MIRA
INFORM REPORT
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Report Date : |
29.12.2008 |
IDENTIFICATION DETAILS
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Name : |
HANGZHOU LVJIANG
CHEMICAL CO., LTD. |
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Registered Office : |
Section 2, Caoan Village, Xiacheng
District, Hangzhou, Zhejiang Province, 310004 Pr |
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Country : |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
11.04.2007 |
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Com. Reg. No.: |
330103000032121 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Importing and Exporting Business. |
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 20,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
HANGZHOU LVJIANG
CHEMICAL CO., LTD.
SECTION 2,
TEL: 0086-571-81809999 FAX:
0086-571-81809999
EXECUTIVE SUMMARY
INCORPORATION DATE : APR.
11, 2007
REGISTRATION NO. :
330103000032121
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MS. LU XUEFANG (CHAIRMAN)
STAFF STRENGTH :
4
REGISTERED CAPITAL : CNY 2,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 17,388,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 2,024,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.84131 = USD 1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
SC was registered as a limited liabilities co. at local Administration for Industry
& Commerce (AIC - The official body of issuing and renewing business
license) on Apr. 11, 2007.
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
chemical products and materials (excluding poisonous chemicals and other hazardous
articles), mechanical and electrical products (excluding sedan), hardware,
metal materials; importing and exporting commodities (not engage in any items prohibited by laws and
administrative regulation; able to engage in items that need permit according
to laws and administrative regulation, after obtaining the permit from relative
authorities).
SC is mainly
engaged in importing and exporting business.
Ms. Lu Xuefang has
been legal representative and chairman of SC since 2007.
SC is known to have approx. 4 employees at present.
SC is currently operating at the above stated address, and
this address houses its operating office in the industrial zone of Hangzhou.
Our checks reveal that SC rents the total premise, but SC’s accountant refused
to release the gross area of the premise.
SC is not known to host website of its own at present.
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Date of change |
Item |
Before the change |
After the change |
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Registered no. |
3301032016422 |
330103000032121 |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Lu Xuefang ID#352230197705010923 60
Xiao Jiali ID#352229198906206032 40
l
Legal representative and chairman:
Ms. Lu Xuefang, born in 1977, with junior high school education. She is currently
responsible for the overall management of SC.
Working Experience(s):
From 2007 to present Working
in SC as chairman and legal representative.
SC is mainly
engaged in importing and exporting business.
SC’s products mainly include: chemical products and materials.
SC sources its merchandises 30% from the overseas market and 70% from
domestic market. SC sells 60% of its merchandises in domestic market, and 40%
to overseas market.
The buying terms of SC include Check, L/C, T/T and Credit of 30-60 days.
The payment terms of SC include Check, T/T, L/C, and Credit of 30-60 days.
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 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.
Agriculture Bank
of
AC#015401040010095
Relationship:
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2007 |
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Cash & bank |
231 |
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Bills receivable |
0 |
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Accounts
receivable |
4,654 |
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Other
receivables |
0 |
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Advances to
suppliers |
0 |
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Inventory |
0 |
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Prepaid expenses |
105 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
4,990 |
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Fixed assets net
value |
240 |
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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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------------------ |
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Total assets |
5,230 |
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============= |
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Short loans |
0 |
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Bills payable |
0 |
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Accounts payable |
149 |
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Welfare payable |
3 |
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Advances from
clients |
0 |
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Accrued payroll |
0 |
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Tax payable |
22 |
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Other payable |
3,026 |
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Surcharge
payable |
6 |
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Other current
liabilities |
0 |
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Current
liabilities |
3,206 |
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Long term
liabilities |
0 |
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Total
liabilities |
3,206 |
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Equities |
2,024 |
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Total
liabilities & equities |
5,230 |
Income Statement
Unit: CNY’000
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as of Dec. 31,
2007 |
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Turnover |
17,388 |
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Cost of goods
sold |
16,720 |
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Sales expense |
648 |
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Management expense |
0 |
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Finance expense |
-20 |
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Profit before
tax |
30 |
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Less: profit tax |
6 |
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Profits |
24 |
Important Ratios
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as
of Dec. 31, 2007 |
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*Current ratio |
1.56 |
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*Quick ratio |
1.56 |
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*Liabilities
to assets |
0.61 |
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*Net profit
margin (%) |
0.14 |
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*Return on
total assets (%) |
0.46 |
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*Inventory
/Turnover ×365 |
0 |
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*Accounts
receivable/Turnover ×365 |
98 days |
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*Turnover/Total
assets |
3.32 |
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* Cost of
goods sold/Turnover |
0.96 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears average in its line.
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SC’s net profit margin is average.
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SC’s return on total assets is average.
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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.
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SC’s quick ratio is maintained in a normal level.
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There’s no inventory of SC in 2007.
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The accounts receivable of SC appears fairly large.
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There’s no short-term loan of SC in 2007.
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SC’s turnover is in a fairly good 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. The large amount of accounts receivable 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 20,000 is recommended.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.48.76 |
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1 |
Rs.71.68 |
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Euro |
1 |
Rs.69.17 |
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%)