MIRA INFORM REPORT
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Report Date : |
07.09.2011 |
IDENTIFICATION DETAILS
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Name : |
M & A CHEMICALS CORP. |
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Registered Office : |
10th Floor, Zhuangsen Building, No. 12, Dongsheng Street Chengdu, Sichuan Province 610015 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
19.04.2006 |
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Com. Reg. No.: |
510105000051641 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling
Petrochemical Products |
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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Maximum Credit Limit : |
USD 100,000 |
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Status : |
Satisfactory |
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Payment
Behaviour : |
Usually 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 – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
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 |
Company name & address
M & A CHEMICALS CORP.
10th
floor, ZHUANGSEN BUILDING, NO. 12, DONGSHENG STREET
CHENGDU, SICHUAN
PROVINCE 610015 PR CHINA
TEL: 86 (0)
28-86691026/86267261
FAX: 86 (0)
28-86267263/86691356
EXECUTIVE SUMMARY
Date of Registration : APRIL 19, 2006
REGISTRATION NO. : 510105000051641
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : CNY 5,000,000
staff : 20
BUSINESS CATEGORY : TRADING
Revenue : CNY 94,833,000 (AS OF DEC. 31, 2010)
EQUITIES : CNY 12,812,000 (AS OF DEC. 31, 2010)
WEBSITE : www.mei-an.com
E-MAIL :
info@mei-an.com
PAYMENT : AVERAGE
Recommended Credit Limit: UP TO USD
100,000 (PERIODICAL REVIEW)
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.38 = USD 1
Adopted abbreviations
(as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL
REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL STATUS & HISTORY
SC was
established as a limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 510105000051641 on April 19, 2006.
SC’s Organization Code Certificate
No.: 78810765-4
SC’s Tax No. 510105788107654
SC’s registered capital: CNY 5,000,000
SC’s paid-in capital: CNY 5,000,000
Registration Change Record:
|
Date |
Change
of Contents |
Before the change |
After the change |
|
-- |
Registration No. |
5101051810250 |
510105000051641 |
Current Co search indicates SC’s shareholders & chief executives
are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
J&F Int’l Development
Corp. |
50 |
|
Sichuan Chuanhua Xintianfu Chemicals Co.,
Ltd. |
50 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman
and General Manager |
Jiang Xiong |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
J&F Int’l Development Corp. 50
Sichuan Chuanhua Xintianfu Chemicals
Co., Ltd. 50
J&F
Int’l Development Corp.
==========================
Registration No.: 510105000104804
Date of Registration: February 23, 2004
Legal Form: Limited Liabilities Company
Registered Capital: CNY 5,000,000
Legal Representative: Ma Jie
Sichuan
Chuanhua Xintianfu Chemicals Co., Ltd.
=========================================
Registration No.: 510100000050121
Legal Form: Limited Liabilities Company
Registered Capital: CNY 50,000,000
Legal Representative: Jiang Xiong
MANAGEMENT
Jiang Xiong, Legal Representative, Chairman and General Manager
-------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 46
Ø
ID# 510113196510220439
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman and general manager
Also working in Sichuan Chuanhua Xintianfu Chemicals Co., Ltd. as legal representative
BUSINESS OPERATION
SC’s registered business scope includes selling petroleum
products, chemicals and equipment, power equipment, and electromechanical
equipment, providing related services and consultation; investment
consultation, engineering consultation; international trade; wholesaling yellow
phosphorus, compressed gases and liquefied gases: (b) ether, ammonia, flammable
liquids: methanol, methyl benzene, flammable solids and flammable liquids when
wet: sulfur, corrosive substances: sodium hydroxide and orthophosphoric acid.
SC is mainly
engaged in selling petrochemical products.
Acting
Brand: “Tianfu”.
SC’s
products mainly include:
Melamine
Calcium
Carbide
Methanol
Dimethyl
ether
BDO
SC sources its materials 100% from domestic market, mainly Sichuan. SC sells 40% of its products in domestic market, mainly Sichuan, and 60% to overseas market, mainly India, etc.
The
buying terms of SC include 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 Suppliers:
=============
Sichuan
Chemical Company Limited
Sichuan
Tianhua Co., Ltd.
Chuanhua
Group Co., Ltd.
Lutianhua
Group Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 20 staff at present.
SC
rents an area as its operating office of approx. 200 sq. meters at the heading
address.
RELATED COMPANY
SC is
not known to have any subsidiary at present.
PAYMENT
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: A
trade enquiry currently conducted with SC's supplier(s) reveal the following:
Supplier
A
Products
sold: Melamine
Date
account opened: 2009
Line
of credit: No
comment
Terms: T/T, Credit
of 30-60 days
Average
monthly sales: No comment
Current
balance: No comment
Rating
Key: 3
Any Special Comments: N/a
Payment record keys :
1 = Prompt : Payment made before the credit period expires
2 = As agreed terms : Payment made upon due date
3 = Slightly slow but acceptable : Payment made 5 to 20 days
beyond agreed terms
4 = Slow : Payment made 16 to 45 days beyond agreed terms
5 = Poor : Payment made over 45 days beyond agreed terms
6 = No comment : Account is
newly opened & record is not yet established
Note : In
some instances, payment beyond terms can be the result of disputes over
merchandise, lost invoices, disputed accounts & etc.
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.
BANKING
Basic Bank:
Bank of China Chengdu Jinjiang Sub-branch
AC#840874886538099001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
1,872 |
6,242 |
|
|
Notes receivable |
0 |
0 |
|
Accounts
receivable |
23,600 |
5,422 |
|
Advances to
suppliers |
0 |
0 |
|
Other receivable |
9 |
111 |
|
Inventory |
680 |
14,665 |
|
Subsidies
receivable |
703 |
750 |
|
Non-current
assets within one year |
0 |
0 |
|
Deferred
expense |
0 |
0 |
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Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
26,864 |
27,190 |
|
Fixed assets |
271 |
159 |
|
Construction in
progress |
0 |
0 |
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Intangible
assets |
3 |
2 |
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Long-term
investment |
0 |
0 |
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Deferred income
tax assets |
0 |
0 |
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Other non-current
assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
27,138 |
27,351 |
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|
============= |
============= |
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Short-term loans |
0 |
0 |
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Notes payable |
0 |
0 |
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Accounts payable |
14,615 |
17,672 |
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Salaries payable |
65 |
70 |
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Welfare payable |
0 |
0 |
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Taxes payable |
-1,073 |
-3,343 |
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Advances from
clients |
788 |
0 |
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Other payable |
383 |
105 |
|
Other unpaid
expenses |
32 |
35 |
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Accrued expenses |
0 |
0 |
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Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Current
liabilities |
14,810 |
14,539 |
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Non-current
liabilities |
0 |
0 |
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|
------------------ |
------------------ |
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Total
liabilities |
14,810 |
14,539 |
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Equities |
12,328 |
12,812 |
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|
------------------ |
------------------ |
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Total
liabilities & equities |
27,138 |
27,351 |
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|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2009 |
As of Dec. 31,
2010 |
|
Revenue |
82,699 |
94,833 |
|
Cost of sales |
77,487 |
87,929 |
|
Sales expense |
3,245 |
4,765 |
|
Management expense |
1,073 |
997 |
|
Finance expense |
260 |
404 |
|
Profit before
tax |
588 |
679 |
|
Less: profit tax |
128 |
195 |
|
460 |
484 |
Important Ratios
=============
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
*Current ratio |
1.81 |
1.87 |
|
*Quick ratio |
1.77 |
0.86 |
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*Liabilities
to assets |
0.55 |
0.53 |
|
*Net profit
margin (%) |
0.56 |
0.51 |
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*Return on
total assets (%) |
1.70 |
1.77 |
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*Inventory /
Revenue ×365 |
4 days |
57 days |
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*Accounts
receivable/ Revenue ×365 |
105 days |
21 days |
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*
Revenue/Total assets |
3.05 |
3.47 |
|
* Cost of
sales / Revenue |
0.94 |
0.93 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears fairly good, and it was
rising in 2010.
l
SC’s net profit margin is average in both years.
l
SC’s return on total assets is average in both
years.
l
SC’s cost of goods sold is fairly high, comparing
with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a fairly
good level in both years.
l
SC’s quick ratio is maintained in a fairly good
level in 2009, normal in 2010.
l
The inventory of SC appears average in 2009, large
in 2010.
l
The accounts receivable of SC appears large in
2009, average in 2010.
l
SC has no short-term loans in both years.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is average in both years.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with
fairly stable financial conditions. The large amount of inventory may be
a threat to SC’s financial condition. A credit line up to USD 100,000 is
recommended upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.46.13 |
|
UK Pound |
1 |
Rs.74.18 |
|
Euro |
1 |
Rs.64.88 |
RATING EXPLANATIONS
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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 |
|
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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.