MIRA
INFORM REPORT
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Report Date : |
21.06.2014 |
IDENTIFICATION DETAILS
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Name : |
ADITYA BIRLA GRASUN CHEMICALS (FANGCHENGGANG) LTD. |
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Registered Office : |
Taohuawan (Shibantian), Gangkou District Fangchenggang, Guangxi 538001 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
28.05.2007 |
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Com. Reg. No.: |
450600400000672 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Subject is engaged in the manufacturing and selling phosphoric acid
and related products, and providing related services. |
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No. of Employees : |
92 |
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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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately 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, 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 and address
ADITYA BIRLA GRASUN CHEMICALS
(FANGCHENGGANG) LTD.
TAOHUAWAN (SHIBANTIAN), GANGKOU DISTRICT
FANGCHENGGANG, GUANGXI 538001 PR CHINA
TEL: 86 (0) 770-2863132/2863137
FAX: 86 (0) 770-2863132/2863083
EXECUTIVE SUMMARY
Date of Registration : MAY 28, 2007
REGISTRATION NO. : 450600400000672
LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE :
K.K.MAHESHWARI (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 40,000,000
staff :
92
BUSINESS CATEGORY : manufacturing & TRADING
REVENUE :
CNY 83,841,000 (JAN. 1, 2013 TO JUN. 30, 2013)
EQUITIES :
CNY 39,513,000 (AS OF JUN. 30, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.23 = 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 Chinese-foreign equity joint venture enterprise
of PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 450600400000672 on May 28, 2007.
SC’s Organization Code Certificate No.:
78524020-6
%20LTD%20%20-%20272651%2021-Jun-2014_files/image003.jpg)
SC’s Tax No.: 450600785240206
SC’ Customs Registration No.: 4512936431
SC’s registered capital: CNY 40,000,000
SC’s paid-in capital: CNY 40,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registration No. |
000322 |
450600400000672 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Aditya Birla Chemicals (Thailand) Limited |
75 |
|
Fanchenggang Grasun Chemical Co., Ltd. |
25 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General Manager |
K.K.Maheshwari |
|
Director |
Yang Jiandong |
|
Mr.T.N.Subramaniyan |
|
|
Mr.D.G.Kaveeshwar |
|
|
Luo Peng |
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|
Mr.H.K.Agarwal |
|
|
Supervisor |
Mr.D.K.Kohly |
|
Mr.prem.Tiwari |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name % of Shareholding
Aditya Birla Chemicals (Thailand) Limited 75
Fanchenggang Grasun Chemical Co., Ltd. 25
Aditya Birla Chemicals (Thailand) Limited
===================================
Aditya Birla Chemicals (Thailand) Limited forms part of the Aditya Birla
Group’s chemicals business, which spans over nine units – five in Thailand and
four in India. The company is engaged in the production of five major chemical
groups, namely, chlor-alkali products, epichlorohydrin, epoxy resins,
phosphates and sulphites. Four separate chemical companies namely Thai Organic
Chemicals Company (TOCC), Thai Epoxy and Allied Products Company (TEC), Thai
Polyphosphate & Chemicals Company (TPC) and Thai Sulphites & Chemicals
Company (TSC) were merged together to form Aditya Birla Chemicals (Thailand)
Ltd. in 2006.
3, Soi G-2, Prakornsongkrorad Road, Tambol Huey Pong
Anphur Muangrayong
Rayong 21150
Thailand
Tel: +66 38 687356/9
Fax: +66 38 685074
Website: www.adityabirlachemicals.com
Email: chlor-alkalimanu@adityabirla.com
Fanchenggang Grasun Chemical Co., Ltd.
==================================
Date of Registration: October 4, 1996
Registration No.: 450600000001038
Legal Form: Limited Liabilities
Company
Chief Executive: Luo Peng (Legal Representative)
Registered Capital: CNY 2,000,000
Address: Shibantian, Gangkou District, Fangchenggang
Tel: 86 (0) 770-2862885
MANAGEMENT
K.K.Maheshwari,
Legal Representative, Chairman and General Manager
----------------------------------------------------------------------------------------------------------------
%20LTD%20%20-%20272651%2021-Jun-2014_files/image005.jpg)
Gender: M
Nationality: Thailand
Age:
Qualification: University
Working experience (s):
From 2007 to present, working in SC as legal representative, chairman
and director
Also working in Aditya Birla Nuvo Limited, Aditya Birla Chemicals (India) Limited, and Tanfac
Industries Limited as director
Director
-----------
Yang Jiandong
Mr.T.N.Subramaniyan
Mr.D.G.Kaveeshwar
Luo Peng
Mr.H.K.Agarwal
Supervisor
-------------
Mr.D.K.Kohly
Mr.prem.Tiwari
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and selling
phosphoric acid and related products, and providing related services.
SC’s products mainly include phosphoric acid.
SC sources its materials 100% from domestic market, mainly Guangxi. SC
sells 20% of its products in domestic market, and 80% to overseas market,
mainly Iran, Japan, Malaysia, Thailand, 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.
*Major Supplier:
--------------------
Guangxi Construction Engineering Group No. 1 Installation Co., Ltd.
*Major Customers:
-----------------------
Tricon Energy Ltd.
Megaloid Laboratories Ltd.
Staff &
Office:
-------------------
SC is known to have approx. 92 staff at present.
SC rents an area as its operating office & factory of approx. 40,080
sq. meters at the heading address.
RELATED COMPANY
According to www.adityabirlachemicals.com
Aditya Birla Nuvo Limited
Aditya Birla Chemicals (India) Limited
Tanfac
Industries Limited
Grasim Industries 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’s suppliers declined to make any comments.
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:
China Construction Bank Fangchenggang Bagongli Avenue Office
AC#: 45001659587059888999
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2009 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
|
944 |
1,997 |
3,684 |
|
|
Accounts receivable |
11,056 |
7,641 |
16,794 |
|
Advances to suppliers |
6,819 |
1,697 |
10,282 |
|
Other receivable |
1,020 |
163 |
189 |
|
Inventory |
6,441 |
8,766 |
2,290 |
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Non-current assets within one year |
0 |
0 |
0 |
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Other current assets |
0 |
18 |
-9,555 |
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------------------ |
------------------ |
------------------ |
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Current assets |
26,280 |
20,282 |
23,684 |
|
Fixed assets |
35,268 |
35,632 |
32,638 |
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Construction in progress |
362 |
0 |
230 |
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Intangible assets |
4,643 |
4,559 |
4,490 |
|
Long-term prepaid expenses |
0 |
0 |
0 |
|
Deferred income tax assets |
0 |
0 |
0 |
|
Other non-current assets |
627 |
302 |
31,274 |
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------------------ |
------------------ |
------------------ |
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Total assets |
67,180 |
60,775 |
92,316 |
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============= |
============= |
============= |
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Short-term loans |
20,000 |
15,921 |
16,836 |
|
Notes payable |
0 |
0 |
0 |
|
Accounts payable |
3,359 |
1,320 |
1,774 |
|
Wages payable |
249 |
342 |
365 |
|
Advances from clients |
136 |
644 |
32,727 |
|
Other payable |
8 |
24 |
55 |
|
Other undue payments |
12 |
14 |
0 |
|
Accrued expense |
766 |
367 |
458 |
|
Other current liabilities |
499 |
358 |
-280 |
|
|
------------------ |
------------------ |
------------------ |
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Current liabilities |
25,029 |
18,990 |
51,935 |
|
Non-current liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
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Total liabilities |
25,029 |
18,990 |
51,935 |
|
Equities |
42,151 |
41,785 |
40,381 |
|
|
------------------ |
------------------ |
------------------ |
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Total liabilities & equities |
67,180 |
60,775 |
92,316 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2009 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
|
Revenue |
96,730 |
152,137 |
205,462 |
|
Cost of sales |
92,198 |
136,101 |
186,033 |
|
Sales expense |
2,593 |
9,337 |
13,894 |
|
Management expense |
-79 |
4,955 |
5,095 |
|
Finance expense |
1,143 |
1,831 |
2,017 |
|
Non-operating income |
578 |
161 |
343 |
|
Non-operating expense |
95 |
420 |
48 |
|
Profit before tax |
1,324 |
-366 |
-1,404 |
|
Less: profit tax |
0 |
0 |
0 |
|
1,324 |
-366 |
-1,404 |
Financial Summary
|
Unit: CNY’000 |
As of Jun. 30,
2013 |
|
Long term investment |
0 |
|
Total assets |
97,184 |
|
|
------------- |
|
Total liabilities |
57,671 |
|
Equities |
39,513 |
|
|
------------- |
|
Unit: CNY’000 |
Jan. 1 2013 to
Jun. 30, 2013 |
|
Revenue |
83,841 |
|
Profit before tax |
351 |
|
Less: profit tax |
0 |
|
Profits |
351 |
Important Ratios
|
|
As of Dec. 31,
2009 |
As of Dec. 31, 2010 |
As of Dec. 31,
2011 |
As of Jun. 30,
2013 |
|
*Current ratio |
1.05 |
1.07 |
0.46 |
-- |
|
*Quick ratio |
0.79 |
0.61 |
0.41 |
-- |
|
*Liabilities to assets |
0.37 |
0.31 |
0.56 |
0.59 |
|
*Net profit margin (%) |
1.37 |
-0.24 |
-0.68 |
0.42 |
|
*Return on total assets (%) |
1.97 |
-0.60 |
-1.52 |
0.36 |
|
*Inventory / Revenue ×365 |
25 days |
22 days |
5 days |
-- |
|
*Accounts receivable / Revenue ×365 |
42 days |
19 days |
30 days |
-- |
|
*Revenue / Total assets |
1.44 |
2.50 |
2.23 |
0.86 |
|
*Cost of sales / Revenue |
0.95 |
0.89 |
0.91 |
-- |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
·
The revenue of SC appears average in its line.
·
SC’s net profit margin is average.
·
SC’s return on total assets is average
·
SC’s cost of goods sold is fairly high in 2011,
comparing with its revenue.
LIQUIDITY: AVERAGE
·
The current ratio of SC is maintained in a normal
level in 2009 and 2010 and in a poor level in 2011.
·
SC’s quick ratio is maintained in a fair level in
2011.
·
The inventory of SC is maintained in an average
level.
·
The accounts receivable of SC is maintained in an
average level
·
The short-term loan of SC appears slightly large
·
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
·
The debt ratio of SC is average in 2011.
·
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.60.28 |
|
|
1 |
Rs.102.77 |
|
Euro |
1 |
Rs.82.12 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
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|
|
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 |
|
-- |
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.