MIRA INFORM REPORT
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Report Date : |
09.04.2012 |
IDENTIFICATION DETAILS
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Name : |
CHINA LIGHT GENERAL MERCHANDISE IMP. &
EXP. CORP. |
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Registered Office : |
8f, No. 910, Jinsong 9th
Section, Chaoyang District, Beijing 100021 Pr |
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Country : |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
24.12.1987 |
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Com. Reg. No.: |
110000005008096 |
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Legal Form : |
State-Owned Enterprise |
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Line of Business : |
International
Trade |
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No. of Employees
: |
40 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 400,000 |
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Status : |
Satisfactory |
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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
|
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
CHINA LIGHT GENERAL MERCHANDISE IMP. & EXP. CORP.
8F, NO. 910, JINSONG 9TH SECTION,
CHAOYANG DISTRICT,
BEIJING 100021 PR CHINA
TEL: 86 (0) 10-87763920/87763388
FAX: 86 (0) 10-67747284
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 24, 1987
REGISTRATION NO. : 110000005008096
REGISTERED LEGAL FORM : State-owned enterprise
STAFF STRENGTH :
40
REGISTERED CAPITAL : CNY 7,440,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 725,840,000 (AS OF DEC. 31,
2010)
EQUITIES :
CNY 46,750,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 400,000
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND :
STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.31= USD 1 AS OF
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 State-owned enterprise at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Dec. 24, 1987.
Company Status: State-owned enterprise This form of business in PR China
is defined as a commodity production or operational units of a socialist
character which in accordance with the law, has autonomy in management,
takes full responsibility for its profits and losses and practices
independent business accounting. It is a legal person established directly
by central / local government or enterprise owned by central or local
government. In theory, the liabilities of this form of enterprise are
ultimately borne by the government, since the adoption of company law in
mid-1994, the Chinese government has planned to separate the ownership from
management and liabilities bearing.
SC’s registered business scope includes importing and exporting general
merchandise and other commodities approved by Ministry of Economy and Commerce;
agent for import and export business; undertaking Chinese
foreign equity joint venture enterprise and Chinese foreign contractual joint
venture enterprise; compensation trade in agreement; counter trade & transit trade; importing and exporting commodities
and technologies, excluding 16 kinds of export commodities under state-unified operation and 14 kinds of import commodities
operated by the state-designated companies; selling textiles, daily
necessaries, hardware, chemical, furniture, gear, labour protection articles,
machinery equipment, wood materials, plastic products, building materials and
communication equipment; technical development, labour service, information
advisory, labour dispatching.
SC is
mainly engaged in international trade.
Mr. Qiu Feng is
legal representative and general manager of SC at present.
SC is known to
have approx. 40 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Beijing. Our checks reveal that SC owns the total premise, but SC’s
accountant refused to release the gross area.
http://www.chinalight.com.cn/ The website belongs to SC’s parent company. It
includes the information on SC and SC’s related companies. The design is
professional and the content is well organized. At present the web site is in
Chinese and English versions.
SC has passed ISO9001:2000 Quality Management System Certification.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
China National Light Industrial Products
Import and Export Corporation 100
Web: http://www.chinalight.com.cn/
Add: No. 910, Jinsong 9th
Section, Chaoyang District, Beijing, China
Phone: 010-87763388
Email: info@chinalight.com.cn
l
Legal representative and general manager:
Mr. Qiu Feng, ID# 110101560613409, born in 1956. He is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative and general manager.
SC is
mainly engaged in international trade.
SC’s products mainly
include mineral products, dairy products, food additives, etc.
SC sources its
materials 80% from domestic market and 20% from overseas market. SC sells 30%
of its products in domestic market and 70% 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’s management declined to release
its main clients and suppliers.
According to http://www.chinalight.com.cn/:
Chinalight
Footwear & Headgear I/E Corp.
China
Household Electrical Appliances Import and Export Company
Chinalight
Shenzhen Import & Export Company
Chinalight
Ningbo Import & Export Co., Ltd.
Kunlun
International Trading Co., Ltd.
China
Light Resources Imp. & Exp. Corp.
Etc.
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 banking details.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
Cash & bank |
13,860 |
19,970 |
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Inventory |
44,590 |
35,360 |
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Accounts
receivable |
33,350 |
21,070 |
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Advances to
suppliers |
330 |
1,050 |
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Other
receivables |
3,640 |
16,700 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
95,770 |
94,150 |
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Fixed assets net
value |
470 |
560 |
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Long term
investment |
3,710 |
3,710 |
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Projects under
construction |
0 |
0 |
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Intangible and
other assets |
220 |
0 |
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------------------ |
------------------ |
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Total assets |
100,170 |
98,420 |
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=========== |
=========== |
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Short loan |
21,760 |
17,540 |
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Accounts payable |
2,590 |
6,550 |
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Advances from
clients |
29,630 |
22,740 |
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Taxes payable |
-5,420 |
-4,410 |
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Other Accounts
payable |
5,480 |
7,240 |
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Other current
liabilities |
3,150 |
2,010 |
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------------------ |
------------------ |
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Current
liabilities |
57,190 |
51,670 |
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Long term
liabilities |
340 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
57,530 |
51,670 |
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Equities |
42,640 |
46,750 |
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------------------ |
------------------ |
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Total
liabilities & equities |
100,170 |
98,420 |
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=========== |
=========== |
Income Statement
Unit: CNY’000
|
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As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
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Turnover |
769,990 |
725,840 |
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Cost of goods sold |
749,090 |
698,120 |
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Sales expense |
10,930 |
15,440 |
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Management expense |
8,370 |
9,640 |
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Finance expense |
640 |
510 |
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Profit before tax |
4,030 |
4,680 |
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Less: profit tax |
310 |
560 |
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Profits |
3,720 |
4,120 |
Important
Ratios
=============
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As of Dec. 31, 2009 |
As of Dec. 31, 2010 |
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*Current ratio |
1.67 |
1.82 |
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*Quick ratio |
0.89 |
1.14 |
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*Liabilities
to assets |
0.57 |
0.52 |
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*Net profit
margin (%) |
0.48 |
0.57 |
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*Return on total
assets (%) |
3.71 |
4.19 |
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*Inventory
/Turnover ×365 |
21 days |
18 days |
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*Accounts
receivable/Turnover ×365 |
16 days |
11 days |
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*Turnover/Total
assets |
7.69 |
7.37 |
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* Cost of
goods sold/Turnover |
0.97 |
0.96 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in both
years.
l
SC’s net profit margin is average in both years.
l
SC’s return on total assets is average in both
years.
l
SC’s cost of goods sold is high in both years,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average in both years.
l
The accounts receivable of SC appears average in
both years.
l
The short-term loan of SC appears average in both
years.
l
SC’s turnover is in a fairly good level in both
years, comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average in both years.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: stable.
SC is considered medium-sized in its line with stable financial
conditions. A credit line up to USD 400,000 would appear to be within SC’s
capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.51.05 |
|
UK Pound |
1 |
Rs.81.09 |
|
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 |
|
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.