MIRA INFORM REPORT
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Report Date : |
09.04.2012 |
IDENTIFICATION DETAILS
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Name : |
WENZHOU GOOD VIEW LEATHER CHEMICALS CO., LTD.
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Registered Office : |
No. 29, Beiwei 2nd Road, Ouhai Economic
Development Zone, Wenzhou, Zhejiang Province 325014 Pr |
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Country : |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
16.07.1996 |
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Com. Reg. No.: |
330304000036360 |
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Legal Form : |
Limited Liabilities Co |
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Line of Business : |
Selling Leather Products |
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No. of Employees : |
30 |
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 : |
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, 2012
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Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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 & address
WENZHOU GOOD VIEW LEATHER
CHEMICALS CO., LTD.
NO. 29, BEIWEI 2ND ROAD, OUHAI ECONOMIC
DEVELOPMENT ZONE, WENZHOU, ZHEJIANG PROVINCE 325014 PR CHINA
TEL: 86 (0) 577-86362139 FAX: 86 (0) 577-86362138
EXECUTIVE SUMMARY
INCORPORATION DATE : JUL. 16, 1996
REGISTRATION NO. : 330304000036360
REGISTERED
LEGAL FORM : LIMITED LIABILITIES CO.
STAFF
STRENGTH : 30
REGISTERED
CAPITAL : CNY 5,000,000
BUSINESS LINE : TRADING
TURNOVER : CNY 75,840,000 (UNaudited, AS OF DEC. 31, 2010)
EQUITIES : CNY
11,570,000 (UNaudited, 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 6.51= 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
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 Jul. 16, 1996.
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 leather, leather products, leather chemical products and
shoes materials; importing and exporting commodities and technologies;
wholesaling leather chemical products. (with permit if needed)
SC is mainly engaged in selling leather
products.
Ms. Yu Xiuzhen is legal representative,
chairman and general manager of SC at present.
SC is known to have approx. 30 employees at
present.
SC is currently
operating at the above stated address, and this address houses its operating
office in the development zone of Wenzhou. Our checks reveal that SC rents the
total premise about 300 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
Yu Xiuzhen 50
Zhang Anding 50
l
Legal
representative, Chairman and General manager:
Ms. Yu Xiuzhen, ID#
330302580405162, born in 1958. She is currently responsible for the overall
management of SC.
Working Experience(s):
At present Working in SC as legal representative, chairman and general manager.
l
Supervisor:
Zhang Anding
SC is mainly engaged in selling leather
products.
SC’s products mainly
include leather and leather chemical products, etc.
SC sources its materials 95% from domestic
market and 5% from overseas market. SC sells 20% in domestic market and 80% 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.
SC’s accountant refused to release the bank details.
Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2009 |
As of Dec. 31, 2010 |
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Cash & bank |
1,590 |
4,200 |
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Inventory |
20,330 |
20,490 |
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Bills receivable |
0 |
0 |
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Accounts receivable |
20,940 |
22,680 |
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Advances to suppliers |
20 |
20 |
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Other receivables |
40 |
40 |
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Other current assets |
5,370 |
5,060 |
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------------------ |
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Current assets |
48,290 |
52,490 |
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Fixed assets net value |
1,920 |
1,590 |
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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 |
10 |
0 |
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Total assets |
50,220 |
54,080 |
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Short loan |
25,250 |
25,210 |
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Accounts payable |
10,380 |
6,350 |
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Advances from clients |
0 |
0 |
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Taxes payable |
60 |
180 |
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Other Accounts payable |
3,310 |
10,750 |
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Other current liabilities |
60 |
20 |
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Current liabilities |
39,060 |
42,510 |
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Long term liabilities |
0 |
0 |
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Total liabilities |
39,060 |
42,510 |
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Equities |
11,160 |
11,570 |
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Total liabilities & equities |
50,220 |
54,080 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2010 |
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Turnover |
75,840 |
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Cost of goods sold |
71,740 |
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Sales expense |
0 |
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Management expense |
3,780 |
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Finance expense |
110 |
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Profit before tax |
1,050 |
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Less: profit tax |
260 |
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Profits |
790 |
Note: The Financial Report for Year 2010 hasn’t been audited.
Important Ratios
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As of Dec. 31, 2009 |
As of Dec. 31, 2010 |
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*Current ratio |
1.24 |
1.23 |
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*Quick ratio |
0.72 |
0.75 |
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*Liabilities to assets |
0.78 |
0.79 |
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*Net profit margin (%) |
/ |
1.04 |
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*Return on total assets (%) |
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1.46 |
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*Inventory /Turnover ×365 |
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99 days |
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*Accounts receivable/Turnover ×365 |
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109 days |
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*Turnover/Total assets |
/ |
1.40 |
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* Cost of goods sold/Turnover |
/ |
0.95 |
PROFITABILITY: AVERAGE
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The
turnover of SC appears average in 2010.
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SC’s net
profit margin is average in 2010.
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SC’s
return on total assets is average in 2010.
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SC’s cost
of goods sold is high, comparing with its turnover in 2010.
LIQUIDITY: FAIR
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The
current ratio of SC is maintained in a normal level.
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SC’s
quick ratio is maintained in a fair level.
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The
inventory of SC appears fairly large.
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The
accounts receivable of SC appears fairly large.
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The
short-term loan of SC appears large.
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SC’s
turnover is in an average level, comparing with the size of its total assets in
2010.
LEVERAGE: FAIR
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The debt
ratio of SC is fairly high.
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The risk
for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly
stable.
SC is considered
medium-sized in its line with fairly stable financial conditions. The large
amount of inventory, 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.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.51.05 |
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UK Pound |
1 |
Rs.81.09 |
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Euro |
1 |
Rs.67.39 |
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 |
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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.