MIRA INFORM REPORT
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Report Date : |
14.10.2013 |
IDENTIFICATION DETAILS
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Name : |
ACETO (SHANGHAI) LTD. |
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Formerly Known As : |
Aceto Pharmaceutical (Shanghai) Ltd |
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Registered Office : |
Room 908, No. 1701, Beijing West Road, Shanghai 200040 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
18.02.2003 |
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Com. Reg. No.: |
310115400117446 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
exporter of chemical products |
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No. of Employees : |
25 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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
|
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 & address
ACETO (SHANGHAI)
LTD.
ROOM 908, NO. 1701, BEIJING WEST ROAD, SHANGHAI 200040 PR CHINA
TEL: 86 (0) 21-62880099
FAX: 86 (0) 21-62884488
***Note: The
provide company name (Aceto Pharmaceutical (Shanghai) Ltd.) was SC’s former
one.
EXECUTIVE SUMMARY
Date of Registration : FEBRUARY 18, 2003
REGISTRATION NO. : 310115400117446
LEGAL FORM : WHOLLY
FOREIGN-OWNED ENTERPRISE
CHIEF EXECUTIVE : GARY J. MO (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL :
USD
400,000
staff : 25
BUSINESS CATEGORY :
TRADING
Sale :
CNY 651,350,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 135,430,000 (AS OF DEC. 31, 2012)
WEBSITE : www.aceto.com
E-MAIL :
acetosh@sh.aceto.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.14 = USD 1
Adopted
abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
LEGAL
STATUS & HISTORY
SC was
established as a wholly foreign-owned enterprise of PRC with
State Administration of Industry & Commerce (SAIC) under registration No.: 310115400117446
on February 18, 2003.
SC’s Organization Code Certificate
No.: 74727631-2
%20LTD%20%20-%20239423%2014-Oct-2013_files/image008.jpg)
SC’s registered capital: USD 400,000
SC’s paid-in capital: USD 400,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before the change |
After the change |
|
-- |
Company Name |
Aceto Pharmaceutical (Shanghai) Ltd. |
Aceto (Shanghai) Ltd. |
|
Registration No. |
314111 |
310115400117446 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Aceto Corporation (U.S.A.) |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Gary
J. Mo |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name
%
of Shareholding
%20LTD%20%20-%20239423%2014-Oct-2013_files/image007.gif){kind=small}
Aceto
Corporation (U.S.A.) 100
--------------------------------------
Aceto Corporation, founded in 1947, is a
global leader in the marketing and distribution of pharmaceutical intermediates
and active ingredients, finished dosage form generics, nutraceutical products,
agricultural protection products and specialty chemicals.
Phone: 516-627-6000
Website: www.aceto.com
E-mail: aceto@aceto.com
MANAGEMENT
Gary
J. Mo, Legal
Representative, Chairman and General Manager
---------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 40’s
Ø
Nationality: Canada
Ø Qualification:
University
Ø Working experience
(s):
At present, working
in SC as legal representative and chairman
Also working in Aceto Pharmaceutical (Shanghai) Ltd.
Branch as principal
BUSINESS
OPERATION
SC’s registered business scope includes
international trade; transit
trade; trade with the enterprises within the free trade zone and trade agency;
operating business with enterprises within free trade zone by the enterprises
which have right of import & export; importing & exporting commodities
and technology; simple commercial processing; commercial consulting services.
SC is
mainly engaged in exporting chemical products.
SC’s
products mainly include: various chemical products.
SC sources its materials 100% from domestic market. SC sells 100% of its products to overseas market, mainly European and American countries.
The buying terms of SC include Check, T/T and Credit of
30-60 days. The payment terms of SC include L/C, T/T and Credit of 30-60 days.
*Major Customers:
==============
Dana Classic
Fragrances Inc.
Aceto Corp
Golden Mountain
Trading Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 25
staff at present.
SC rents an area
as its operating office of approx. 200 sq. meters at the heading address.
RELATED
COMPANY
n
Aceto Fine Chem GmbH (Hamburg)
n
Aceto France S.A.S.
n
Aceto Health Ingredients GmbH (Hamburg)
n
Aceto Netherlands
n
Aceto Pharma GmbH (Hamburg)
n
Aceto Pharma (India) Private Limited
SC is known to have a
branch at present,
n
Aceto Pharmaceutical (Shanghai) Ltd. Branch
---------------------------------------------------------------------------
Date of Registration: September 20, 2006
Registration No.: 310115500056932
Legal Form: Branch Company
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
Basic Bank:
China Merchants
Bank
AC#: N/a
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
9,220 |
12,170 |
20,650 |
|
|
Notes receivable |
0 |
0 |
0 |
|
Accounts
receivable |
190,550 |
213,520 |
191,980 |
|
Advances to suppliers |
640 |
3,700 |
10 |
|
Other receivable |
0 |
0 |
0 |
|
Inventory |
0 |
0 |
0 |
|
Deferred
expenses |
20 |
70 |
0 |
|
Other current
assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
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Current assets |
200,430 |
229,460 |
212,640 |
|
Fixed assets |
300 |
260 |
430 |
|
Construction in
progress |
0 |
0 |
0 |
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Intangible
assets |
0 |
90 |
70 |
|
Long-term
prepaid expenses |
120 |
0 |
0 |
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Deferred income
tax assets |
0 |
0 |
0 |
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Other
non-current assets |
0 |
0 |
0 |
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------------------ |
------------------ |
------------------ |
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Total assets |
200,850 |
229,810 |
213,140 |
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============= |
============= |
============= |
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Short-term loans |
0 |
0 |
0 |
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Notes payable |
1,180 |
2,310 |
1,310 |
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Accounts payable |
71,670 |
93,750 |
75,330 |
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Wages payable |
1,110 |
890 |
0 |
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Taxes payable |
700 |
830 |
310 |
|
Advances from
clients |
0 |
0 |
0 |
|
Other payable |
420 |
2,960 |
560 |
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Other current
liabilities |
180 |
310 |
200 |
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------------------ |
------------------ |
------------------ |
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Current
liabilities |
75,260 |
101,050 |
77,710 |
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Non-current
liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
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Total
liabilities |
75,260 |
101,050 |
77,710 |
|
Equities |
125,590 |
128,760 |
135,430 |
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------------------ |
------------------ |
------------------ |
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Total
liabilities & equities |
200,850 |
229,810 |
213,140 |
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============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Sale |
725,030 |
619,100 |
651,350 |
|
Cost of sales |
702,410 |
599,250 |
629,980 |
|
Sales expense |
140 |
440 |
70 |
|
Management expense |
9,950 |
10,260 |
12,010 |
|
Finance expense |
3,890 |
4,910 |
360 |
|
Profit before
tax |
10,000 |
4,240 |
9,050 |
|
Less: profit tax |
2,270 |
1,070 |
2,380 |
|
7,730 |
3,170 |
6,670 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
2.66 |
2.27 |
2.74 |
|
*Quick ratio |
2.66 |
2.27 |
2.74 |
|
*Liabilities
to assets |
0.37 |
0.44 |
0.36 |
|
*Net profit
margin (%) |
1.07 |
0.51 |
1.02 |
|
*Return on
total assets (%) |
3.85 |
1.38 |
3.13 |
|
*Inventory /
Sale ×365 |
-- |
-- |
-- |
|
*Accounts
receivable/ Sale ×365 |
96 days |
126 days |
108 days |
|
* Sale/Total
assets |
3.61 |
2.69 |
3.06 |
|
* Cost of
sales / Sale |
0.97 |
0.97 |
0.97 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The sale of SC appears fairly good 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 sales is fairly high, comparing with
its sale.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a fairly
good level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
SC has no inventory in three years.
l
The accounts receivable of SC appears large.
l
SC has no short-term loans in three years.
l
SC’s sale is in an
average 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.
CONCLUSIONS
SC is considered small-sized in its line with
fairly stable financial conditions. The large amount of accounts receivable may
be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.16 |
|
UK Pound |
1 |
Rs.97.77 |
|
Euro |
1 |
Rs.82.78 |
INFORMATION DETAILS
|
Report
Prepared by : |
MNL |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.