MIRA
INFORM REPORT
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Report Date : |
29.01.2014 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI AGROTREE CHEMICAL CO., LTD. |
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Registered Office : |
Room B515, Building 3, No. 2250 Pudong South Road, Pudong New
District, Shanghai City, 200120 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
09.07.2009 |
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Com. Reg. No.: |
310115001138440 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in selling chemical products. |
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No. of Employees : |
13 |
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 : |
Moderate |
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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 – September 30, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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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.
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Source
: CIA |
Company name & address
SHANGHAI AGROTREE CHEMICAL CO., LTD.
ROOM b515, building 3, no. 2250 pudong south
Road,
pudong new district, shanghai city, 200120 PR
CHINA
TEL: 86 (0) 21-58401962
FAX: 86 (0) 21-58772351
EXECUTIVE SUMMARY
INCORPORATION DATE : july 9, 2009
REGISTRATION NO. : 310115001138440
REGISTERED LEGAL FORM : Limited
liabilities co.
CHIEF EXECUTIVE :
Mr. Chen yun (legal
representative)
STAFF STRENGTH :
13
REGISTERED CAPITAL : CNY 1,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 110,200,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 1,260,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.0483 = 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
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 July 9, 2009.
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 products and
raw materials (with permit), agricultural machinery; importing and
exporting commodities and technologies, technology
development, technical transformation, technology consultation and technical
service in the field of biological technology (with permit if needed).
SC is mainly engaged in selling chemical products.
Mr. Chen Yun has been legal representative, chairman and general manager
of SC since 2009.
SC is known to have approx. 13 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 premise.
http://www.agrotree.com/ The design is professional and the content is
well organized. At present it is in Chinese and English versions.
E-mail: info@agrotree.com
For the past two years there is no record of litigation.
No significant changes were found during our
checks with the local Administration for Industry and Commerce.
Subject passed the annual inspection of 2012 with Administration for
Industry & Commerce.
Organization Code: 691599031
MAIN SHAREHOLDERS:
Name %
of Shareholding
Chen Yun 5
Li Kaihui 95
Legal Representative, Chairman & General Manager:
Mr. Chen Yun, born in 1980, with university education. He is currently
responsible for the overall management of SC.
Working
Experience(s):
From 2009 to present Working
in SC as chairman, legal representative and general manager
SC is mainly engaged in selling chemical products.
SC’s products mainly include: pesticide (insecticides, herbicides, plant
growth regulators, fungicides, rodenticide, fertilizer, chemicals and pesticide
intermediates) and pharmaceutical (pharmaceutical APIs and pharmaceutical
intermediate)
SC sources its materials 100% from domestic market. SC sells 15% of its
products in domestic market and 85% to overseas market, mainly India and Pakistan.
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.
Note: SC declined to release its major suppliers and clients.
Dream Chemical Co., Limited (Hong Kong)
===============================
CR No.: 1307736
Registered Legal Form: Private
Active Status: Live
Incorporation Date: Feb. 19, 2009
Its former name was Agrotree International Corporation Limited
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.
Industrial & Commercial Bank of China Shanghai Pudong Avenue
Sub-branch
AC#: 1001181309006809955
Relationship: Normal.
Balance
Sheet
Unit: CNY’000
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As
of Dec. 31, 2013 |
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Cash & bank |
6,550 |
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Inventory |
0 |
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Accounts receivable |
6,170 |
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Advances to suppliers |
4,630 |
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Other receivables |
1,470 |
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------------------ |
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Current assets |
18,820 |
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Fixed assets net value |
50 |
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Total assets |
18,870 |
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=========== |
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Short loan |
2,000 |
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Accounts payable |
3,830 |
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Advances from customers |
5,010 |
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Taxes payable |
10 |
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Other accounts payable |
6,760 |
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Current liabilities |
17,610 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
17,610 |
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Equities |
1,260 |
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------------------ |
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Total liabilities & equities |
18,870 |
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Income
Statement
Unit: CNY’000
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As
of Dec. 31, 2013 |
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Turnover |
110,200 |
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Cost of goods sold |
104,750 |
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Taxes and additional of
main operation |
10 |
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Sales expense |
1,970 |
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Management expense |
1,680 |
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Finance expense |
1,770 |
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Subsidy income |
10 |
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Profit before tax |
30 |
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Less: profit tax |
10 |
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Profits |
20 |
Important
Ratios
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As
of Dec. 31, 2013 |
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*Current ratio |
1.07 |
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*Quick ratio |
1.07 |
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*Liabilities to assets |
0.93 |
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*Net profit margin (%) |
0.02 |
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*Return on total assets (%) |
0.11 |
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*Inventory /Turnover ×365 |
/ |
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*Accounts receivable/Turnover ×365 |
21 days |
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*Turnover/Total assets |
5.84 |
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* Cost of goods sold/Turnover |
0.951 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears
fairly good in its line.
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SC’s net profit margin is average.
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SC’s return on total assets is average.
·
SC’s cost of goods sold is fairly high, comparing
with its turnover.
LIQUIDITY: AVERAGE
·
The current ratio of SC is maintained in a normal
level.
·
SC’s quick ratio is maintained in a normal level.
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SC has no inventory in 2013.
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The accounts receivable of SC is average.
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SC’s short loans are fairly large in 2013.
·
SC’s turnover is in a good level, comparing with
the size of its total assets.
LEVERAGE: FAIR
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The debt ratio of SC is high.
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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 fairly stable financial
conditions. The large amount of short loans could be a threat to SC’s financial
situation.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.99 |
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|
1 |
Rs.104.61 |
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Euro |
1 |
Rs.86.17 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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.