MIRA
INFORM REPORT
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Report Date : |
20.07.2007 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
Room 511, Jinfeng Bldg. No. 39, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Jun. 28, 2002 |
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Com. Reg. No.: |
4401012037964 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in selling
leather. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
Up To USD10,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
ROOM 511, JINFENG BLDG. NO. 39,
TEL : 86 (0) 20-86531205
FAX : 86 (0) 20-22376881
EXECUTIVE SUMMARY
INCORPORATION DATE :
JUN. 28, 2002
REGISTRATION NO. :
4401012037964
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
10
REGISTERED CAPITAL : CNY1,010,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 17,240,000 (AS OF DEC. 31,
2006)
EQUITIES :
CNY 1,065,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADy
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.56 = US$1 AS OF 2007-07-20
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
Note: SC’s registered name should be the above stated one, and the given one Yaru Leather Co., Ltd. is SC’s trade name.
SC was reregistered as a limited liabilities company at local Municipal Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Jun 28, 2002.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. At least two shareholders and no more
than fifty 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 listed as follows: -manufacturing co. :
CNY 500,000.00 -trading &wholesaling
co. : CNY 500,000.00 -retailing co. : CNY 300,000.00 -consultancy & service
co. : CNY 100,000.00 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
scopes include selling rubber products, plastic products, leather and its
products, garment, shoes, hats, and cosmetic.
SC is mainly
engaged in selling leather.
Ms. Chen Shaoru
has been chairman of SC since 2002.
SC owns
approximately 10 staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Guangzhou. Our checks reveal that SC
rents the total premise about 200 square meters.
SC is not known to host website of its own at present.
No significant events or changes were found during our checks with the
local AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Chen Shaoru 90
Lai Xuesong 10
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Chairman and
General Manager:
Ms. Chen Shaoru, in her 40’s with university education. She is currently
responsible for the overall management of SC.
Working Experience(s):
From 2002 to present Working in SC as chairman and general manager.
SC is mainly
engaged in selling leather.
SC’s products
mainly include: leather and its product, etc.
SC sources its materials
100% from domestic market, mainly
The buying terms of SC include Check, T/T, Check
and Credit of 30-60 days. The payment terms of SC include T/T, Check and
Credit of 30-60 days.
*Major Supplier:
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Hebei Xinji Haiyang Leather Co., Ltd.
*Major Customer:
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Shanghai Nianhua Shoe Industry
Co., Ltd.
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.
Bank of
AC#：800153104208094014
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
367 |
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Inventory |
380 |
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Accounts
receivable |
0 |
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Other Accounts
receivable |
7 |
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Accounts payable
in advance |
520 |
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To be
apportioned expense |
0 |
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Other current
assets |
3 |
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Current assets |
1,277 |
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Fixed assets |
269 |
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Long term investment |
0 |
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Other assets |
0 |
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Total assets |
1,546 |
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Short loans |
0 |
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Bills payable |
0 |
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Accounts payable |
0 |
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Accounts
receivable in advance |
198 |
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Other Accounts
payable |
240 |
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Withdraw the expenses
in advance |
0 |
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Other current
liabilities |
43 |
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Current
liabilities |
481 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
481 |
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Equities |
1,065 |
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Total
liabilities & equities |
1,546 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
17,240 |
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Cost of goods
sold |
16,340 |
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Sales expense |
360 |
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Management expense |
490 |
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Finance expense |
0 |
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Profit before
tax |
34 |
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Less: profit tax |
11 |
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Profits |
23 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 2.65
*Quick ratio 1.86
*Liabilities to
assets 0.31
*Net profit
margin (%) 0.13
*Return on total
assets (%) 1.49
*Inventory
/Turnover ×365 8 days
*Accounts
receivable/Turnover ×365 /
*Turnover/Total
assets 11.15
* Cost of goods
sold/Turnover 0.95
PROFITABILITY: AVERAGE
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is acceptable.
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SC’s return on total assets is acceptable.
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SC’s cost of goods sold is high,
comparing with its turnover.
LIQUIDITY:
FAIRLY GOOD
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The current ratio of SC is maintained
in a fairly good level.
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SC’s quick ratio is maintained in a
fairly good level.
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The inventory of SC is maintained in a
fairly good level.
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SC has no accounts receivable in 2006.
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SC has no short-term loan in2006.
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SC’s turnover is in a fairly good
level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
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The debt ratio of SC is low.
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The risk for SC to go bankrupt is above
average.
Overall
financial condition of the SC: Stable.
SC is considered small-sized in its line with stable financial
conditions. A credit line up to USD10,000 would appear to be within SC’s
capacities.
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 |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)