MIRA
INFORM REPORT
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Report Date : |
22.03.2012 |
IDENTIFICATION DETAILS
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Name : |
LZNF CO., LTD. |
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Registered Office : |
17th Floor, |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
16.02.2004 |
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Com. Reg. No.: |
330381000015076 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Importing and exporting automobile & motorcycle parts. |
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No. of Employees : |
21 |
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 80,000 |
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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 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
LZNF CO., LTD.
17TH FLOOR, XINCHAO BUILDING, LONGSHAN EAST ROAD, RUIAN
WENZHOU CITY, ZHEJIANG PROVINCE 325200 PR CHINA
TEL: 86 (0) 577-65898333/65916833
FAX: 86 (0) 577-65898333
EXECUTIVE SUMMARY
Date of Registration : FEBRUARY 16, 2004
REGISTRATION NO. : 330381000015076
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : CNY 10,000,000
staff :
21
BUSINESS CATEGORY : TRADING
Revenue :
CNY 204,430,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY
10,730,000 (AS OF DEC. 31, 2011)
WEBSITE : N/A
E-MAIL :
iznf2002@yahoo.com.cn
PAYMENT :
AVERAGE
RECOMMENDED CREDIT LIMIT: UP TO USD 80,000 (PERIODICAL REVIEW)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : ORDINARY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.32 = 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.:
330381000015076 on February 16, 2004.
SC’s Organization Code Certificate No.:
75905057-2
SC’s registered capital: CNY 10,000,000
SC’s paid-in capital: CNY 10,000,000
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 |
|
Gao Chaoli |
4 |
|
Zheng Jian |
73 |
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Yu Yin |
11 |
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Kong Xiangmin |
8 |
|
Cai Chusheng |
4 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Zheng Jian |
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General Manager |
Yu Yin |
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Director |
Kong Xiangmin |
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Supervisor |
Cai Chusheng |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Gao Chaoli 4
Zheng Jian 73
Yu Yin 11
Kong Xiangmin 8
Cai Chusheng 4
MANAGEMENT
Zheng Jian , Legal
Representative and Chairman
------------------------------------------------------------------------
Ø
Gender: M
Ø
ID# 330325197112020033
Ø
Age: 41
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative and
chairman
Yu Yin General Manager
------------------------------------------
Ø
Gender: F
Ø
ID# 330325197405140346
Ø
Age: 38
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as general manager
Kong Xiangmin ,
Director
---------------------------------------------
Ø
Gender: M
Ø
ID# 330325197303300337
Ø
Age: 39
Cai Chusheng ,
Supervisor
---------------------------------------------
Ø
Gender: F
Ø
ID# 330325195707110346
Ø
Age: 55
BUSINESS OPERATION
SC’s registered business scope includes selling automobile &
motorcycle parts, accessories, tools, standard parts, machinery and equipment;
importing and exporting commodities and technology.
SC is mainly
engaged in importing and exporting automobile & motorcycle parts.
SC’s products mainly include: automobile
& motorcycle parts.
SC sources its merchandises 30% from the overseas market and 70% from
domestic market, mainly Jiangsu. SC sells 60% of its merchandises in domestic
market, and 40% to overseas market, mainly
Southeast Asia.
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.
*Major Supplier:
=============
Suzhou Tianhao
Automotive Parts Co., Ltd.
Staff & Office:
--------------------------
SC is known
to have approx. 21 staff at present.
SC rents an area
as its operating office, but the detailed information is unknown.
RELATED COMPANY
SC
is not known to have any subsidiary at present.
PAYMENT
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’s suppliers
declined to make any comments.
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
Basic Bank:
Bank of China Ruian Sub-branch
AC#:
820026271708091001
China Construction Bank
AC#:
33014013400220501088
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As
of Dec. 31, 2011 |
|
35,790 |
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Accounts
receivable |
61,650 |
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Advances to
suppliers |
0 |
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Other receivable |
220 |
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Inventory |
0 |
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Subsidies
receivable |
0 |
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Other current
assets |
4,360 |
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------------------ |
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Current assets |
102,020 |
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Fixed assets |
1,360 |
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Intangible
assets |
0 |
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Long-term
prepaid expenses |
0 |
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Deferred income
tax assets |
0 |
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Other
non-current assets |
20,160 |
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------------------ |
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Total assets |
123,540 |
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============= |
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Short-term loans |
42,230 |
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Notes payable |
0 |
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Accounts payable |
44,270 |
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Surcharge
payable |
0 |
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Taxes payable |
0 |
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Advances from
clients |
0 |
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Other payable |
5,620 |
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Other current
liabilities |
20,690 |
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------------------ |
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Current
liabilities |
112,810 |
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Non-current
liabilities |
0 |
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------------------ |
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Total
liabilities |
112,810 |
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Equities |
10,730 |
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------------------ |
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Total
liabilities & equities |
123,540 |
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============= |
Income Statement
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Unit: CNY’000 |
As of Dec. 31,
2011 |
|
Revenue |
204,430 |
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Cost of sales |
195,490 |
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Sales expense |
3,020 |
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Management expense |
1,950 |
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Finance expense |
3,220 |
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Profit before
tax |
600 |
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Less: profit tax |
150 |
|
450 |
Important Ratios
=============
|
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As of Dec. 31,
2011 |
|
*Current ratio |
0.90 |
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*Quick ratio |
0.90 |
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*Liabilities
to assets |
0.91 |
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*Net profit
margin (%) |
0.22 |
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*Return on
total assets (%) |
0.36 |
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*Inventory /
Revenue ×365 |
-- |
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*Accounts
receivable/ Revenue ×365 |
111 days |
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*
Revenue/Total assets |
1.65 |
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* Cost of
sales / Revenue |
0.96 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears fairly good 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 sales is fairly high, comparing with
its revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a normal level.
l
SC has no inventory in 2011.
l
The accounts receivable of SC appears large.
l
The short-term loans of SC appear large.
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
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. A credit line up to USD 80,000 is recommended upon a periodical
review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.50.59 |
|
|
1 |
Rs.80.34 |
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Euro |
1 |
Rs.67.14 |
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.