MIRA
INFORM REPORT
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Report Date : |
17.04.2012 |
IDENTIFICATION DETAILS
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Name : |
WENZHOU YIER CHEMICAL CO., LTD. |
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Registered Office : |
2/F, Bldg. 1, No. 34, Western Julong Road, Quxi Town, Ouhai District, Wenzhou, Zhejiang Province, 325016 Pr |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
23.09.2004 |
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Com. Reg. No.: |
330304000010095 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling Chemical Raw Materials |
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No. of Employees : |
8 |
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 60,000 |
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Status : |
Moderate |
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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 and address
Wenzhou yier Chemical Co., Ltd.
2/f, bldg. 1, no.
34, western julong road, quxi town, ouhai district, wenzhou, zhejiang PROVINCE,
325016 PR CHINA
TEL: 86 (0)
577-86121068 FAX: 86 (0)
577-86121078
EXECUTIVE SUMMARY
INCORPORATION DATE :
SEPTEMBER 23, 2004
REGISTRATION NO. : 330304000010095
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
8
REGISTERED CAPITAL : CNY 10,000,000
BUSINESS LINE : TRADING
TURNOVER :
CNY 13,490,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 10,470,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 60,000
MARKET CONDITION : average
FINANCIAL CONDITION : fairly
stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.30 = 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 Company at local
Administration for industry & commerce (AIC - the official body of issuing
and renewing business license) on Sep. 23, 2004.
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 chemical raw materials (excluding the hazard
chemicals and outdated products); processing insole; import and export goods
and technology.
SC is mainly
engaged in selling chemical raw materials.
Mr.
Xu Dawei is legal representative,
chairman and general manager of SC at present.
SC is known to have approx. 8 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in Wenzhou. Our checks reveal that SC rents the total premise
about 200 square meters.
SC is not known to host website 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
Xu Dawei 70
Ren Zhe 2
Gong Jianwu 28
l
Legal representative, Chairman and General manager:
Mr. Xu Dawei , born in 1965 with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative, chairman and general manager.
SC is mainly
engaged in selling chemical raw materials.
SC’s products
mainly include: chemical raw materials.
SC sources its materials 10% from domestic
market, and 90% from overseas market. SC sells 100% of its products in domestic
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 and Credit of 30-60 days.
Note: SC’s
management declined to release its customer and supplier details.
SC
is known to have a branch at present:
Wenzhou
Yier Chemical Co., Ltd. Insole Branch
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.
Agricultural Bank of China Wenzhou Ouhai Sub-branch
AC# 230101040015487
Relationship:
Normal
Balance Sheet (as of Dec. 31, 2011)
Unit: CNY’000
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Cash & bank |
1,180 |
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Inventory |
4,040 |
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Accounts
receivable |
9,760 |
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Advances to
suppliers |
970 |
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Other
receivables |
10,410 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
26,360 |
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Fixed assets net
value |
100 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
0 |
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Total assets |
26,460 |
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============= |
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Short loans |
6,290 |
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Accounts payable |
2,540 |
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Other payable |
7,110 |
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Taxes payable |
20 |
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Other current
liabilities |
30 |
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Current
liabilities |
15,990 |
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Long term
liabilities |
0 |
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Total
liabilities |
15,990 |
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Equities |
10,470 |
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Total
liabilities & equities |
26,460 |
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Income Statement (as of Dec. 31, 2011)
Unit: CNY’000
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Turnover |
13,490 |
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Cost of goods
sold |
11,860 |
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Sales expense |
660 |
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Management expense |
460 |
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Finance expense |
200 |
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Profit before
tax |
270 |
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Less: profit tax |
70 |
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Profits |
200 |
Important Ratios
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as
of Dec. 31, 2011 |
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*Current ratio |
1.65 |
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*Quick ratio |
1.40 |
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*Liabilities to
assets |
0.60 |
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*Net profit
margin (%) |
1.48 |
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*Return on
total assets (%) |
0.76 |
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*Inventory
/Turnover ×365 |
110 days |
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*Accounts
receivable/Turnover ×365 |
265 days |
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*Turnover/Total
assets |
0.51 |
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* Cost of
goods sold/Turnover |
0.88 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average 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 average, 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 conversion period of SC appears long.
l
The accounts receivable of SC appears fairly large.
l
SC’s short-term loan appears fairly large.
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SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall financial condition of the SC:
Fairly stable.
SC is considered small-sized in its line with fairly stable financial
conditions. The large amount of short loans and accounts receivable could be a
threat to SC’s financial condition. A credit line at the above amount appears
to be beyond SC’s capacities, while a credit line up to USD 60,000 appears 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.51.66 |
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1 |
Rs.81.79 |
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Euro |
1 |
Rs.67.18 |
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.