MIRA
INFORM REPORT
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Report Date : |
12.10.2011 |
IDENTIFICATION DETAILS
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Name : |
LINYI DAPENG HARDWARE & ABRASIVES CO., LTD. |
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Registered Office : |
Zaogoutou Industrial Park, Linyi Shandong Province 276000 Pr
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
18.03.2002 |
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Com. Reg. No.: |
371302228006976 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and selling hardware abrasives. |
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 1,000 |
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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 and address
LINYI DAPENG HARDWARE & ABRASIVES CO., LTD.
ZAOGOUTOU INDUSTRIAL PARK, LINYI
SHANDONG PROVINCE 276000 PR CHINA
TEL: 86 (0) 539-8116897/8632788
FAX: 86 (0) 539-8116366/8632755
EXECUTIVE SUMMARY
Date of Registration : March 18, 2002
REGISTRATION NO. : 371302228006976
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : cny 500,000
staff :
27
BUSINESS CATEGORY : manufacturing
Revenue :
CNY 4,352,000 (AS OF DEC. 31, 2010)
EQUITIES :
CNY 408,000 (AS OF DEC. 31, 2010)
WEBSITE : www.dapengwujin.com
E-MAIL :
linyidapeng@yahoo.com.cn
PAYMENT :
AVERAGE
Recommended Credit Limit: UP TO USD 1,000
(PERIODICAL REVIEW)
MARKET CONDITION : fair
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : STAGNANT
GENERAL REPUTATION : fair
EXCHANGE RATE :
CNY 6.37 = 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: SC is also known as Linyi Dapeng Hardware
Grinding Tools Co., Ltd.
SC was established
as a limited liabilities company of PRC with State Administration of Industry
& Commerce (SAIC) under registration No.: 371302228006976 on March 18, 2002.
SC’s Organization Code Certificate No.:
73720739-9
SC’s registered capital: cny 500,000
SC’s paid-in capital: cny 500,000
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 |
|
Peng Xiangdong |
70 |
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Peng Xiaotong |
30 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Peng Xiangdong |
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General Manager |
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Supervisor |
Peng Xiaotong |
RECENT DEVELOPMENT
SC has passed the certifications of ISO 9001 Quality Management System
and Quality License for Export Products.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Peng Xiangdong 70
Peng Xiaotong 30
MANAGEMENT
Peng Xiangdong ,
Legal Representative and Chairman
---------------------------------------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
From 2002
to present, working in SC as legal representative and chairman
----------------------------------------------
Ø
Gender: F
Ø
Qualification:
University
Ø
Working
experience (s):
At
present, working in SC as general manager
Peng Xiaotong ,
Supervisor
----------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and
selling hardware abrasives.
SC is mainly engaged
in manufacturing and selling hardware abrasives.
Brands: 
SC’s products
mainly include:
High
Speed Resin Abrasive Cutting Wheel
High-speed
Resin Cymbals-shaped Grinding Wheel
SC sources its materials 100% from domestic market,
mainly Shandong. SC sells 60% of its products in domestic market, and 40% to
overseas market, mainly Korea, Asia, Europe and 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 Local Competitors:
====================
Linyi Jinsheng
Abrasive & Grinder Co., Ltd.
Linyi Qiteng
Silicon Carbide Abrasive & Grinder Co., Ltd.
Linyi Yingmai
Tools Co., Ltd.
Staff & Office:
--------------------------
SC is known
to have approx. 27 staff at
present.
SC rents an area
as its operating office of approx. 2,000 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
The bank
information of SC is not filed in SAIC.
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As
of Dec. 31, 2010 |
|
296 |
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Accounts
receivable |
596 |
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Advances to
suppliers |
0 |
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Other receivable |
0 |
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Inventory |
1,200 |
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Non-current
assets within one year |
0 |
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Other current
assets |
8 |
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------------------ |
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Current assets |
2,100 |
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Fixed assets |
1,455 |
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Construction in
progress |
0 |
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Intangible
assets |
0 |
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Long-term
prepaid expenses |
0 |
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Deferred income
tax assets |
0 |
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Other
non-current assets |
0 |
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------------------ |
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Total assets |
3,555 |
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============= |
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Short-term loans |
2,960 |
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Notes payable |
0 |
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Accounts payable |
207 |
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Advances from
clients |
0 |
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Other payable |
0 |
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Other current
liabilities |
-97 |
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------------------ |
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Current
liabilities |
3,070 |
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Non-current
liabilities |
77 |
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------------------ |
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Total
liabilities |
3,147 |
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Equities |
408 |
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------------------ |
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Total
liabilities & equities |
3,555 |
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============= |
Income Statement
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Unit: CNY’000 |
As of Dec. 31,
2010 |
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Revenue |
4,352 |
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Cost of sales |
4,078 |
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Sales expense |
0 |
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Management expense |
188 |
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Finance expense |
0 |
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Profit before
tax |
82 |
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Less: profit tax |
0 |
|
82 |
Important Ratios
=============
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As
of Dec. 31, 2010 |
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*Current ratio |
0.68 |
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*Quick ratio |
0.29 |
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*Liabilities
to assets |
0.89 |
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*Net profit
margin (%) |
1.88 |
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*Return on
total assets (%) |
2.31 |
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*Inventory /
Revenue ×365 |
101 days |
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*Accounts
receivable/ Revenue ×365 |
50 days |
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* Revenue/Total
assets |
1.22 |
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* Cost of
sales / Revenue |
0.94 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l
The revenue of SC appears fair in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is fairly high, comparing
with its revenue.
LIQUIDITY: POOR
l
The current ratio of SC is maintained in a poor
level.
l
SC’s quick ratio is maintained in a poor level.
l
The inventory of SC appears large.
l
The accounts receivable of SC is maintained in an
average level.
l
The short-term loans of SC appear large.
l
SC’s revenue is in an average 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: Fair.
CONCLUSIONS
SC is considered small-sized in its line with fair financial conditions.
The large amount of inventory and short-term loans may be a threat to SC’s financial
condition. A credit line up to USD 1,000 is recommended upon a periodical
review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.03 |
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|
1 |
Rs.76.60 |
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Euro |
1 |
Rs.66.80 |
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 |
-- |
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.