MIRA
INFORM REPORT
|
Report Date : |
06.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
SHANGHAI MG CHEMICAL CO.,
LTD. |
|
|
|
|
Registered Office : |
Room 715, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
17.05.2007 |
|
|
|
|
Com. Reg. No.: |
310112000746246 |
|
|
|
|
Legal Form : |
Limited
Liabilities Company |
|
|
|
|
Line of Business : |
Subject is engaged in selling chemical products. |
|
|
|
|
No. of Employees : |
4 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow |
|
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 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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, growth of the
private sector, development of stock markets and a modern banking system, 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 considered important to "economic
security," explicitly looking to foster globally competitive industries.
After keeping its currency tightly linked to the US dollar for years, in July
2005 China 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 and
expanded the daily trading band within which the RMB is permitted to fluctuate.
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 2013 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
consumption; (b) facilitating higher-wage job opportunities for the aspiring
middle class, including rural migrants and increasing numbers of college
graduates; (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. Several factors are
converging to slow China's growth, including debt overhang from its
credit-fueled stimulus program, industrial overcapacity, inefficient allocation
of capital by state-owned banks, and the slow recovery of China's trading
partners. The government's 12th Five-Year Plan, adopted in March 2011 and
reiterated at the Communist Party's "Third Plenum" meeting in
November 2013, emphasizes continued economic reforms and the need to increase
domestic consumption in order to make the economy less dependent in the future
on fixed investments, exports, and heavy industry. However, China has made only
marginal progress toward these rebalancing goals. The new government of
President XI Jinping has signaled a greater willingness to undertake reforms
that focus on China's long-term economic health, including giving the market a
more decisive role in allocating resources.
|
Source
: CIA |
COMPANY NAME & ADDRESS
SHANGHAI MG CHEMICAL CO., LTD.
ROOM 715, HONGMEI BUSINESS CENTER,
NO. 8075, HUMIN ROAD, SHANGHAI 200233 PR CHINA
TEL: 86 (0) 21-61285498/ 13967525531
FAX: 86 (0) 21-61285499
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 17, 2007
REGISTRATION NO. : 310112000746246
REGISTERED LEGAL FORM : LIMITED
LIABILITIES CO.
CHIEF EXECUTIVE :
MR. TAN MINGMING (CHAIRMAN)
STAFF STRENGTH :
4
REGISTERED CAPITAL : CNY 500,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 44,110,000 (UNAUDITED, AS OF
DEC. 31, 2013)
EQUITIES :
CNY -380,000 (UNAUDITED, AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.0505= 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
Note: The given name (River international Limited) belongs to SC’s
related company registered in Hong Kong, and SC also uses it as a trading name.
SC is operating in the heading address instead of the given one (Room
719 Hongmei Business Centre, No. 8075 Humin Road, Shanghai).
SC also uses Tansta Co., Ltd. as a trading name.
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 May 17, 2007.
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
and products (excluding hazardous chemicals), plastic products, textiles and
textile raw materials, arts & crafts, hardware products, building materials,
machinery equipment, electronic products, instruments, metal materials and
products; importing and exporting commodities and technologies; technical
development, technical advisory, technical service, technical transfer in the
chemical technology field; investment advisory; enterprise management advisory;
business consulting (the consulting projects excluding broking); conference
service; exhibition service (excluding display and sale); graphic design (with
permit if needed).
SC is mainly engaged in selling chemical products.
Mr. Tan Mingming is legal representative, chairman and general manager
of SC at present.
SC is known to have approx. 4 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 46 square meters.
http://www.mgchemical.com.cn/
The design is professional and the content is well organized. At present the
web site is in Chinese and English versions.
E-mail: mgchem@mgchemical.com.cn ; tan_ming_ming@hotmail.com
; tmmruntu@gmail.com
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Registration no. |
3101122117313 |
Present one |
Subject passed the annual
inspection of 2012 with Administration for Industry & Commerce.
Organization Code: 662446562
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name
% of Shareholding
Tan Mingming 80
Tan Guigui 20
Legal
representative, chairman and general manager:
Mr. Tan Mingming (谭明明), with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative, chairman and general manager.
Also working in Shanghai Juliu Chemical Co., Ltd. (in Chinese Pinyin) as
legal representative.
Supervisor:
-----------------------
Tan Guigui
Note: the given contact Person (Mr. Harry) is confirmed to be working in
SC at present.
SC is mainly engaged in selling chemical products.
SC’s products mainly include Disperse Dyes, High Fastness Disp Dyes,
Reactive Dyes, Efficient Water Reducer, Sodium hydrosulfite
SC sources its materials 99% from domestic market, and 1% from overseas market.
SC sells 10% of its products in domestic market, and 90% to overseas market,
mainly India.
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.
Customers:
Ravi Dyeware Co., Ltd. (India)
Tel: 0091-42128000
Add: G-12, M.I.D.C., Taloja, Dist-Raigad, India
Note: SC declined
to release its major suppliers.
Shanghai Juliu Chemical Co., Ltd. (in Chinese Pinyin)
======================================
Incorporation date:
Registration no.: 310104000555512
Registered capital: CNY 3,000,000
Legal rep.: Tan Mingming 谭明明
Legal form: Limited liabilities co.
Tel.: 86 (0) 21 33194250
Add: Room 719, Hongmei Business Center, No. 8075, Humin Road, Shanghai
River International Limited (Hong Kong)
==============================
Incorporation date:
Registration no.: 1936550
Legal form: Private
Status: Live
Jiangsu Mingsheng Chemical Co., Ltd.
===========================
Incorporation Date :
September 23, 2005
Registration No. : 320723000011264
Registered Legal Form : Limited
Liabilities Company
Chief Executive : Mr.
Ruan Jiachun (Chairman)
Registered Capital : CNY
270,000,000
Add: Yanweigang Chemical Industrial Park, Guanyun County, Lianyungang,
Jiangsu Province
Tel: 86 (0) 518-88585858/88585999
Fax: 86 (0) 518-88585008
According to SC’s website:
Zhejiang Runtu Co., Ltd.
==================
The said company is a listed company in Shenzhen Stock Exchange Market
with the code of 002440.
Registration no.: 330000000043601
Registered capital: CNY 767,000,000
Legal rep.: Ruan Jiagen 阮加根
Legal form: Shares limited co.
Tel: 0575-82519278
Fax: 0575-82045165
E-mail: runtu@runtuchem.com
Add: Runtu Building, Fortune Plaza 1, No. 1009 Shimin Road, Shangyu,
Zhejiang Province
SC is known to have the following branch:
Shanghai MG Chemical Co., Ltd. Branch
==============================
Incorporation date:
Registration no.: 310104000384085
Principal: Tan Guigui 谭规规
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.
China Construction Bank Shanghai Xuhui Sub-branch
AC#: N/A
Relationship: Normal.
Note: according to SC’s legal rep. Mr. Tan Mingming, the given bank is SC’s
offshore account.
State Bank of India Shanghai Branch
Tel: 86-21-54043331
Add: Room 4206, K. Wah Centre, No. 1010, Huaihai Middle Road, Shanghai
P.R.C.
AC#: N/A
Relationship: Normal.
Balance
Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2012 |
as of Dec. 31, 2013 |
|
Cash & bank |
1,610 |
450 |
|
Inventory |
8,730 |
11,230 |
|
Accounts receivable |
10,360 |
10,100 |
|
Advances to suppliers |
0 |
0 |
|
Other receivables |
-670 |
-290 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
20,030 |
21,490 |
|
Long-term investments |
0 |
0 |
|
Fixed assets net value |
550 |
800 |
|
Projects under construction |
0 |
0 |
|
Intangible assets |
0 |
0 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
20,580 |
22,290 |
|
|
============= |
============= |
|
Short loans |
0 |
0 |
|
Notes payable |
0 |
2,360 |
|
Accounts payable |
1,710 |
8,370 |
|
Advances from customers |
0 |
0 |
|
Accrued payroll |
0 |
0 |
|
Taxes payable |
-380 |
-460 |
|
Other accounts payable |
19,010 |
12,400 |
|
Other current liabilities |
0 |
0 |
|
|
----------------- |
----------------- |
|
Current liabilities |
20,340 |
22,670 |
|
Long term liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total liabilities |
20,340 |
22,670 |
|
Shareholders equities |
240 |
-380 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
20,580 |
22,290 |
|
|
============= |
============= |
Income
Statement
Unit: CNY’000
|
|
as of Dec. 31, 2013 |
|
Turnover |
44,110 |
|
Cost of goods sold |
42,160 |
|
Taxes and additional of main operation |
0 |
|
Sales expense |
1,170 |
|
Management expense |
660 |
|
Finance expense |
740 |
|
Non-operating income |
0 |
|
Non-operating expense |
0 |
|
Profit before tax |
-620 |
|
Less: profit tax |
0 |
|
Net profit |
-620 |
Note: The Financial Report for Year 2013 hasn’t been audited.
Important
Ratios
=============
|
|
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
0.98 |
0.95 |
|
*Quick ratio |
0.56 |
0.45 |
|
*Liabilities to assets |
0.99 |
1.02 |
|
*Net profit margin (%) |
/ |
-1.41 |
|
*Return on total assets (%) |
/ |
-2.78 |
|
*Inventory /Turnover ×365 |
/ |
93 days |
|
*Accounts receivable/Turnover ×365 |
/ |
86 days |
|
*Turnover/Total assets |
/ |
1.98 |
|
* Cost of goods sold/Turnover |
/ |
0.96 |
PROFITABILITY:
FAIR
The turnover of SC appears average in its line in 2013.
SC’s net profit margin is fair in 2013.
SC’s return on total assets is fair in 2013.
SC’s cost of goods sold is high in 2013, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level in both two years.
SC’s quick ratio is maintained in a fair level in both two years.
The inventory of SC appears fairly large in both two years.
The accounts receivable of SC appears fairly large in both two years.
SC has no short-term loan in 2012 and 2013.
SC’s turnover is in an average level in 2013, comparing with the size of
its total assets.
LEVERAGE: POOR
The debt ratio of SC is high in 2012, but too high in 2013.
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fair.
SC is considered small-sized in its line with fair financial conditions.
The large amount of inventory and accounts receivable could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.87 |
|
|
1 |
Rs.102.67 |
|
Euro |
1 |
Rs.81.70 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
TPT |
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.