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MIRA
INFORM REPORT
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Report Date : |
29.12.2008 |
IDENTIFICATION DETAILS
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Name : |
NORKEM CHEMICAL
TRADING ( |
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Registered Office : |
Room 1804 |
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Country : |
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Financials (as
on) : |
31.12.2007 |
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Date of Incorporation : |
08.05.2006 |
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Com. Reg. No.: |
310000400465048 |
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Legal Form : |
Wholly Foreign Owned |
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Line of Business : |
International Trade. |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Moderate |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
NORKEM CHEMICAL
TRADING (
ROOM 1804
TEL: 86 (0) 21-61416568 FAX: 86 (0) 21-61416569
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 8, 2006
REGISTRATION NO. : 310000400465048
REGISTERED LEGAL FORM : WHOLLY FOREIGN OWNED
STAFF STRENGTH :
5
REGISTERED CAPITAL : USD 200,000
BUSINESS LINE :
INTERNATIONAL TRADE
TURNOVER :
cny 7,080,000 (AS OF DEC. 31, 2007)
EQUITIES :
cny -580,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : average
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : fair
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.84= USD 1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
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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 May 8, 2006.
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 importing and exporting various
goods and technology.
SC is mainly
engaged in international trade.
Mr. Alan Nicholson
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 Shanghai. Our checks reveal that SC
rents the total premise about 80 square meters.
%20CO%20,%20LTD%20%20-%2068331%2029-Dec-2008_files/image016.gif){kind=small}
http://www.norkem.com
. It is the website of Norkem Group. The design is professional and the content
is well organized. At present it is in Chinese, English and other language
versions.
E-mail: rob.rippens@norkem.cn
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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
Norkem Ltd. (
Add.: Norkem House,
Tel: +44 (0) 1565 755550
Fax: +44 (0) 1565 755496
Email: chemicals@norkem.com
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l
Chairman and General Manager:
Mr. Alan Nicholson, British,
in his
Working Experience(s):
From 2006 to present Working
in SC as chairman and general manager.
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SC is mainly engaged
in international trade.
SC’s products
mainly include:
100% Natural
Vegetable Oils
100% Natural
Vegetable Evoils
Virgin Oils
Organic Vegetable
Oils
SC sources its
materials 20% from domestic market, and 80% from the overseas market, mainly
European countries. SC sells 80% of its products in domestic market, and 20% to
the overseas market, mainly
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Client:
==========
Hangzhou Xingyue Cosmetics Co., Ltd
*Major Supplier:
============
Texteon
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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 domestic 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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Bank of
AC#044450800014990008091001
Relationship:
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Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
As
of Dec. 31, 2007 |
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Cash & bank |
670 |
2,460 |
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Inventory |
20 |
1,970 |
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Accounts receivable |
10 |
10 |
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Advances to
suppliers |
0 |
0 |
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Other
receivables |
20 |
520 |
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Other current
assets |
0 |
20 |
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|
--------------- |
------------------ |
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Current assets |
720 |
4,980 |
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Fixed assets net
value |
170 |
90 |
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Projects under construction |
0 |
0 |
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Long term
investment |
0 |
0 |
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Other assets |
0 |
0 |
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--------------- |
------------------ |
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Total assets |
890 |
5,070 |
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============ |
============= |
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Short loans |
0 |
0 |
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Accounts payable |
0 |
1,980 |
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Advances from
clients |
0 |
1,740 |
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Taxes payable |
0 |
20 |
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Salaries payable |
0 |
0 |
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Other payable |
730 |
1,910 |
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Other current
liabilities |
10 |
0 |
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------------------- |
------------------ |
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Current
liabilities |
740 |
5,650 |
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Long term
liabilities |
0 |
0 |
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------------------- |
------------------ |
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Total
liabilities |
740 |
5,650 |
|
Equities |
150 |
-580 |
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------------------- |
------------------ |
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Total
liabilities & equities |
890 |
5,070 |
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|
=========== |
============= |
Income Statement
Unit: CNY’000
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As of Dec. 31,
2007 |
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Turnover |
7,080 |
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Cost of goods
sold |
6,350 |
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Sales expense |
120 |
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Management expense |
1,880 |
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Finance expense |
-10 |
|
Profit before
tax |
-1,260 |
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Less: profit tax |
0 |
|
Profits |
-1,260 |
Important Ratios
=============
|
|
2006 |
2007 |
|
*Current ratio |
0.97 |
0.88 |
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*Quick ratio |
0.95 |
0.53 |
|
*Liabilities
to assets |
0.83 |
1.11 |
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*Net profit
margin (%) |
/ |
-17.80 |
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*Return on
total assets (%) |
/ |
-24.85 |
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*Inventory
/Turnover ×365 |
/ |
102days |
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*Accounts
receivable/Turnover ×365 |
/ |
1day |
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*Turnover/Total
assets |
/ |
1.40 |
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* Cost of
goods sold/Turnover |
/ |
0.90 |
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PROFITABILITY:
FAIR
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The turnover of SC appears average.
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SC’s net profit margin is fair.
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SC’s return on total assets is poor.
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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 normal level in
2006 but fair in 2007.
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The accounts receivable of SC is average.
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The inventory of SC is fairly large in 2007.
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SC has no short loans in both 2 years.
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SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: POOR
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The debt ratio of SC is high.
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The risk for SC to go bankrupt exists.
Overall financial
condition of the SC: Fair.
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SC is considered small-sized in its line with fair financial conditions.
Credit should be extended under guarantee, and COD is recommended.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.47.89 |
|
|
1 |
Rs.70.84 |
|
Euro |
1 |
Rs.67.37 |
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 |
|
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 |
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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%)