MIRA INFORM REPORT

 

 

Report Date :           

17.11.2011

 

IDENTIFICATION DETAILS

 

Name :

BASIC NUTRITION CO., LIMITED

 

 

Registered Office :

Room 2822, Gateway Intl Plaza, No. 325 Tianyaoqiao Road, Shanghai 200030 Pr

 

 

Country :

China

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

26.04.2010

 

 

Com. Reg. No.:

310226001057249

 

 

Legal Form :

Limited Liabilities Company

 

 

Line of Business :

Selling Health Care Products, Cosmetics, Functional Food

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Poor

 

 

Payment Behaviour :

Unknown

 

 

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

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name & address 

 

BASIC NUTRITION CO., LIMITED

room 2822, gateway intl plaza, no. 325 tianyaoqiao road

shanghai 200030 PR CHINA

TEL: 86 (0) 21-33633133

FAX: 86 (0) 21-33633138

 

 

EXECUTIVE SUMMARY

 

Date of Registration          : april 26, 2010

REGISTRATION NO.                  : 310226001057249

LEGAL FORM                           : Limited liabilities company

CHIEF EXECUTIVE            : xiao yixian (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL             : cny 500,000

staff                                      : 6

BUSINESS CATEGORY             : trading

Sale                                        : CNY 1,140,000 (AS OF DEC. 31, 2010)

EQUITIES                                 : CNY 90,000 (AS OF DEC. 31, 2010)

WEBSITE                                 : www.basicnutrition.com.cn

E-MAIL                                     : info@basic.sh.cn

PAYMENT                                : AVERAGE

Recommended Credit Limit: C.O.D.

MARKET CONDITION                : poor

FINANCIAL CONDITION             : poor

OPERATIONAL TREND  : fair

GENERAL REPUTATION           : AVERAGE

EXCHANGE RATE                     : CNY 6.35 = 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

 

SC was established as a limited liabilities company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 310226001057249 on April 26, 2010.

 

SC’s Organization Code Certificate No.: 55428423-6

SC’s registered capital: cny 500,000

 

SC’s paid-in capital: cny 100,000

 

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

Xiao Yixian

 

50

Hou Min

 

50

 

SC’s Chief Executives:-

 

Position

Name

Legal Representative, Chairman, and General Manager

Xiao Yixian

Supervisor

Hou Min

RECENT DEVELOPMENT

 

No recent development was found during our checks at present.

 

 

SHAREHOLDER CHART & BACKGROUND

 

Name                                                                                                  % of Shareholding

Xiao Yixian                                                                                                        50

Hou Min                                                                                                            50

 

 

MANAGEMENT

 

Xiao Yixian, Legal Representative, Chairman and General Manager

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

Ø         Gender: M

Ø         Qualification: University

Ø         Working experience (s):

 

From 2010 present, working in SC as legal representative, chairman and general manager

 

Hou Min, Supervisor

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

Ø         Gender: F

Ø         Qualification: University

 

 

BUSINESS OPERATION

 

SC’s registered business scope includes technology development, technology services, technology consulting, technology transfer in the field of biotechnology; wholesale and retail of chemical raw materials and products, general merchandise; importing and exporting goods and technology.

 

SC is mainly engaged in selling health care products, cosmetics, functional food.

 

SC’s products mainly include:

·         Herbal extracts

·         Vitamins

·         Food & beverage

·         Natural carotenoids

·         Amino acids

 

SC sources its materials 100% from domestic market, mainly Shanghai. SC sells 100% of its products to overseas market, mainly Southeast Asia.

 

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. 6 staff at present.

 

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

 

 

RELATED COMPANY

 

SC is not known to have any subsidiary at present.

 

 

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

 

Basic Bank:

 

SRCB

AC#: 32414108010024483

 

 

FINANCIALS

 

Balance Sheet

Unit: CNY’000

As of Dec. 31, 2010

Cash

440

Accounts receivable

0

Advances to suppliers

0

Other receivable

0

Inventory

1,730

Non-current assets within one year

0

Other current assets

10

 

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

Current assets

2,180

Fixed assets

0

Construction in progress

0

Long-term prepaid expenses

0

Deferred income tax assets

0

Other non-current assets

0

 

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

Total assets

2,180

 

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

Short-term loans

0

Notes payable

0

Accounts payable

940

Tax payable

-30

Advances from clients

1,040

Other payable

400

Other current liabilities

-260

 

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

Current liabilities

2,090

Non-current liabilities

0

 

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

Total liabilities

2,090

Equities

90

 

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

Total liabilities & equities

2,180

 

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

 

Income Statement

Unit: CNY’000

As of Dec. 31, 2010

Sale

1,140

Cost of sales

910

     Sales expense

0

     Management expense

230

     Finance expense

0

Profit before tax

-7

Less: profit tax

2

Profits

-9

 

 

Important Ratios

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

 

As of Dec. 31, 2010

*Current ratio

1.04

*Quick ratio

0.22

*Liabilities to assets

0.96

*Net profit margin (%)

-0.79

*Return on total assets (%)

-0.41

*Inventory / Sale ×365

554 days

*Accounts receivable/ Sale ×365

--

* Sale/Total assets

0.52

* Cost of sales / Sale

0.80

 

 

FINANCIAL COMMENTS

 

PROFITABILITY: FAIR

l         The sale of SC appears poor in its line.

l         SC’s net profit margin is fair.

l         SC’s return on total assets is fair.

l         SC’s cost of goods sold is average, comparing with its sale.

 

LIQUIDITY: FAIR

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

l         SC’s quick ratio is maintained in a poor level.

l         The inventory of SC appears large.

l         SC has no accounts receivable in 2010.

l         SC has no short-term loan in 2010.

l         SC’s sale is in a fair level, 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: Poor.

 

 

CONCLUSIONS

 

SC is considered small-sized in its line with poor financial conditions. A credit line at the above amount appears beyond SC’s capacities, great caution is required in providing credit to SC and C.O.D. is recommended.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.50.90

UK Pound

1

Rs.80.30

Euro

1

Rs.68.48

 

 

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.