MIRA INFORM REPORT

 

 

Report Date :

26.04.2013

 

IDENTIFICATION DETAILS

 

Name :

ZAGRO TAIWAN INTERNATIONAL LTD.

 

 

Registered Office :

No.332, Gongye Rd., Nantou City, Nantou County 540

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.12.2012 (Consolidated)

 

 

Date of Incorporation :

14.02.2008

 

 

Com. Reg. No.:

28928178

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacture and trade of crop care, animal health, public health products and the related products.

 

 

No. of Employees :

Not Available

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow but correct

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

(31.03.2011)

Current Rating

(30.06.2012)

Taiwan

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

TAIWAN - ECONOMIC OVERVIEW

 

Taiwan has a dynamic capitalist economy with gradually decreasing government guidance of investment and foreign trade. Exports, led by electronics, machinery, and petrochemicals have provided the primary impetus for economic development. This heavy dependence on exports exposes the economy to fluctuations in world demand. In 2009, Taiwan's GDP contracted 1.8%, due primarily to a 13.1% year-on-year decline in exports. In 2010 GDP grew 10.7%, as exports returned to the level of previous years, and in 2011, grew 4.1%. In 2012, however, growth fell to 1.3%, because of softening global demand. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are major long-term challenges. Free trade agreements have proliferated in East Asia over the past several years, but except for the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010, so far Taiwan has been excluded from this greater economic integration in part because of its diplomatic status. Negotiations continue on such follow-on components of ECFA regarding trade in goods and services. The MA administration has said that the ECFA will serve as a stepping stone toward trade pacts with other key trade partners, which Taiwan subsequently launched with Singapore and New Zealand. Taiwan's Total Fertility rate of just over one child per woman is among the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. Taiwan's population is aging quickly, with the number of people over 65 accounting for 11.2% of the island's total population as of 2012. The island runs a large trade surplus largely because of its surplus with China, and its foreign reserves are the world's fifth largest, behind China, Japan, Saudi Arabia, and Russia. In 2006 China overtook the US to become Taiwan's second-largest source of imports after Japan. China is also the island's number one destination for foreign direct investment. Three financial memorandums of understanding, covering banking, securities, and insurance, took effect in mid-January 2010, opening the island to greater investments from the mainland's financial firms and institutional investors, and providing new opportunities for Taiwan financial firms to operate in China. In August 2012, Taiwan Central Bank signed a memorandum of understanding on cross-Strait currency settlement with its Chinese counterpart. The MOU allows for the direct settlement of Chinese RMB and the New Taiwan dollar across the Strait, which could help develop Taiwan into a local RMB hub. Closer economic links with the mainland bring greater opportunities for the Taiwan economy, but also poses new challenges as the island becomes more economically dependent on China while political differences remain unresolved.

Source : CIA


Contact Points

 

Company Name:

Zagro Taiwan International Ltd.

Supplied Name:

Zagro Taiwan International Ltd

Trading Address:

No.332, Gongye Rd., Nantou City, Nantou County 540, Taiwan (R.O.C.)

Supplied Address:

No 332 Gongye Rd Nan Kung Park Nantou City 54065,Taiwan

Telephone Number:

+886-49-2254727

Fax Number:

+886-49-2254598

Notes:

The supplied address is incomplete, and the exact address is as above.

 

Credit Summary

 

Credit Opinion:

Business connections are permissible.

 

Company Identification Details

 

Registered Name:

Zagro Taiwan International Ltd.

Registered Address:

No.332, Gongye Rd., Nantou City, Nantou County 540, Taiwan (R.O.C.)

Date of Foundation:

2008-2-14

Registration Number:

28928178

Registry:

Department of Commerce, Ministry of Economic Affairs, R.O.C.

Registered Capital:

NTD 100,000,000 (USD 3,348,800)

(As of 2013.4, 1 NTD = 0.0339 USD)

Paid-up Capital:

NTD 100,000,000 (USD 3,348,800)

Legal Representatives:

Chow Siew Hwa

Legal Form:

Joint Stock Company

Principal Activities:

Manufacture and trade of crop care, animal health, public health products and the related products.

Staff:

N/A

Listed at Stock Exchange:

No

Date of Last Annual Return:

2011-3-7

Note:

Subject declined to disclose the staff number, and from other sources, we couldn’t obtain the information, either.

 

History

Subject was incorporated on 2008-2-14 with registered number 28928178 as Joint Stock Company in Taiwan.

 

Shareholders

 

Name

Subscription Shares

Zagro Asia Limited

10,000,000       

 

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

 

Subsidiaries & Branches

Parent Company

Name

Zagro Asia Limited

Address

Zagro Global Hub, 5 Woodlands Terrace, Singapore 738430

Telephone Number:

+65 6759 1811 

Fax Number:

+65 6759 1855

E-mail:

zagroasia@zagro.com

Note:

Zagro Asia Limited was listed on 17 June 1996 on SGX Sesdaq and 10 July 2000 on SGX Mainboard.

 


Personnel Information

Core Management

 

Directors

1

Name

Chow Siew Hwa

Position

Board of Chairman

2

Name

Poh Beng Swee

Position

Director

3

Name

Zheyu Huang

Position

Director

4

Name

Chin Vui Nam

Position

Supervisor

 

Operation Information

Offices & Factories

 

 

Headquarters

Add

No.332, Gongye Rd., Nantou City, Nantou County 540, Taiwan (R.O.C.)

 

Production Information

 

l         Subject is a manufacturer of crop care, animal health, public health products and the related products with the production activities

 

Purchase Information

 

l         The registered activities of subject:

Business Code

Details

C201010

Manufacture of feed stuff

C801110

Manufacture of fertilizer

F103010 

Wholesale of feed stuff

F202010 

Wholesale of fertilizer

F207050 

Retail of fertilizer

F401010

International trade

ZZ99999 

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

l         The components and raw material for production are purchased from both local and abroad.

 

Sales Information

 

l         Subject is mainly engaged in manufacturing and trading of feed ingredients and the related products

l         Subject introduced that it is a subsidiary of Zagro Asia Limited that the headquarter is located in Singapore.

l         Subject introduced that its Major products sold as following:

 

Product

1

Animal Nutrition

2

Crop Nutrition

3

Animal Protection

4

Crop Protection

5

Human healthcare and specialty chemicals

6

Others

l         Subject introduced some brands of the products, such as Amilyte, Basudin, Neocidol, Steladone.

l         Subject introduced that it is also the distributor of the products.

l         Subject’s selling territory mainly covers the domestic market, the mainland of China and parts of Asia.

 

 

Import and export right:

Import right

Yes

Export right

Yes

 

Settlements

 

Purchase

 

Subject declined to disclose the settlements information, and from other sources, we couldn’t obtain the information, either.

 

Sales

 

Domestic Markets

Product

Sales Terms

Proportion

Healthcare and nutrition products for animals and crops

COB, CBD, etc

            100%

 

Export

Product

Sales Terms

Proportion

Healthcare and nutrition products for animals and crops

L/C , T.T, etc.   

            100%

Notes: Subject’s settlement for export is generally in USD

 

Consolidated Balance Sheet

Unit: SGD/000

 

2012-12-31

2011-12-31

Non-current assets

 

 

Property, plant and equipment

19,506

18,350

Intangible assets

976

1,869

Investment in subsidiaries

-

-

Deferred tax assets

702

590

Current assets

81,938

90,173

Other investment

4,309

2,977

Inventories

28,515

35,581

Related company balances

 

 

Trade and other receivables

24,669

28,325

Derivatives

-

37

Fixed deposits

15,806

7,910

Cash and bank balances

8,639

15,343

Current liabilities

25,335

37,795

Bank overdrafts

10

329

Trade and other payables

15,885

17,545

Derivatives

8

-

Loans and borrowings 21

7,724

17,547

Provision for taxation

1,708

2,374

Net current assets

56,603

52,378

Non-current liabilities

 

 

Deferred tax liabilities

521

672

Net assets

77,266

72,515

Equity attributable to equity

 

 

holders of the Company

 

 

Share capital

30,026

30,004

Reserves

47,240

42,511

Total equity

77,266

72,515

 

 

 

 

 

 

 

Consolidated Profit and Loss Accounts

Unit: SGD/000

 

2012

2011

Turnover

128,197

141,021

Cost of sales

-99,653

-111,871

Gross profit

28,544

29,150

Other revenue

1,841

2,363

Selling and marketing expenses

-11,039

-10,886

Administrative expenses

-5,275

-5,365

Other operating expenses, net

-3,659

-2,756

Operating profit

10,412

12,506

Interest income

305

226

Interest expense

-465

-478

Profit before taxation

10,252

12,254

Taxation

-1,856

-2,520

Profit for the year

8,396

9,734

Other comprehensive income:

 

 

Net gain/(loss) on available-for-sale financial assets

65

-108

Foreign currency translation loss

-487

-799

Other comprehensive income for the year, net of tax

-422

-907

Total comprehensive income for the year

7,974

8,827

Profit for the year attributable to:

 

 

Equity holders of the Company

8,396

9,734

Total comprehensive income attributable to :

 

 

Equity holders of the Company

7,974

8,827

Note:

The financial figures are the consolidated financial figures of subject’s parent company Zagro Asia Limited and the subsidiaries.

 

Bankers

The bankers’ information is not available from the subject or other sources.

 

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.54.17

UK Pound

1

Rs.82.98

Euro

1

Rs.70.62

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.