MIRA
INFORM REPORT
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Report Date : |
17.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
WENZHOU BROADFAR IMPORT & EXPORT Co., Ltd. |
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Registered Office : |
RM 1205, Huachang Mansion, Chezhan Road,
Lucheng District, Wenzhou, Zhejiang
Province, 325003 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
02.11. 2005 |
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Com. Reg. No.: |
330305000010936 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling different Sorts of Valves. |
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 1,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
Name & address
WENZHOU BROADFAR IMPORT & EXPORT Co., Ltd.
rm 1205, huachang
mansion, chezhan road, lucheng district,
wenzhou, zhejiang
PROVINCE, 325003 PR CHINA.
TEL: 86 (0)
577-88386998 FAX: 86 (0)
577-88381186
EXECUTIVE SUMMARY
INCORPORATION DATE : november 2, 2005
REGISTRATION NO. : 330305000010936
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
4
REGISTERED CAPITAL : CNY 600,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 440,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 350,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 1,000
MARKET CONDITION : fair
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.83 = 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 limited liabilities company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Nov. 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 import & export goods.
SC is mainly
engaged in selling different sorts of valves.
Ms. Li Aizhen has
been legal representative and chairman of SC since 2005.
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 commercial zone of Wenzhou. Our checks reveal that SC
rents the total premise about 70 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
Li Aizhen 50
Xie Xiangzong 50
l
Legal representative and chairman:
Ms. Li Aizhen, born in 1970 with university education. She is currently
responsible for the overall management of SC.
Working Experience(s):
From 2005 to present Working
in SC as chairman and legal representative.
SC started its
normal operation in August, 2007.
SC is mainly
engaged in selling different sorts of valves.
SC’s products
mainly include valves.
SC sources its materials 100% from domestic
market. SC sells 100% of its products 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 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.
Bank of China Wenzhou Branch
AC#820031193608091001
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2007)
Unit: CNY’000
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Cash & bank |
400 |
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Inventory |
0 |
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Accounts
receivable |
0 |
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Subsidies
receivable |
20 |
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Other
receivables |
110 |
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Other current
assets |
20 |
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------------------ |
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Current assets |
550 |
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Fixed assets net
value |
30 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
20 |
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Total assets |
600 |
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============= |
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Short loans |
0 |
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Accounts payable |
0 |
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Other payable |
40 |
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Advances from
clients |
210 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
250 |
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Long term
liabilities |
0 |
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Total
liabilities |
250 |
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Equities |
350 |
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Total
liabilities & equities |
600 |
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Income Statement (as of Dec. 31, 2007)
Unit: CNY’000
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Turnover |
440 |
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Cost of goods
sold |
410 |
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Sales expense |
0 |
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Management expense |
240 |
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Finance expense |
0 |
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Profit before
tax |
-210 |
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Less: profit tax |
0 |
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Profits |
-210 |
Important Ratios
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as
of Dec. 31, 2007 |
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*Current ratio |
2.2 |
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*Quick ratio |
2.2 |
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*Liabilities to
assets |
0.42 |
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*Net profit
margin (%) |
-47.7 |
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*Return on
total assets (%) |
-35 |
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*Inventory
/Turnover ×365 |
/ |
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*Accounts
receivable/Turnover ×365 |
/ |
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*Turnover/Total
assets |
0.73 |
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* Cost of
goods sold/Turnover |
0.93 |
PROFITABILITY:
POOR
l
The turnover of SC appears fair in its line.
l
SC’s net profit margin is POOR.
l
SC’s return on total assets is POOR.
l
SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal level.
l
SC’s quick ratio is maintained in a fairly good level.
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SC has no short-term loan, inventory or accounts receivable in 2007.
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SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is low.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
SC is considered small-sized in its line with a short operating history.
Credit dealings with SC should be confined into small amount.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.48.68 |
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UK Pound |
1 |
Rs.84.37 |
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Euro |
1 |
Rs.65.70 |
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%)