MIRA
INFORM REPORT
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Report Date : |
11.05.2013 |
IDENTIFICATION DETAILS
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Name : |
guangzhou panglory chemical CO., LTD. |
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Registered Office : |
Room 905, Yanqiao Mansion,
No. 89, Yanling Road, TIANHE District, Guangzhou,
Guangdong Province, 510507 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
20.04.2009 |
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Com. Reg. No.: |
440106000072618 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is mainly engaged in selling chemical raw materials & products, pesticide & fertilizer. |
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No. of Employees : |
8 |
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 – 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
guangzhou panglory
chemical CO., LTD.
ROOM 905, YANQIAO
MANSION, NO. 89, YANLING ROAD, TIANHE DISTRICT, GUANGZHOU, GUANGDONG province,
510507 PR CHINA
TEL: 86 (0)
20-61030080 FAX: 86 (0)
20-61030087
EXECUTIVE SUMMARY
INCORPORATION DATE : APRIL 20, 2009
REGISTRATION NO. : 440106000072618
REGISTERED LEGAL FORM : Limited
liabilities company
STAFF STRENGTH :
8
REGISTERED CAPITAL : CNY
5,000,000
BUSINESS LINE :
TRADING
TURNOVER : CNY 38,065,000 (AS OF
DEC. 31, 2012)
EQUITIES : CNY 5,013,000 (AS OF DEC. 31, 2012)
PAYMENT : AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : Fairly stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : average
EXCHANGE RATE : CNY 6.14 = 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 co. at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on April 20, 2009.
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 & products, pesticide &
fertilizer, electronic products, computer software & hardware, machinery
equipment, machinery equipment, instruments, hardware, metal materials, daily
necessities, textiles, arts & crafts; R&D and technical service,
transfer & consulting of biotechnology, computer software & hardware;
importing & exporting commodities and technology.
SC is mainly
engaged in selling chemical raw materials & products, pesticide &
fertilizer.
Mr. Peng Ziluo is
legal representative and chairman of SC at present.
SC is known to
have approx. 8 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Guangzhou. Our checks reveal that SC rents the total premise about 100 square meters.
SC is not known to host website of its own at present.
No significant events or changes were found during our checks with local
AIC.
For the past two years there is no record of litigation.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Peng Ziluo 5
Hu Yanwang 60
Huang Zhenhua 30
Liu Ping 5
l
Legal representative and chairman:
Mr. Peng Ziluo is currently responsible for the overall management of
SC.
Working Experience(s):
At present Working in SC as legal
representative and chairman.
SC is mainly engaged
in selling chemical raw materials & products, pesticide & fertilizer.
SC’s products mainly include: chemical raw materials & products,
pesticide & fertilizer, etc.
SC sources its materials 90% from domestic
market, and 10% 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 refused to release its main clients and suppliers.
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.
Bank of China
Guangzhou Yanling Mansion Sub-branch
AC#：691257742744
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2011 |
As of Dec. 31,
2012 |
|
Cash & bank |
720 |
109 |
|
Inventory |
2,140 |
4,894 |
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Bills receivable |
700 |
0 |
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Accounts receivable |
1,580 |
2,643 |
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Other Accounts receivable |
980 |
222 |
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Advances to suppliers |
-200 |
495 |
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Other current assets |
0 |
597 |
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|
------------------ |
------------------ |
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Current assets |
5,920 |
8,960 |
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Fixed assets net value |
440 |
338 |
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Long-term investment |
0 |
0 |
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Intangible and other assets |
20 |
2 |
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------------------ |
------------------ |
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Total assets |
6,380 |
9,300 |
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============= |
============= |
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Short loans |
0 |
0 |
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Accounts payable |
-1,606 |
1,366 |
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Advance from customers |
1 |
250 |
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Other Accounts payable |
2,970 |
3,053 |
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Taxes payable |
25 |
-382 |
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Other current liabilities |
0 |
0 |
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------------------ |
------------------ |
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1,390 |
4,287 |
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Long term liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
1,390 |
4,287 |
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Equities |
4,990 |
5,013 |
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------------------ |
------------------ |
|
6,380 |
9,300 |
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============= |
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
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Turnover |
40,000 |
38,065 |
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Cost of goods sold |
38,070 |
36,564 |
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Taxes and additional of main
operation |
40 |
49 |
|
Sales expense |
890 |
562 |
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Management expense |
860 |
847 |
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Finance expense |
5 |
13 |
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Profit before
tax |
123 |
30 |
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Less: profit tax |
5 |
8 |
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Profits |
118 |
22 |
Important Ratios
=============
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As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
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*Current ratio |
4.26 |
2.09 |
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*Quick ratio |
2.72 |
0.95 |
|
*Liabilities
to assets |
0.22 |
0.46 |
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*Net profit
margin (%) |
0.30 |
0.06 |
|
*Return on
total assets (%) |
1.85 |
0.24 |
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*Inventory
/Turnover ×365 |
20 days |
47 days |
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*Accounts
receivable/Turnover ×365 |
14 days |
25 days |
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*Turnover/Total
assets |
6.27 |
4.09 |
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* Cost of
goods sold/Turnover |
0.95 |
0.96 |
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: AVERAGE
l
The current ratio of SC is maintained in a normal level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears fairly large in 2012.
l
The accounts receivable
of SC is maintained in an average level.
l
SC has no short-term loan in both years.
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 low.
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.54.24 |
|
|
1 |
Rs.84.30 |
|
Euro |
1 |
Rs.71.36 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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.