MIRA INFORM REPORT
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Report Date : |
03.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
LINGXIAN SHINE COATING & AUXILIARIES
FACTORY |
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Registered Office : |
Dong Jie Industrial Zone, Lingxian, Dezhou City, Shandong Province,
253500 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
23.04.2001 |
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Com. Reg. No.: |
371421018004373 |
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Legal Form : |
Collective-Owned Enterprise |
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Line of Business : |
Processing and
Selling Coating, Dye and additives. |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
usd 10,000 |
|
Status : |
Small Company |
|
Payment
Behaviour : |
No Complaints |
|
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 |
2A |
2A |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
Company name
& address
LINGXIAN SHINE
COATING & AUXILIARIES FACTORY
DONG JIE INDUSTRIAL ZONE, LINGXIAN, DEZHOU CITY,
SHANDONG PROVINCE, 253500 PR CHINA
TEL: 86 (0) 534-8421588/2139569 FAX: 86 (0)
534-8322577/8266006
EXECUTIVE SUMMARY
INCORPORATION DATE : APR. 23, 2001
REGISTRATION NO. : 371421018004373
REGISTERED LEGAL FORM : Collective-owned
enterprise
STAFF STRENGTH :
55
REGISTERED CAPITAL : CNY 800,000
BUSINESS LINE :
processing
TURNOVER :
cny 36,010,000 (AS OF DEC. 31, 2010)
EQUITIES :
cny 2,650,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 10,000 (periodical review)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : fairly 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
SC was registered as a collective-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Apr. 23, 2001.
Company Status: Collective-owned enterprise This form of business in PR
China is defined as a legal person. It is a private held entity owned by a
set number of private individuals (usually employees of the co., residents
of a village or town), domestic business organizations or domestic
institutions. The general manager who was appointed by the employees
representative meeting manages the co. The laboring masses work together
based on the principle of distribution according to work, reasonably share
the profit, and win certain accumulated public fund. The collective-owned
enterprise is independent economic organization and legal corporation
engaged in production & operation activities and independent
accounting, with self-management and self-responsibility for the profit and
loss.
SC’s registered business scope includes manufacturing coating, coating
additives; processing dye, dye and dye semi-finished products; selling dye
intermediates, building materials, packaging materials, textile raw materials,
textiles; exporting self-made products, importing raw and auxiliary materials
and technology, machinery and equipment, instruments and spare parts which used
for self-production and research (excluding the goods and technology prohibited
or limited by the country) (with permit if needed).
SC is mainly
engaged in processing and selling coating, dye and additives.
Mr. Zhang
Guoquan is the legal representative and
factory director of SC at present.
SC is known
to have approx. 55 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 Lingxian. Our checks reveal that SC rents the total premise, but SC’s
employee refused to release the gross area of the premise.
http://www.sun-dyes.com/ The
website belongs to SC and Dezhou Jinmao Chemical Co., Ltd. The design is
professional and the content is well organized. At present, the web is in both
Chinese and English versions.
E-mail: sales@sun-dyes.com
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Zhang Guoquan 75
Zhang Yanhua 25
l
Legal Representative and Factory Director:
Mr. Zhang Guoquanis currently responsible for the overall management of
SC.
Working Experience(s):
At present Working
in SC as legal representative and factory director
Also working in Dezhou Jinmao Chemical Co., Ltd. as legal representative
SC is mainly
engaged in processing and selling coating, dye and additives.
SC’s products
mainly include acid black 210, acid black 234, acid brown 14, acid brown 75, acid
red 14, acid red 88, acid red 97, acid red 114:1, acid red 119, etc.
SC sources its
materials 90% from domestic market and 10% from overseas 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, L/C 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.
Dezhou
Jinmao Chemical Co., Ltd.
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
& Commercial Bank of China
AC# N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
Cash & bank |
810 |
40 |
|
Inventory |
3,280 |
2,260 |
|
Accounts
receivable |
8,170 |
7,280 |
|
Advances to
suppliers |
2,200 |
1,880 |
|
Notes receivable |
0 |
20 |
|
Other
receivables |
630 |
940 |
|
Other current
assets |
0 |
0 |
|
|
--------------- |
------------------ |
|
Current assets |
15,090 |
12,420 |
|
Fixed assets net
value |
1,620 |
1,930 |
|
Projects under
construction |
1,620 |
1,620 |
|
Long term
investment |
0 |
0 |
|
Other assets |
10 |
0 |
|
|
--------------- |
------------------ |
|
Total assets |
18,340 |
15,970 |
|
|
============ |
============= |
|
Short loans |
5,100 |
4,570 |
|
Accounts payable |
8,400 |
6,860 |
|
Notes payable |
0 |
0 |
|
Advances from
clients |
360 |
360 |
|
Salaries payable |
290 |
0 |
|
Welfare payable |
320 |
230 |
|
Taxes payable |
10 |
250 |
|
Other payable |
60 |
60 |
|
Other current
liabilities |
890 |
990 |
|
|
------------------- |
------------------ |
|
Current
liabilities |
15,430 |
13,320 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------- |
------------------ |
|
Total
liabilities |
15,430 |
13,320 |
|
Equities |
2,910 |
2,650 |
|
|
------------------- |
------------------ |
|
Total
liabilities & equities |
18,340 |
15,970 |
|
|
=========== |
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2010 |
|
Turnover |
36,010 |
|
Cost of goods
sold |
32,150 |
|
Taxes
and additional of main operation |
100 |
|
Sales expense |
1,940 |
|
Management expense |
1,230 |
|
Finance expense |
360 |
|
Non-operating
expense |
320 |
|
Profit before
tax |
-100 |
|
Less: profit tax |
170 |
|
Profits |
-270 |
Important Ratios
=============
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
*Current ratio |
0.98 |
0.93 |
|
*Quick ratio |
0.77 |
0.76 |
|
*Liabilities
to assets |
0.84 |
0.83 |
|
*Net profit
margin (%) |
/ |
-0.75 |
|
*Return on
total assets (%) |
/ |
-1.69 |
|
*Inventory
/Turnover ×365 |
/ |
23 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
74 days |
|
*Turnover/Total
assets |
/ |
2.25 |
|
* Cost of goods
sold/Turnover |
/ |
0.89 |
PROFITABILITY:
FAIR
l
The turnover of SC appears average in its line in
2010.
l
SC’s net profit margin is fair in 2010.
l
SC’s return on total assets is fair 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 2 years.
l
SC’s quick ratio is maintained in a fair level in
both 2 years.
l
The accounts receivable of SC appears fairly large
in both 2 years.
l
The inventory of SC appears average in both 2
years.
l
The short-term loan appears fairly large in both 2
years.
l
SC’s turnover is in an average level in 2010,
comparing with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair
SC is considered small-sized in its line with fair financial conditions.
The large amount of accounts receivable and short-term loan could be a threat
to SC’s financial condition. The given credit amount would appear to be within
SC’s capacities, and a credit line up to USD 10,000 is recommended upon a
periodical review basis.
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
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
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 |
|
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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.