would continue to carefully push for full convertibility of the renminbi, after the currency was accepted as part of the IMF’s special drawing rights basket. However, since late 2015 the Chinese Government has strengthened capital controls and oversight of overseas investments to better manage the exchange rate and maintain financial stability.

The Chinese Government faces numerous economic challenges including: (a) reducing its high domestic savings rate and correspondingly low domestic household consumption; (b) managing its high corporate debt burden to maintain financial stability; (c) controlling off-balance sheet local government debt used to finance infrastructure stimulus; (d) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and college graduates, while maintaining competitiveness; (e) dampening speculative investment in the real estate sector without sharply slowing the economy; (f) reducing industrial overcapacity; and (g) raising productivity growth rates through the more efficient allocation of capital and state-support for innovation. Economic development has progressed further in coastal provinces than in the interior, and by 2016 more than 169.3 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of China’s population control policy known as the “one-child policy” - which was relaxed in 2016 to permit all families to have two children - 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 urbanization. The Chinese Government is seeking to add energy production capacity from sources other than coal and oil, focusing on natural gas, nuclear, and clean energy development. In 2016, China ratified the Paris Agreement, a multilateral agreement to combat climate change, and committed to peak its carbon dioxide emissions between 2025 and 2030.

The government's 13th Five-Year Plan, unveiled in March 2016, emphasizes the need to increase innovation and boost domestic consumption to make the economy less dependent on government investment, exports, and heavy industry. However, China has made more progress on subsidizing innovation than rebalancing the economy. Beijing has committed to giving the market a more decisive role in allocating resources, but the Chinese Government’s policies continue to favor state-owned enterprises and emphasize stability. Chinese leaders in 2010 pledged to double China’s GDP by 2020, and the 13th Five Year Plan includes annual economic growth targets of at least 6.5% through 2020 to achieve that goal. 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. Chinese leaders also have undermined some market-oriented reforms by reaffirming the “dominant” role of the state in the economy, a stance that threatens to discourage private initiative and make the economy less efficient over time. The slight acceleration in economic growth in 2017—the first such uptick since 2010—gives Beijing more latitude to pursue its economic reforms, focusing on financial sector deleveraging and its Supply-Side Structural Reform agenda, first announced in late 2015.

Source : CIA

Company name and address

Company Name : TSRC (NANTONG) INDUSTRIES LTD

Address : NO. 22 TONGWANG ROAD ECONOMIC AND

TECHNOLOGICAL DEVELOPMENT ZONE, NANTONG JIANGSU PROVINCE, PR CHINA

Telephone : 86-0513-85999041

Facsimile : --

Website : --

Email : sunweiwei@tsrc-global.com

REGISTRATION INFORMATION

Established Date : 2006-09-05

Credibility Code : 91320691782716723D

Legal Form : Wholly foreign-owned enterprise

Registration Authority : Market Supervision Bureau - Economic and Technological

Development Zone, Nantong

Status : Active

Registered Capital : USD 105,125,000

Paid Up Capital : --

Turnover : RMB 1,112,630,000 (as of Dec. 31, 2017)

Equities : RMB 891,920,000 (as of Dec. 31, 2017)

Chief Executive : Lin Yongqiang

Business Line : Manufacturer

Manpower : 244

Tax Registration

Certificate No. : 91320691782716723D

Organization Code : 78271672-3

HS code : --

Import & Export code : --

Financial Condition : Fairly good

Business Size : Medium Enterprise

Payment : Regular

Registered Address

NO. 22 TONGWANG ROAD ECONOMIC AND TECHNOLOGICAL DEVELOPMENT ZONE, NANTONG

JIANGSU PROVINCE, PR CHINA

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.

Premise

The subject operates from premises located at the heading address, and this address houses its operating office and factory in Nantong. Our checks reveal that the subject rents the total premise, but the square meters are unknown.

MANAGEMENT

Position	Name	Nationality
Legal representative, Chairman	Lin Yongqiang	Chinese
General Manager	Su Zhaorong	Chinese
Directors	Lv Qingbao Su Zhaorong	Chinese
Supervisors	Wang Wenyuan	Chinese

MAJOR SHAREHOLDERS

Name % Shareholding

Polybus Corporation Pte Led (Singapore) 100

KEY EVENTS

Changes of its registered information are as follows:

Date of change	Item	Before the change	After the change
2015-12-01	Legal representative	Tu Weihua	Present one
2018-03-23	Registered capital	USD 69,125,000	Present one

BUSINESS OPERATIONS

The subject’s registered business scope includes wholesaling second types of compressed gases and liquefied gases and third types of flammable liquids; develop, manufacture, sale of thermal plastic rubber and its related products, styrene isoprene styrene rubber; providing after-sale service; import and export, wholesale, commission agents (except auction) business of the above products and styrene butadiene styrene; supplying water, steam, compressed air, instrument air for enterprises invested by TSRC in Nantong economic and Technological Development Zone; provide rental services such as housing, buildings, venues and equipment. (with permit if needed)

The subject is mainly engaged in manufacturing and selling thermoplastic elastomer and other related products.

Products:

Thermoplastic elastomer

Thermally plastic elastomer

The subject sources its materials 80% from domestic market, and 20% from overseas market. the subject sells 30% of its products in domestic market, and 70% to overseas market, mainly U.S.A. and India, etc.

The buying terms of the subject include Check, T/T, L/C and Credit of 30-60 days. The payment terms of the subject include Check, T/T, L/C and Credit of 30-60 days.

SUPPLIER & CUSTOMER

*Major customer:

Hb Fuller India Adhesives Pvt Ltd.

RELATED COMPANIES

No Subsidiary

NEGATIVE INFORMATION

Lawsuit Record: No record.

Trade payment experience: The subject 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 the subject was placed to us for collection within the last 6 years.

Customs administrative penalty: No record.

Equity freeze information: No record.

Administrative Penalty: No record.

MORTGAGE

There is no record of mortgage information at present.

TRADEMARK

No record.

PATENT

No record.

BANKING

The subject declined to release its banking details.

ABBREVIATED FINANCIAL STATEMENT

Financial Summary

===============

Unit: RMB’000

	As of Dec. 31, 2016	As of Dec. 31, 2017
Total assets	1,059,070	1,115,010
	=========	=========
Total liabilities	312,360	223,090
Equities	746,710	891,920
	--------------	--------------
Total liabilities & equities	1,059,070	1,115,010
	=========	=========
Turnover	891,480	1,112,630
Profits before tax	173,710	198,870
Less: tax	44,040	50,660
Profits	129,670	148,210

Important Ratios

=============

	As of Dec. 31, 2016	As of Dec. 31, 2017
*Liabilities to assets	0.29	0.20
*Net profit margin (%)	14.55	13.32
*Return on total assets (%)	12.24	13.29
*Turnover/Total assets	0.84	1.00

PROFITABILITY: FAIRLY GOOD

The turnover of the subject appears fairly good in its line.

the subject’s net profit margin is fairly good.

the subject’s return on total assets is fairly good.

the subject’s turnover is in a fair level in 2016 and average in 2017, comparing with the size of its total assets.

LEVERAGE: FAIRLY GOOD

The debt ratio of the subject is low.

The risk for the subject to go bankrupt is average.

TREND ANALYSIS

===========

	2015	2016	2017
Sales Trend	--	--	Ç
Profit margin	--	--	È
Debt to assets ratio	--	--	È
Overall Financial Condition	□Good ■Fairly Good □Stable □Fairly Stable □Fair □Poor

COMMENT

The subject was registered as a Wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license).

The subject is considered medium-sized in its line with fairly good financial conditions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 68.21
UK Pound	1	INR 91.43
Euro	1	INR 80.24
CNY	1	INR 10.72

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

INFORMATION DETAILS

Analysis Done by :	VIV

Report Prepared by :	SYL

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.