MIRA
INFORM REPORT
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Report Date : |
19.02.2014 |
IDENTIFICATION DETAILS
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Name : |
INTERNATIONAL FLAVORS AND FRAGRANCES ( |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
19.03.1990 |
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Com. Reg. No.: |
440108400003504 |
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Legal Form : |
Wholly Foreign-Owned |
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Line of Business : |
Subject is engaged in the manufacturing and processing food additive, natural
perfume material, synthetic perfume, perfumery isolates, various kinds
of aromatic chemicals, essence and seasoner; Selling self-made
products; researching and developing new products; researching, developing,
permitted using and transferring new technology; purchasing, wholesaling,
commission agent, importing and exporting commodities that is similar with
the self-made and R&D product of the company; providing consultation
service of company operation, management and technology; leasing self-owned
real estate. |
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No. of Employees : |
325 |
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 : |
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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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
INTERNATIONAL FLAVORS AND FRAGRANCES (CHINA)
LTD.
NO. 9 JINHUA 2ND
STREET, GANGQIAN INDUSTRIAL DISTRICT
ECONOMIC &
TECHNOLOGY DEVELOPMENT ZONE
GUANGZHOU,
GUANGDONG PROVINCE 510730 PR CHINA
TEL: 86 (0)
20-82219838
FAX: 86 (0)
20-82219828
EXECUTIVE SUMMARY
Date of Registration : MARch 19, 1990
REGISTRATION NO. : 440108400003504
LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE
CHIEF EXECUTIVE :
Eduardo Ⅲ Dagondon Alejandrino (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : USD 89,620,210
staff :
325
BUSINESS CATEGORY : MANUFACTURING & TRADING
Revenue :
CNY 1,045,291,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 637,392,000 (AS OF DEC. 31, 2012)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.06 = 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
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.: 440108400003504 on March 19, 1990.
SC’s Organization Code Certificate No.:
61842269-4
%20LTD%20%20-%20254565%2019-Feb-2014_files/image002.jpg)
SC’s Tax No.: 440101618422694
SC’s Customs Registration No.: 4401240015
SC’s registered capital: USD 89,620,210
SC’s paid-in capital: USD
89,620,210
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Registered Capital |
USD 16,000,000 |
USD 31,950,000 |
|
Legal Representative |
Robert Burns |
Dennis Wall |
|
|
Shareholder (s) (% of Shareholding) |
Aromatics Holdings Limited (Ireland) 100% |
Aromatics Holdings Limited (Ireland) 51% Netherlands Puboya Co. 49% |
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|
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Registered Capital |
USD 31,950,000 |
USD 44,620,210 |
|
Legal Representative |
Dennis Wall |
Gregory Louis Soutendijk |
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Shareholder (s) (% of Shareholding) |
Aromatics Holdings Limited (Ireland) 51% Netherlands Puboya Co. 49% |
Aromatics Holdings Limited (Ireland) 64.91% Netherlands Puboya Co. 35.09% |
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Registration No. |
100315 |
440108400003504 |
|
-- |
Legal Representative |
Gregory Louis Soutendijk |
Eduardo Ⅲ Dagondon
Alejandrino |
|
Registered Capital |
USD 44,620,210 |
USD 89,620,210 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Aromatics Holdings Limited (Ireland) |
64.91 |
|
Netherlands Puboya Co. |
35.09 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Eduardo Ⅲ Dagondon
Alejandrino |
|
General Manager |
Cai Zhiqiang |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Aromatics Holdings Limited (Ireland) 64.91
Netherlands Puboya Co. 35.09
MANAGEMENT
Eduardo Ⅲ Dagondon
Alejandrino, Legal Representative and
Chairman
---------------------------------------------------------------------------------------------
Gender: M
Passport No.: 203310715
Qualification: University
Working experience
(s):
At present, working in SC as legal representative and chairman
Cai Zhiqiang,
General Manager
-----------------------------------------------------
Gender: M
Qualification: University
Working experience
(s):
At present, working in SC as general manager
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing and processing
food additive, natural perfume material, synthetic perfume, perfumery isolates,
various kinds of aromatic chemicals, essence and seasoner; Selling self-made
products; researching and developing new products; researching, developing,
permitted using and transferring new technology; purchasing, wholesaling,
commission agent, importing and exporting commodities that is similar with the
self-made and R&D product of the company; providing consultation service of
company operation, management and technology; leasing self-owned real estate.
SC is mainly engaged in manufacturing and selling various kinds of
flavor and essence.
SC’s products mainly include: fragrance, essence, perfume
SC sources its materials 30% from domestic market, and 70% from the overseas market. SC sells 95% of its products in domestic market and 5% to the overseas market.
The import & export
status of SC in 2012 is as follows,
|
Country |
Amount of Exports (USD) |
Amount of Imports (USD) |
|
Australia |
65,400 |
1,817,600 |
|
Netherlands |
82,700 |
5,113,500 |
|
USA |
23,000 |
13,175,100 |
|
Singapore |
495,200 |
3,285,000 |
|
Japan |
665,100 |
2,407,800 |
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.
Staff &
Office:
--------------------------
SC is known to have approx. 325
staff at present.
SC owns an area as its operating office and factory, but the detailed
information is unknown.
RELATED
COMPANY
International Flavors and Fragrances (China) Ltd. Shanghai Branch
International Flavors and Fragrances (Zhejiang) Ltd.
International Flavors and Fragrances (Hangzhou) Ltd.
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:
Bank of China
AC#: 805001169308091001
***
Note: SC’s management declined to release
whether it has account in Citi
Bank.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
65,380 |
38,572 |
|
|
Notes receivable |
7,860 |
7,000 |
|
Accounts receivable |
324,429 |
286,221 |
|
Advances to suppliers |
1,064 |
775 |
|
Other receivable |
7,730 |
11,537 |
|
Inventory |
146,489 |
135,493 |
|
Deferred expenses |
575 |
358 |
|
Other current assets |
28,500 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
582,027 |
479,956 |
|
Fixed assets |
84,561 |
82,074 |
|
Construction in progress |
207,667 |
449,219 |
|
Intangible assets |
5,574 |
5,375 |
|
Long-term prepaid expenses |
0 |
0 |
|
Deferred income tax assets |
2,306 |
2,868 |
|
Other non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
882,135 |
1,019,492 |
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|
============= |
============= |
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Short-term loans |
0 |
0 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
208,502 |
270,738 |
|
Wages payable |
9,189 |
10,775 |
|
Taxes payable |
211 |
22,351 |
|
Advances from clients |
96 |
0 |
|
Other payable |
59,139 |
74,292 |
|
Other current liabilities |
3,945 |
3,944 |
|
|
------------------ |
------------------ |
|
Current liabilities |
281,082 |
382,100 |
|
Non-current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total liabilities |
281,082 |
382,100 |
|
Equities |
601,053 |
637,392 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
882,135 |
1,019,492 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
Revenue |
1,033,341 |
1,045,291 |
|
Cost of sales |
-- |
653,463 |
|
Sales expense |
-- |
65,474 |
|
Management expense |
-- |
121,861 |
|
Finance expense |
-- |
882 |
|
Profit before tax |
173,073 |
203,546 |
|
Less: profit tax |
41,287 |
50,886 |
|
131,786 |
152,660 |
Important Ratios
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
2.07 |
1.26 |
|
*Quick ratio |
1.55 |
0.90 |
|
*Liabilities to assets |
0.32 |
0.37 |
|
*Net profit margin (%) |
12.75 |
14.60 |
|
*Return on total assets (%) |
14.94 |
14.97 |
|
*Inventory / Revenue ×365 |
52 days |
48 days |
|
*Accounts receivable/ Revenue ×365 |
115 days |
100 days |
|
*Revenue/Total assets |
1.17 |
1.03 |
|
*Cost of sales / Revenue |
-- |
0.63 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
·
The revenue of SC appears fairly good in its line.
·
SC’s net profit margin is fairly good.
·
SC’s return on total assets is fairly good.
·
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: AVERAGE
·
The current ratio of SC is maintained in a normal
level.
·
SC’s quick ratio is maintained in a normal level.
·
The inventory of SC is maintained in an average
level.
·
The accounts receivable of SC appears large.
·
SC has no short-term loans in both years.
·
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: FAIRLY
GOOD
·
The debt ratio of SC is low.
·
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered medium-sized in its line with fairly good 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.62.12 |
|
|
1 |
Rs.103.93 |
|
Euro |
1 |
Rs.85.17 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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 |
|
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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.