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MIRA INFORM REPORT
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Report Date : |
31.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
FLUOROSEAL SPECIALTY VALVES (SUZHOU) CO. LTD |
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Registered Office : |
No. 1319 Jinfeng South Road, Mudu Town, Suzhou, Jiangsu Province,
215101 PR |
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Country : |
China |
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Financials (as on) : |
November, 2007 |
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Date of Incorporation : |
11.07.2005 |
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Com. Reg. No.: |
320500400024472 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Manufacturing
and Selling Industrial Valves. |
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 6,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
Name & address
FLUOROSEAL SPECIALTY VALVES (SUZHOU) CO., LTD.
NO. 1319 JINFENG SOUTH ROAD, MUDU TOWN, SUZHOU,
JIANGSU PROVINCE, 215101 PR CHINA
1319
TEL: 86
(0) 512-66560799 FAX: 86 (0)
512-66560677
EXECUTIVE SUMMARY
INCORPORATION DATE : JUL. 11, 2005
REGISTRATION NO. : 320500400024472
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED
ENTERPRISE
STAFF STRENGTH :
35
REGISTERED CAPITAL : USD 61,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 3,060,000 (JAN. TO NOV., 2007)
EQUITIES :
cny 790,000 (AS OF NOV., 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 6,000 (periodical review)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.85= 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 Ren Min Bi
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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 Jul. 11, 2005.
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 researching, developing and
manufacturing industrial valves; selling its products.
SC is mainly engaged
in manufacturing and selling industrial valves.
Mr. Tian Hongwei
has been chairman of SC since 2005.
SC is known
to have approx. 35 employees 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 Suzhou. Our checks
reveal that SC rents the total premise about 3,000 square meters.
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SC is not known to host website of its own at present.
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No significant events or changes were found during our checks with local
AIC.
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MAIN
SHAREHOLDERS:
Name %
of Shareholding
Fluoroseal China Investment Co., Ltd.
(Canada) 100
Fluoroseal China Investment Co., Ltd. is one
investment subsidiary of Fluoroseal Inc.
Fluoroseal Inc. is a privately owned company
with headquarters located in Montréal, QC, Canada and specializing in
manufacturing and servicing of a full range of sleeved and lined industrial
plug valves.
Fluoroseal Inc. is ISO 9001:2000 certified
and conforms to a variety of international manufacturing standards.
FluoroSeal® Plug Valves are also approved by
international corporations such as Bayer, DUPONT, Exxon/Mobil, Monsanto, Oxy
Chemicals, and UOP among many others.
FluoroSeal Inc.
1875, 46th Avenue, Lachine
H8T 2N8, Quebec, Canada
T: (514) 739 0220
F: (514) 739 5452
E-Mail: sales@fluorosealvalves.com
Web: http://www.fluorosealvalves.com
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Chairman and General Manager:
Mr. Tian Hongwei, ID: 422423601009001, in his 40’s with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2005 to present Working
in SC as chairman and general manager.
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Executive Director:
Tian Bin BA103677
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SC is mainly engaged
in manufacturing and selling industrial valves.
SC’s products
mainly include: valves.
SC sources its
materials 90% from domestic market, and 10% from the overseas market, mainly
Canada. SC sells 10% of its products in domestic market, and 90% to the
overseas market, mainly 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 Client:
==========
Fluoroseal Inc.
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SC is
not known to have any subsidiary at present.
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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.
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Agriculture Bank of China Mudu Sub-branch
AC# N/A
Relationship:
Normal.
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Balance Sheet
Unit: CNY’000
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As of Nov. 2007 |
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Cash & bank |
210 |
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Inventory |
320 |
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Accounts
receivable |
170 |
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Advances to
suppliers |
0 |
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Other
receivables |
40 |
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Other current
assets |
80 |
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Current assets |
820 |
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Fixed assets net
value |
730 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
200 |
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Total assets |
1,750 |
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Short loans |
0 |
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Accounts payable |
110 |
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Advances from
clients |
0 |
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Taxes payable |
-30 |
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Salaries payable |
0 |
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Other payable |
810 |
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Other current
liabilities |
70 |
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Current
liabilities |
960 |
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Long term
liabilities |
0 |
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Total
liabilities |
960 |
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Equities |
790 |
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Total
liabilities & equities |
1,750 |
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Income Statement
Unit: CNY’000
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Jan. to Nov.
2007 |
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Turnover |
3,060 |
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Cost of goods
sold |
2,250 |
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Sales expense |
50 |
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Management expense |
540 |
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Finance expense |
0 |
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Profit before
tax |
210 |
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Less: profit tax |
0 |
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Profits |
210 |
Important Ratios
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From
Jan. to Nov. 2007 |
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*Current ratio |
0.85 |
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*Quick ratio |
0.52 |
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*Liabilities
to assets |
0.55 |
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*Net profit
margin (%) |
6.86 |
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*Return on
total assets (%) |
12.00 |
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*Inventory
/Turnover ×365 |
38days |
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*Accounts
receivable/Turnover ×365 |
20days |
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*Turnover/Total
assets |
1.75 |
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* Cost of
goods sold/Turnover |
0.74 |
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PROFITABILITY:
AVERAGE
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The turnover of SC appears average.
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SC’s net profit margin is fairly good.
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SC’s return on total assets is fairly good.
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SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a fair level.
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SC’s quick ratio is maintained in a fair level.
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The accounts receivable of SC is average.
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The inventory of SC is average.
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SC’s turnover is in an average 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 low.
Overall financial
condition of the SC: Fairly Stable.
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Credit Amount: USD 500,000
SC is considered small-sized in its line with fairly stable financial
conditions. Credit line of the above amount appears to be beyond SC’s capacity,
while a credit line of USD 6,000 would appear to be within SC’s capacity upon a
periodical review basis.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.42.49 |
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UK Pound |
1 |
Rs.84.21 |
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Euro |
1 |
Rs.66.33 |
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%)