MIRA INFORM REPORT
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Report No. : |
344327 |
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Report Date : |
10.10.2015 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG
LEVODA CHEMICAL CO., LTD. |
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Registered Office : |
West of
Industrial Park, Chenhu Town, Boxing County Binzhou, Shandong Province 256500
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
06.06.2007 |
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Com. Reg. No.: |
371600228026350 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and Selling of Chemical Products. |
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No. of Employees : |
250 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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, 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. 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 2014 stood as the largest economy in the world, surpassing the US for the first time in modern history. Still, China's per capita income is below the world average.
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. In 2014 the People’s Bank of China (PBOC) doubled the daily trading band within which the RMB is permitted to fluctuate.
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 2014 more than 274 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. In 2014 China agreed to begin limiting carbon dioxide emissions by 2030. China also implemented several economic reforms in 2014, including passing legislation to allow local governments to issue bonds, opening several state-owned enterprises to further private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.
|
Source
: CIA |
Company Name and
address
SHANDONG LEVODA CHEMICAL CO.,
LTD.
(TRADE NAME: NUTRICORN CO.,
LIMITED)
WEST OF INDUSTRIAL PARK, CHENHU
TOWN, BOXING COUNTY
BINZHOU, SHANDONG PROVINCE 256500
PR CHINA
TEL: 86 (0)
543-2519908/13953398832
FAX: 86 (0) 543-2519858
***Note: Nutricorn Co., Limited (the given name)
and Shandong Levoda Chemical Co., Ltd. are related companies.
Nutricorn Co., Limited locates in Room 206 Customs
Building, No. 280 Liuquan Road, High-Tech Zone, Zibo, Shandong Province 255000
PR China (the), and it is the exporting department of Shandong Levoda Chemical
Co., Ltd., and the above mentioned mobile phone number (86 (0) 13953398832)
belongs to the manager Mr. Li of Nutricorn Co., Limited. SC also uses the given
name as its trade name.
EXECUTIVE
SUMMARY
Date of Registration : JUNE 6, 2007
REGISTRATION NO. : 371600228026350
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : CNY 80,000,000
staff : 250
BUSINESS CATEGORY : manufacturing & TRADING
Revenue : CNY 117,084,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY 73,121,000 (AS OF DEC. 31, 2014)
WEBSITE : www.chinadcp.com
E-MAIL : sdbzlfd@163.com
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.35 = 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 limited liabilities company of PRC with State Administration of Industry
& Commerce (SAIC) under registration No.: 371600228026350 on June 6, 2007.
SC’s Organization Code Certificate No.:
66672001-2
SC’s Tax No.: 372328666720012
SC’s registered capital: CNY 80,000,000
SC’s paid-in capital: CNY 80,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2011-02 |
Registered Capital |
CNY 10,000,000 |
CNY 30,000,000 |
|
2011-12 |
Registered Capital |
CNY 30,000,000 |
CNY 80,000,000 |
|
2015-8-17 |
Legal Representative |
Zhou Xiaobin |
Xing Lecai |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Zhou
Xiaobin |
96.25 |
|
Xing Lecai |
3.75 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman and General Manager |
Xing Lecai |
|
Supervisor |
Zhou Xiaobin |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Zhou Xiaobin 96.25
Xing Lecai 3.75
MANAGEMENT
Xing Lecai, 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
Zhou Xiaobin, Supervisor
---------------------------------------------
Ø
Gender: M
Ø Qualification:
University
BUSINESS
OPERATION
SC’s registered
business scope includes manufacturing and selling dicalcium phosphate, and
phosphate fertilizer; selling sodium ligninsulfonate, mono-dicalcium phosphate,
calcium phosphate primary, and enzyme preparation; and international trade.
SC is mainly
engaged in manufacturing and selling chemical products.
SC’s products
mainly include: dicalcium phosphate, etc.
SC sources its materials 100% from domestic
market. SC sells 40% of its products in domestic market, and 60% to overseas market,
mainly Southeast Asia, etc.
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.
Staff & Office:
--------------------------
SC is known
to have approx. 250 staff at
present.
SC rents an area
as its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC is known to have a
branch at present,
Shandong
Levoda Chemical Co., Ltd. Kunming Branch
Related Company,
Nutricorn
Co., Limited
Registration
No.: 1302888
Date
of Registration: January 22, 2009
Legal
Form: Private
Status:
Live
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 supplier
declined to make any commends.
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:
Binzhou Boxing Rural Cooperative Bank
AC#:
913030000016200395454
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
50,220 |
102,286 |
|
|
Notes receivable |
0 |
350 |
|
Accounts receivable |
19,839 |
18,358 |
|
Advances to suppliers |
2,047 |
534 |
|
Other receivable |
8,125 |
31,276 |
|
Inventory |
3,557 |
5,144 |
|
Non-current assets within one year |
0 |
0 |
|
Prepaid expenses |
84 |
138 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
83,872 |
158,086 |
|
Fixed assets |
3,498 |
3,831 |
|
Construction in progress |
493 |
0 |
|
Intangible assets |
18 |
570 |
|
Long-term investment |
80,000 |
80,000 |
|
Deferred income tax assets |
0 |
0 |
|
Other non-current assets |
118 |
35 |
|
|
------------------ |
------------------ |
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Total assets |
167,999 |
242,522 |
|
|
============= |
============= |
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Short-term loans |
48,800 |
74,500 |
|
Notes payable |
0 |
39,000 |
|
Accounts payable |
45,519 |
55,196 |
|
Wages payable |
0 |
676 |
|
Taxes payable |
1 |
10 |
|
Advances from clients |
0 |
0 |
|
Other payable |
0 |
19 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current liabilities |
94,320 |
169,401 |
|
Non-current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total liabilities |
94,320 |
169,401 |
|
Equities |
73,679 |
73,121 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
167,999 |
242,522 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2014 |
|
Revenue |
117,084 |
|
Cost of sales |
112,486 |
|
Taxes and surcharges |
0 |
|
Sales expense |
742 |
|
Management expense |
2,656 |
|
Finance expense |
1,691 |
|
Non-operating income |
14 |
|
Non-operating expense |
16 |
|
Profit before tax |
-493 |
|
Less: profit tax |
39 |
|
-532 |
Important Ratios
=============
|
|
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
*Current ratio |
0.89 |
0.93 |
|
*Quick ratio |
0.85 |
0.90 |
|
*Liabilities to assets |
0.56 |
0.70 |
|
*Net profit margin (%) |
-- |
-0.45 |
|
*Return on total assets (%) |
-- |
-0.22 |
|
*Inventory / Revenue ×365 |
-- |
17 days |
|
*Accounts receivable/ Revenue ×365 |
-- |
58 days |
|
* Revenue/Total assets |
-- |
0.48 |
|
* Cost of sales / Revenue |
-- |
0.96 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIR
l The revenue 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 sales is fairly high, comparing with
its revenue.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average.
l
The accounts receivable of SC is maintained in an
average level.
l
The short-term loans of SC appear large.
l
SC’s revenue is in a fair level, comparing with the
size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average in 2014.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered medium-sized in its line with fair financial
conditions. The large amount of short-term loans may be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.78 |
|
|
1 |
Rs.99.54 |
|
Euro |
1 |
Rs.73.08 |
INFORMATION DETAILS
|
Analysis Done by
: |
HEE |
|
|
|
|
Report Prepared
by : |
NIT |
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.