MIRA
INFORM REPORT
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Report Date : |
12.03.2012 |
IDENTIFICATION DETAILS
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Correct Name : |
juancheng
grammy hair products co., ltd. |
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Registered Office : |
Juancheng Industry Zone, Heze
City, Shandong Province 274600 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
15.06.2007 |
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Com. Reg. No.: |
371726228007961 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Processing and Selling Hair Products |
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No. of Employees : |
200 |
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 100,000 |
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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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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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
juancheng grammy hair products co.,
ltd.
juancheng
industry zone, heze city
shandong
province 274600 PR CHINA
TEL: 86
(0) 530-2407999/2429099
FAX: 86 (0)
530-2429099
EXECUTIVE SUMMARY
Date of Registration : june 15, 2007
REGISTRATION NO. : 371726228007961
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : cny 500,000
staff : 200
BUSINESS CATEGORY : processing & trading
Revenue : CNY 24,420,000 (AS OF DEC. 31, 2011)
EQUITIES : CNY 14,150,000 (AS OF DEC. 31, 2011)
WEBSITE : www.grammyhair.com
E-MAIL : postmaster@grammyhair.com
PAYMENT : AVERAGE
Recommended Credit Limit: UP TO USD
100,000
MARKET CONDITION : average
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND :
ORDINARY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.31 = USD 1
Adopted abbreviations (as
follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL STATUS & HISTORY
SC was
established as a limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 371726228007961 on June 15, 2007.
SC’s Organization Code Certificate
No.:
SC’s registered capital: cny 500,000
SC’s paid-in capital: cny 500,000
Registration Change Record:
No significant changes of SC have
been noted in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
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|
60 |
|
Qian Baojiang |
40 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
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|
Supervisor |
Qian Baojiang |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
60
Qian Baojiang
40
MANAGEMENT
-----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman
and general manager
Qian
Baojiang, Supervisor
----------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
BUSINESS OPERATION
SC’s registered business scope includes processing and
selling hair products; and selling hair manufacturing tools & accessories,
and crafts.
SC is
mainly engaged in processing and selling hair products.
SC’s products
mainly include: human hair weavings (straight, curl, YAKI, and so on), glue
hairs (nail, I tip, tile and V-shaped hair extensions), fish wire hair
extensions, hair bulks, human hair accessories, wigs, toupees and so on.
SC sources its materials 100% from domestic
market. SC sells 70% of its products in domestic market, and 30% to overseas
market, mainly Southeast Asia, Mid East, etc.
The
buying terms of SC include T/T and Credit of 30-60 days. The payment terms of
SC include T/T, L/C and Credit of 30-60 days.
Staff & Office:
--------------------------
SC is
known to have approx. 200
staff at present.
SC owns an area as
its operating office & factory of approx. 8,000 sq. meters at the heading
address.
RELATED COMPANY
SC is not known to have any subsidiary at present.
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
The bank
information of SC is not filed in local SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
|
308 |
|
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Accounts
receivable |
8,460 |
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Advances to
suppliers |
0 |
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Other receivable |
221 |
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Inventory |
8,020 |
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Non-current
assets within one year |
0 |
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Other current
assets |
-9 |
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------------------ |
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Current assets |
17,000 |
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Fixed assets |
5,930 |
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Construction in
progress |
0 |
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Intangible
assets |
0 |
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Deferred income
tax assets |
0 |
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Other
non-current assets |
10 |
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------------------ |
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Total assets |
22,940 |
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============= |
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Short-term loans |
4,500 |
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Notes payable |
0 |
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Accounts payable |
1,970 |
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Wages payable |
0 |
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Advances from
clients |
0 |
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Other payable |
860 |
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Other current
liabilities |
1,460 |
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------------------ |
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Current
liabilities |
8,790 |
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Non-current
liabilities |
0 |
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------------------ |
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Total
liabilities |
8,790 |
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Equities |
14,150 |
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------------------ |
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Total
liabilities & equities |
22,940 |
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============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
|
Revenue |
24,420 |
|
Cost of sales |
18,350 |
|
Sales expense |
278 |
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Management expense |
1,030 |
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Finance expense |
595 |
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Profit before
tax |
4,150 |
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Less: profit tax |
40 |
|
4,110 |
Important Ratios
=============
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As
of Dec. 31, 2011 |
|
*Current ratio |
1.93 |
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*Quick ratio |
1.02 |
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*Liabilities
to assets |
0.38 |
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*Net profit
margin (%) |
16.83 |
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*Return on
total assets (%) |
17.92 |
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*Inventory /
Revenue ×365 |
120 days |
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*Accounts
receivable/ Revenue ×365 |
127 days |
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*
Revenue/Total assets |
1.06 |
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* Cost of
sales / Revenue |
0.75 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears
average in its line.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is fairly good.
l
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a fairly
good level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC appears fairly large.
l
The accounts receivable of SC appears fairly large.
l
The short-term loans of SC appear average.
l
SC’s revenue is in an
average 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.
CONCLUSIONS
SC is considered small-sized in its line with fairly
stable financial conditions. The fairly large amount of inventory and
accounts receivable may be a threat to SC’s financial condition. A credit line
up to USD 100,000 would appear to
be within SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.94 |
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|
1 |
Rs.78.25 |
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Euro |
1 |
Rs.65.39 |
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 |
-- |
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.