MIRA
INFORM REPORT
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Report Date : |
10.08.2012 |
IDENTIFICATION DETAILS
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Name : |
SICHUAN LOMON PHOSPHOROUS PRODUCTS INC. |
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Registered Office : |
Xinshi Industrial Zone, Mianzhu, Sichuan
Province, 618200 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
15.01.1999 |
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Com. Reg. No.: |
510000000016538 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
manufacturing and selling phosphorous products |
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No. of Employees : |
1, 500 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
SICHUAN LOMON PHOSPHOROUS PRODUCTS INC.
XINSHI INDUSTRIAL ZONE,
MIANZHU, SICHUAN PROVINCE, 618200 PR CHINA
TEL: 86 (0)
838-6506032 FAX: 86 (0)
838-6506031
EXECUTIVE SUMMARY
INCORPORATION DATE : JAN. 15, 1999
REGISTRATION NO. : 510000000016538
REGISTERED LEGAL FORM : SHARES LIMITED CO.
STAFF STRENGTH :
1,500
REGISTERED CAPITAL : CNY 100,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 696,100,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 652,000,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.37= 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
Note: The given address “No. 23, Gaopeng Road, Hi-tech Zone, Chengdu, Sichuan Province” belongs to SC’s parent company “Sichuan Lomon Corporation”.
SC was registered as a Shares limited co. at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Jan. 15, 1999.
Company Status: Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The co has independent
property of legal person and enjoys property rights of legal person. The
characteristics of the shares limited co. are as follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be
domiciled in The minimum registered capital
of a co. is CNY The board of directors must
consist of five to nineteen directors. If the co. raises capital by
public offer, the promoters must not subscribe less than 35% of the total
shares. the promoters’ shares are restricted to transfer- within one year
of the offer. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s registered
business scope includes manufacturing phosphate fertilizer, feed additives,
sulfuric acid and phosphoric acid; mining phosphate; mining limestone (in accordance
with the permit); manufacturing machinery equipment and spare parts;
wholesaling and retailing commodities; import and export business.
SC is mainly
engaged in manufacturing and selling phosphorous products.
Mr. Qin
Shunfu is the legal representative and
chairman of SC at present.
SC is known to
have approx. 1,500 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Mianzhu. Our checks
reveal that SC owns the total premise, but SC’s accountant refused to release
the gross area.
http://www.lomon.com/ The website
belongs to SC’s parent company. The design is professional and the content is
well organized. At present it is in Chinese and English versions.
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Sichuan Lomon Corporation 96.824
Li Jiaquan and other individual shareholders 3.176
Sichuan
Lomon Corporation
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Address: No. 23, Gaopeng Avenue, Hi-tech
Zone, Chengdu City, Sichuan Province. P.R. China
Tel: 86-28-85177809
Fax: 86-28-85183703/85180173
Legal
representative and Chairman:
Mr. Qin Shunfu, in his
Working
Experience(s):
At present Working in SC as legal representative and chairman.
Also working in Deyang Lomon Phosphorous Products Co., Ltd. as legal representative.
SC is mainly
engaged in manufacturing and selling phosphorous products.
SC’s products
mainly include: feed phosphates, agricultural fine phosphate, etc.
SC sources its materials 95% from domestic
market, and 5% from overseas market. SC sells 70% of its products in domestic
market, and 30% 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 T/T, L/C and Credit of 30-60 days.
Note:
SC declined to release its major suppliers and clients.
· Deyang Lomon Phosphorous Products Co., Ltd.
According to http://www.lomon.com/
· Sichuan Lomon Titanium Industry Co., Ltd.
Sichuan
Lomon Mining & Metallurgy Co., Ltd.
Sichuan
Lomonbio Technology Co., Ltd.
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
AC#204101040006991
Relationship:
Normal.
Financial Summary
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Unit: CNY’000
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As of Dec. 31, 2011 |
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Total
liabilities |
997,150 |
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Equities |
652,000 |
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Total
liabilities & equities |
1,649,150 |
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========= |
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Turnover |
696,100 |
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Profit before
tax |
102,040 |
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Less: profit tax |
1,260 |
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Profits |
100,780 |
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Note: We did not find SC’s detailed
financial reports for Yr2011.
Important Ratios
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As of Dec. 31,
2011 |
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*Liabilities
to assets |
0.60 |
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*Net profit
margin (%) |
14.48 |
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*Return on total
assets (%) |
6.11 |
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*Turnover/Total
assets |
0.42 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good.
l
SC’s net profit margin is good.
l
SC’s return on total assets is fairly good.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
l
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 large-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.55.17 |
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UK Pound |
1 |
Rs.86.43 |
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Euro |
1 |
Rs.68.27 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.