MIRA
INFORM REPORT
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Report Date : |
23.07.2011 |
IDENTIFICATION DETAILS
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Name : |
COLOUR STAR CHEMICAL CO., LTD. |
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Registered Office : |
Unit B3-1a, 4th Floor, West Block Of Hi-Tech King World
No. 668 Beijing East Road, Fengxian District Shanghai 201424 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
04.12.2003 |
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Com. Reg. No.: |
310000400364390 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Developing and manufacturing reactive dyes, acid dyes, dye intermediates and auxiliaries, selling its owned products and providing related consulting services, wholesale of various dyes and auxiliaries, in accordance with the license. |
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 500,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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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 – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
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 |
Name and address
COLOUR STAR CHEMICAL CO., LTD.
UNIT B3-1A, 4TH FLOOR, WEST BLOCK OF HI-TECH KING WORLD
NO. 668 BEIJING EAST ROAD, FENGXIAN DISTRICT
SHANGHAI 201424 PR CHINA
TEL: 86 (0) 21-53080684/53081587/63524047
FAX: 86 (0) 21-53080684
EXECUTIVE SUMMARY
Date of Registration : december 4, 2003
REGISTRATION NO. : 310000400364390
LEGAL FORM : Wholly foreign-owned enterprise
REGISTERED CAPITAL : usd 5,000,000
staff :
75
BUSINESS CATEGORY : manufacturing
Revenue :
CNY 82,670,000 (AS OF DEC. 31, 2010)
EQUITIES :
CNY 46,070,000 (AS OF DEC. 31, 2010)
WEBSITE : www.colourstar.com.cn
E-MAIL :
N/A
PAYMENT :
AVERAGE
Recommended Credit Limit: UP TO USD 500,000
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.45 = USD 1
Adopted abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL
REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL STATUS & HISTORY
***Note: According to SC’s website, it is also
known as Shanghai Colourstar Chemical Industry Co., Ltd.
SC’s telephone and fax numbers should be the
heading ones, SC’s employee did not hear of the given numbers (02-784-4896/7,
02-784-4898); SC’s correct address is mentioned in the heading, instead of the
given one-Unit B-3-1 & 688 Beijing Road (E).
SC was established
as a wholly foreign-owned enterprise of PRC with State Administration of
Industry & Commerce (SAIC) under registration No.: 310000400364390 on
December 4, 2003.
SC’s Organization Code Certificate No.:
756966948
SC’s registered capital: usd 5,000,000
SC’s paid-in capital: usd 5,000,000
No significant changes of SC have been noted
in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Liu Yinfei (Canada) |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Liu Yinfei |
RECENT DEVELOPMENT
According to SC’s
accountant, SC plans to increase its registered capital to USD 5,050,000, and
the relative procedures are being processed in SAIC now.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Liu Yinfei (Canada) 100
MANAGEMENT
Liu Yinfei , Legal
Representative, Chairman and General Manager
-------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Nationality: Canada
Ø
Qualification:
University
Ø
Working
experience (s):
Ø
From 2003
to present, working in SC as legal representative, chairman and general manager
BUSINESS OPERATION
SC’s registered business scope includes
developing and manufacturing reactive dyes, acid dyes, dye intermediates and
auxiliaries, selling its owned products and providing related consulting
services, wholesale of various dyes and auxiliaries, in accordance with the license.
SC is mainly
engaged in manufacturing and selling reactive dyes,
acid dyes, dye intermediates and auxiliaries.
SC’s products mainly
include: reactive dyes, acid dyes, dye intermediates
and auxiliaries.
SC sources its materials 100% from domestic
market. SC sells 100% of its products to overseas market, mainly USA, Europe
and Southeast Asian market.
The buying terms of
SC include T/T and Credit of 30-60 days. The payment terms of SC include L/C
and Credit of 30-60 days.
Staff & Office:
--------------------------
SC is known
to have approx. 75 staff at
present.
SC rents an area
as its operating office at the heading address, but the detailed information is
unknown. SC’s factory locates in No. 288, Chuhua Zhi Road, (Fengxian Sub-zone),
Chemical Industry Zone, Shanghai.
RELATED COMPANY
SC is known to have a
branch at present:
Colour
Star Chemical Co., Ltd. Shenzhen Branch
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
The bank
information of SC is not filed in SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
160 |
70 |
|
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Accounts
receivable |
6,060 |
7,790 |
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Advances to
suppliers |
0 |
0 |
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Other receivable |
2,250 |
110 |
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Inventory |
6,050 |
8,080 |
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Non-current
assets within one year |
0 |
0 |
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Other current
assets |
5,960 |
1,520 |
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|
------------------ |
------------------ |
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Current assets |
20,480 |
17,570 |
|
Fixed assets |
2,220 |
3,400 |
|
Construction in
progress |
11,020 |
25,060 |
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Intangible
assets |
0 |
0 |
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Deferred income
tax assets |
0 |
0 |
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Other
non-current assets |
8,490 |
9,140 |
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------------------ |
------------------ |
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Total assets |
42,210 |
55,170 |
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============= |
============= |
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Short-term loans |
0 |
0 |
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Notes payable |
0 |
0 |
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Accounts payable |
1,760 |
5,200 |
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Advances from
clients |
0 |
0 |
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Other payable |
240 |
3,200 |
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Other current
liabilities |
-410 |
700 |
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------------------ |
------------------ |
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Current
liabilities |
1,590 |
9,100 |
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Non-current
liabilities |
2,920 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
4,510 |
9,100 |
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Equities |
37,700 |
46,070 |
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------------------ |
------------------ |
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Total
liabilities & equities |
42,210 |
55,170 |
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============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
|
Revenue |
82,670 |
|
Cost of sales |
71,930 |
|
Sales expense |
450 |
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Management expense |
4,180 |
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Finance expense |
0 |
|
Subsidy income |
370 |
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Non-operating
income |
20 |
|
Profit before
tax |
8,110 |
|
Less: profit tax |
1,020 |
|
7,090 |
Important Ratios
=============
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As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
*Current ratio |
12.88 |
1.93 |
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*Quick ratio |
9.08 |
1.04 |
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*Liabilities
to assets |
0.11 |
0.16 |
|
*Net profit
margin (%) |
-- |
8.58 |
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*Return on
total assets (%) |
-- |
12.85 |
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*Inventory /
Revenue ×365 |
-- |
36 days |
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*Accounts
receivable/ Revenue ×365 |
-- |
35 days |
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*
Revenue/Total assets |
-- |
1.50 |
|
* Cost of
sales / Revenue |
-- |
0.87 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears average in its line in
2010.
l
SC’s net profit margin is fairly good in 2010.
l
SC’s return on total assets is fairly good in 2010.
l
SC’s cost of goods sold is average, comparing with
its revenue.
LIQUIDITY: FAIRLY
GOOD
l
The current ratio of SC is maintained in a fairly good
level in both years.
l
SC’s quick ratio is maintained in a fairly good
level in both years.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC has no short-term loan in both years.
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low in both years.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered small-sized in its line with fairly good financial
conditions. A credit line at the above amount appears beyond SC’s capacities,
while a credit line up to USD 500,000 is recommended.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.37 |
|
|
1 |
Rs.72.34 |
|
Euro |
1 |
Rs.63.87 |
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 |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
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.