MIRA INFORM REPORT
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Report Date : |
03.07.2014 |
IDENTIFICATION DETAILS
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Name : |
ISKY CHEMICALS
CO., LTD. |
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Registered Office : |
Room 2208 Kimhonda Modern Building, No. 1-479 Furong (M) Road, Kaifu
District, Changsha, Hunan Province 410005 Pr
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
10.07.2000 |
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Com. Reg. No.: |
430100000043591 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
· Engaged in selling of chemical products; import & export and self-agent all kinds of goods and technology, excluding those limited and prohibited; processing with imported materials, processing with imported samples, assembling with imported parts, and compensation trade in agreement; counter trade & transit trade. (with permit if needed) · Subject products ranges includes Zinc Sulphate, Manganese Sulphate and Ferrous Sulphate |
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No of Employees : |
35 (Approximately) |
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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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 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. Debt overhang from its
credit-fueled stimulus program in 2008-10, particularly among local
governments, and soaring property prices challenge policy makers currently.
Their efforts to cool a red-hot property market in 2011 appear to have curbed
inflation, but contributed to slower GDP growth in 2012 and 2013. Slow recovery
in Europe and other key export markets have also retarded growth. 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 fixed investments and exports in the future.
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
ISKY
CHEMICALS CO., LTD.
(trade name: QUEENZRICK INTL LIMITED)
ROOM 2208 KIMHONDA MODERN BUILDING, NO.
1-479 FURONG (M) ROAD
KAIFU DISTRICT, CHANGSHA, HUNAN PROVINCE
410005 PR CHINA
TEL: 86 (0) 731-84411500/84411500*802
FAX: 86 (0) 731-84411519
***Note: SC’s name
should be the above stated one, Queenzrick Intl Limited (the given name) is
SC’s related company registered in overseas, and however, SC always uses this
name as its trade name.
EXECUTIVE
SUMMARY
Date of Registration : july 10, 2000
REGISTRATION NO. : 430100000043591
LEGAL FORM : Limited Liability Company
CHIEF EXECUTIVE : kong ye (LEGAL
REPRESENTATIVE)
REGISTERED CAPITAL :
CNY 10,000,000
staff : 35
BUSINESS CATEGORY :
TRADING
Revenue :
CNY 234,860,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 9,030,000 (AS OF DEC. 31, 2013)
WEBSITE : www.iskychem.cn
E-MAIL :
marketing@iskychem.com & cli@iskychem.com
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.21 = 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 limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 430100000043591 on July 10,
2000.
SC’s Organization Code Certificate
No.: 71708344-8
SC’s registered capital: CNY 10,000,000
SC’s paid-in capital: CNY 10,000,000
Registration Change Record:-
No significant changes of SC have
been noted in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Hu Delin |
70 |
|
Hu Mengling |
27 |
|
Kong Ye |
2.5 |
|
Wang Chunyuan |
0.5 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Kong
Ye |
|
Supervisor |
Zeng Jin’e |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name
%
of Shareholding
Hu Delin 70
Hu Mengling 27
Kong Ye 2.5
Wang Chunyuan 0.5
MANAGEMENT
Kong
Ye, Legal
Representative, Chairman and General Manager
--------------------------------------------------------------------------------------------
Ø
Gender: M
Ø Qualification: University
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman and general manager
Also as supervisor of ISKY (Xiangtan) Bio-Chem Technology Co., Ltd.
Zeng
Jin’e , Supervisor
-----------------------------------------
Ø Gender: F
BUSINESS OPERATION
SC’s registered business scope includes selling of chemical products; import
& export and self-agent all kinds of goods and technology, excluding those
limited and prohibited; processing with imported materials, processing
with imported samples, assembling with imported parts, and compensation trade
in agreement; counter trade & transit
trade. (with permit if needed)
SC is mainly
engaged in selling various kinds of chemical products.
SC’s
products mainly include: zinc sulphate, manganese sulphate and ferrous
sulphate
SC sources its products 85% from domestic
market and 15% from overseas market. SC sells 50% of its products in domestic
market, and 50% to overseas market.
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.
*Major Customers:
==============
Brenntag Pacific
Inc.
Connell Brothers
Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 35
staff at present.
SC rents an area
as its operating office, but the detailed information is unknown.
RELATED COMPANY
n
ISKY (Xiangtan) Bio-Chem
Technology Co., Ltd.
n
Queenzrick Intl Limited
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
The bank
information of SC is not filed in SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
11,170 |
11,830 |
|
|
Notes receivable |
1,000 |
5,620 |
|
Accounts
receivable |
23,810 |
19,730 |
|
Advances to
suppliers |
0 |
0 |
|
Other receivable |
3,710 |
1,820 |
|
Inventory |
12,060 |
22,180 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
50 |
30 |
|
|
------------------ |
------------------ |
|
Current assets |
51,800 |
61,210 |
|
Fixed assets |
360 |
300 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
210 |
210 |
|
|
------------------ |
------------------ |
|
Total assets |
52,370 |
61,720 |
|
|
============= |
============= |
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Short-term loans |
5,000 |
9,380 |
|
Notes payable |
29,160 |
35,850 |
|
Accounts payable |
-10,070 |
940 |
|
Taxes payable |
270 |
190 |
|
Advances from
clients |
0 |
2,360 |
|
Other payable |
21,510 |
3,960 |
|
Other current
liabilities |
0 |
10 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
45,870 |
52,690 |
|
Non-current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
45,870 |
52,690 |
|
Equities |
6,500 |
9,030 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
52,370 |
61,720 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
|
Revenue |
234,860 |
|
Cost of sales |
206,210 |
|
Taxes and surcharges |
100 |
|
Sales expense |
22,610 |
|
Management expense |
3,300 |
|
Finance expense |
150 |
|
Non-operating
income |
170 |
|
Non-operating expense |
90 |
|
Profit before
tax |
2,570 |
|
Less: profit tax |
0 |
|
2,570 |
Important Ratios
=============
|
|
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
1.13 |
1.16 |
|
*Quick ratio |
0.87 |
0.74 |
|
*Liabilities
to assets |
0.88 |
0.85 |
|
*Net profit
margin (%) |
-- |
1.09 |
|
*Return on
total assets (%) |
-- |
4.16 |
|
*Inventory /
Revenue ×365 |
-- |
35 days |
|
*Accounts
receivable/ Revenue ×365 |
-- |
31 days |
|
*Revenue/Total
assets |
-- |
3.81 |
|
*Cost of sales
/ Revenue |
-- |
0.88 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The revenue 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 average, comparing with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a fair level in
2013.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
The short-term loans of SC appear average.
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 small-sized in its line with
fairly stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.97 |
|
UK Pound |
1 |
Rs.102.89 |
|
Euro |
1 |
Rs.82.02 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
|
|
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Report Prepared
by : |
MNL |
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 |
|
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.