MIRA
INFORM REPORT
|
Report Date : |
16.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
Suzhou
Greenlands Chemical Co., Ltd. |
|
|
|
|
Registered Office : |
rm. 910, Guotai
Oriental Plaza, No. 9 East Renmin Road,
Zhangjiagang, Suzhou, Jiangsu Province, 215600 PR |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
22.01.2013 |
|
|
|
|
Com. Reg. No.: |
320592000066870 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Engaged in selling chemical products |
|
|
|
|
No. of Employees |
14 |
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 |
|
Payment Behaviour : |
Slow but correct |
|
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 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
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
Suzhou Greenlands Chemical Co.,
Ltd.
rm. 910, guotai oriental plaza, no.
9 east renmin road,
zhangjiagang, SUZHOU, jiangsu
PROVINCE, 215600 PR CHINA
TEL: 86 (0) 512-58288291 FAX: 86 (0) 512-58288618
EXECUTIVE SUMMARY
INCORPORATION DATE : jan. 22, 2013
REGISTRATION NO. : 320592000066870
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 14
REGISTERED CAPITAL :
CNY 2,000,000
BUSINESS LINE : TRADING
TURNOVER : CNY 31,840,000 (UNaudited, AS OF DEC. 31, 2013)
EQUITIES : CNY 1,920,000 (UNaudited, AS OF DEC. 31, 2013)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION :
fairly stable
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY
6.23 = 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 co. at local Administration for industry & commerce (AIC -
the official body of issuing and renewing business license) on Jan. 22, 2013.
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 import
and export of various goods and technologies (excluding the goods
forbidden by the government); purchasing and selling chemical raw materials and
chemicals (excluding the hazard chemicals), hardware tools, electro-mechanical
equipment, garments, shoes and caps, knitting textiles, rubber and plastics and
general merchandise; consulting services of the above related business (with permit if needed).
SC is mainly
engaged in selling chemical products.
Li
Jing is legal representative, chairman and general manager of SC at present.
SC is
known to have approx. 14 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of
Zhangjiagang. The detailed information of the premise is unspecified.
http://www.greenlandschina.com
The design is professional and the content is well organized. At present it is
only in English version.
Email: info@greenlandschina.com
No significant changes were found during our checks with the
local Administration for Industry and Commerce.
Organization Code: 061814251
SC started its normal operation in July 2013.
There is no record of litigation till now.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Li Jing 95
Li Ting 5
l
Legal representative, Chairman and General manager:
Li Jing is currently responsible for the
overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative, chairman and general manager.
l
Supervisor:
Li Ting
SC started its normal operation in July 2013.
SC is mainly
engaged in selling chemical products.
SC’s products
mainly include: fungicides, herbicides and insecticides, etc.
SC sources its materials 100% from
domestic market. SC sells 70% of its products in domestic market, and 30% to
overseas market.
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’s management declined to release its customer and supplier
details.
SC is not known to have any subsidiary at present.
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.
SC’s management
declined to release its bank details.
Balance Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2013 |
|
Cash & bank |
17,490 |
|
Inventory |
400 |
|
Accounts
receivable |
2,440 |
|
Advances to
suppliers |
1,210 |
|
Other
receivables |
1,110 |
|
Other current
assets |
210 |
|
|
------------------ |
|
Current assets |
22,860 |
|
Fixed assets net
value |
90 |
|
Projects under
construction |
0 |
|
Long term
investment |
0 |
|
Other assets |
70 |
|
|
------------------ |
|
Total assets |
23,020 |
|
|
============= |
|
Short loans |
5,000 |
|
Notes payable |
7,720 |
|
Accounts payable |
5,480 |
|
Other payable |
2,590 |
|
Taxes payable |
-30 |
|
Accrued payroll |
340 |
|
Other current
liabilities |
0 |
|
|
------------------ |
|
Current
liabilities |
21,100 |
|
Long term
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
21,100 |
|
Equities |
1,920 |
|
|
------------------ |
|
Total
liabilities & equities |
23,020 |
|
|
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2013 |
|
Turnover |
31,840 |
|
Cost of goods
sold |
29,430 |
|
Sales expense |
1,370 |
|
Management expense |
610 |
|
Finance expense |
520 |
|
Profit before
tax |
-90 |
|
Less: profit tax |
0 |
|
Profits |
-90 |
Note: The
above financial have not been audited.
Important Ratios
=============
|
|
as
of Dec. 31, 2013 |
|
*Current ratio |
1.08 |
|
*Quick ratio |
1.06 |
|
*Liabilities
to assets |
0.92 |
|
*Net profit
margin (%) |
-0.28 |
|
*Return on
total assets (%) |
-0.39 |
|
*Inventory
/Turnover ×365 |
5 days |
|
*Accounts
receivable/Turnover ×365 |
28 days |
|
*Turnover/Total
assets |
1.38 |
|
* Cost of
goods sold/Turnover |
0.92 |
PROFITABILITY:
FAIR
l
The turnover of SC appears average in its line.
l
SC’s net profit margin is fair.
l
SC’s return on total assets is fair.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
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 loan is in a large level.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high.
l
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-term loan could be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.47 |
|
|
1 |
Rs.99.70 |
|
Euro |
1 |
Rs.81.55 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
PDT |
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.