MIRA INFORM REPORT
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Report Date : |
22.12.2012 |
IDENTIFICATION DETAILS
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Name : |
SHENYANG SCIENCREAT
CHEMICALS CO., LTD. |
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Registered Office : |
No. 17, Xihejiu North Street, Economic & Technology Development Zone,
Shenyang, Liaoning Province 110000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
20.04.1989 |
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Com. Reg. No.: |
210100400016292 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Manufacturing and selling pesticides and other chemicals. |
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No. of Employees : |
828 |
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 : |
Good |
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Payment Behaviour : |
No Complaints |
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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 and address
SHENYANG SCIENCREAT CHEMICALS CO., LTD.
NO. 17, XIHEJIU NORTH STREET, ECONOMIC &
TECHNOLOGY DEVELOPMENT ZONE, SHENYANG, LIAONING PROVINCE 110000 PR CHINA
TEL: 86 (0) 24-25326819 FAX: 86 (0) 24-25873785
EXECUTIVE
SUMMARY
INCORPORATION DATE : APR. 20, 1989
REGISTRATION NO. : 210100400016292
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MR. YANG CHUNHE (CHAIRMAN)
STAFF STRENGTH :
828
REGISTERED CAPITAL : CNY 488,730,900
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 525,940,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 674,460,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.23= 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 Renminbi
SC was registered as a Limited liabilities co. at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license).
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders contribute its registered
capital jointly. Shareholders bear limited liability to the extent of
shareholding, and the co. is liable for its debts only to extent of its
total assets. The characteristics of this form of co. are as follows: Upon the establishment of the co.,
an investment certificate is issued to the each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered business scope includes manufacturing pesticides;
manufacturing dye, chemical additives, intermediates; technical development,
technical transfer, technical service and technical consulting; processing
chemical machinery and general spare parts; import and export business
(excluding items prohibited by the state).
SC is mainly engaged in manufacturing and selling pesticides and other
chemicals.
Mr. Yang Chunhe is legal representative and chairman of SC at present.
SC is known to have approx. 828 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 Shenyang.
Our checks reveal that SC owns the total premise, but the gross area of the
premise is unspecific.
Note: SC has another factory located in No. 8, Liaoshen East Road, Tiexi
District, Shenyang, Liaoning Province
http://www.syrici.com.cn/
It includes the information on SC and other related companies. The design is
professional and the content is well organized. At present the web site is in
Chinese and English versions.
According to http://www.syrici.com.cn/, SC’s predecessor was Shenyang
Research Institute of Chemical Industry Pilot Plant.
SC’s former legal representative was Xu Weichang
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Sinochem Agro Co., Ltd. 51
Shenyang Research Institute of Chemical Industry Co., Ltd. 49
Sinochem Agro Co., Ltd.
===================
Former name: Sinochem Shanghai Co., Ltd.
INCORPORATION DATE :
AUG. 14, 1992
REGISTRATION NO. :
310101000052600
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MR. LI BIN (CHAIRMAN)
REGISTERED CAPITAL :
CNY 680,000,000
Tel: 86 (0) 21-63289888
Fax: 86 (0) 21-63283968
Shenyang Research Institute of Chemical Industry Co., Ltd.
===========================================
Tel: 024- 85869252
Fax: 024- 25873080
Add: No. 8, Liaoshen East Road, Tiexi District, Shenyang, Liaoning
Province
Web: http://www.syrici.com.cn/
Legal
representative and Chairman:
Mr. Yang Chunhe (杨春河) is currently responsible for the overall
management of SC.
Working Experience(s):
At present Working
in SC as legal representative and chairman.
SC is mainly engaged in manufacturing and selling pesticides and other
chemicals.
SC’s products mainly include pesticides, chemical agents, etc.
SC sources its materials 50% from domestic market and 50% from overseas
market. SC sells 70% of its products in domestic market and 30% to overseas
market.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
Note: SC declined
to release its major suppliers and clients.
According to http://www.syrici.com.cn/
Shenyang Research Institute of Chemical Industry Design Engineering Co.,
Ltd.
Etc.
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.
SC’s accountant refused to release the bank details.
Balance Sheet
Unit: CNY’000
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|
As
of Dec. 31, 2011 |
|
Cash & bank |
72,620 |
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Inventory |
233,160 |
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Accounts receivable |
129,720 |
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Other receivables |
3,730 |
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Other current assets |
9,500 |
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------------------ |
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Current assets |
448,730 |
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Fixed assets net value |
361,340 |
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Projects under construction |
20,580 |
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Intangible and other assets |
145,760 |
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------------------ |
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Total assets |
976,410 |
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=========== |
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Short loan |
44,570 |
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Accounts payable |
117,800 |
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Bills payable |
87,730 |
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Advances from clients |
2,990 |
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Taxes payable |
-20,640 |
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Other Accounts payable |
3,330 |
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Other current liabilities |
49,400 |
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------------------ |
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Current liabilities |
285,180 |
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Long term liabilities |
16,770 |
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------------------ |
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Total liabilities |
301,950 |
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Equities |
674,460 |
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------------------ |
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Total liabilities & equities |
976,410 |
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|
=========== |
Income Statement
Unit: CNY’000
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|
As of Dec. 31,
2011 |
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Turnover |
525,940 |
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Cost of goods sold |
422,450 |
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Sales expense |
16,560 |
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Management expense |
48,090 |
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Finance expense |
3,990 |
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Profit before tax |
48,110 |
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Less: profit tax |
7,570 |
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Profits |
40,540 |
Important Ratios
=============
|
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As
of Dec. 31, 2011 |
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*Current ratio |
1.57 |
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*Quick ratio |
0.76 |
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*Liabilities to assets |
0.31 |
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*Net profit margin (%) |
7.71 |
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*Return on total assets (%) |
4.15 |
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*Inventory /Turnover ×365 |
162 days |
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*Accounts receivable/Turnover ×365 |
91 days |
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*Turnover/Total assets |
0.54 |
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* Cost of goods sold/Turnover |
0.80 |
PROFITABILITY:
FAIRLY GOOD
The turnover of SC appears fairly good.
SC’s net profit margin is fairly good.
SC’s return on total assets is fairly good.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC appears large.
The accounts receivable of SC appears fairly large.
The short-term loan of SC appears average.
SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIRLY
GOOD
The debt ratio of SC is low.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of inventory could be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.08 |
|
UK Pound |
1 |
Rs.89.53 |
|
Euro |
1 |
Rs.72.77 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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 |
|
26-40 |
B |
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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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.