MIRA
INFORM REPORT
|
Report Date : |
16.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
IPROCHEM CO., LTD. |
|
|
|
|
Registered Office : |
35/F Guomao Business
Mansion, No. 3005 Nanhu Road, Luohu Disterict Shenzhen, Guangdong Province
518001 PR |
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Country : |
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|
|
|
Financials (as on) : |
31.12.2012 |
|
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|
|
Date of Incorporation : |
13.09.2004 |
|
|
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Com. Reg. No.: |
440301103492832 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Engaging in industrial projects; selling chemicals; domestic commerce;
supplying and selling of commodities (excluding the products privileged,
prohibited or franchised); import & export business. |
|
|
|
|
No of Employees : |
69 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
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|
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Payment Behaviour : |
No Complaints |
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|
|
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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 |
|
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, 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
IPROCHEM CO.,
LTD.
35/F GUOMAO
BUSINESS MANSION, NO. 3005 NANHU ROAD, LUOHU DISTERICT
SHENZHEN,
GUANGDONG PROVINCE 518001 PR CHINA
TEL: 86 (0) 755-82353001
FAX: 86 (0)
755-82225900
EXECUTIVE SUMMARY
Date of
Registration :
SEPTEMBER 13, 2004
REGISTRATION
NO. : 440301103492832
LEGAL FORM : LIMITED LIABILITIES
COMPANY
REGISTERED
CAPITAL :
CNY 11,900,000
staff : 69
BUSINESS
CATEGORY :
TRADING
Revenue : CNY
410,380,000 (AS OF DEC. 31, 2012)
EQUITIES : CNY
13,720,000 (AS OF DEC. 31, 2012)
WEBSITE : www.iprochem.com
E-MAIL :
iprochem@iprochem.com
PAYMENT : AVERAGE
MARKET
CONDITION : COMPETITIVE
FINANCIAL
CONDITION : FAIRLY STABLE
OPERATIONAL
TREND :
FAIRLY STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.05 = 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 limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 440301103492832 on September 13, 2004.
SC’s Organization Code Certificate
No.: 76638595-2
SC’s Tax No.: 440301766385952
SC’s registered capital: CNY
11,900,000
SC’s paid-in capital: CNY
11,900,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2007-01-22 |
Registered Capital |
CNY 1,000,000 |
CNY 2,500,000 |
|
2007-02-05 |
Registered Capital |
CNY 2,500,000 |
CNY 4,100,000 |
|
2008-07-14 |
Registered Capital |
CNY 4,100,000 |
CNY 5,600,000 |
|
Registration No. |
4403012153604 |
440301103492832 |
|
|
2008-08-04 |
Registered Capital |
CNY 5,600,000 |
CNY 11,900,000 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Zhu Xianding |
90 |
|
He Fuying |
5 |
|
Yang Zhebin |
5 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Zhu Xianding |
|
Supervisor |
He Fuying |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name % of
Shareholding
Zhu Xianding 90
He Fuying
5
Yang Zhebin 5
MANAGEMENT
Zhu Xianding, Legal
Representative, Chairman and General Manager
-------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 52
Ø
Qualification:
University
Ø
Working
experience (s):
At
present, working in SC as legal representative, chairman and general manager
Also working in Shenzhen Ipro Biotechnology Co., Ltd. as
legal representative
He Fuying, Supervisor
-----------------------------------------
Ø
Gender: F
Ø
Age: 60
BUSINESS
OPERATION
SC’s registered
business scope includes engaging in industrial projects; selling chemicals;
domestic commerce; supplying and selling of commodities (excluding the products
privileged, prohibited or franchised); import & export business.
SC is mainly
engaged in selling pesticide.
Brand: “IPROCHEM”,
“Piggy”, “TIGER”, etc.
SC’s
products mainly include: tricyclazole, tebuconazole, propiconazole, metalaxyl, flutriafol,
difenoconazole, carbendazim, diquat, glufosinate-ammonium, fungicides,
insecticides, herbicide and rodenticide, etc.
SC sources its materials 100%
from domestic market. SC sells 5% of its products in domestic market, and 95% to
overseas market, mainly Europe, U.S.A., and Southeast Asia.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
*Major Customers*
==============
Hanseandina Limitada
Quimicos Y Lubricantoes S.A.
Hellmann Worldwide Logistics
Nederagro S.A.
*Major Suppliers*
==============
Hubei Benxing Agrochemical Co., Ltd.
Shanghai Hujiang Biochemistry Co., Ltd.
Zhejiang Jinfanda Bio-chemical Co., Ltd.
Staff & Office:
--------------------------
SC is known
to have approx. 69 staff at present.
SC owns an area as
its operating office & factory of approx. 1,000 sq. meters at the heading
address.
RELATED
COMPANY
SC is known to invest in
the following companies:
Shanghai
Bofeng International Trade Co., Ltd.
Registration No.: 310115001024081
Legal Representative: Ding Jining
Legal Form: Limited Liabilities Company
Registered Capital: CNY 1,000,000
Date of Registration: July 17, 2007
Tianmen Iprochem Agrochemical
Co., Ltd.
Registration No.: 429006000004893
Legal Representative: Su Sanyang
Legal Form: Limited Liabilities Company
Registered Capital: CNY 10,000,000
Date of Registration: March 24, 2004
Shenzhen
Ipro Xingnong Plant Protection Technology Co., Ltd. (Literal translation)
Registration
No.: 440301105933095
Legal
Representative: Chen Xinjian
Legal Form: Limited Liabilities Company
Registered
Capital: CNY 1,000,000
Date
of Registration: December 30, 2011
Etc.
Related Companies,
Shenzhen
Ipro Biotechnology Co., Ltd. (Literal translation)
Registration
No.: 440301103991624
Legal
Representative: Zhu Xianding
Legal Form: Limited Liabilities Company
Registered
Capital: CNY 1,000,000
Date
of Registration: May 5, 2009
Etc.
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: A trade enquiry currently
conducted with SC's supplier(s) reveal the following:
Supplier
A
Products sold: glyphosate
Date account opened: Since 2005 to present
Line of credit: N/A
Terms: T/T,
30-60 days
Average monthly sales: N/A
Current balance: N/A
Rating Key : 3
Payment
record keys:
1 = Prompt: Payment made before the credit period
expires
2 = As agreed terms: Payment made upon due
date
3 = Slightly slow but acceptable: Payment
made 5 to 20 days beyond agreed terms
4 = Slow: Payment made 16 to 45 days beyond
agreed terms
5 = Poor: Payment made over 45 days beyond
agreed terms
6
= No comment: Account is newly opened & record is not yet established
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 Shenzhen Dongmen Sub-branch
AC#:
810406937008091001
China
Construction Bank Shenzhen Luohu Sub-branch
AC#:
44201507300052508734
FINANCIALS
Balance
Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2009 |
As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
9,300 |
11,190 |
7,960 |
19,930 |
|
|
Notes receivable |
0 |
0 |
0 |
0 |
|
Accounts
receivable |
6,030 |
11,130 |
3,450 |
54,210 |
|
Advances to
suppliers |
77,680 |
55,830 |
62,190 |
21,980 |
|
Other receivable |
21,220 |
46,810 |
27,010 |
35,950 |
|
Inventory |
16,930 |
20,310 |
14,740 |
9,090 |
|
Non-current
assets within one year |
0 |
0 |
0 |
0 |
|
Other current
assets |
10 |
0 |
0 |
-6,000 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
Current assets |
131,170 |
145,270 |
115,350 |
135,160 |
|
Long-term
investments |
6,740 |
6,740 |
7,450 |
12,680 |
|
Fixed assets |
15,130 |
14,280 |
13,510 |
0 |
|
Construction in
progress |
0 |
0 |
0 |
0 |
|
Intangible
assets |
0 |
0 |
0 |
0 |
|
Long-term
prepaid expenses |
0 |
0 |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
0 |
7,950 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
Total assets |
153,040 |
166,290 |
136,310 |
155,790 |
|
|
============= |
============= |
============= |
============= |
|
Short-term loans |
900 |
10,000 |
6,080 |
19,120 |
|
Notes payable |
21,090 |
48,570 |
36,280 |
24,350 |
|
Accounts payable |
9,930 |
2,150 |
2,150 |
2,060 |
|
Wages payable |
110 |
60 |
470 |
450 |
|
Taxes payable |
-2,000 |
-2,530 |
-1,470 |
-810 |
|
Advances from
clients |
78,130 |
59,490 |
42,850 |
52,700 |
|
Other payable |
29,070 |
34,550 |
36,430 |
44,200 |
|
Other current
liabilities |
0 |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
Current
liabilities |
137,230 |
152,290 |
122,790 |
142,070 |
|
Non-current
liabilities |
0 |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
Total
liabilities |
137,230 |
152,290 |
122,790 |
142,070 |
|
Equities |
15,810 |
14,000 |
13,520 |
13,720 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
Total
liabilities & equities |
153,040 |
166,290 |
136,310 |
155,790 |
|
|
============= |
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2009 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
389,700 |
518,020 |
395,080 |
410,380 |
|
Cost of sales |
359,700 |
479,020 |
365,830 |
377,490 |
|
Taxes and surcharges |
10 |
10 |
180 |
110 |
|
Sales expense |
24,820 |
32,200 |
24,520 |
28,660 |
|
Management expense |
1,690 |
2,130 |
2,240 |
2,150 |
|
Finance expense |
2,450 |
2,570 |
1,330 |
880 |
|
Profit before
tax |
1,040 |
2,080 |
1,060 |
1,170 |
|
Less: profit tax |
210 |
570 |
250 |
290 |
|
830 |
1,510 |
810 |
880 |
Important Ratios
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
0.96 |
0.95 |
0.94 |
0.95 |
|
*Quick ratio |
0.83 |
0.82 |
0.82 |
0.89 |
|
*Liabilities
to assets |
0.90 |
0.92 |
0.90 |
0.91 |
|
*Net profit
margin (%) |
0.21 |
0.29 |
0.21 |
0.21 |
|
*Return on
total assets (%) |
0.54 |
0.91 |
0.59 |
0.56 |
|
*Inventory /
Revenue ×365 |
16 days |
15 days |
14 days |
9 days |
|
*Accounts
receivable / Revenue ×365 |
6 days |
8 days |
4 days |
49 days |
|
*Revenue /
Total assets |
2.55 |
3.12 |
2.90 |
2.63 |
|
*Cost of sales
/ Revenue |
0.92 |
0.92 |
0.93 |
0.92 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears
fairly good in its line in four years.
l
SC’s net profit margin is average in four years.
l
SC’s return on total assets is average in four
years.
l
SC’s cost of sales is fairly high, comparing with
its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loans are in an average level.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with
fairly stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 61.58 |
|
|
1 |
Rs. 101.09 |
|
Euro |
1 |
Rs. 83.99 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
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 |
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.