MIRA INFORM REPORT
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Report Date : |
28.03.2013 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI PROSAGRO CHEMICAL CO., LTD. |
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Registered Office : |
Rm. 1402, 14/F, Xingya Plaza, Bldg. 1, Lane 258, Yongxing Road, Zhabei District, Shanghai City, 200071 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
23.02.2005 |
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Com. Reg. No.: |
310114001265860 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling Chemical Raw Materials |
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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 : |
Usually 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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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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 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
Shanghai Prosagro Chemical Co., Ltd.
RM. 1402, 14/F, XINGYA
PLAZA, BLDG. 1, LANE 258, YONGXING ROAD,
ZHABEI district,
SHANGHAI city, 200071 PR CHINA
TEL: 86 (0)
21-66531378-602 FAX: 86 (0)
21-66531373
EXECUTIVE SUMMARY
INCORPORATION DATE : FEB. 23, 2005
REGISTRATION NO. : 310114001265860
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
10
REGISTERED CAPITAL : CNY 2,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 35,750,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 2,400,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.2166 = 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 Feb. 23, 2005.
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 selling chemical raw materials, chemicals, (excluding the
hazardous products), chemical equipment, analytical instruments, mechanical and
electrical products, metal materials, general merchandise, hardware, textiles,
arts & crafts; technology development, service, consulting and transfer of
chemicals, import & export goods and technologies.
SC is mainly
engaged in selling chemical raw materials.
Mr. Hu
Yanwang has been legal representative,
chairman and general manager of SC since 2005.
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 Shanghai. Our checks reveal that SC
rents the total premise about 150 square meters.
http://www.prosagro.com/
The website is unable to be landed at present for technical reason.
Email: prosagro@126.com
Changes of its
registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2008-5 |
Registered capital |
CNY 1,000,000 |
Present amount |
|
% of shareholding |
Hu Yanwang 90%, Zhang Mingjuan 10% |
The present ones. |
MAIN SHAREHOLDERS:
Name % of Shareholding
Zhang Mingjuan 5
Hu Yanwang 95
l
Legal Representative, Chairman & General
Manager:
Mr. Hu Yanwang , ID # 432801197504113011, born in 1975, with high school
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2005 to present Working in SC as legal representative,
chairman and general manager
Also working in Shanghai Prosagro
Chemical Co., Ltd. Branch as principal
SC is mainly
engaged in selling chemical raw materials.
SC’s products mainly include chemical and medical interim product,
pesticide, additive and organic impregnant.
SC sources its materials 30% from domestic
market, and 70% from overseas market. SC sells 100% of its products in domestic
market.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include Check, T/T and Credit of 30-60 days.
Note:
SC’s management declined to release its major clients and suppliers.
SC
is known to have a branch at present:
Shanghai
Prosagro Chemical Co., Ltd. Branch
===============================
Principal:
Hu Yanwang
Incorporation
date: May 11, 2006
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’s management
declined to release its bank details.
Balance Sheet
Unit: CNY’000
|
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as of Dec. 31, 2012 |
|
Cash & bank |
1,540 |
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Inventory |
5,240 |
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Accounts
receivable |
760 |
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Short-term
investment |
0 |
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Dividends
receivable |
0 |
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Interest
receivable |
0 |
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Subsidies
receivable |
0 |
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Advances to
suppliers |
0 |
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Notes receivable |
0 |
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Other
receivables |
1,130 |
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Prepaid expenses |
30 |
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------------------ |
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Current assets |
8,700 |
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Fixed assets net
value |
20 |
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Long term
investment |
0 |
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Projects under
construction |
0 |
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Intangible
assets |
0 |
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Deferred assets |
0 |
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------------------ |
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Total assets |
8,720 |
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============= |
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Short loans |
0 |
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Notes payable |
0 |
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Accounts payable |
1,030 |
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Advances from
clients |
0 |
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Accrued payroll |
0 |
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Welfares payable |
0 |
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Taxes payable |
70 |
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Other accounts
payable |
5,220 |
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Other payable to
government |
0 |
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Accrued expenses |
0 |
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------------------ |
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Current
liabilities |
6,320 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
6,320 |
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Equities |
2,400 |
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------------------ |
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Total liabilities
& equities |
8,720 |
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|
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2012 |
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Turnover |
35,750 |
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Cost of goods
sold |
33,850 |
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Taxes and
additional of main operation |
30 |
|
Sales expense |
170 |
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Management expense |
1,320 |
|
Finance expense |
290 |
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Profit before
tax |
90 |
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Less: profit tax |
20 |
|
Profits |
70 |
Important
Ratios
=============
|
|
as
of Dec. 31, 2012 |
|
*Current ratio |
1.38 |
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*Quick ratio |
0.55 |
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*Liabilities
to assets |
0.72 |
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*Net profit
margin (%) |
0.20 |
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*Return on
total assets (%) |
0.80 |
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*Inventory
/Turnover ×365 |
54 days |
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*Accounts
receivable/Turnover ×365 |
7 days |
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*Turnover/Total
assets |
4.10 |
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* Cost of
goods sold/Turnover |
0.95 |
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 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 2012.
l
SC’s accounts receivable is average in 2012.
l
SC has no short-term loan in 2012.
l
SC’s turnover is in a fairly good level, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
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. The large amount of inventory
could be a threat to SC’s financial condition. Taking into consideration of
SC’s general performance and operation size, we would rate SC as an above
average credit risk company.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.27 |
|
|
1 |
Rs.82.49 |
|
Euro |
1 |
Rs.69.88 |
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 |
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-- |
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.