MIRA
INFORM REPORT
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Report Date : |
07.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
shanghai topnotch
international trading co., ltd. |
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Registered Office : |
NO.62, 288 LANE, SHUANGYANG NORTH ROAD SHANGHAI 200433 PR |
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Country : |
China |
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Date of Incorporation : |
31.05.2006 |
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Com. Reg. No.: |
3101012008269 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
International Trade |
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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Maximum Credit Limit : |
USD 8,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name and address
shanghai topnotch international trading co.,
ltd.
NO.62, 288 LANE, SHUANGYANG NORTH ROAD
SHANGHAI 200433 PR CHINA
TEL: 86 (0) 21-61220913
FAX: 86 (0) 21-61220917
EXECUTIVE SUMMARY
INCORPORATION DATE : may 31, 2006
REGISTRATION NO. :
3101012008269
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MS. LUO HONG (CHAIRMAN)
STAFF STRENGTH :
13
REGISTERED CAPITAL : CNY 1,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 2,470,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 930,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 8,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
7.45 =US1$
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 May 31, 2006.
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 importing and exporting
commodities and technologies.
SC is mainly engaged in international trade.
Ms. Luo Honghas been chairman of SC since 2006.
SC is known to have approx. 13 staff members at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Shanghai. Our checks reveal
that SC rents the total premise about 150 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
Luo Hong 50
Gu Jia’an 50
Chairman and
General Manager:
Ms. Luo Hong (罗红), in her 30’s
university education. She is currently responsible for the overall management
of SC.
Working Experience(s):
From 2006 to present Working in SC as chairman and
general manager.
SC is mainly engaged in international trade
SC’s products mainly include: shoes, textiles, mechanical components,
etc.
SC sources its materials 95% from domestic market, mainly Shanghai, and
5% from overseas market. SC sells 20% in domestic market, mainly Shanghai, and
80% to overseas market, mainly Japan.
The buying terms of SC include T/T, L/C, Check and Credit of 15-30 days.
The payment terms of SC include T/T, L/C, Check and Credit of 15-30 days.
*Major Supplier:
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Shanghai Shangzhou Industry Co., Ltd.
*Major Customer:
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Merry Mode Inc. Japan
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’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.
Industrial and Commercial Bank of China Nanjing East Road Sub-branch
AC#：1001234609006855369
Relationship: Normal.
Balance
Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Cash & bank |
200 |
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Inventory |
140 |
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Accounts receivable |
0 |
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Other Accounts receivable |
810 |
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Advances to suppliers |
0 |
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To be apportioned expense |
0 |
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Other current assets |
0 |
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------------------ |
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Current assets |
1,150 |
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Fixed assets |
0 |
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Long term investment |
0 |
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Other assets |
0 |
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Total assets |
1,150 |
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Short loans |
0 |
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Accounts payable |
280 |
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Advance from clients |
0 |
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Taxes payable |
-300 |
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Other Accounts payable |
230 |
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Withdraw the expenses in advance |
0 |
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Other current liabilities |
10 |
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------------------ |
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Current liabilities |
220 |
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Long term liabilities |
0 |
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Other liabilities |
0 |
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Total liabilities |
220 |
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Equities |
930 |
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Total liabilities & equities |
1,150 |
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Income
Statement
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Turnover |
2,470 |
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Cost of goods sold |
2,380 |
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Sales expense |
18 |
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Management expense |
130 |
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Finance expense |
15 |
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Profit before tax |
-70 |
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Less: profit tax |
0 |
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Profits |
-70 |
Important
Ratios
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As
of Dec. 31, 2006 |
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*Current ratio |
5.23 |
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*Quick ratio |
4.59 |
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*Liabilities to assets |
0.19 |
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*Net profit margin (%) |
-2.83 |
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*Return on total assets (%) |
-6.09 |
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*Inventory /Turnover ×365 |
21days |
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*Accounts receivable/Turnover ×365 |
/ |
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*Turnover/Total assets |
2.15 |
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* Cost of goods sold/Turnover |
0.96 |
PROFITABILITY:
FAIR
The turnover of SC appears average in its line.
SC’s net profit margin is fair.
SC’s return on total assets is fair.
SC’s cost of goods sold is fairly high, 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 is maintained in an average level.
The accounts payable of SC appears fairly large.
SC has no short-term loan in 2006.
SC’s turnover is in a fairly good level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is low.
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 a short history. A credit
line up to USD 8,000 appears to be within SC’s capacities at present.
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. |
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%)