MIRA INFORM REPORT

 

 

Report Date :

28.03.2012

 

IDENTIFICATION DETAILS

 

Name :

SESODA CORPORATION

 

 

Registered Office :

23F., No.99, Sec. 2, Tun Hwa S. Rd., Da-An District, Taipei City 106

 

 

Country :

Taiwan

 

 

Financials (as on) :

30.09.2011

 

 

Date of Incorporation :

02.03.1957

 

 

Com. Reg. No.:

11384405

 

 

Legal Form :

Overseas Company

 

 

Line of Business :

Manufacture and trading of chemicals, etc.

 

 

No. of Employees :

About 150 employees

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 100,000

Status :

Satisfactory

Payment Behaviour :

No Complaints

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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

Taiwan

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


Contact Points

 

Company Name:

Sesoda Corporation

Supplied Name:

Sesoda Corporation

Trading Address:

23F., No.99, Sec. 2, Tun Hwa S. Rd., Da-An District, Taipei City 106, Taiwan (R.O.C.)

Supplied Address:

23rd Floor No. 99 Tun Hwa Srd Sec 2 Taipei Taiwan

Telephone Number:

+886-2-27047272

Fax Number:

+886-2-27043380

E-mail:

sesoda1@ms25.hinet.net

Notes:

The exact subject’s address is as above mentioned.

 

Credit Summary

 

Credit Rating:

Maximum credit USD 100,000

Credit Opinion:

Business connections are permissible.

 

Company Identification Details

 

Registered Name:

Sesoda Corporation

Registered Address:

23F., No.99, Sec. 2, Tun Hwa S. Rd., Da-An District, Taipei City 106, Taiwan (R.O.C.)

Date of Foundation:

1957-3-2

Registration Number:

11384405

Registry:

Department of Commerce

Registered Capital:

NTD 2,280,000,000.00 (USD 75,240,000.00)

(As of 2012.03, 1 NTD = 0.033 USD)

Paid-up Capital:

NTD 1,578,396,730.00 (USD 52,087,092.09)

Legal Representatives:

Yinfan Qian

Legal Form:

Overseas Company

Principal Activities:

Manufacture and trading of chemicals, etc.

Staff:

About 150 employees

Listed at Stock Exchange:

Yes,

Code: 1708

Date of Last Annual Return:

2011-5-24

 

History

Subject was incorporated on 1957-3-2 with registered number 11384405 as Overseas Company in Taiwan.

 

Change of Name

Former English Name

South East Soda Manufacturing Co., Ltd.

Current English Name

Sesoda Corporation

 

Awards

Year

Awards

2008

Blue chip importer and exporter

2009

Blue chip importer and exporter

2010

Blue chip importer and exporter

 

Standard of Blue chip importer and exporter

Unit: USD

Year

Amount

2008

19,000,000

2009

15,000,000

2010

20,000,000

 

 

Shareholders

 

Name

Subscription Shares

Yinfan Qian

10,197,132       

 

Lide Chen

 

10,197,132

 

Kaiyuan Chen

2,367,111

Yingbiao Zhu

2,367,111

Tianxing Zhao

3,081,171

Zhongli Wu

2,339,771

Zhiwen Wu

2,339,771

Bofu Li

2,723,000

 

The information above is that of subject’s major shareholders.

 

Personnel Information

 

Core Management

 

Directors

1

Name

Yinfan Qian

Position

Chairman

2

Name

Lide Chen

Position

Director

3

Name

Kaiyuan Chen

Position

Director

4

Name

Yingbiao Zhu

Position

Director

5

Name

Tianxing Zhao

Position

Director

6

Name

Zhongli Wu

Position

Director

7

Name

Zhiwen Wu

Position

Director

8

Name

Bofu Li

Position

Supervisor

9

Name

Baokui Zhu

Position

Supervisor

 

Personnel Structure

 

Total Employees

About 150 employees

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

23F., No.99, Sec. 2, Tun Hwa S. Rd., Da-An District, Taipei City 106, Taiwan (R.O.C.)

 


Production Information

 

l         Subject manufactures chemical products.

l         Subject has its factory in Taiwan.

l         Subject is the largest Potassium Sulfate (SOP) manufacturer in Taiwan with more than 40 years of experience in the fertilizer business and certified by ISO 9001: 2000/CNS 12681.

l         Subject’s current annual capacity stands at 90,000 tons with ongoing plans for expansion at existing factory in Suao, Taiwan as well as exploring future worldwide opportunities.

l         Subject also manufactures Hydrochloric Acid, Liquid Calcium Chloride, etc.

 

Purchase Information

 

l         The registered activities of subject:

Business Code

Details

C801010

Basic chemical industry

C801110

Manufacturing of fertilizer

C802990 

Manufacturing of Other Chemical Products

C802090

Manufacturing of Cleaning supplies

C802200

Manufacturing of Coatings, paints, dyes and pigments

F113010

Wholesales of Machinery

C701010

Printing Industry

C702010 

Plate-making industry

G801010

Warehousing

F103010

Wholesales of feed

J101050 

Environmental testing services industry

F107050

Wholesales of fertilizer

F107100

Wholesales of Basic chemical materials

F107070 

Wholesales of Animal drugs

F107080

Wholesales of Environmental agents

F107110 

Wholesales of Petrochemical feedstock

F111020

Wholesales of Cement and concrete products

C901050 

Manufacturing of Cement and concrete products

F112020

Wholesales of Coal and coal products

F107130 

Wholesales of synthetic resin

F115020

Wholesales of ore

F119010

Wholesales of Electronic Materials

F219010 

Retailing of Electronic Materials

F102130

Wholesales of Condiment

F107010

Wholesales of paints, coatings

F107020 

Wholesales of dyes, pigments

F107170

Wholesales of Industrial additives

F401010

International trade

F106010

Wholesales of Hardware

ZZ99999

Besides licensed business, all other business items those are not banned or restricted.

l         The components and raw material for production are mostly purchased from domestic.

l         Subject cooperates with companies that are dominant in the global market of certain basic materials, importing their products.

l         Subject imports soda ash, sugar, sodium bicarbonate, etc.

l         The subject has a proportion of 50% for Import

 

Sales Information

 

l         The subject is mainly engaged in manufacturing and processing of various chemical products.

l         Subject’s products include Potassium Sulfate (SOP), Hydrochloric Acid, Liquid Calcium Chloride, soda ash, sugar, sodium bicarbonate, etc.

l         Subject has both domestic and foreign markets.

l         Subject exports all over the world according to orders.

l         The subject has a proportion of 50% for export.

 

Import and export right:

Import right

Yes

Export right

Yes

 

Settlements

 

Purchase

 

Domestic Purchase

Product

Payment Terms

Proportion

Components and raw material

COD, CBD, etc.

100%

 

Foreign Purchase

Product

Payment Terms

Proportion

soda ash, sugar, sodium bicarbonate, etc.

CBD, etc.

100%

 

Sales

 

Domestic Markets

Product

Sales Terms

Proportion

Chemicals

CBD, etc.

100%

 

Export

Product

Sales Terms

Proportion

Chemicals

CBD, etc.

100%

 


Balance Sheet

Unit: NTD/000

Date

2011-9-30

2010-9-30

Assets

 

 

Current Assets

 

 

Cash and cash equivalents

335,051.00

348,920.00

Financial assets measured at fair value through profit or loss - current

9,222.00

10,180.00

Available-for-sale financial assets - current

287,002.00

461,786.00

Notes receivable - net

138,782.00

108,371.00

Accounts receivable - net

337,221.00

330,356.00

Other receivables - related parties

409.00

941.00

Other financial assets - current

46,887.00

39,875.00

Inventories

518,917.00

255,188.00

Other current assets

32,890.00

50,655.00

Current assets

1,706,381.00

1,606,272.00

Funds and Investments

 

 

Financial assets carried at cost - non current

65,264.00

69,040.00

Equity investments under equity method

1,387,260.00

1,331,491.00

Investments

1,387,260.00

1,331,491.00

Funds and long-term investments

1,452,524.00

1,400,531.00

Fixed Assets

 

 

Cost

 

 

Land

554,591.00

554,591.00

Buildings and structures

508,449.00

503,215.00

Machinery and equipment

601,554.00

589,534.00

Transportation equipment

2,592.00

2,592.00

Other facilities

63,693.00

62,507.00

Revaluation increment

618,474.00

618,488.00

Cost and revaluation increment

2,349,353.00

2,330,927.00

Accumulated depreciation

-889,271.00

-847,480.00

Accumulated impairment - fixed assets

-37,800.00

-12,910.00

Construction in process and prepayment for equipments

101,515.00

48,008.00

Fixed assets

1,523,797.00

1,518,545.00

Intangible Assets

 

 

Other Assets

 

 

Guarantee deposits paid

8,803.00

5,859.00

Other assets - other

25,113.00

26,232.00

Other assets

33,916.00

32,091.00

Assets

4,716,618.00

4,557,439.00

Liabilities and Stockholders' Equity

 

 

Liabilities

 

 

Current Liabilities

 

 

Short-term borrowings

282,043.00

432,777.00

Short-term notes and bills payable

99,825.00

119,932.00

Financial liabilities measured at fair value through profit or loss - current

154.00

0.00

Notes payable

13,575.00

5,700.00

Accounts payable

425,130.00

139,855.00

Income tax payable

44,153.00

26,233.00

Accrued expenses

91,644.00

107,008.00

Other payables - related parties

4,619.00

4,791.00

Other current liabilities

9,356.00

7,159.00

Current liabilities

970,499.00

843,455.00

Long term Liabilities

 

 

Long-term borrowings

0.00

50,000.00

Long-term liabilities

0.00

50,000.00

Reserves

 

 

Reserve for land revaluation increment tax

166,990.00

166,990.00

Reserves

166,990.00

166,990.00

Other Liabilities

 

 

Deferred income tax liabilities

192,433.00

198,535.00

Other liabilities

192,433.00

198,535.00

Liabilities

1,329,922.00

1,258,980.00

Stockholders' Equity

 

 

Capital

 

 

Common stock

1,578,397.00

1,578,397.00

Capital Surplus

 

 

Capital surplus - treasury stock transactions

2,379.00

2,379.00

Capital surplus - donated assets received

2,110.00

1,269.00

Capital surplus - long-term equity investments

11,204.00

12,805.00

Capital surplus - other

4,079.00

4,079.00

Capital surplus

19,772.00

20,532.00

Retained Earnings

 

 

Legal reserve

548,913.00

507,194.00

Inappropriate retained earnings

1,007,460.00

847,251.00

Retained earnings

1,556,373.00

1,354,445.00

Stockholders' Equity and Other adjustment

 

 

Cumulative translation adjustments

-54,588.00

-41,168.00

Net loss not recognized as pension cost

0.00

0.00

Unrealized gains (losses) on financial instruments

58,093.00

157,604.00

Unrealized Revaluation Increment

228,649.00

228,649.00

Equity adjustments

232,154.00

345,085.00

Stockholdersˉ equity

3,386,696.00

3,298,459.00

Number of treasury stock acquired by the company and subsidiaries (unit: share)

0.00

0.00

 

0.00

0.00

 

Income Statement

Unit: NTD/000

Date

2010-10-1

to 2011-9-30

2009-10-1

to 2010-9-30

 

 

 

Sales

2,044,546.00

2,111,308.00

Sales returns

236.00

1,062.00

Sales discounts and allowances

9,576.00

18,481.00

Sales

2,034,734.00

2,091,765.00

Operating income

2,034,734.00

2,091,765.00

Cost of sales

1,446,165.00

1,531,841.00

Operating costs

1,446,165.00

1,531,841.00

Gross profit (loss) from operations

588,569.00

559,924.00

Selling expense

186,635.00

265,084.00

General and administrative expenses

88,228.00

88,847.00

Operating expenses

274,863.00

353,931.00

Operating income (loss)

313,706.00

205,993.00

Non-Operating Income

 

 

Interest income

579.00

334.00

Income from long-term equity investments under the equity method

68,152.00

68,484.00

Dividends

4,209.00

4,226.00

Investment income

72,361.00

72,710.00

Gains on sale of investments

54,110.00

41,318.00

Foreign exchange gains

0.00

3,932.00

Rent income

284.00

338.00

Revaluation gain on financial assets

0.00

180.00

Miscellaneous income

7,370.00

8,019.00

Non-operating revenues and gains

134,704.00

126,831.00

Non-Operating Expenses

 

 

Interest expense

2,783.00

4,273.00

Foreign exchange losses

11,486.00

0.00

Impairment loss on assets

3,776.00

0.00

Revaluation loss on financial assets

367.00

0.00

Revaluation loss on financial liabilities

154.00

0.00

Miscellaneous disbursements

981.00

1,178.00

Non-operating expenses and losses

19,547.00

5,451.00

Income from continuing operations before income tax

428,863.00

327,373.00

Income tax expense (benefit)

68,256.00

-11,740.00

Income from continuing operations

360,607.00

339,113.00

Net income (loss)

360,607.00

339,113.00

Primary Earnings per Share

 

 

Primary earnings per share

2.28

2.15

Diluted earnings per share

 

 

Diluted earnings per share

2.27

2.14

 

Public Record

Mortgage

No chattel mortgage record of subject has been found within the recent 3 months.

 

Lawsuit

Up to date of reporting, no existing or latent litigation of the subject has been found.

 

 

Interview Details

 

Name

Mr. Chen


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.50.91

UK Pound

1

Rs.81.27

Euro

1

Rs.67.98

 

 

RATING EXPLANATIONS

 

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

--

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%)

 

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.