MIRA INFORM REPORT
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Report Date : |
18.02.2011 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
Wufeng Industrial
Zone, |
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Country : |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
06.07.1999 |
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Com. Reg. No.: |
350521100021231 |
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Legal Form : |
Shares Jointly Owned |
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Line of Business : |
processing and Selling Stone Sculpture
Crafts |
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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Maximum Credit Limit : |
usd 125,000 |
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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 – June 30, 2010
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Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
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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
WUFENG INDUSTRIAL ZONE,
TEL:
86 (0) 595-87681013/87692166 FAX:
86 (0) 595-87692166
EXECUTIVE SUMMARY
INCORPORATION DATE : JUL.
6, 1999
REGISTRATION
NO. : 350521100021231
REGISTERED
LEGAL FORM : Shares jointly owned
STAFF
STRENGTH : 100
REGISTERED
CAPITAL :
CNY 5,000,000
BUSINESS
LINE :
PROCESSING
TURNOVER : CNY 28,130,000 (AS OF DEC. 31, 2010)
EQUITIES : CNY 4,670,000
(AS OF DEC. 31, 2010)
PAYMENT
: average
RECOMM.
MARKET
CONDITION : average
FINANCIAL
CONDITION : FAIRLY stable
OPERATIONAL
TREND :
FAIRLY STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY 6.59= USD 1
Adopted abbreviations
ANS - amount not
stated
NS - not stated
SC - subject company
(the company inquired by you)
NA - not available
CNY -
Note: instead of the given telephone number and fax number of 0086-595-8760955 and 0086-595-8760955, SC’s telephone number and fax number should be the above stated ones.
SC was registered as a Shares jointly owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Jul. 6, 1999.
Company Status: Shares
jointly owned enterprise This form of business in PR
China is defined as a legal person whose registered capital is mostly or
wholly raised by the staff members of the enterprise. Its shareholders
consist of at least 8 staff members, and the staff members that are not
shareholders should be less than 10% of the total staff members.
It operates as a cooperative, under democratic management, paying
salaries according to the achievements of staff members and distributing
its profit according the shares owned.
SC’s registered
business scope includes processing and manufacturing stone sculpture crafts,
tombstone, construction stone materials; designing construction curtain wall
engineering, garden heritage building engineering, decoration engineering,
garden sculpture and construction stone materials engineering; importing and
exporting various goods.
SC is mainly engaged in processing and
selling stone sculpture crafts.
Mr. Jiang Zhiming has been chairman of SC
since 1999.
SC is known to have approx. 100 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
SC is not known to
host website of its own at present.
No significant
events or changes were found during our checks with local AIC.
MAIN SHAREHOLDERS:
Name % of Shareholding
Jiang Senhe 30.01
Jiang Zhiming 43.32
Zhang Xiyue 26.67
l
Chairman
and General Manager:
Mr.
Working Experience(s):
From 1999 to present Working
in SC as chairman and general manager.
SC is mainly engaged in processing and
selling stone sculpture crafts.
SC’s products mainly include: stone sculpture
crafts, tombstone, and construction stone materials.
SC sources its materials 100% from domestic
market. SC sells 90% of its products in domestic market, and 10% to the
overseas market, mainly
The buying terms of
SC include Check, T/T and Credit of 30-60 days. The payment terms of SC include
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.
Agricultural Bank of
AC# N/A
Relationship:
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
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Cash & bank |
3,980 |
3,400 |
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Inventory |
9,690 |
10,400 |
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Accounts receivable |
10,410 |
8,580 |
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Advances to suppliers |
1,850 |
120 |
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Other receivables |
3,080 |
8,400 |
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Other current assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
29,010 |
30,900 |
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Fixed assets net value |
5,350 |
5,710 |
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Projects under construction |
0 |
0 |
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Long term investment |
0 |
0 |
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Other assets |
330 |
970 |
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------------------ |
------------------ |
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Total assets |
34,690 |
37,580 |
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============= |
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Short loans |
0 |
0 |
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Accounts payable |
15,490 |
21,150 |
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Advances from clients |
7,560 |
5,640 |
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Taxes payable |
-290 |
-100 |
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Salaries payable |
150 |
120 |
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Other payable |
7,040 |
5,770 |
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Other current liabilities |
720 |
330 |
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------------------ |
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Current liabilities |
30,670 |
32,910 |
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Long term liabilities |
0 |
0 |
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------------------ |
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Total liabilities |
30,670 |
32,910 |
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Equities |
4,020 |
4,670 |
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------------------ |
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Total liabilities & equities |
34,690 |
37,580 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2010 |
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Turnover |
28,130 |
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Cost of goods sold |
20,370 |
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Sales expense |
2,020 |
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Management
expense |
4,710 |
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Finance expense |
80 |
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Profit before tax |
650 |
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Less: profit tax |
0 |
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Profits |
650 |
Important Ratios
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As of Dec. 31, 2009 |
As of Dec. 31, 2010 |
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*Current ratio |
0.95 |
0.94 |
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*Quick ratio |
0.63 |
0.62 |
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*Liabilities to assets |
0.88 |
0.88 |
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*Net profit margin (%) |
/ |
2.31 |
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*Return on total assets (%) |
/ |
1.73 |
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*Inventory /Turnover ×365 |
/ |
135 days |
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*Accounts receivable/Turnover ×365 |
/ |
111 days |
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*Turnover/Total assets |
/ |
0.75 |
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* Cost of goods sold/Turnover |
/ |
0.72 |
PROFITABILITY: AVERAGE
l
The
turnover of SC appears average in 2010.
l
SC’s net
profit margin is average in 2010.
l
SC’s return
on total assets is average in 2010.
l
SC’s
cost of goods sold is average in 2010, comparing with its turnover.
LIQUIDITY: FAIR
l
The
current ratio of SC is maintained in a fair level in both years.
l
SC’s quick
ratio is maintained in a fair level in both years.
l
The
inventory of SC is fairly large in both years.
l
The
accounts receivable of SC is fairly large in both years.
l
SC has
no short loans in both years.
l
SC’s
turnover is in a fair level in 2010, comparing with the size of its total
assets.
LEVERAGE: FAIR
l
The debt
ratio of SC is fairly high in both years.
l
The risk
for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly
Stable.
SC is considered
medium-sized in its line with fairly stable financial conditions. The large
amount of inventory and account receivable could be a threat to SC’s financial
conditions. The above stated amount appears to be within SC’s capacity 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.45.38 |
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|
1 |
Rs.73.08 |
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Euro |
1 |
Rs.61.60 |
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 |
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 |
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.