MIRA INFORM REPORT
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Report Date : |
10.01.2012 |
IDENTIFICATION DETAILS
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Name : |
DEQING TONGCHEM CO., LTD. |
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Registered Office : |
No. 621, North Yingxi Road, Wukang Town, Deqing County,
Zhejiang Province, 313200 Pr |
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Country : |
China |
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Financials (as on) : |
30.06.2011 |
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Date of Incorporation : |
21.11.2001 |
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Com. Reg. No.: |
330521000011347 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
selling different sorts of chemical raw materials |
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No. of Employees
: |
40 |
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 40,000 |
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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 – September 30th, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
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
Deqing Tongchem Co., Ltd.
NO. 621, NORTH YINGXI ROAD, WUKANG TOWN,
DEQING COUNTY, ZHEJIANG PROVINCE, 313200 PR
CHINA
TEL: 86 (0) 572-8820368/8322183 FAX: 86 (0) 572-8820368
EXECUTIVE SUMMARY
INCORPORATION DATE : NOV. 21, 2001
REGISTRATION NO. : 330521000011347
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 40
REGISTERED CAPITAL :
CNY 1,000,000
BUSINESS LINE : TRADING
TURNOVER : CNY 96,370,000
(JAN. 1 TO JUN. 30, 2011)
EQUITIES : CNY 6,610,000 (AS OF JUN. 30, 2011)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 40,000 (PERIODICAL REVIEW)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
6.31 = 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 Nov. 21, 2001.
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 wholesale (notes): phosphite, oxidation of four three
lead, sodium nitrite (" business license of dangerous chemicals" is
valid until December 19, 2013 only). Distribution: chemical raw materials,
pigments, dyes, paints (the above products in addition to the dangerous
chemicals and precursor drugs), textiles and raw materials, building materials,
electronic products, cultural goods, sporting goods, daily, hardware, plastic
products, clothing, arts and crafts, machinery and equipment, lighting
equipment, wood products, bags, agricultural and sideline products; import and export of various goods and technologies.
SC is mainly
engaged in selling different sorts of chemical raw materials.
Mr. Shen Wuchun is legal representative and chairman 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 Deqing County. The detailed
information of the premise is unspecified.
http://www.tongchem.com/
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.
Email: tongchem@hotmail.com
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Shen Wuchun ID # 330521197710045017 60
Zhang Guoxing ID # 330521780109021 40
l
Legal
representative and Chairman:
Mr. Shen Wuchun, born in 1977. He is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as chairman and legal representative.
Also working in Zhejiang Deqing Multi-Sinox Pigment Technology Co., Ltd. as legal representative.
l
Supervisor:
Zhang Guoxing
SC is mainly
engaged in selling different sorts of chemical raw materials.
SC’s products mainly include phosphorous acid, fluorescent
brightening agent, sodium sulfite, and so on.
SC sources its materials 90%
from domestic market, and 10% 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 Check, T/T, L/C and Credit of 30-60
days.
Note:
SC declined to release its major suppliers and clients.
According to the above stated website:
Zhejiang Deqing Multi-Sinox Pigment Technology Co., Ltd.
Huzhou
Tongda Packaging Co., Ltd.
Deqing
Torox Pigment Co., Ltd.
Deqing
Tongrui Construction Co., Ltd.
Representative
of Odessa Ukraine
RAITER
Co Ltd,
Ad:
Ukraine 04176, Kiev, 29, Elektrikov Str.,
Tel: +38
044 428 76 80
+38 044 428
76 81
+38
050-385-51-35
E-Mail: raiter03@gmail.com
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.
Bank of China
Deqing Sub-branch
AC#
890026702608096014
Relationship:
Normal
Telex no. 373023
BOCHZ CN
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2010 |
as
of Jun. 30, 2011 |
|
Cash & bank |
32,250 |
20,680 |
|
Inventory |
70 |
1,440 |
|
Accounts
receivable |
17,820 |
50,170 |
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Other
receivables |
6,210 |
7,250 |
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Advances to
suppliers |
0 |
0 |
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Other current
assets |
10 |
0 |
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------------------ |
------------------ |
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Current assets |
56,360 |
79,540 |
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Fixed assets net
value |
7,590 |
7,250 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
960 |
960 |
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Intangible and
other assets |
1,400 |
1,380 |
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------------------ |
------------------ |
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Total assets |
66,310 |
89,130 |
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=========== |
============= |
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Short loan |
12,450 |
17,370 |
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Accounts payable |
13,120 |
38,060 |
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Bills payable |
30,000 |
18,160 |
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Advances from
clients |
0 |
0 |
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Taxes payable |
210 |
180 |
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Other Accounts
payable |
4,340 |
6,990 |
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Other current
liabilities |
40 |
1,760 |
|
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------------------ |
------------------ |
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Current
liabilities |
60,160 |
82,520 |
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Long term liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
60,160 |
82,520 |
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Equities |
6,150 |
6,610 |
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------------------ |
------------------ |
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Total
liabilities & equities |
66,310 |
89,130 |
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=========== |
============= |
Income Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2010 |
Jan. 1 to Jun. 30, 2011 |
|
Turnover |
129,740 |
96,370 |
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Cost of goods sold |
118,710 |
-- |
|
Sales expense |
5,250 |
-- |
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Management expense |
3,480 |
-- |
|
Finance expense |
1,600 |
-- |
|
Profit before tax |
800 |
-- |
|
Less: profit tax |
200 |
-- |
|
Profits |
600 |
460 |
Note: We did not find SC’s
detail income statement for the 1st half of Yr2011.
Important
Ratios
=============
|
|
As of Dec. 31, 2010 |
As
of Jun. 30, 2011 |
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*Current ratio |
0.94 |
0.96 |
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*Quick ratio |
0.94 |
0.95 |
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*Liabilities
to assets |
0.91 |
0.93 |
|
*Net profit
margin (%) |
0.46 |
0.48 |
|
*Return on
total assets (%) |
0.90 |
0.52 |
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*Inventory
/Turnover ×365 |
1 day |
-- |
|
*Accounts
receivable/Turnover ×365 |
51 days |
-- |
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*Turnover/Total
assets |
1.96 |
1.08 |
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* Cost of
goods sold/Turnover |
0.91 |
-- |
PROFITABILITY: AVERAGE
l
The turnover of SC appears fairly good.
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 in 2010,
comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears fairly large.
l
The short-term loan of SC appears fairly large.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high.
l
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 accounts receivable and short-term loan could
be a threat to SC’s financial condition. A credit line up to USD 40,000 would
appear to be within SC’s capacities upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.73 |
|
UK Pound |
1 |
Rs.81.34 |
|
Euro |
1 |
Rs.67.01 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>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 |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
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 |
|
<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.