MIRA
INFORM REPORT
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Report Date : |
22.10.2008 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI SOCHEM INTERNATIONAL CO., LTD. |
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Registered Office : |
RM 504, Donglv Building,
No. 1877, South Pudong Road, Pudong
New District, Shanghai, 200122 Pr |
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Country : |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
15.05. 2003 |
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Com. Reg. No.: |
310115000760211 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling different sorts of Chemicals. |
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 30,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
SHANGHAI SOCHEM INTERNATIONAL CO., LTD.
RM 504, DONGLV
BUILDING, NO. 1877, SOUTH PUDONG ROAD,
PUDONG NEW
DISTRICT, SHANGHAI, 200122 PR CHINA.
TEL: 86 (0)
21-58317817 FAX: 86 (0) 21-58317781
EXECUTIVE SUMMARY
INCORPORATION DATE : may 15, 2003
REGISTRATION NO. : 310115000760211
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
4
REGISTERED CAPITAL : CNY 1,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 42,990,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 2,200,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 30,000
MARKET CONDITION : average
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : 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 May 15, 2003.
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 and export of various goods and technologies,
excluding the goods prohibited or limited by the country; chemical raw
materials & products, mechanical and electrical products, electronics,
vehicle parts, building materials, packing materials, general merchandise, arts
& crafts, textiles, agricultural and sideline products; commercial
consultation.
SC is mainly
engaged in selling chemicals.
Ms. Zhang Wei has
been legal representative and chairman of SC since May 2003.
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 Shanghai. Our checks reveal that SC rents
the total premise about 60 square meters.
http://www.sochem.com.cn The design is professional and the content is
well organized. At present it is in English version.
Email: sochem@163.net sales@sochem.com.cn
No significant events or changes were found during our checks with the local
Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhang Wei 50
Xu Jun 50
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Chairman & General Manager:
Ms. Zhang Wei, 36 years old with university education. She is currently
responsible for the overall management of SC.
Working Experience(s):
From 2003 to present Working
in SC as chairman and general manager.
SC is mainly
engaged in selling different sorts of chemicals.
SC’s products mainly include dyestuffs, pharmaceutical intermediates,
pesticide intermediates, dyestuff intermediates, and etc.
SC sources its materials 95% from domestic
market, mainly Shanghai, and 5% from overseas market, mainly Europe. SC sells
10% of its products in domestic market, and 90% to overseas market, mainly
Europe, USA, and Southeast Asian market.
The buying terms of SC include Check, T/T, L/C 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.
Bank of Shanghai Pudong Branch.
AC#：N/A
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2007)
Unit: CNY’000
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Cash & bank |
100 |
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Inventory |
20 |
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Accounts
receivable |
4,440 |
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Advances to
suppliers |
1,430 |
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Other
receivables |
0 |
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Other current
assets |
660 |
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Current assets |
6,650 |
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Fixed assets net
value |
50 |
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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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Total assets |
6,700 |
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Short loans |
0 |
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Accounts payable |
1,230 |
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Other payable |
2,770 |
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Advances from
clients |
500 |
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Other current
liabilities |
0 |
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Current
liabilities |
4,500 |
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Long term
liabilities |
0 |
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Total
liabilities |
4,500 |
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Equities |
2,200 |
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Total
liabilities & equities |
6,700 |
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Income Statement (as of Dec. 31, 2007)
Unit: CNY’000
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Turnover |
42,990 |
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Cost of goods
sold |
37,230 |
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Sales expense |
4,410 |
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Management expense |
360 |
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Finance expense |
690 |
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Profit before
tax |
260 |
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Less: profit tax |
40 |
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Profits |
220 |
Important Ratios
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as
of Dec. 31, 2007 |
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*Current ratio |
1.48 |
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*Quick ratio |
1.47 |
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*Liabilities
to assets |
0.67 |
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*Net profit
margin (%) |
0.51 |
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*Return on
total assets (%) |
3.28 |
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*Inventory
/Turnover ×365 |
1 day |
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*Accounts
receivable/Turnover ×365 |
38 days |
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*Turnover/Total
assets |
6.41 |
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* Cost of
goods sold/Turnover |
0.87 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good 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 average, 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 fairly good
level.
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The inventory of SC appears small.
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The accounts receivable of SC appears fairly large.
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SC has no short-term loan 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: Stable.
SC is considered small-sized in its line with stable financial
conditions. A credit line up to USD 30,000 appears to be within SC’s capacities.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.49.79 |
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UK Pound |
1 |
Rs.81.27 |
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Euro |
1 |
Rs.63.91 |
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%)