MIRA
INFORM REPORT
|
Report Date : |
31.10.2008 |
IDENTIFICATION
DETAILS
|
Name : |
KIRNS CHEMICALS Ltd. |
|
|
|
|
Registered Office : |
Room 1802, No. 208 Laodong East Road,
Yuhua District, Changsha, Hunan
Province, 410001 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2007 |
|
|
|
|
Date of Incorporation : |
02.03.2005 |
|
|
|
|
Com. Reg. No.: |
430105000024046 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Trading Feed Additives and Other Chemical 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 3,000 |
|
|
|
|
Status : |
Small Company |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
name & address
KIRNS CHEMICALS Ltd.
ROOM 1802, NO. 208
LAODONG EAST ROAD, YUHUA DISTRICT,
CHANGSHA, HUNAN
PROVINCE, 410001 PR CHINA.
TEL: 86 (0)
731-8678000 FAX: 86 (0) 731-8677000
EXECUTIVE SUMMARY
INCORPORATION DATE : MARCH 2, 2005
REGISTRATION NO. : 430105000024046
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 11
REGISTERED CAPITAL : CNY 500,000
BUSINESS LINE : TRADING
TURNOVER : CNY 42,997,000 (AS OF DEC. 31, 2007)
EQUITIES : CNY 540,000 (AS OF DEC. 31, 2007)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 3,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
6.83819 = 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 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 March 2, 2005.
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, shoes & hats, office
supplies; importing and exporting commodities and technology, excluding the
items prohibited by the state (with permit if needed).
SC is mainly
engaged in trading feed additives and other chemical products.
Mr. Ouyang Shan has been legal
representative and chairman of SC since March 2005.
SC is known to have approx. 11 employees at
present.
SC is currently operating at the above stated address, and this
address houses its operating office and head office in the commercial zone of
Changsha. Our checks reveal that SC rents the total premise about 200 square
meters.
http://www.kirns.com/ The design is professional
and the content is well organized. At present it is in English version.
Email: kirns@kirns.com
No significant events or changes were found during our checks
with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Ouyang Shan 40
Fan Shangfeng 30
Huang Rong 30
l
Legal representative, chairman and general
manager:
Mr. Ouyang Shan, born in 1976, with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2005 to present Working
in SC as chairman, legal representative and general manager.
SC is mainly
engaged in trading feed additives and other chemical products.
Main Products:
Mineral, Feed additives, Industrial Chemicals, etc.
SC sources its materials 100% from
domestic market. SC sells 10% of its products in domestic market, and 90% to
overseas market, mainly Southeast Asian 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 Customer:
=============
Abubos (Brazil)
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.
Bank of China Hunan Branch.
AC#800112507008091001
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31,
2006 |
as of Dec. 31, 2007 |
|
Cash & bank |
1,100 |
1,400 |
|
Inventory |
7,410 |
4,050 |
|
Accounts
receivable |
4,100 |
2,750 |
|
Advances to
supplies |
1,370 |
3,750 |
|
Other
receivables |
0 |
11 |
|
Prepaid expenses |
40 |
1 |
|
A receivable tax
rebate of export |
1,180 |
16 |
|
Other current
assets |
20 |
12 |
|
|
------------------ |
------------------ |
|
Current assets |
15,220 |
11,990 |
|
Fixed assets net
value |
150 |
120 |
|
Projects under
construction |
0 |
0 |
|
Long-term
investments |
0 |
0 |
|
Intangible
assets |
90 |
80 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
15,460 |
12,190 |
|
|
============= |
============= |
|
Short loans |
0 |
560 |
|
Accounts payable |
8,710 |
3,350 |
|
Advances from
customers |
6,407 |
4,010 |
|
Accrued payroll |
11 |
20 |
|
Welfares payable |
2 |
20 |
|
Taxes payable |
-945 |
210 |
|
Other Accounts
payable |
351 |
3,480 |
|
Other
current liabilities |
0 |
0 |
|
|
----------------- |
----------------- |
|
Current
liabilities |
14,536 |
11,650 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total liabilities |
14,536 |
11,650 |
|
Shareholders
equities |
924 |
540 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
15,460 |
12,190 |
|
|
============= |
============= |
Income Statement (as of Dec. 31, 2007)
Unit: CNY’000
|
Turnover |
42,997 |
|
Cost of goods sold |
40,482 |
|
Sales expense |
1,655 |
|
Management expense |
884 |
|
Finance expense |
179 |
|
Non-operating
income |
28 |
|
Non-operating expense |
1 |
|
Profit before
tax |
-176 |
|
Profits |
-176 |
Important Ratios
=============
|
|
as of Dec. 31, 2006 |
as of Dec. 31, 2007 |
|
*Current ratio |
1.05 |
1.03 |
|
*Quick ratio |
0.54 |
0.68 |
|
*Liabilities
to assets |
0.94 |
0.96 |
|
*Net profit
margin (%) |
|
-0.41 |
|
*Return on
total assets (%) |
|
-1.44 |
|
*Inventory
/Turnover ×365 |
days |
35 days |
|
*Accounts
receivable/Turnover ×365 |
days |
24 days |
|
*Turnover/Total
assets |
|
3.53 |
|
* Cost of
goods sold/Turnover |
|
0.94 |
PROFITABILITY:
FAIR
l
The turnover of SC appears average in its line in 2007.
l
SC’s net profit margin is fair in 2007.
l
SC’s return on total assets is fair in 2007.
l
SC’s cost of goods sold is fairly high, comparing with its turnover in
2007.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal level in both two
years.
l
SC’s quick ratio is maintained in a fair level in both two years.
l
The inventory of SC appears fairly large.
l
The accounts receivable of SC is maintained in an average level.
l
SC’s short-term loan appears average in 2007.
l
SC’s turnover is in an average level, comparing with the size of its
total assets in 2007.
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 fairly stable financial conditions.
The large amount of inventory could be a threat to SC’s financial condition. A
credit line up to USD 3,000 would appear to be within SC’s capacities.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.25 |
|
UK Pound |
1 |
Rs.80.36 |
|
Euro |
1 |
Rs.62.84 |
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%)