MIRA INFORM REPORT
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Report No. : |
301949 |
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Report Date : |
07.01.2015 |
IDENTIFICATION DETAILS
|
Name : |
ARCHROMA CHEMICALS (CHINA)
LTD. |
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Registered Office : |
3/F & 5/F, No. 2, Lane 168, Linhong Road, Changning District, Shanghai 200335 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
26.06.2013 |
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Com. Reg. No.: |
310000400713807 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Wholesaling chemical products; commission agent; import and export
business; providing related technology consulting and technology service.
(with permit if needed). |
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No. of Employee : |
100 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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, 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 & address
ARCHROMA CHEMICALS (CHINA) LTD.
3/F & 5/F, NO. 2, LANE 168, LINHONG
ROAD, CHANGNING DISTRICT, SHANGHAI
200335 PR CHINA
TEL: 86 (0) 21-22483380
FAX: N/A
EXECUTIVE
SUMMARY
INCORPORATION DATE : JUN. 26, 2013
REGISTRATION NO. : 310000400713807
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE
CHIEF EXECUTIVE :
MR. YANG SHUJUN (CHAIRMAN)
STAFF STRENGTH :
100
REGISTERED CAPITAL : CNY
124,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 122,510,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 125,230,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.22= 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
%20LTD%20%20-%20301949%2007-Jan-2015_files/image017.gif){kind=small}
SC was registered as a wholly foreign-owned enterprise at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on Jun. 26, 2013.
Company Status: Wholly foreign-owned enterprise This form of business in PR
China is defined as a legal person. It is a limited co. established within
the territories of PR China with capital provided totally by the foreign
investors. More than one foreign investor may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon
approval of Examination and Approval Authorities.
SC’s registered business scope includes wholesaling chemical products; commission
agent; import and export business; providing related technology consulting and
technology service. (with permit if needed).
SC is mainly engaged in selling chemical products.
Mr. Yang Shujun has been the legal representative, chairman and general
manager of SC since March of 2014.
SC is known to have approx. 100 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in Shanghai. The detailed premise information is
unspecified.
%20LTD%20%20-%20301949%2007-Jan-2015_files/image018.gif){kind=small}
http://textiles.archroma.com/
The website belongs to Archroma Textiles. The design is professional and the
content is well organized. At present the web site is only in English version.
E-mail: textiles.china@archroma.com
%20LTD%20%20-%20301949%2007-Jan-2015_files/image019.gif){kind=small}
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2014-3 |
Company name |
Archroma Chemicals (Shanghai) Ltd. |
Present one |
|
Legal representative |
BARRY BAHRAM SIADAT |
Present one |
Organization code: 071188178
%20LTD%20%20-%20301949%2007-Jan-2015_files/image020.gif){kind=small}
There is no record of litigation.
%20LTD%20%20-%20301949%2007-Jan-2015_files/image021.gif){kind=small}
MAIN SHAREHOLDERS:
Name
% of Shareholding
(Luxembourg)
Archroma Textiles S.à r.l. 100
%20LTD%20%20-%20301949%2007-Jan-2015_files/image022.gif){kind=small}
Legal
representative, chairman and general manager:
Mr. Yang Shujun is currently responsible for the overall management of
SC.
Working Experience(s):
From March of 2014 to present Working
in SC as legal representative, chairman and general manager.
Also working in Archroma (Tianjin) Ltd. as legal representative.
Supervisor:
-----------------------
Lourens Johannes Marinus Machiel
Directors:
---------------------
Winkler Thomas
Waibel Roland Michael
%20LTD%20%20-%20301949%2007-Jan-2015_files/image023.gif){kind=small}
SC is mainly engaged in selling chemical products.
SC’s products mainly include specialty chemicals.
SC sources its materials 70% from domestic market and 30% from overseas
market. SC sells 80% in domestic market and 20% 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 T/T, L/C and Credit of 30-60 days.
Note: SC declined
to release its major suppliers and clients.
Trademark & Patents
No record
%20LTD%20%20-%20301949%2007-Jan-2015_files/image024.gif){kind=small}
Archroma (Tianjin) Ltd.
Registered no.: 120000400041117
Legal representative: Mr. Yang Shujun
According to http://textiles.archroma.com/
Bangladesh
Archroma (Bangladesh) Ltd
AHN Tower (4th Floor), 13 Biponon C/A, Sonargaon Road, Dhaka-1000,
Bangladesh
Tel: +880-2-9674 736, 9611 315
Email: textiles.bangladesh@archroma.com
India
Archroma India Pvt. Ltd
9th Floor, ‘D’ Building, MBC Park, Near HyperCITY Mall, Ghodbunder Road,
Kasarvadavali, Thane (West) – 400615, Maharashtra, India
Tel: +91 2239385701
Email: textiles.india@archroma.com
%20LTD%20%20-%20301949%2007-Jan-2015_files/image025.gif){kind=small}
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.
%20LTD%20%20-%20301949%2007-Jan-2015_files/image026.gif){kind=small}
SC’s accountant refused to release the bank details.
%20LTD%20%20-%20301949%2007-Jan-2015_files/image027.gif){kind=small}
Balance
Sheet
Unit: CNY’000
|
|
As of Dec. 31,
2013 |
|
Cash & bank |
131,560 |
|
Inventory |
40,390 |
|
Bills receivable |
0 |
|
Accounts receivable |
125,340 |
|
Advances to suppliers |
3,620 |
|
Other receivables |
930 |
|
Other current assets |
0 |
|
|
------------------ |
|
Current assets |
301,840 |
|
Fixed assets net value |
1,320 |
|
Projects under construction |
0 |
|
Intangible and other assets |
0 |
|
|
------------------ |
|
Total assets |
303,160 |
|
|
=========== |
|
Short loan |
0 |
|
Accounts payable |
103,350 |
|
Bills payable |
0 |
|
Advances from clients |
0 |
|
Salaries payable |
7,470 |
|
Taxes payable |
1,540 |
|
Other Accounts payable |
65,570 |
|
Other current liabilities |
0 |
|
|
------------------ |
|
Current liabilities |
177,930 |
|
Long term liabilities |
0 |
|
|
------------------ |
|
Total liabilities |
177,930 |
|
Equities |
125,230 |
|
|
------------------ |
|
Total liabilities & equities |
303,160 |
|
|
=========== |
Income
Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2013 |
|
Turnover |
122,510 |
|
Cost of goods sold |
92,660 |
|
Sales expense |
15,520 |
|
Management expense |
10,230 |
|
Finance expense |
800 |
|
Profit before tax |
1,960 |
|
Less: profit tax |
870 |
|
Profits |
1,090 |
Important
Ratios
=============
|
|
As of Dec. 31,
2013 |
|
*Current ratio |
1.70 |
|
*Quick ratio |
1.47 |
|
*Liabilities to assets |
0.59 |
|
*Net profit margin (%) |
0.89 |
|
*Return on total assets (%) |
0.36 |
|
*Inventory /Turnover ×365 |
121 days |
|
*Accounts receivable/Turnover ×365 |
374 days |
|
*Turnover/Total assets |
0.40 |
|
* Cost of goods sold/Turnover |
0.76 |
%20LTD%20%20-%20301949%2007-Jan-2015_files/image028.gif){kind=small}
PROFITABILITY:
AVERAGE
The turnover of SC appears fairly good.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is average, 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.
The inventory of SC appears average.
The accounts receivable of SC appears fairly large.
SC has no short-term loan in 2013.
SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
%20LTD%20%20-%20301949%2007-Jan-2015_files/image029.gif){kind=small}
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of accounts receivable could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.39 |
|
|
1 |
Rs.96.72 |
|
Euro |
1 |
Rs.75.80 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
|
|
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Report Prepared
by : |
TPT |
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.