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MIRA
INFORM REPORT
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Report Date : |
13.11.2008 |
IDENTIFICATION
DETAILS
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Name : |
ACETO (SHANGHAI) LTD. |
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Registered Office : |
Room 908, No. 1701, Beijing West Road Shanghai
200040 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
07.06. 2001 |
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Com. Reg. No.: |
314111 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Exporting Chemical Products. |
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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Maximum Credit Limit : |
usd 60,000 |
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Status : |
Small Company |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
name & address
ACETO (SHANGHAI) LTD.
room 908, no. 1701,
beijing west road
shanghai 200040 PR
CHINA
TEL: 86 (0)
21-62791600/62880099 FAX: 86 (0) 21-62890985/62884808
EXECUTIVE SUMMARY
INCORPORATION DATE : jun. 7, 2001
REGISTRATION NO. : 314111
REGISTERED LEGAL FORM : wholly foreign-owned
enterprise
STAFF STRENGTH :
8
REGISTERED CAPITAL : USD 200,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 30,160,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 4,800,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 60,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairLY stable
OPERATIONAL TREND : steady
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 6.83 = usd 1
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
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Note: The given address-Room 406, Jiuan Plaza, No. 258,
Tongren Road, Shanghai was SC’s former address.
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 Jun. 7, 2001.
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 international trade; transit trade; trade with the enterprises within the free trade zone;
simple commercial processing; commercial consulting services.
SC is mainly
engaged in exporting chemical products.
Mr. GARY J. MO has
been chairman of SC since 2001.
SC is known to
have approx. 8 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Shanghai. Our checks reveal that SC rents
the total premise about 100 square meters.
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SC is not known to host web site of its own at present.
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Until December 31, 2007, SC’s paid-up capital was CNY 1,660,000.
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MAIN SHAREHOLDERS:
Name
% of Shareholding
Aceto Corp. USA 100
Website: http://www.aceto.com
E-mail: aceto@aceto.com
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Chairman and General Manager:
Mr. GARY J. MO, Canadian, in his 40’s with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2001 to present Working in SC as chairman and
general manager.
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SC is mainly
engaged in exporting chemical products.
SC’s products mainly include: various chemical products.
SC sources its materials 100% from domestic
market, mainly Shanghai; SC sells its products 100% to overseas market, mainly
Europe and USA.
The buying terms
of SC include T/T, Check, and Credit of 30-60 days. The payment terms of SC
include T/T, Check, L/C, and Credit of 30-60 days.
*Major Customer:
==============
Aceto Corp. USA
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SC is not known to have any subsidiary at present.
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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.
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Bank of China
AC#N/A
Relationship:
Normal.
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Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
As
of Dec. 31, 2007 |
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Cash & bank |
730 |
4,170 |
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Inventory |
0 |
0 |
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Accounts
receivable |
1,830 |
7,770 |
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Other Accounts
receivable |
0 |
0 |
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Advances to
suppliers |
0 |
0 |
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To be
apportioned expense |
0 |
0 |
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Other current assets |
20 |
30 |
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------------------ |
------------------ |
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Current assets |
2,580 |
11,970 |
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Fixed assets net
value |
160 |
60 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
0 |
0 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
2,740 |
12,030 |
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============= |
============= |
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Short loans |
0 |
0 |
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Bills payable |
50 |
0 |
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Accounts payable |
10 |
7,080 |
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Advance from
clients |
0 |
0 |
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Taxes payable |
0 |
0 |
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Other Accounts
payable |
0 |
0 |
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Withdraw the
expenses in advance |
0 |
0 |
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Other current
liabilities |
0 |
150 |
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------------------ |
------------------ |
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Current
liabilities |
60 |
7,230 |
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Long term
liabilities |
0 |
0 |
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Other
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
60 |
7,230 |
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Equities |
2,680 |
4,800 |
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Total
liabilities & equities |
2,740 |
12,030 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2007 |
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Turnover |
30,160 |
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Cost of goods
sold |
26,870 |
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Sales expense |
490 |
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Management expense |
250 |
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Finance expense |
290 |
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Profit before
tax |
2,270 |
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Less: profit tax |
160 |
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Profits |
2,110 |
Important
Ratios
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|
2006 |
2007 |
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*Current ratio |
43.00 |
1.66 |
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*Quick ratio |
43.00 |
1.66 |
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*Liabilities
to assets |
0.02 |
0.60 |
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*Net profit
margin (%) |
/ |
7.00 |
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*Return on
total assets (%) |
/ |
17.54 |
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*Inventory
/Turnover ×365 |
/ |
/ |
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*Accounts
receivable/Turnover ×365 |
/ |
94days |
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*Turnover/Total
assets |
/ |
2.51 |
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* Cost of
goods sold/Turnover |
/ |
0.89 |
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PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears average in its line in 2007.
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SC’s net profit margin is fairly good in 2007.
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SC’s return on total assets is fairly good in 2007.
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SC’s cost of goods sold is average in 2007, comparing with its turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a normal level in 2006 and
2007.
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SC’s quick ratio is maintained in a fairly good level in 2006 and 2007.
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SC has no inventory.
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The accounts receivable & payable of SC appears fairly large.
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SC has no short-term loan in both 2 years.
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SC’s turnover is in a fairly good level in 2007, comparing with the size
of its total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is low in 2006 and average in 2007.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
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SC is considered small-sized in its line with fairly stable financial
conditions. The large amount of accounts receivable and payable could be a threat
to SC’s financial condition. A credit line at the above amount appears to be
beyond SC’s capacities, while a credit line up to USD 60,000 is recommended.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.48.79 |
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UK Pound |
1 |
Rs.75.41 |
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Euro |
1 |
Rs.61.48 |
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%)