MIRA
INFORM REPORT
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Report Date : |
08.08.2013 |
IDENTIFICATION DETAILS
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Name : |
SIMAGCHEM CORPORATION |
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Registered Office : |
Unit 2107, Hualong Office Building, No. 6 Hubin East Road, Siming District, Xiamen, Fujian Province, 361009 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
01.04.2008 |
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Com. Reg. No.: |
350203200059933 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject engaged in trading of chemical products |
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No. of Employees : |
10 |
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 : |
Slow but correct |
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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 – March 31st, 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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 2012 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 under 8% for 2012. An economic slowdown in Europe contributed to
China's, and is expected to further drag Chinese growth in 2013. 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
SIMAGCHEM CORPORATION
Unit 2107, Hualong
Office building, No. 6 Hubin East Road,
siming district,
Xiamen, fujian PROVINCE, 361009 PR CHINA
TEL: 86 (0) 592-2680277/2680275
FAX: 86 (0)
592-2680237
EXECUTIVE SUMMARY
INCORPORATION DATE : apr. 1, 2008
REGISTRATION NO. : 350203200059933
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
10
REGISTERED CAPITAL : CNY 1,000,000
BUSINESS LINE :
tradING
TURNOVER :
CNY 13,050,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 1,030,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.13 = 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 company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Apr. 1, 2008.
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 wholesale and retail of chemical products (excluding dangerous
and controlled chemicals), building materials, stone, hardware, electronic
products, textiles, daily necessities, office supplies; import and export of
goods and technology (not attached import and export commodities catalogue) ,
excluding those limited and prohibited by the State.
SC is mainly
engaged in trading of chemical products.
Mr. Wang
Shaobo is legal representative, chairman
and general manager of SC at present.
SC is known
to have approx. 10 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Xiamen. Detailed information of the
premise is unspecified.
www.simagchem.com
The design is professional and the content is well organized. At present it is
in only in English version.
E-mail: sale@simagchem.com
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Wang Shaobo 90
Wang Meimei 10
l
Legal Representative, Chairman and General Manager:
Mr. Wang Shaobo
is currently responsible for the overall and daily management of SC.
Working Experience(s):
At present
Working in SC as legal representative, chairman and general manager.
SC is mainly
engaged in trading of chemical products.
SC’s products mainly include:
N-(Tetrahydro-2-furoylcarbonyl) piperazine hydrobromide,
IMidazole,
1-Hydroxy-7-azabenzotriazole,
8-Chloro-5,10-dihydrodibenzo[b,e][1,4]diazepin-11-one,
3,5-Di-tert-butyl-4-hydroxybenzaldehyde,
N-Hydroxyethylphthalimide,
Celecoxib,
Daunorubicin hydrochloride,
p-Nitrobenzoic acid,
9H-Carbazol-4-ol,
2-(2-Aminothiazole-4-yl)-2-methoxyiminoacetic acid,
Riboflavin,
2-(1H-Benzotriazole-1-yl)-1,1,3,3-tetramethyluronium
hexafluorophosphate,
Etc.
SC sources its materials 100% from domestic
market. SC sells 100% of its products to overseas market.
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.
Note:
SC’s management declined to release its major clients and suppliers.
Partners (According to SC’s website)
============================
SC is not known to have any subsidiary at present.
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 declined to
release its bank details.
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2012 |
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Cash & bank |
80 |
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Inventory |
0 |
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Accounts
receivable |
3,260 |
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Advances to
suppliers |
160 |
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Other receivables |
1,860 |
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Subsidy income |
70 |
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Prepaid expenses |
10 |
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Other current
assets |
1,990 |
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------------------ |
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Current assets |
7,430 |
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Fixed assets net
value |
10 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Intangible
assets |
0 |
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Other assets |
0 |
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------------------ |
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Total assets |
7,440 |
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============= |
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Short loans |
0 |
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Accounts payable |
260 |
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Other accounts
payable |
0 |
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Notes payable |
0 |
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Taxes payable |
0 |
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Advances from
clients |
6,150 |
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Accrued payroll |
0 |
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Dividends
payable |
0 |
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Other payable |
0 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
6,410 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
6,410 |
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Equities |
1,030 |
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------------------ |
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Total
liabilities & equities |
7,440 |
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============= |
Income Statement
Unit: CNY’000
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as of Dec. 31,
2012 |
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Turnover |
13,050 |
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Cost of goods
sold |
11,340 |
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Sales expense |
900 |
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Management expense |
760 |
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Finance expense |
50 |
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Investment
income |
30 |
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Non-operating
income |
20 |
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Non-operating expense |
20 |
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Profit before
tax |
30 |
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Less: profit tax |
10 |
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Profits |
20 |
Important Ratios
=============
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as
of Dec. 31, 2012 |
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*Current ratio |
1.16 |
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*Quick ratio |
1.16 |
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*Liabilities
to assets |
0.86 |
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*Net profit margin
(%) |
0.15 |
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*Return on
total assets (%) |
0.27 |
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*Inventory
/Turnover ×365 |
/ |
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*Accounts
receivable/Turnover ×365 |
92 days |
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*Turnover/Total
assets |
1.75 |
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* Cost of
goods sold/Turnover |
0.87 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average 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 average, comparing with
its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is in a normal level.
l
SC’s quick ratio is maintained in a normal level.
l
SC has no inventory in 2012.
l
The accounts receivable of SC appears fairly large
in 2012.
l
SC has no short-term loan in 2012.
l
SC’s turnover is average, comparing with the size
of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.39 |
|
|
1 |
Rs.94.17 |
|
Euro |
1 |
Rs.81.70 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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 |
|
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 |
|
-- |
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.