MIRA
INFORM REPORT
|
Report Date : |
11.12.2008 |
IDENTIFICATION
DETAILS
|
Name : |
xinji bosen trading co., ltd. |
|
|
|
|
Registered Office : |
West Port, Yingbin Road, Xinji City Hebei Province 052360 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2007 |
|
|
|
|
Date of Incorporation : |
09.10. 2006 |
|
|
|
|
Com. Reg. No.: |
130181000000880 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Importing and Exporting Leather Products. |
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 30,000 |
|
|
|
|
Status : |
Small Company |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
name & address
xinji bosen trading co., ltd.
west port, yingbin
road, xinji city
hebei province
052360 PR CHINA
TEL: 86 (0)
311-83293299 FAX: 86 (0)
311-83293199
EXECUTIVE SUMMARY
INCORPORATION DATE : oct. 9, 2006
REGISTRATION NO. : 130181000000880
REGISTERED LEGAL FORM : Limited liabilities company
STAFF STRENGTH :
5
REGISTERED CAPITAL : CNY 3,000,000
BUSINESS LINE :
trading
TURNOVER : CNY 9,070,000 (AS OF DEC. 31, 2007)
EQUITIES : CNY 3,070,000 (AS OF DEC. 31,
2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 30,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.86 = 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 Renminbi
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. 9, 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 wholesaling and retailing raw hide, leather chemical products,
leather machinery, finished leather, and fur products; importing and exporting
commodities & technology.
SC is mainly
engaged in importing and exporting leather products.
Mr. Zhang Xiaohui
has been chairman of SC since 2006.
SC is known to have
approx. 5 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Xinji. Our checks reveal that SC
rents the total premise about 100 square meters.
SC is not known to host web site of its own at present.
No significant events or changes were found during our checks with the
local AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhang Xiaohui 60
Zhang Congqun 40
l
Chairman and General Manager:
Mr. Zhang Xiaohui, with university education. He is currently responsible
for the overall management of SC.
Working Experience(s):
From 2006 to present Working
in SC as chairman and general manager.
Supervisor:
Zhang Congqun
SC is mainly
engaged in importing and exporting leather products.
SC’s products
mainly include: leather products.
SC sources its materials 1% from domestic
market, and 99% from overseas market, mainly Britain, Ireland, and India. SC
sells 95% of its products in domestic market, mainly Hebei, and 5% to overseas
market.
The buying terms of SC include Check, T/T, L/C, and Credit of 30-60
days. The payment terms of SC include Check, L/C, T/T, and Credit of 30-60
days.
*Major Supplier:
==============
U.K. Xiyake Ltd. (in Chinese Pinyin)
*Major Customer:
==============
Xinji City Minghua Leather 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’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
AC#N/A
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2007)
Unit: CNY’000
|
Cash & bank |
4,080 |
|
Inventory |
380 |
|
Accounts
receivable |
3,310 |
|
Other Accounts
receivable |
0 |
|
Advances to
suppliers |
0 |
|
To be
apportioned expense |
0 |
|
Other current
assets |
990 |
|
|
------------------ |
|
Current assets |
8,760 |
|
Fixed assets net
value |
58 |
|
Projects under
construction |
0 |
|
Long term
investment |
0 |
|
Other assets |
2 |
|
|
------------------ |
|
Total assets |
8,820 |
|
|
============= |
|
Short loans |
3,600 |
|
Accounts payable |
0 |
|
Advances from clients |
0 |
|
Other Accounts
payable |
2,060 |
|
Withdraw the
expenses in advance |
0 |
|
Other current
liabilities |
90 |
|
|
------------------ |
|
Current
liabilities |
5,750 |
|
Long term
liabilities |
0 |
|
Other
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
5,750 |
|
Equities |
3,070 |
|
|
------------------ |
|
Total
liabilities & equities |
8,820 |
|
|
============= |
Income Statement (as of Dec. 31, 2007)
Unit: CNY’000
|
Turnover |
9,070 |
|
Cost of goods
sold |
8,440 |
|
Sales expense |
10 |
|
Management expense |
430 |
|
Finance expense |
10 |
|
Profit before
tax |
110 |
|
Less: profit tax |
30 |
|
Profits |
80 |
Important
Ratios (as
of Dec. 31, 2007)
=============================
*Current
ratio 1.52
*Quick
ratio 1.46
*Liabilities
to assets 0.65
*Net
profit margin (%) 0.88
*Return
on total assets (%) 0.91
*Inventory
/Turnover ×365 15days
*Accounts
receivable/Turnover ×365 133days
*Turnover/Total
assets 1.03
* Cost
of goods sold/Turnover 0.93
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
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.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears large.
l
The short-term loan of SC appears LARGE.
l
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
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 fairly stable
financial conditions. The large amount of short-term loan could be a threat to SC’s financial
condition. A credit line at the above amount appears
to be beyond SC’s capacities, while a credit line up to USD 30,000 is
recommended.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.48.71 |
|
UK Pound |
1 |
Rs.72.85 |
|
Euro |
1 |
Rs.64.70 |
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%)