MIRA INFORM REPORT
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Report Date : |
15.05.2013 |
IDENTIFICATION DETAILS
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Name : |
BRIGHT MART AGROCHEMICALS LTD. |
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Registered Office : |
Block C, 10/F, Finance Square, 5th Jihua Road, Chancheng
District, Foshan City, Guangdong Province, 528000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
04.12.2003 |
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Com. Reg. No.: |
440602000057001 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is
mainly engaged in international trade included pesticide, preparations, etc. |
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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 : |
Small Company |
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Payment Behaviour : |
Unknown |
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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
BRIGHT
MART AGROCHEMICALS LTD.
BLOCK C, 10/F, FINANCE SQUARE, 5th JIHUA
ROAD, CHANCHENG DISTRICT, FOSHAN CITY, GUANGDONG PROVINCE, 528000 PR CHINA
TEL: 86 (0) 13923136885/13802626252 FAX: N/A
EXECUTIVE SUMMARY
INCORPORATION DATE :
DECEMBER 4, 2003
REGISTRATION NO. : 440602000057001
REGISTERED LEGAL FORM :
LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 8
REGISTERED CAPITAL : CNY 800,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 3,692,000 (AS OF DEC. 31, 2010)
EQUITIES :
CNY 1,189,000
(AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.1459 =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 Ren Min Bi
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 December 4, 2003.
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 pesticide (except dangerous chemicals); agricultural machinery, agricultural and sideline products; goods and technology import and export (except the forbid ones, with permit if needed).
SC is mainly engaged in international trade.
Ms. Ye Lihong has been chairman & legal representative of SC since 2003.
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 Foshan. Our checks reveal that SC rents the total premise about 40 square meters.
SC is not known to have website of its own at present.
E-mail: Kenny.yang@brightmart.com.cn
Changes
of its registered information:
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Date of change |
Item |
Before the change |
After the change |
|
2008-6 |
Registration No. |
4406012003296 |
Present one |
For the past two years there is no record of litigation
MAIN
SHAREHOLDERS:
Name
% of shareholdings
Yang Jianfen 40
Ye Lihong 60
l Chairman &
Legal Representative:
Ms. Ye Lihong, ID#: 440601590515062, born in
1959. She is currently responsible for the overall management of SC
Working Experience(s):
From 2003 to present Working in SC as chairman
& legal
representative
l Supervisor:
Yang Jianfen
SC is mainly engaged
in international trade.
SC’s products
mainly include: pesticide, preparations, etc.
SC sources its materials 80% from domestic
market, and 20% from overseas market. SC sells 95% of its products in domestic
market, and 5% to overseas 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, L/C and Credit of 30-60 days.
Note:
SC’s management refused to release its main suppliers and clients.
SC is jointly occupying the heading premise with the following company:
Bright Mart CropScience Co., Ltd.
============================
Registration number: 440684000000974
Legal form: Limited Liabilities Company
Legal representative: Ye Yuping
Registered capital: CNY 10,000,000
Web site: www.brightmart.com.cn
Tel: 86-757-83032178/83032179
Fax: 86-757-83032171
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 bank information is not found in local AIC.
Financial Summary
Unit: CNY’000
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As of Dec. 31, 2010 |
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Equity |
1,189 |
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Total liabilities |
4,013 |
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------------ |
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Total assets |
5,202 |
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========= |
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Turnover |
3,692 |
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Profit before tax |
149 |
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Profits |
112 |
Note: we did not find SC’s detailed
financial reports for Yr2010. SC’s management also declined to release latest
financial information.
Important
Ratios
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As
of Dec. 31, 2010 |
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*Liabilities
to assets |
0.77 |
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*Net profit
margin (%) |
3.03 |
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*Return on
total assets (%) |
2.15 |
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*Turnover/Total
assets |
0.71 |
PROFITABILITY: AVERAGE
l The turnover of SC
appears average in its line.
l SC’s net profit
margin appears average in 2010.
l SC’s return on
total assets appears average in 2010.
l
SC’s turnover is in a fair level in 2010, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high in 2010.
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 10 years operation
history. Taking into consideration of SC’s background and operation size we
would rate SC as an above average credit risk company.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.54.63 |
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1 |
Rs.83.67 |
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Euro |
1 |
Rs.71.02 |
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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 |
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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.