MIRA INFORM REPORT
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Report Date : |
19.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
CHINA LIGHT RESOURCES IMPORT & EXPORT CORPORATION |
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Registered Office : |
No.910 Jinsong 9th Section, Chaoyang District, Beijing,
100021 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
24.12.1987 |
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Com. Reg. No.: |
110000005009419 |
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Legal Form : |
State-Owned Enterprise |
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Line of Business : |
Subject is engaged in trading building
materials, minerals, timber
and stones, 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 80,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
China light Resources ImpORT & ExpORT CorpORATION
NO.910 JINSONG 9TH SECTION,
CHAOYANG DISTRICT, BEIJING,
100021 PR CHINA
910
TEL:
86 (0) 10-67791254 FAX: 86 (0) 10-67747287
EXECUTIVE SUMMARY
INCORPORATION DATE :
DEC. 24, 1987
REGISTRATION
NO. : 110000005009419
REGISTERED
LEGAL FORM : STATE-OWNED
ENTERPRISE
STAFF
STRENGTH : 40
REGISTERED
CAPITAL :
CNY 12,971,000
BUSINESS
LINE : TRADING
TURNOVER : CNY 120,064,000
(AS OF DEC. 31, 2007)
EQUITIES : CNY
12,161,000 (AS OF DEC. 31, 2007)
PAYMENT
: AVERAGE
RECOMM.
CREDIT RANGE : UP TO USD 80,000
MARKET
CONDITION : COMPETITIVE
FINANCIAL
CONDITION : fairly STABLE
OPERATIONAL
TREND :
fairly STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY 6.83959 = 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 state-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Dec. 24, 1987.
Company Status: State-owned enterprise This form of business in PR
China is defined as a commodity production or operational units of a
socialist character which in accordance with the law, has autonomy in
management, takes full responsibility for its profits and losses and
practices independent business accounting. It is a legal person established
directly by central / local government or enterprise owned by central or
local government. In theory, the liabilities of this form of enterprise are
ultimately borne by the government, since the adoption of company law in
mid-1994, the Chinese government has planned to separate the ownership from
management and liabilities bearing.
SC’s registered business scope includes importing
and exporting commodities and technologies; selling textiles, general
merchandise, building materials, automobiles (excluding cars), minerals, timber
and stones.
SC is mainly engaged in trading building
materials, minerals, timber and
stones, etc.
Mr. Su Dong has been legal representative and
general manager of SC since December 2007.
SC is known to
have approx. 40 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 Beijing. SC’s accountant refused to
release the detailed information of the total premise.
http://www.chinalight.com.cn/
It is the website of its parent. The design is professional and the content is
well organized. At present it is in both Chinese and English versions.
Changes of its
registered information:
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Date of change |
Item |
Before the
change |
After the
change |
|
2002-06 |
Registered capital |
CNY 30,000,000 |
CNY 12,971,000 |
|
2007-12 |
Legal
representative |
Lian Ziliang |
Su Dong |
|
2008-01 |
Company Name |
China Light Building Materials Import & Export Corporation |
China Light Resources Import & Export Corporation |
MAIN SHAREHOLDERS:
Name %
of Shareholding
China National Light
Industrial Products Import & Export Corporation 100
As a large state-owned foreign trade corporation, CHINALIGHT mainly
deals in import and export business of light industrial products. The corp. is
also engaged in exhibition, advertisement, transportation, technical service,
domestic trade and real estates, etc.
l
Legal
representative and
general manager:
Mr. Su Dong, born in
1967, with university education. He is currently responsible for the overall management
of SC.
Working Experience(s):
From 2007 to present Working in SC as general manager and legal representative.
SC is mainly engaged in trading building
materials, minerals, timber and
stones, etc.
Main Products: building materials,
minerals, timber and
stones, etc.
SC sources its materials 80% from domestic market, and 20% from
overseas market. SC sells 40% of its products in domestic market, and 60% to
overseas 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 China
General Office
AC# 40103028
Relationship: Normal.
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 |
2,770 |
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Inventory |
7,587 |
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Accounts receivable |
6,907 |
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Advances to supplies |
258 |
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Other receivables |
2,542 |
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A receivable tax rebate of export |
1,233 |
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Other current assets |
0 |
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------------------ |
------------------ |
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Current assets |
21,297 |
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Fixed
assets |
1,149 |
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Fixed assets net value |
285 |
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Projects under construction |
55 |
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Long-term investments |
0 |
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Intangible assets |
11 |
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Other assets |
0 |
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Total assets |
21,648 |
246,610 |
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============= |
============= |
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Short loans |
0 |
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Accounts payable |
2,667 |
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Advances from customers |
1,813 |
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Accrued payroll |
28 |
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Welfares payable |
-27 |
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Taxes payable |
-972 |
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Other Accounts payable |
9,121 |
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Other current liabilities |
0 |
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Current liabilities |
12,630 |
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Long term liabilities |
0 |
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Total liabilities |
12,630 |
234,449 |
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Shareholders equities |
9,018 |
12,161 |
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Total liabilities & equities |
21,648 |
246,610 |
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Income Statement
Unit: CNY’000
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as
of Dec. 31, 2006 |
as
of Dec. 31, 2007 |
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Turnover |
51,371 |
120,064 |
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Cost of
goods sold |
48,316 |
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Sales expense |
1,154 |
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Management expense |
1,450 |
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Finance expense |
576 |
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Income from purchase and sales commission |
31 |
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Exchange
loss |
13 |
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Non-operating income |
18 |
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Operation Profit |
-88 |
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Less: profit tax |
0 |
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Net profit |
-88 |
3,219 |
Important Ratios
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as
of Dec. 31, 2006 |
as
of Dec. 31, 2007 |
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*Current ratio |
1.69 |
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*Quick ratio |
1.09 |
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*Liabilities to assets |
0.58 |
0.95 |
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*Net profit margin (%) |
-0.17 |
2.68 |
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*Return on total assets (%) |
-0.41 |
1.31 |
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*Inventory /Turnover ×365 |
54 days |
days |
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*Accounts receivable/Turnover ×365 |
50 days |
days |
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*Turnover/Total assets |
2.37 |
0.49 |
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* Cost of goods sold/Turnover |
0.94 |
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PROFITABILITY: AVERAGE
l
The turnover of
SC appears average in 2006 and fairly good in 2007.
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SC’s net profit
margin is fair in 2006, and it became average in 2007.
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SC’s return on
total assets is fair in 2006, and it became average in 2007.
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SC’s cost of
goods sold is fairly high, comparing with its turnover in 2006.
LIQUIDITY: AVERAGE
l
The current
ratio of SC is maintained in a normal level in 2006.
l
SC’s quick
ratio is maintained in a normal level in 2006.
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The inventory
of SC is maintained in an average level in 2006.
l
The accounts
receivable of SC is maintained in an average level in 2006.
l
SC has no
short-term loan in 2006.
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SC’s turnover
is in a fair level in 2007, comparing with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio
of SC is average in 2006 but high in 2007.
l
The risk for SC
to go bankrupt is average.
Overall financial condition of the SC: Fairly
Stable.
Credit Opinion: USD
500,000
SC is considered
medium-sized in its line with favorable background and fairly stable financial
conditions. The given credit amount would appear to be beyond of SC’s
capacities, while a credit line up to USD 80,000 is recommended.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.46.71 |
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UK Pound |
1 |
Rs.83.57 |
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Euro |
1 |
Rs.65.90 |
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%)