MIRA INFORM REPORT

 

 

Report Date :           

14.11.2011

 

IDENTIFICATION DETAILS

 

Name :

WENZHOU C.L. IMPORT AND EXPORT CO., LTD.

 

 

Registered Office :

No. 10 Fengnan Road, Ouhai Economic Development Zone, Wenzhou City, Zhejiang Province 325014 Pr

 

 

Country :

China

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

10.02.2006

 

 

Com. Reg. No.:

330304000069280

 

 

Legal Form :

Limited Liabilities Company

 

 

Line of Business :

International Trade

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 40,000

Status :

Small Company 

Payment Behaviour :

Usually Correct 

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

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

Company name & address 

 

 Bottom of Form

 

wenzhou c.l. import and export co., ltd.

no. 10 fengnan road, ouhai economic development zone

wenzhou city, ZHEJIANG PROVINCE 325014 PR CHINA

TEL: 86 (0) 577-86726226/86088788

FAX: 86 (0) 577-86764899

 

 

EXECUTIVE SUMMARY

 

Date of Registration          : FEBRUARY 10, 2006

REGISTRATION NO.                  : 330304000069280

LEGAL FORM                           : Limited liabilities company

CHIEF EXECUTIVE          : CHEN LIDONG (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL             : CNY 1,000,000

staff                                      : 12

BUSINESS CATEGORY             : TRADING

Revenue                                : CNY 132,237,000 (AS OF DEC. 31, 2010)

EQUITIES                                 : CNY 2,499,000 (AS OF DEC. 31, 2010)

WEBSITE                                 : N/A

E-MAIL                                     : N/A

PAYMENT                                : AVERAGE

Recommended Credit Limit: UP TO USD 40,000

MARKET CONDITION                : AVERAGE

FINANCIAL CONDITION             : fairly stable

OPERATIONAL TREND              : ORDINARY

GENERAL REPUTATION           : AVERAGE

EXCHANGE RATE                     : CNY 6.39= 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: The provide address (No. 332 Ouhai Grand Road, Wenzhou) is SC’s registered address, while SC is operating in the heading premise.

 

SC was established as a limited liabilities company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 330304000069280 on February 10, 2006.

 

SC’s Organization Code Certificate No.: 78565633-2

 

SC’s Tax No. 330304785656332

 

SC’s registered capital: CNY 1,000,000

 

SC’s paid-in capital: CNY 1,000,000

 

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

Chen Lidong

 

70

Chen Aimei

 

30

 

 

SC’s Chief Executives:-

Position

Name

Legal Representative, Chairman and General Manager

Chen Lidong

Supervisor

Chen Aimei

 

 

RECENT DEVELOPMENT

 

No recent development was found during our checks at present.

 

 

SHAREHOLDER CHART & BACKGROUND

 

Name                                                                                      % of Shareholding

Chen Lidong                                                                                          70

Chen Aimei                                                                                           30

 

 

MANAGEMENT

 

Chen Lidong, Legal Representative, Chairman and General Manager

------------------------------------------------------------------------------------------------------

Ø         Gender: M

Ø         Age: 44

Ø         ID# 330321196701224819

Ø         Qualification: University

Ø         Working experience (s):

 

At present, working in SC as legal representative, chairman and general manager

 

Also working in Wenzhou C.L. Textile Technology Co., Ltd., Wenzhou Hongchang Non-woven Co., Ltd., and Wenzhou Changhao Textile Machinery Co., Ltd. as legal representative

 

 

Chen Aimei, Supervisor

-------------------------------------------

Ø         Gender: F

Ø         Age: 54

Ø         ID# 330321195706284824

 

 

BUSINESS OPERATION

 

SC’s registered business scope includes acting to import and export commodities and technology.

 

SC is mainly engaged in international trade

 

SC’s products mainly include:

SS Polypropylene Spunbond Nonwoven Fabric

SMS Polypropylene Spunbond Nonwoven Fabric

Polyester Spunbond Nonwoven Fabric

Polymer Lactic Acid Nonwoven Fabric

Etc.

 

SC sources its materials 100% from domestic market, mainly Zhejiang. SC sells 40% of its products in domestic market, and 60% to overseas market, mainly India, South Africa, USA, etc.

 

The buying terms of SC include T/T and Credit of 30-60 days. The payment terms of SC include T/T, L/C and Credit of 30-60 days.

 

*Major Supplier:

============

Wenzhou Changlong Textile Technology Co., Ltd.

 

Staff & Office:

--------------------------

SC is known to have approx. 12 staff at present.

 

SC rents an area as its operating office of approx. 100 sq. meters at the heading address.

 

 

RELATED COMPANY

 

n         Wenzhou C.L. Textile Technology Co., Ltd.

Registration No.: 330304000065000

Date of Registration: April 23, 1993

Legal Form: Limited Liabilities Company

Registered Capital: CNY 10,000,000

Legal Representative: Chen Lidong

Web: www.clnonwoven.com

Address: No. 10 Fengnan Road, Ouhai Economic Development Zone, Wenzhou, 325014, China

Tel: 86-577-86763780

Fax: 86-577-86764899

 

n         Wenzhou Hongchang Nonwoven Fabric Co., Ltd.

Registration No.: 330304000010020

Date of Registration: January 2, 2008

Legal Form: Limited Liabilities Company

Registered Capital: CNY 10,000,000

Legal Representative: Chen Lidong

 

n         Wenzhou Changhao Textile Machinery Co., Ltd.

Registration No.: 330305000015471

Date of Registration: June 19, 2009

Legal Form: Limited Liabilities Company

Registered Capital: CNY 40,000,000

Legal Representative: Chen Lidong

 

n         Wenzhou Chaolong Textile Machinery Co., Ltd.

Registration No.: 330304000019491

Date of Registration: April 3, 1992

Legal Form: Limited Liabilities Company

Registered Capital: CNY 66,680,000

Legal Representative: Chen Lianzhong

 

n         Wenzhou Yonghong Chemical Fiber Fabric Co., Ltd.

Registration No.: 330304000070778

Date of Registration: April 25, 2002

Legal Form: Limited Liabilities Company

Registered Capital: CNY 1,000,000

Legal Representative: Zhang Jianguo

 

 

PAYMENT

 

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:  A trade enquiry currently conducted with SC's supplier(s) reveal the following:

                                              Supplier A

Products sold:                         Nonwoven Fabric

Date account opened:              2008

Line of credit:                          No comment

Terms:                                    T/T, Credit of 30-60 days

Average monthly sales:            No comment

Current balance:                      No comment

Rating Key:                             3

Any Special Comments:  N/a

 

Payment record keys :

1 = Prompt : Payment made before the credit period expires

2 = As agreed terms : Payment made upon due date

3 = Slightly slow but acceptable : Payment made 5 to 20 days beyond agreed terms

4 = Slow : Payment made 16 to 45 days beyond agreed terms

5 = Poor : Payment made over 45 days beyond agreed terms

6 = No comment : Account is newly opened & record is not yet established

Note :   In some instances, payment beyond terms can be the result of disputes over merchandise, lost invoices, disputed accounts & etc.

 

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

 

Basic Bank:

 

²        China Construction Bank Wenzhou Ouhai Sub-branch Longxia Office

AC#: 33001628751053000272

Address: No. 205, Longxia Middle Road, Ouhai District, Wenzhou, Zhejiang Province

Tel: 86-577-86787999

 

²        Bank of China Wenzhou Wutian Sub-branch

AC#: 820032018708091014

 

 

FINANCIALS

 

Balance Sheet

Unit: CNY’000

As of Dec. 31, 2009

As of Dec. 31, 2010

Cash

11,902

11,879

Notes receivable

0

0

Accounts receivable

2,186

508

Advances to suppliers

5,135

18,879

Other receivable

-6,433

-14,800

Inventory

807

0

Non-current assets within one year

0

0

Deferred expense

0

0

Other current assets

0

0

 

------------------

------------------

Current assets

13,597

16,466

Fixed assets

9

5

Construction in progress

0

0

Intangible assets

0

0

Long-term investment

0

0

Deferred income tax assets

0

0

Other non-current assets

0

0

 

------------------

------------------

Total assets

13,606

16,471

 

=============

=============

Short-term loans

1,762

0

Notes payable

0

0

Accounts payable

-7,197

3,715

Salaries payable

0

0

Welfare payable

0

0

Taxes payable

4

573

Advances from clients

17,362

8,970

Other payable

268

714

Other unpaid expenses

0

0

Accrued expenses

0

0

Other current liabilities

0

0

 

------------------

------------------

Current liabilities

12,199

13,972

Non-current liabilities

0

0

 

------------------

------------------

Total liabilities

12,199

13,972

Equities

1,407

2,499

 

------------------

------------------

Total liabilities & equities

13,606

16,471

 

=============

=============

 

Income Statement

Unit: CNY’000

As of Dec. 31, 2009

As of Dec. 31, 2010

Revenue

51,409

132,237

Cost of sales

49,172

127,493

    Sales expense

1,459

2,667

    Management expense

291

735

    Finance expense

92

-477

Profit before tax

504

2,009

Less: profit tax

126

502

Profits

378

1,507

 

Important Ratios

=============

 

As of Dec. 31, 2009

As of Dec. 31, 2010

*Current ratio

1.11

1.18

*Quick ratio

1.05

1.18

*Liabilities to assets

0.90

0.85

*Net profit margin (%)

0.74

1.14

*Return on total assets (%)

2.78

9.15

*Inventory / Revenue ×365

6 days

0

*Accounts receivable/ Revenue ×365

16 days

2 days

* Revenue/Total assets

3.78

8.03

* Cost of sales / Revenue

0.96

0.96

 

 

 

 

FINANCIAL COMMENTS

 

PROFITABILITY: FAIRLY GOOD

l         The revenue of SC appears average, and it was rising significantly in 2010.

l         SC’s net profit margin is average in both years.

l         SC’s return on total assets is average in 2009, fairly good in 2010.

l         SC’s cost of goods sold is fairly high, comparing with its revenue.

 

LIQUIDITY: AVERAGE

l         The current ratio of SC is maintained in a normal level in both years.

l         SC’s quick ratio is maintained in a fairly good level in both years.

l         SC has no inventory in 2010.

l         The accounts receivable of SC appears average in both years.

l         SC has no short-term loans in 2010.

l         SC’s revenue is in a fairly good level, 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.

 

 

CONCLUSIONS

 

SC is considered small-sized in its line with fairly stable financial conditions. A credit line up to USD 40,000 would appear to be within SC’s capacities.

 

 

 

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

 

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

----

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%)

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.