MIRA
INFORM REPORT
|
Report Date : |
20.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
Aditya
Birla Grasun chemicals (fangchenggang) Ltd. |
|
|
|
|
Registered Office : |
Taohuawan, Gangkou District, Fangchenggang, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2009 |
|
|
|
|
Date of Incorporation : |
28.05.2007 |
|
|
|
|
Com. Reg. No.: |
450600400000672 |
|
|
|
|
Legal Form : |
Chinese-Foreign Equity Joint
Venture Enterprise |
|
|
|
|
Line of Business : |
Manufacturing and selling phosphoric acid and related
products |
|
|
|
|
No. of Employees : |
70 |
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 |
|
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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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.
|
Source
: CIA |
Company name and address
Aditya Birla Grasun chemicals
(fangchenggang) Ltd.
Taohuawan, gangkou district,
fangchenggang,
guangxi PROVINCE, 538001 PR CHINA
TEL: 86 (0) 770-2863132 FAX: 86 (0) 770-2863132
EXECUTIVE SUMMARY
INCORPORATION DATE :
MAY 28, 2007
REGISTRATION NO. :
450600400000672
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
STAFF STRENGTH :
70
REGISTERED CAPITAL : CNY 40,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 96,730,000 (AS OF DEC. 31,
2009)
EQUITIES :
CNY 42,160,000 (AS OF DEC. 31, 2009)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.35 = USD
Adopted
abbreviations:
ANS -
amount not stated
NS -
not stated
SC -
subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
%20LTD%20%20-%20194075%2020-Sep-2012_files/image001.gif){kind=small}
SC was registered as a Chinese-foreign
equity joint venture enterprise at local Administration for Industry & Commerce
(AIC - The official body of issuing and renewing business license) on May 28,
2007.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s
registered business scope includes manufacturing and selling phosphoric acid
and related products, and providing related services.
SC is
mainly engaged in manufacturing and selling phosphoric acid and related
products.
Mr. K.K.Maheshwari has been legal
representative and chairman of SC since 2007.
SC is known to have approx. 70 employees at
present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the industrial zone of
Fangchenggang. Our checks reveal that SC rents the total premise about 40,080
square meters.
%20LTD%20%20-%20194075%2020-Sep-2012_files/image002.gif){kind=small}
SC is not known to host website of its own at present.
%20LTD%20%20-%20194075%2020-Sep-2012_files/image003.gif){kind=small}
SC’s former registration no. was 000322.
%20LTD%20%20-%20194075%2020-Sep-2012_files/image004.gif){kind=small}
MAIN SHAREHOLDERS:
Name %
of Shareholding
Aditya Birla Chemicals
(Thailand) Limited 75
Fanchenggang Grasun Company
Limited
25
Aditya Birla Chemicals
(Thailand) Limited
===============================
Website: http://www.adityabirlachemicals.com/
Fanchenggang Grasun Company
Limited
==============================
Add: Shibantian, Gangkou
District, Fangchenggang.
Tel: 0770-2862885
%20LTD%20%20-%20194075%2020-Sep-2012_files/image005.gif){kind=small}
l
Legal representative and
chairman:
Mr. K.K.Maheshwari,
Thai, in his
Working Experience(s):
From 2007 to present Working in SC as chairman and
legal representative.
Also working in
Aditya Birla Nuvo Limited, Aditya Birla Chemicals (India)
Limited, Tanfac Industries Limited as director.
l
Vice-chairman:
Mr. Luo Peng, in his
Working Experience(s):
From 2007 to present Working in SC as vice-chairman.
%20LTD%20%20-%20194075%2020-Sep-2012_files/image006.gif){kind=small}
SC is mainly
engaged in manufacturing and selling phosphoric acid and related products.
SC’s products mainly include phosphoric acid.
SC sources its materials 100%
from domestic market. SC sells 20% of its products in domestic market, and 80%
to overseas market, mainly Pakistan.
The buying terms of SC include Check, T/T and Credit of
30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60
days.
*Major Suppliers:
=============
Guangxi Construction Engineering Group No. 1 Installation Co.,
Ltd.
*Major Customers:
==============
Tricon
Energy Ltd.
%20LTD%20%20-%20194075%2020-Sep-2012_files/image007.gif){kind=small}
According to http://www.adityabirlachemicals.com/
Aditya Birla Nuvo Limited
Aditya Birla Chemicals (India) Limited
Tanfac Industries Limited
Grasim Industries Limited
%20LTD%20%20-%20194075%2020-Sep-2012_files/image008.gif){kind=small}
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.
%20LTD%20%20-%20194075%2020-Sep-2012_files/image009.gif){kind=small}
China
Construction Bank Fangchenggang Sub-branch
AC#：45001659587059888999
Relationship:
Normal.
%20LTD%20%20-%20194075%2020-Sep-2012_files/image010.gif){kind=small}
Balance
Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2009 |
as of Dec. 31, 2008 |
|
Cash
& bank |
940 |
5,550 |
|
Bills
receivable |
0 |
0 |
|
Accounts
receivable |
11,050 |
660 |
|
Other
receivables |
1,010 |
950 |
|
Advances
to suppliers |
6,810 |
5,110 |
|
Inventory |
6,440 |
16,880 |
|
Prepaid
expenses |
0 |
0 |
|
Other
current assets |
30 |
0 |
|
|
------------------ |
------------------ |
|
Current
assets |
26,280 |
29,150 |
|
Fixed
assets net value |
35,260 |
13,010 |
|
Projects
under construction |
360 |
18,620 |
|
Long
term investment |
0 |
0 |
|
Other
assets |
5,280 |
5,650 |
|
|
------------------ |
------------------ |
|
Total
assets |
67,180 |
66,430 |
|
|
============= |
============= |
|
Short
loans |
20,000 |
20,000 |
|
Bills
payable |
0 |
0 |
|
Accounts
payable |
3,350 |
2,270 |
|
Advances
from clients |
130 |
6,200 |
|
Accrued
payable |
240 |
260 |
|
Tax
payable |
490 |
-3,620 |
|
Other
payable |
0 |
0 |
|
Accrued
expenses |
760 |
480 |
|
Surcharge
payable |
0 |
0 |
|
Other
current liabilities |
50 |
20 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
25,020 |
25,610 |
|
Long
term liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
25,020 |
25,610 |
|
Equities |
42,160 |
40,820 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
67,180 |
66,430 |
|
|
============= |
============= |
Income
Statement
Unit:
CNY’000
|
|
as
of Dec. 31, 2009 |
|
Turnover |
96,730 |
|
Cost
of goods sold |
92,190 |
|
Sales expense |
2,590 |
|
Management expense |
-80 |
|
Finance expense |
1,160 |
|
Non-operating
income |
560 |
|
Non-operating expense |
110 |
|
Profit
before tax |
1,320 |
|
Less:
profit tax |
0 |
|
Profits |
1,320 |
Note: SC’s management declined to release the latest
financial information.
Important
Ratios
=============
|
|
as of Dec. 31, 2009 |
as of Dec. 31, 2008 |
|
*Current
ratio |
1.05 |
1.14 |
|
*Quick
ratio |
0.79 |
0.48 |
|
*Liabilities
to assets |
0.37 |
0.39 |
|
*Net
profit margin (%) |
1.36 |
/ |
|
*Return
on total assets (%) |
1.96 |
/ |
|
*Inventory
/Turnover ×365 |
25 days |
/ |
|
*Accounts
receivable/Turnover ×365 |
42 days |
/ |
|
*Turnover/Total
assets |
1.44 |
/ |
|
*
Cost of goods sold/Turnover |
0.95 |
/ |
%20LTD%20%20-%20194075%2020-Sep-2012_files/image011.gif){kind=small}
PROFITABILITY:
AVERAGE
l
The turnover 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 goods sold is fairly high,
comparing with its turnover.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained
in a normal level.
l
SC’s quick ratio is maintained in a
fair level.
l
The inventory of SC appears fairly
large in 2008, but average in 2009.
l
The accounts receivable of SC appears
fairly large in 2009.
l
SC’s short-term loan is average.
l
SC’s turnover is in an average level,
comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is
average.
Overall
financial condition of the SC: Fairly stable.
%20LTD%20%20-%20194075%2020-Sep-2012_files/image012.gif){kind=small}
SC is considered medium-sized in its line with fairly stable
financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.25 |
|
|
1 |
Rs.88.14 |
|
Euro |
1 |
Rs.71.03 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.