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MIRA INFORM REPORT
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Report Date : |
17.11.2008 |
IDENTIFICATION
DETAILS
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Name : |
ELEGANTE FASHION (TONGLU) CO., LTD. |
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Registered Office : |
No. 518 Jianduan Road, Qingshan Industry Park, Tonglu, Hangzhou,
Zhejiang Province, 311500 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
18.03.2005 |
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Com. Reg. No.: |
006729 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
manufacturing and selling Garments and Apparel, etc. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 4,000 |
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Status : |
Small Company |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
Name & address
elegante fashion (tonglu) Co., Ltd.
NO. 518 JIANDUAN ROAD, QINGSHAN INDUSTRY PARK,
TONGLU,
HANGZHOU, ZHEJIANG PROVINCE, 311500 PR CHINA.
518
TEL: 86 (0) 571-69963009 FAX: 86 (0) 571-64610229
EXECUTIVE SUMMARY
INCORPORATION DATE : MARCH 18, 2005
REGISTRATION NO. : 006729
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED enterprise
STAFF STRENGTH :
50
REGISTERED CAPITAL : USD 300,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 1,730,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 1,225,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 4,000 (periodical review)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.828 = 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
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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 March 18, 2005.
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 manufacturing garments, adornments, and textiles;
selling self-made products and the same type products produced by other
foreign-invested enterprises.
SC is mainly
engaged in manufacturing and selling garments and apparel, etc.
Mr. He Yunting has
been legal representative and chairman of SC since March 2005.
SC is known to have approx. 50 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 Tonglu. Our checks
reveal that SC owns the total premise, but SC’s accountant refused to release
the gross area.
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SC is not known to host website of its own at present.
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No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
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MAIN SHAREHOLDERS:
Name %
of Shareholding
He Yunting (Italian) 100
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l
Legal representative and chairman:
Mr. He Yunting, Italian. He is currently responsible for the overall
management of SC.
Working Experience(s):
From 2005 to present Working
in SC as chairman and legal representative.
l
General manager:
Mr. He Jianhua, born in 1978. He is currently responsible for the daily
management of SC.
Working Experience(s):
From 2005 to present Working
in SC as general manager.
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SC is mainly
engaged in manufacturing and selling garments and apparel, etc.
Main Products:
garments, apparel, etc.
SC sources its materials 95% from domestic
market, and 5% from overseas market. SC sells 50% of its products in domestic
market, and 50% to overseas market, mainly Italy.
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:
============
Hangzhou Xinxinyuan Trade Co., Ltd.
*Major Customer:
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Zhejiang Zhongda
Home Textile Co., Ltd.
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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’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.
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Bank of China Hangzhou Tonglu Sub-branch
AC# 806029533508091001
Relationship:
Normal.
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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 |
23 |
110 |
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Inventory |
39 |
335 |
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Accounts
receivable |
93 |
-36 |
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Advances to
supplies |
400 |
637 |
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Other
receivables |
13 |
17 |
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Other current
assets |
2 |
11 |
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------------------ |
------------------ |
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Current assets |
570 |
1,074 |
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Fixed assets net
value |
3,132 |
3,052 |
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Projects under
construction |
0 |
0 |
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Long-term
investments |
0 |
24 |
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Intangible and
other assets |
773 |
757 |
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------------------ |
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Total assets |
4,475 |
4,907 |
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============= |
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Short loans |
0 |
0 |
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Accounts payable |
12 |
11 |
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Advances from
customers |
0 |
0 |
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Accrued payroll |
0 |
0 |
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Welfares payable |
0 |
0 |
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Taxes payable |
12 |
7 |
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Other Accounts payable |
2,960 |
3,660 |
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Other current
liabilities |
4 |
4 |
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Current
liabilities |
2,988 |
3,682 |
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Long term
liabilities |
0 |
0 |
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Total
liabilities |
2,988 |
3,682 |
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Shareholders
equities |
1,487 |
1,225 |
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Total
liabilities & equities |
4,475 |
4,907 |
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Income Statement (as of Dec. 31, 2007)
Unit: CNY’000
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Turnover |
1,730 |
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Cost of goods sold |
1,400 |
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Taxes and additional of main operation |
3 |
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Sales expense |
36 |
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Management expense |
568 |
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Finance expense |
14 |
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Non-operating expense |
9 |
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Profit before
tax |
-304 |
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Less: profit tax |
0 |
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Profits |
-304 |
Important Ratios
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as of Dec. 31, 2006 |
as of Dec. 31, 2007 |
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*Current ratio |
0.19 |
0.29 |
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*Quick ratio |
0.18 |
0.20 |
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*Liabilities
to assets |
0.67 |
0.75 |
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*Net profit margin
(%) |
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-17.57 |
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*Return on
total assets (%) |
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-6.20 |
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*Inventory
/Turnover ×365 |
days |
71 days |
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*Accounts
receivable/Turnover ×365 |
days |
/ |
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*Turnover/Total
assets |
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0.35 |
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* Cost of
goods sold/Turnover |
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0.81 |
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PROFITABILITY:
FAIR
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The turnover of SC appears average in its line in 2007.
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SC’s net profit margin is poor in 2007.
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SC’s return on total assets is fair in 2007.
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SC’s cost of goods sold is average, comparing with its turnover in 2007.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a poor level in both two years.
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SC’s quick ratio is maintained in a poor level in both two years.
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The inventory of SC appears fairly large in 2007.
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The accounts receivable of SC is maintained in an average level in 2006.
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SC has no short-term loan in both two years.
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SC’s turnover is in a fair level, comparing with the size of its total
assets in 2007.
LEVERAGE: AVERAGE
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The debt ratio of SC is fairly high.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
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SC is considered small-sized in its line with fair financial conditions.
The given credit amount would appear to be beyond SC’s capacities, while a
credit line up to USD 4,000 is recommended upon a periodical review basis.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.48.99 |
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UK Pound |
1 |
Rs.72.14 |
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Euro |
1 |
Rs.61.57 |
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%)