MIRA
INFORM REPORT
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Report Date : |
03.09.2007 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
Zhoulou, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Oct. 16, 2003 |
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Com. Reg. No.: |
3210882300493 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in manufacturing
and selling bristle brushes. |
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 : |
Up To usd 5,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
ZHOULOU,
TEL : 86 (0)
514-86868240
FAX : 86 (0) 514-86868727
EXECUTIVE SUMMARY
INCORPORATION DATE : OCT. 16, 2003
REGISTRATION NO. : 3210882300493
REGISTERED LEGAL FORM : LIMITED LIABILITIES
COMPANY
STAFF STRENGTH :
35
REGISTERED CAPITAL : CNY 517,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 1,240,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 480,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : FAIR
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.55= US$1 AS OF
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
Note: SC’s name should be the above stated one instead of the given name JIANGDU CITY IROU BRISTLE AND BRUSH CO., LTD.
SC was registered as a limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Oct. 16, 2003.
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 various
goods and technologies; processing with imported materials, processing with imported
samples, assembling with imported parts, and compensation trade in agreement; barter trade & transiting trade.
SC is mainly
engaged in manufacturing and selling bristle brushes.
Mr. Yu Xiulin has
been chairman of SC since 2003.
SC is known to
have approx. 35 staff members at present.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Jiangdu. Our checks
reveal that SC rents the total premise about 2,000 square meters.
http://www.IRUO-bristle-brush.com The web site can’t be landed at present for
some technical reasons.
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Li Yamei 51
Yu Xiulin 49
l
Chairman and
General Manager:
Mr. Yu Xiulin in his
Working Experience(s):
From 2003 to present Working
in SC as chairman and general manager.
l
Director:
Ms Li Yamei in her
Working Experience(s):
From 2003 to present Working in SC as director.
SC is mainly
engaged in manufacturing and selling bristle brushes.
SC’s products
mainly include: bristles, paint brushes, shoes brushes and rotary brooms.
SC’s main brand is
“IRUO”
SC sources its
materials 100% from domestic market. SC sells 10% of its products in domestic
market, and 90% to the overseas market, mainly to American and European
countries.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Supplier:
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Hengshui Tianma Animal Product Mane Processing
Factory
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 refused to release any information of its
suppliers and the trade reference was not available.
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#：16000140800001790
Relationship:
*The Bank information client given in the
order: Agriculture Bank of China Jiangsu Branch is SC’s USD account, and SC
declined to release the account number.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Cash & bank |
1,240 |
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Advances to
suppliers |
0 |
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Accounts
receivable |
-40 |
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Inventory |
60 |
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Other
receivables |
0 |
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Other current
assets |
120 |
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Current assets |
1,380 |
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Fixed assets net
value |
10 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
0 |
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Total assets |
1,390 |
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Short loans |
0 |
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Accounts payable |
610 |
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Advances from
clients |
210 |
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Taxes payable |
-110 |
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Salaries payable |
0 |
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Other payable |
200 |
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Other current
liabilities |
0 |
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Current
liabilities |
910 |
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Long term
liabilities |
0 |
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Total
liabilities |
910 |
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Equities |
480 |
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Total
liabilities & equities |
1,390 |
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Income Statement
Unit: CNY’000
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As of Dec. 31,
2006 |
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Turnover |
1,240 |
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Cost of goods
sold |
1,130 |
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Sales expense |
10 |
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Management expense |
40 |
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Finance expense |
20 |
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Profit before
tax |
50 |
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Less: profit tax |
20 |
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Profits |
30 |
Important Ratios
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2006 |
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*Current ratio |
1.52 |
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*Quick ratio |
1.45 |
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*Liabilities
to assets |
0.65 |
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*Net profit
margin (%) |
2.42 |
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*Return on
total assets (%) |
2.16 |
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*Fixed
assets/Total assets |
0.007 |
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*Inventory
/Turnover ×365 |
18days |
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*Accounts
receivable/Turnover ×365 |
/ |
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*Turnover/Total
assets |
0.89 |
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*Cost of goods
sold/Turnover |
0.91 |
PROFITABILITY:
FAIR
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The turnover of SC appears fair in its line.
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SC’s net profit margin is average in 2006.
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SC’s return on total assets is average in 2006.
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SC’s cost of goods sold is fairly high, comparing
with its turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a normal
level in 2006.
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SC’s quick ratio is maintained in a normal level in
2006.
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The inventory of SC is average.
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SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is average.
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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. A credit line up to USD 5,000 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. |
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%)