MIRA
INFORM REPORT
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Report Date : |
16.11.2012 |
IDENTIFICATION DETAILS
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Name : |
RULAND CHEMISTRY (NANGING) CO., LTD. |
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Registered Office : |
Room 1201, heping mansion, NO. 22 Beijing East Road,
Xuanwu District Nanjing, Jiangsu Province 210008 Pr |
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Country : |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
19.08.2004 |
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Com. Reg. No.: |
320100000111686 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling of Chemical Products. |
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No. of Employees : |
16 |
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 |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
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 & address
RULAND CHEMISTRY
(NANGING) CO., LTD.
ROOM 1201, heping mansion, NO. 22 BEIJING EAST ROAD, XUANWU
DISTRICT
NANJING, JIANGSU PROVINCE 210008 PR CHINA
TEL: 86 (0) 25-86897711
FAX: 86 (0) 25-86897722
EXECUTIVE SUMMARY
Date of Registration : august 19, 2004
REGISTRATION NO. : 320100000111686
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : cny 2,000,000
staff :
16
BUSINESS CATEGORY : trading
Revenue :
CNY 104,683,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 2,433,000 (AS OF DEC. 31, 2011)
WEBSITE : www.rulandchem.com
E-MAIL :
sales@rulandchem.com
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : ordinary
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.24 = 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.: 320100000111686 on August 19, 2004.
SC’s Organization Code Certificate No.:
76526364-6
%20CO%20,%20LTD%20-%20200114%2016-Nov-2012_files/image002.jpg)
SC’s Tax No.: 320103765263646
SC’s registered capital: cny 2,000,000
SC’s paid-in capital: cny 2,000,000
Registration Change Record:-
No significant changes of SC have been noted
in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Cheng Dong |
17 |
|
Dai Kangning |
32 |
|
Pan Li |
19 |
|
Wang Yan |
15 |
|
Xuan Zhong’an |
17 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Dai Kangning |
|
General Manager |
Pan Li |
|
Supervisor |
Cheng Dong |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Cheng Dong 17
Dai Kangning 32
Pan Li 19
Wang Yan 15
Xuan Zhong’an 17
MANAGEMENT
Dai Kangning, Legal Representative and Chairman
-------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 54
Ø
ID# 320103580508001
Ø
Qualification:
University
Ø
Working
experience (s):
From 2004 to present, working in SC as legal representative
and chairman
Pan Li, General
Manager
------------------------------------------
Ø
Gender: F
Ø
Age: 47
Ø
ID# 320103650709002
Ø
Qualification:
University
Ø
Working
experience (s):
From 2004 to present, working in SC as general manager
Cheng Dong, Supervisor
-----------------------------------------
Ø
Gender: M
Ø
Age: 41
Ø
ID# 320106710514323
BUSINESS OPERATION
SC’s registered business scope includes not to engage in
any items prohibited by laws, administrative regulation and State Council; able
to engage in items that needs permit according to the regulation of the State
Council, after obtaining the permit from relative authorities and the
registration in the AIC; and select to deal with any items that do not
need any permit. Operating and acting as an agent of importing and exporting
various kinds of commodities and technology, excluding the goods forbidden by
the government.
SC is mainly
engaged in selling chemical products.
SC’s products
mainly include:
APIs
Intermediates
Food & Feed
Additives
SC sources its materials 100% from domestic
market, mainly Jiangsu. SC sells 20% of its products in domestic market, and
80% to overseas market, mainly Mid East, Southeast Asia, etc.
The buying terms
of SC include Check, 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 Customers:
==============
Saint Cyr Srl
Pharmline Inc.
Staff & Office:
--------------------------
SC is known
to have approx. 16 staff at
present.
SC owns an area as
its operating office of approx. 200 sq. meters at the heading address.
RELATED COMPANY
n
Ruland Chemistry (H.K.) Co. Limited
----------------------------------------------------
Date of Registration: August 29, 2003
Registration No.: 0859539
Legal Form: Private
Status: Live
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
The bank
information of SC is not filed in SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
3,313 |
4,922 |
|
|
Notes receivable |
0 |
0 |
|
Accounts
receivable |
10,101 |
14,890 |
|
Advances to
suppliers |
0 |
0 |
|
Other receivable |
3,176 |
3,141 |
|
Inventory |
3,857 |
5,480 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
20,447 |
28,433 |
|
Fixed assets |
3,042 |
2,680 |
|
Construction in
progress |
0 |
0 |
|
Intangible
assets |
0 |
0 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other non-current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
23,489 |
31,113 |
|
|
============= |
============= |
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Short-term loans |
0 |
0 |
|
Notes payable |
2,266 |
-199 |
|
Accounts payable |
13,095 |
18,621 |
|
Wages payable |
0 |
0 |
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Welfare payable |
139 |
63 |
|
Taxes payable |
-304 |
-418 |
|
Advances from
clients |
0 |
0 |
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Other payable |
6,379 |
10,613 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Current
liabilities |
21,575 |
28,680 |
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Non-current
liabilities |
0 |
0 |
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|
------------------ |
------------------ |
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Total
liabilities |
21,575 |
28,680 |
|
Equities |
1,914 |
2,433 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
23,489 |
31,113 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
|
Revenue |
104,683 |
|
Cost of sales |
97,550 |
|
Taxes and surcharges |
260 |
|
Sales expense |
5,441 |
|
Management expense |
1,202 |
|
Finance expense |
520 |
|
Profit before
tax |
678 |
|
Less: profit tax |
0 |
|
678 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
0.95 |
0.99 |
|
*Quick ratio |
0.77 |
0.80 |
|
*Liabilities
to assets |
0.92 |
0.92 |
|
*Net profit
margin (%) |
-- |
0.65 |
|
*Return on
total assets (%) |
-- |
2.18 |
|
*Inventory /
Revenue ×365 |
-- |
20 days |
|
*Accounts
receivable/ Revenue ×365 |
-- |
52 days |
|
* Revenue/Total
assets |
-- |
3.36 |
|
* Cost of
sales / Revenue |
-- |
0.93 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears fairly good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of sales is fairly high, comparing with
its revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
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: FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered small-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.96 |
|
UK Pound |
1 |
Rs.87.10 |
|
Euro |
1 |
Rs.70.03 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
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 |
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.