MIRA
INFORM REPORT
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Report Date : |
31.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
JINTAN HENGAN
CHEMICAL FACTORY |
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Registered Office : |
No. 55 East Road, Yaotang Town, Jintan,
Jiangsu Province, 213213 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
29.10.2003 |
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Com. Reg. No.: |
320482000036086 |
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Legal Form : |
Sole Proprietorship Enterprise |
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Line of Business : |
Producing and Selling Chemical Products. |
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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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
JINTAN HENGAN CHEMICAL
FACTORY
NO. 55 EAST ROAD, YAOTANG TOWN, JINTAN,
JIANGSU PROVINCE,
213213 PR CHINA
TEL: 0086-519-82595065 FAX:
0086-519-82595064
EXECUTIVE SUMMARY
INCORPORATION DATE :
OCT. 29, 2003
REGISTRATION NO. :
320482000036086
REGISTERED LEGAL FORM : SOLE
PROPRIETORSHIP ENTERPRISE
CHIEF EXECUTIVE :
MR. YANG JINRONG (PRINCIPAL)
STAFF STRENGTH :
90
REGISTERED CAPITAL : CNY 500,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 18,490,000 (AS OF DEC. 31,
2007)
EQUITIES :
CNY 20,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : C.O.D.
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND : FAIR
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.84211 = 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 Sole Proprietorship enterprise at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Oct. 29, 2003.
Company Status: Sole Proprietorship enterprise This form of
business in PR China is a private enterprise formed by an individual, which
does not have the legal person or limited liability status. The co. is
solely operated by the sole investor who is responsible for all risks &
liabilities of the co.
SC’s registered business scope includes producing Ethyl
4-chloroacetoacetate and isopropyl butyric acid; importing and
exporting commodities and technologies, excluding export commodities limited or prohibited by the state.
SC is mainly
engaged in producing and selling chemical products.
Mr. Yang Jinrong
has been principal of SC since 2003.
SC is known to have approx. 90 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 Jintan. Our checks
reveal that SC owns the total premise about 4,000 square meters.
SC is not known to host website of its own at present.
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Yang Jinrong 100
l
Principal:
Mr. Yang Jinrong, about 46 years old with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2003 to present Working
in SC as principal.
SC is mainly
engaged in producing and selling chemical products.
SC’s products mainly include: 1-Cyclopropyl acetylene and Ethyl
4-chloroacetoacetate.
SC sources its materials 100% from domestic market. SC sells 20% of its
products to overseas market and 80% in
domestic market.
The buying terms of SC include Check, 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.
*Major Supplier*
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Zhangjiagang Hope Chemicals Co., Ltd.
*Major Customer*
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Jiangsu Repont Pesticide Factory
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.
Rural Credit Cooperative of Jintan Yaotang Town
AC#8423204221601201000010997
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2007 |
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Cash & bank |
20 |
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Bills receivable |
0 |
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Accounts
receivable |
1,250 |
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Other
receivables |
1,090 |
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Advances to
suppliers |
0 |
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Inventory |
1,120 |
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Prepaid expenses |
0 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
3,480 |
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Fixed assets net
value |
2,940 |
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Projects under
construction |
230 |
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Long term
investment |
0 |
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Other assets |
630 |
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Total assets |
7,280 |
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Short loans |
2,700 |
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Bills payable |
830 |
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Accounts payable |
1,370 |
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Welfare payable |
530 |
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Advances from
clients |
0 |
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Accrued payroll |
0 |
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Tax payable |
60 |
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Other payable |
1,690 |
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Surcharge
payable |
80 |
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Other current
liabilities |
0 |
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Current
liabilities |
7,260 |
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Long term
liabilities |
0 |
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Total
liabilities |
7,260 |
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Equities |
20 |
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Total
liabilities & equities |
7,280 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2007 |
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Turnover |
18,490 |
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Cost of goods
sold |
17,590 |
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Sales expense |
110 |
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Management expense |
600 |
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Finance expense |
600 |
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Profit before
tax |
-610 |
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Less: profit tax |
0 |
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Profits |
-610 |
Important Ratios
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as
of Dec. 31, 2007 |
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*Current ratio |
0.48 |
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*Quick ratio |
0.33 |
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*Liabilities
to assets |
1.00 |
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*Net profit
margin (%) |
-3.30 |
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*Return on
total assets (%) |
-8.38 |
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*Inventory
/Turnover ×365 |
23 days |
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*Accounts
receivable/Turnover ×365 |
25 days |
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*Turnover/Total
assets |
2.54 |
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* Cost of
goods sold/Turnover |
0.95 |
PROFITABILITY:
FAIR
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The turnover of SC appears average in its line.
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SC’s net profit margin is fair.
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SC’s return on total assets is fair.
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SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a poor level.
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SC’s quick ratio is maintained in a fair level.
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The inventory conversion period of SC appears average.
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The accounts receivable of SC appears average.
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SC’s short-term loan appears large.
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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 is above average.
Overall financial
condition of the SC: FAIR.
SC is considered small-sized in its line with fair financial conditions.
The large amount of short loans could be a threat to SC’s financial condition.
Credit should be extended under guarantee, and COD is recommended.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.49.25 |
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UK Pound |
1 |
Rs.80.36 |
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Euro |
1 |
Rs.62.84 |
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%)