MIRA INFORM REPORT
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Report Date : |
21.12.2011 |
IDENTIFICATION DETAILS
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Name : |
VERSEN MUSIC INSTRUMENT CO., LTD. |
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Registered Office : |
Lilancheng Town, Yongqing County, Langfang City, Hebei Province, 065602 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
04.12.1995 |
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Com. Reg. No.: |
131000400003238 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
manufacturing and selling music instrument and accessories |
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No. of Employees
: |
294 persons |
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 |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment
Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made on
e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30th, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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China |
a2 |
a2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name
& address
VERSEN MUSIC INSTRUMENT CO., LTD.
LILANCHENG TOWN, YONGQING COUNTY, LANGFANG CITY,
HEBEI PROVINCE, 065602 PR CHINA
TEL: 86 (0)
316-6561017 FAX: 86 (0)
316-6561090
EXECUTIVE SUMMARY
INCORPORATION DATE : DECEMBER 4, 1995
REGISTRATION NO. :
131000400003238
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE
STAFF STRENGTH : 294
REGISTERED CAPITAL : USD 2,500,000
BUSINESS LINE : MANUFACTURING
TURNOVER :
CNY 26,020,000 (AS OF DEC. 31, 2010)
EQUITIES : CNY -7,890,000 (AS OF DEC. 31, 2010)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : C.O.D.
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.3235=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 Ren Min Bi
Note: SC is also known as Langfang Weisheng Musical Instruments Co., Ltd.
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 December 4, 1995.
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 music instrument
and accessories, sales of the company produced products.
SC is
mainly engaged in manufacturing and selling music instrument and accessories.
Mr.
Jonathan Shenchu Lee is chairman & legal representative of SC at present.
SC is known
to have approx. 294 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in Langfang. Our checks reveal that SC owns the
total premise, but SC’s accountant refused to release the gross area of the
premise.
SC is not known to have website of its own at present.
No significant events or changes were found during our checks with local
AIC.
MAIN
SHAREHOLDERS:
Name
% of
shareholdings
Versen International Investment Co., Ltd.
(B.V.I.) (literal translation) 100
l
Chairman & Legal
Representative:
Mr. Jonathan Shenchu Lee, American. He is currently responsible for the overall management of SC
Working Experience(s):
At present Working in SC as chairman & legal representative
SC is
mainly engaged in manufacturing and selling music instrument and accessories.
SC’s products
mainly include: music instrument, etc.
SC sources its materials 75% from domestic
market, and 25% from overseas market. SC sells 2% of its products in domestic
market, and 98% 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.
Note: SC refused to release its main
customers and suppliers
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.
Industrial and
Commercial Bank of China Langfang Chaoyang Sub-branch
AC#:
0410001609249013265
Relationship:
Normal
Balance Sheet
Unit: CNY’000
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As of Dec. 31,
2010 |
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Cash & bank |
1,050 |
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Short-term
investments |
0 |
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Inventory |
11,520 |
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Accounts
receivable |
2,490 |
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Advances to
suppliers |
1,080 |
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Prepaid expenses |
250 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
16,390 |
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Fixed assets net
value |
10,330 |
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Project under
construction |
0 |
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Long term investment |
0 |
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Intangible and
other assets |
0 |
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------------------ |
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Total assets |
26,720 |
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============= |
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Short loans |
25,000 |
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Notes payable |
0 |
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Accounts payable |
2,510 |
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Advances from
clients |
1,850 |
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Accrued payroll |
610 |
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Taxes payable |
-880 |
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Surcharge payable |
0 |
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Other accounts
payable |
5,520 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
34,610 |
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Long-term
liabilities |
0 |
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Total
liabilities |
34,610 |
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Equities |
-7,890 |
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------------------ |
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Total
liabilities & equities |
26,720 |
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============= |
Income Statement
Unit: CNY’000
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As of Dec. 31,
2010 |
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Turnover |
26,020 |
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Cost of goods sold |
26,110 |
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Taxes and additional of main operations |
0 |
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Sales expense |
530 |
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Management expense |
1,250 |
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Finance expense |
700 |
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Income from
other operations |
0 |
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Investment
income |
0 |
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Non-operating
income |
0 |
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Non-operating expense |
90 |
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Profit before
tax |
-2,660 |
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20 |
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Profits |
-2,680 |
Important
Ratios
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As
of Dec. 31, 2010 |
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*Current ratio |
0.47 |
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*Quick ratio |
0.14 |
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*Liabilities
to assets |
1.30 |
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*Net profit
margin (%) |
-10.30 |
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*Return on
total assets (%) |
-10.03 |
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*Inventory
/Turnover ×365 |
162 days |
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*Accounts
receivable/Turnover ×365 |
35 days |
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*Turnover/Total
assets |
0.97 |
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* Cost of
goods sold/Turnover |
1.01 |
PROFITABILITY: FAIR
l
The turnover of SC appears average in 2010.
l
SC’s net profit margin appears fair in 2010.
l
SC’s return on total assets appears fair in 2010.
l
SC’s cost of goods sold is high in 2010, comparing
with its turnover.
LIQUIDITY: POOR
l
The current ratio of SC is maintained in a poor
level in 2010.
l
SC’s quick ratio is maintained in a poor level in
2010.
l
The inventory of SC appears large in 2010.
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The accounts receivable of SC appears average in
2010.
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SC’s short-term loan appears large in 2010.
l
SC’s turnover is in an average level in 2010,
comparing with the size of its total assets.
LEVERAGE: POOR
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The debt ratio of SC is too high in 2010.
l
The risk for SC to go bankrupt is high.
Overall financial
condition of the SC: Fair
SC is considered medium-sized in its line with fair financial
conditions. The large amount of inventory & short-term loan could be a
threat to SC’s financial condition. A credit line at the above amount appears
to be beyond SC’s capacities, while credit should be extended under guarantee,
and C.O.D. is recommended.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.53.03 |
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UK Pound |
1 |
Rs.82.34 |
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Euro |
1 |
Rs.68.99 |
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 |
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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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.