MIRA
INFORM REPORT
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Report Date : |
23.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
TAIXING FIRST
MUSICAL INSTRUMENTS CO., LTD. |
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Registered Office : |
Xiqiao Town, Taixing, Jiangsu Province, 225419 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
18.12.2002 |
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Com. Reg. No.: |
321200400002995 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Producing and Selling Musical Instruments. |
RATING &
COMMENTS
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MIRAs 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 20,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
TAIXING FIRST
MUSICAL INSTRUMENTS CO., LTD.
XIQIAO TOWN, TAIXING, JIANGSU PROVINCE,
225419 PR CHINA
TEL: 0086-523-87207898 FAX:
0086-523-87201587
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 18, 2002
REGISTRATION NO. :
321200400002995
REGISTERED LEGAL FORM :
CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE :
MR. LI SHU (CHAIRMAN)
STAFF STRENGTH :
52
REGISTERED CAPITAL : US$ 830,000
BUSINESS LINE : MANUFACTURING
TURNOVER :
CNY 2,270,000 (AS OF DEC. 31,
2007)
EQUITIES :
CNY 6,320,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 20,000 (PERIODICAL REVIEW)
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.82209 = 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 Chinese-foreign
equity joint venture enterprise at
local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Dec. 18, 2002.
Company Status: Chinese-foreign equity joint venture
enterprise This form of
business in PR China is defined as a legal person. It is a limited co.
jointly invested by one or more foreign companies and one or more PR China
controlled companies within the territories of PR China according to a
certain proportion of capital investment. The investing parties exercise
business management, share profits and bear all risks and liabilities of
the co. together. The equity joint venture law requires that foreign party
contribute not less than 25% of the registered capital, with no maximum.
The investing parties are free to agree on method of profit distribution
and liabilities bearing according to the proportion of capital investment.
Each investing parties contributes funds, tangible assets, technology &
etc. The board of directors excises the high authority. The joint venture
usually has a limited duration of 10 to 50 years. Enterprise with large
investment, long construction periods, low investment returns, introducing
of advanced technology & advanced technology products that have good
competition position in international market may extend beyond the 50 years
limit.
S
Cs registered business scope includes producing various kinds of
guitars, violins and other Chinese and western musical instruments, wood
products, arts and crafts.
SC is mainly
engaged in producing and selling musical instruments.
Mr. Li Shu has
been legal representative and chairman of SC since 2002.
SC is known to have approx. 52 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 Taixing. Our
checks reveal that SC owns the total premise, but SCs accountant refused to
release the gross area of the premise.
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
Japan Youwen Chinese-Japanese Joint Venture
Ltd. (in Chinese pinyin) 30
Taixing Bailing Musical Instruments MFG Co.,
Ltd. 70
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Legal representative, chairman and
general manager:
Mr. Li Shu, about 57 years old. He is currently responsible for the
overall management of SC.
Working Experience(s):
From 2002 to present Working
in SC as chairman, legal representative and general manager.
At present Working in Taixing Bailing
Musical Instruments MFG Co., Ltd.- , Jiangsu Lishu Import and Export Co., Ltd.- and Taixing Fengling Musical
Instruments Co., Ltd.- as legal representative.
l
Vice-General manager:
Mr. Qian Fumin, about 45 years old with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as vice-general manager.
SC is mainly
engaged in producing and selling musical instruments.
SCs products mainly include: guitars and violins.
SC sources its materials 90% from domestic market and 10% from the
overseas market. SC sells 30% of its products to overseas market and 70% in domestic market.
The buying terms of SC include Check, L/C, 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 Suppliers*
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Taixing Jiale Suitcase Factory
*Major Customers*
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TianJin Yang Sheng International Trading Co., Ltd.
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: SCs 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.
Agriculture Bank
of China Taixing Huangqiao Sub-branch
AC#226601040010368
Relationship:
Normal.
Balance Sheet
Unit: CNY000
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as
of Dec. 31, 2007 |
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Cash & bank |
340 |
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Bills receivable |
0 |
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Accounts
receivable |
580 |
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Other
receivables |
3,860 |
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Advances to
suppliers |
540 |
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Inventory |
970 |
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Prepaid expenses |
30 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
6,320 |
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Fixed assets |
8,220 |
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Fixed assets net
value |
1,040 |
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Projects under
construction |
7,180 |
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Long term
investment |
0 |
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Other assets |
1,740 |
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Total assets |
16,280 |
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============= |
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Short loans |
0 |
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Bills payable |
0 |
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Accounts payable |
1,940 |
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Welfare payable |
0 |
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Advances from
clients |
0 |
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Accrued payroll |
300 |
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Tax payable |
0 |
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Other payable |
7,720 |
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Surcharge
payable |
0 |
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Other current
liabilities |
0 |
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Current
liabilities |
9,960 |
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Long term
liabilities |
0 |
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Total
liabilities |
9,960 |
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Equities |
6,320 |
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Total
liabilities & equities |
16,280 |
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Income Statement
Unit: CNY000
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as of Dec. 31, 2007 |
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Turnover |
2,270 |
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Cost of goods
sold |
1,740 |
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Sales expense |
0 |
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Management expense |
710 |
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Finance expense |
0 |
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Profit before
tax |
-140 |
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Less: profit tax |
0 |
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Profits |
-140 |
Important Ratios
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as
of Dec. 31, 2007 |
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*Current ratio |
0.63 |
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*Quick ratio |
0.54 |
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*Liabilities
to assets |
0.61 |
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*Net profit
margin (%) |
-6.17 |
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*Return on
total assets (%) |
-0.86 |
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*Inventory
/Turnover 365 |
156 days |
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*Accounts
receivable/Turnover 365 |
94 days |
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*Turnover/Total
assets |
0.14 |
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* Cost of
goods sold/Turnover |
0.77 |
PROFITABILITY:
FAIR
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The turnover of SC appears average in its line.
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SCs net profit margin is fair.
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SCs return on total assets is fair.
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SCs cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a fair level.
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SCs quick ratio is maintained in a fair level.
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The inventory conversion period of SC appears long.
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The accounts receivable of SC appears average.
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Theres no short-term loan of SC in 2007.
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SCs 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 average.
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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. A credit line at the above amount appears to be beyond SCs
capacities, while a credit line up to USD 20,000 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.45.72 |
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UK Pound |
1 |
Rs.84.81 |
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Euro |
1 |
Rs.67.60 |
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 SCs 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%)