MIRA INFORM REPORT
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Report Date : |
14.11.2011 |
IDENTIFICATION DETAILS
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Name : |
LING COUNTY SILVER SEA INDUSTRY TRADE CO.,
LTD. |
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Registered Office : |
Mizhen Economic Development Zone, Ling County, Dezhou, Shandong
Province 253509 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
06.03.2000 |
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Com. Reg. No.: |
371421228002412 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Processing and
Selling Textiles |
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 50,000 |
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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 – September 30th, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
China |
a2 |
a2 |
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Risk Category |
ECGC
Classification |
|
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
LING
COUNTY SILVER SEA INDUSTRY TRADE CO., LTD.
MIZHEN ECONOMIC DEVELOPMENT
ZONE, LING COUNTY,
DEZHOU, SHANDONG
PROVINCE 253509 PR CHINA
TEL: 86 (0)
534-2770988 FAX: 86 (0) 534-2770988
EXECUTIVE SUMMARY
INCORPORATION DATE : MAR. 6, 2000
REGISTRATION NO. : 371421228002412
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH :
70
REGISTERED CAPITAL : CNY 10,500,000
BUSINESS LINE :
PROCESSING & TRADING
TURNOVER :
CNY 91,560,000 (AS OF DEC. 31,
2010)
EQUITIES :
CNY 12,520,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 50,000 (PERIODICAL REVIEW)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.34= 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 Renminbi
Note: The given address Ladd, FL 9 Tower 19, Nanlong Intel Garden Tianqu Middle Rd Dezhou Shandong is SC’s operating office address and the factory address should be the heading one.
SC was registered as a Limited liabilities co. at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Mar. 6, 2000.
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 selling textile products, textile raw
materials and soya bean meal; import and export business. (excluding items prohibited
by the state)
SC is mainly
engaged in processing and selling textiles.
Mr. Li
Yuesheng is legal representative and
chairman of SC at present.
SC is known to
have approx. 70 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the development zone of Ling County.
Our checks reveal that SC owns the total premise about 20,000 square meters.
SC is not
known to host web site of its own at present.
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name
% of Shareholding
Li Yuesheng 38.1
Li Yueqiang 61.9
l
Legal
representative and Chairman:
Mr. Li Yuesheng, with university education. He is currently responsible
for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative and chairman.
l
Supervisor:
-----------------------
Li Yueqiang
SC is mainly
engaged in processing and selling textiles.
SC’s products mainly include cotton, chemical fiber fabric, etc.
SC sources its
materials 80% from domestic market and 20% from overseas market. SC sells 95% in
domestic market and 5% 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 declined to release its major suppliers and clients.
SC is not known to have the 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 China
AC#: N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
Cash & bank |
9,060 |
6,760 |
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Inventory |
12,720 |
19,460 |
|
Bills receivable |
0 |
0 |
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Accounts
receivable |
8,990 |
12,090 |
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Advances to
suppliers |
0 |
0 |
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Other
receivables |
7,860 |
6,550 |
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Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
38,630 |
44,860 |
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Fixed assets net
value |
18,700 |
17,640 |
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Long term
investment |
0 |
0 |
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Projects under
construction |
0 |
0 |
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Intangible and
other assets |
1,990 |
1,560 |
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------------------ |
------------------ |
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Total assets |
59,320 |
64,060 |
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=========== |
=========== |
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Short loan |
27,000 |
39,340 |
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Accounts payable |
0 |
0 |
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Bills payable |
19,910 |
12,000 |
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Advances from
clients |
0 |
0 |
|
Salaries payable |
70 |
120 |
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Taxes payable |
90 |
80 |
|
Other Accounts
payable |
0 |
0 |
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Other current
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current
liabilities |
47,070 |
51,540 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
47,070 |
51,540 |
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Equities |
12,250 |
12,520 |
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------------------ |
------------------ |
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Total
liabilities & equities |
59,320 |
64,060 |
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=========== |
=========== |
Income Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2010 |
|
Turnover |
91,560 |
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Cost of goods sold |
86,690 |
|
Sales expense |
1,080 |
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Management expense |
1,890 |
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Finance expense |
1,500 |
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Profit before tax |
370 |
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Less: profit tax |
90 |
|
Profits |
280 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
*Current ratio |
0.82 |
0.87 |
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*Quick ratio |
0.55 |
0.49 |
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*Liabilities
to assets |
0.79 |
0.80 |
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*Net profit
margin (%) |
/ |
0.31 |
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*Return on
total assets (%) |
/ |
0.44 |
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*Inventory
/Turnover ×365 |
/ |
78 days |
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*Accounts
receivable/Turnover ×365 |
/ |
49 days |
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*Turnover/Total
assets |
/ |
1.43 |
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* Cost of
goods sold/Turnover |
/ |
0.95 |
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 high, comparing with its
turnover in 2010.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average.
l
The short-term loan of SC appears large.
l
SC’s turnover is in an average level, comparing
with the size of its total assets in 2010.
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: Fairly stable.
SC is considered small-sized in its line with fairly stable financial
conditions. The large amount of short-term loan could be a threat to SC’s
financial condition. A credit line up to USD 50,000 would appear to be within
SC’s capacities upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.50.28 |
|
UK Pound |
1 |
Rs.80.08 |
|
Euro |
1 |
Rs.68.45 |
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 |
|
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 |
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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.