MIRA
INFORM REPORT
|
Report Date : |
28.08.2008 |
IDENTIFICATION
DETAILS
|
Name : |
SICHUAN BLUE
SWORD IMPORT & EXPORT CO., LTD. |
|
|
|
|
Registered Office : |
Sichuan Blue Sword Group Sci-Tech Park, High Tech West Zone, Chengdu, Sichuan
Province, 610016 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Date of Incorporation : |
24.08.2001 |
|
|
|
|
Com. Reg. No.: |
5106821800523 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
International Trader |
RATING &
COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
Maximum Credit Limit : |
USD 80,000 |
|
|
|
|
Status : |
Small Company |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
name & address
SICHUAN BLUE SWORD
IMPORT & EXPORT CO., LTD.
SICHUAN BLUE SWORD GROUP SCI-TECH PARK, HIGH
TECH WEST ZONE, CHENGDU, SICHUAN PROVINCE, 610016 PR CHINA.
TEL: 86 (0) 28-87825602 FAX:
86 (0) 28-87826503
EXECUTIVE SUMMARY
INCORPORATION DATE : AUG. 24, 2001
REGISTRATION NO. :
5106821800523
REGISTERED LEGAL FORM : LIMITED
LIABILITIES COMPANY
STAFF STRENGTH : 15
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE : INTERNATIONAL TRADE
TURNOVER :
CNY 109,490,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 6,350,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 80,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly
STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 7.14=US$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
SC was registered as a Limited liabilities company at local Administration for Industry & Commerce (The official body of issuing and renewing business license) on Aug. 24, 2001.
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 selling chemical products; importing and exporting
various goods and technology.
SC is
mainly engaged in international trade.
Mr. Zhang
Zhengcong has been chairman of SC since 2001.
SC is known
to have approx. 15 staff members at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the industrial zone of Chengdu. Our checks reveal that SC
rents the total premise about 140 square meters.
http://www.scbsc.com.
It’s the website of SC’s parent. The design is professional and the content is well
organized. At present it is in both Chinese and English versions.
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name % of shareholding
Sichuan Blue Sword Chemical (Group) Co., Ltd . 75
Sichuan Blue Sword Phosphochemical Group
Co., Ltd. 25
Sichuan Blue Sword Chemical (Group) Co.,
Ltd.
Sichuan Blue Sword Chemical (Group) Co.,
Ltd. (simplified as Blue Sword Chem.) is a subsidiary fully invested by Sichuan
Blue Sword Group. Blue Sword Group is one of the top ten large-scale private
enterprises in Sichuan Province, with total assets over USD 700 million and
turn-over more than $1.3 billion.
Address: Blue Sword Chemical, Shuangsheng
Chemical Park, Shifang,Sichuang,China
Post code:
618400
Tel:
0086-838-8306898
Fax:
0086-838-8307434
E-mail:
bschem@scbsc.com
Web:
http://www.scbsc.com
l
Chairman
and General Manager:
Mr. Zhang Zhengcong (张正聪) in his 50’s with
university education. He is currently responsible for the overall management of
SC.
Working Experience(s):
From 2001 to present
Working in SC as chairman and general manager.
At
present Also working in Sichuan
Blue Sword Group Co., Ltd as vice chairman and Sichuan Blue Sword Chuanxi
Phosphorus Chemical Co., Ltd as general manager.
l
Vice General Manager:
Mr. Zhang Guangying (张光英) in his 40’s with
university education. He is currently responsible for the daily management of
SC.
Working Experience(s):
From 2001 to present
Working in SC as vice general manager.
SC is mainly
engaged in international trade.
SC’s products
mainly include: phosphates Food Grade, phosphates technical grade, fertilizers
& raw Materials.
SC sources its products and materials 100% from domestic market. SC
sells 100% of its products to the overseas market, mainly American and Europe.
The buying terms of SC include: Check, T/T, and Credit of 15-30 days.
The payment terms of SC include: Check, T/T, L/C and Credit of 30-60 days,
according to different customers.
*Major Supplier:
============
Sichuan Blue Sword Chemical (Group) 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: A trade enquiry currently
conducted with SC's supplier(s) reveal the following:
Supplier
A
Products sold: chemicals
Date account opened: 2005
Line of credit: No comment
Terms: T/T,
credit of 30-60 days
Average monthly sales: No comment
Current balance: No comment
Rating Key : 2
Any Special Comments:
_______________________________________
Payment record keys :
1 = Prompt : Payment made before the credit period
expires
2 = As agreed terms : Payment made upon due
date
3 = Slightly slow but acceptable : Payment
made 5 to 20 days beyond agreed terms
4 = Slow : Payment made 16 to 45 days beyond
agreed terms
5 = Poor : Payment made over 45 days beyond
agreed terms
6
= No comment : Account is newly opened & record is not yet established
Note : In
some instances, payment beyond terms can be the result of disputes over
merchandise, lost invoices, disputed accounts & etc.
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 China
Chengdu Branch
AC#38686408091001
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2006 |
|
Cash & bank |
4,330 |
|
Inventory |
5,780 |
|
Accounts
receivable |
66,650 |
|
Advances to
suppliers |
770 |
|
Other
receivables |
9,660 |
|
Other current
assets |
0 |
|
|
------------------ |
|
Current assets |
87,190 |
|
Fixed assets net
value |
10 |
|
Projects under
construction |
0 |
|
Long term
investment |
0 |
|
Other assets |
0 |
|
|
------------------ |
|
Total assets |
87,200 |
|
|
============= |
|
Short loans |
2,460 |
|
Accounts payable |
5,570 |
|
Advances from
clients |
72,670 |
|
Taxes payable |
-4,160 |
|
Salaries payable |
0 |
|
Other payable |
0 |
|
Other current
liabilities |
4,310 |
|
|
------------------ |
|
Current
liabilities |
80,850 |
|
Long term
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
80,850 |
|
Equities |
6,350 |
|
|
------------------ |
|
Total
liabilities & equities |
87,200 |
|
|
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2006 |
|
Turnover |
109,490 |
|
Cost of goods
sold |
103,460 |
|
Sales expense |
2,480 |
|
Management expense |
190 |
|
Finance expense |
1,740 |
|
Profit before
tax |
1,590 |
|
Less: profit tax |
520 |
|
Profits |
1,070 |
Important Ratios
=============
|
|
2006 |
|
*Current ratio |
1.08 |
|
*Quick ratio |
1.01 |
|
*Liabilities
to assets |
0.93 |
|
*Net profit
margin (%) |
0.98 |
|
*Return on
total assets (%) |
1.23 |
|
*Inventory
/Turnover ×365 |
19days |
|
*Accounts
receivable/Turnover ×365 |
222days |
|
*Turnover/Total
assets |
1.26 |
|
* Cost of
goods sold/Turnover |
0.94 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in 2006.
l
SC’s net profit margin is average in 2006.
l
SC’s return on total assets is average in 2006.
l
SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal level in 2006.
l
SC’s quick ratio is maintained in a normal level in 2006.
l
The accounts receivable of SC is large in 2006.
l
The inventory of SC is average in 2006.
l
The short loans are average in 2006.
l
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high.
l
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 favorable background. The large
amount of accounts receivable could be a threat to SC’s financial condition.
Credit dealings of small amount can be considered for it at present.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.43.73 |
|
UK Pound |
1 |
Rs.80.31 |
|
Euro |
1 |
Rs.64.61 |
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. 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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)