MIRA INFORM REPORT
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Report Date : |
03.06.2011 |
IDENTIFICATION DETAILS
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Name : |
CIXI FARSTAR LIGHTING ELECTRIC CO., LTD. |
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Registered Office : |
Weisan Road, Fanshi Industrial Zone, Cixi
City, Zhejiang Province, 315312 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
28.06.2007 |
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Com. Reg. No.: |
330282000111229 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing, Processing and Selling Lighting and accessories |
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 8,000 |
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Status : |
Small Company |
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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 – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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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
CIXI FARSTAR
LIGHTING ELECTRIC CO., LTD.
WEISAN ROAD, FANSHI INDUSTRIAL ZONE, CIXI
CITY,
ZHEJIANG PROVINCE, 315312 PR CHINA
TEL: 86 (0) 574-63706965/63706548 FAX: 86 (0) 574-63706963
EXECUTIVE SUMMARY
INCORPORATION DATE : JUNE 28, 2007
REGISTRATION NO. : 330282000111229
REGISTERED LEGAL FORM : LIMITED LIABILITIES
COMPANY
STAFF STRENGTH :
45
REGISTERED CAPITAL : CNY 500,000
BUSINESS LINE :
MANUFACTURING AND processing
TURNOVER :
cny 11,381,000 (AS OF DEC. 31, 2010)
EQUITIES :
cny 877,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 8,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.48= 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 also uses Cixi Farstar Lighting
Electric Appliance Co., Ltd. as its English name.
SC was registered as a limited liabilities company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on June 28, 2007.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to extent of its total assets. The characteristics of this form
of co. are as follows: Upon
the establishment of the co., an investment certificate is issued to the
each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co
SC’s registered business scope includes manufacturing and processing
lighting and accessories, household appliances and accessories, hardware accessories,
plastic products, rubber products; import and export of various goods and
technology.
SC is mainly
engaged in manufacturing, processing and selling lighting and accessories.
Mr. Hua Liuzong is
the legal representative, chairman and general manager of SC at present.
SC is known
to have approx. 45 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 Cixi City. Our checks reveal that SC rents the total premise, but SC’s
employee refused to release the gross area of the premise.
http://www.farstarlight.com/ The
design is professional and the content is well organized. At present, the web
is in both Chinese and English versions.
E-mail: cnfarstar@163.com
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Hua Liuzong 15
ID# 330282196810281318
Hua Weihong
15
ID# 330222197411031950
Wang Dali
30
ID# 330222680127181
Wang Songhua
40
ID# 330222196210161818
l
Legal representative, Chairman and General manager:
Mr. Hua Liuzong, ID# 330282196810281318, born in 1968, he is currently responsible for the overall management of
SC.
Working Experience(s):
At present Working
in SC as legal representative, chairman and general manager
Supervisor:
…………..
Wang Songhua
ID# 330222196210161818
SC is mainly engaged
in manufacturing, processing and selling lighting and accessories.
SC’s products
mainly include various lighting products, mainly fluorescent fittings T8 &
T5 ,stainless steel lamps ,lighting components, etc.
SC sources its
materials 100% from domestic market. SC sells 90% of its products in domestic
market and 10% to overseas market, mainly Southeast Asia.
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.
Note:
SC’s management declined to release its major clients 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.
Cixi
Rural Cooperative Bank
AC# 201000044564865
Relationship:
Normal.
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 |
43 |
97 |
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Inventory |
635 |
68 |
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Accounts
receivable |
141 |
2,534 |
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Advances to
suppliers |
320 |
234 |
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Other receivables |
14 |
61 |
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Other current
assets |
53 |
121 |
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--------------- |
------------------ |
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Current assets |
1,206 |
3,115 |
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Fixed assets net
value |
75 |
127 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
0 |
0 |
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Other assets |
0 |
0 |
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--------------- |
------------------ |
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Total assets |
1,281 |
3,242 |
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============ |
============= |
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Short loans |
0 |
0 |
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Accounts payable |
628 |
2,231 |
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Notes payable |
0 |
0 |
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Advances from
clients |
0 |
21 |
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Salaries payable |
0 |
0 |
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Welfare payable |
0 |
0 |
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Taxes payable |
0 |
41 |
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Other payable |
0 |
56 |
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Other current
liabilities |
61 |
16 |
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------------------ |
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Current
liabilities |
689 |
2,365 |
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Long term
liabilities |
0 |
0 |
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------------------ |
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Total
liabilities |
689 |
2,365 |
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Equities |
592 |
877 |
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------------------ |
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Total
liabilities & equities |
1,281 |
3,242 |
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=========== |
============= |
Income Statement
Unit: CNY’000
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As of Dec. 31,
2010 |
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Turnover |
11,381 |
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Cost of goods
sold |
10,240 |
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Taxes
and additional of main operation |
26 |
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Sales expense |
292 |
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Management expense |
410 |
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Finance expense |
-2 |
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Profit before
tax |
400 |
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Less: profit tax |
100 |
|
Profits |
300 |
Important Ratios
=============
|
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As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
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*Current ratio |
1.75 |
1.32 |
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*Quick ratio |
0.83 |
1.29 |
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*Liabilities
to assets |
0.54 |
0.73 |
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*Net profit
margin (%) |
/ |
2.64 |
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*Return on
total assets (%) |
/ |
9.25 |
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*Inventory
/Turnover ×365 |
/ |
2 days |
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*Accounts
receivable/Turnover ×365 |
/ |
81 days |
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*Turnover/Total
assets |
/ |
3.51 |
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* Cost of
goods sold/Turnover |
/ |
0.90 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line in
2010.
l
SC’s net profit margin is average in 2010.
l
SC’s return on total assets is fairly good in 2010.
l
SC’s cost of goods sold is average in 2010,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in both 2 years.
l
SC’s quick ratio is maintained in a normal level in
both 2 years.
l
The accounts receivable of SC appears average in
2009 but large in 2010.
l
The inventory of SC appears average in both 2
years.
l
There is no short-term loan of SC in both 2 years.
l
SC’s turnover is in a fairly good level in 2010,
comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
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. The large amount of accounts receivable could be a threat to SC’s
financial condition. A credit line up to USD 8,000 would appear to be within
SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.94 |
|
UK Pound |
1 |
Rs.73.46 |
|
Euro |
1 |
Rs.64.58 |
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.