MIRA
INFORM REPORT
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Report Date : |
15.05.2012 |
IDENTIFICATION DETAILS
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Name : |
5-CONTINENT ENTERPRISE CO., LTD. |
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Registered Office : |
Room 502, Flat 1, |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
30.01.2004 |
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Com. Reg. No.: |
510600000008380 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
trading of chemicals |
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No. of Employees : |
04 |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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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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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
5-Continent Enterprise Co., Ltd.
Room 502, Flat 1,
Deyang,
TEL: 86 (0)
838-2302990 FAX: 86 (0) 838-2207315
EXECUTIVE SUMMARY
INCORPORATION DATE : JAN. 30, 2004
REGISTRATION NO. : 510600000008380
REGISTERED
LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF
STRENGTH : 4
REGISTERED
CAPITAL :
CNY 1,000,000
BUSINESS
LINE : trading
TURNOVER : CNY 20,750,000
(unaudited, AS OF DEC. 31, 2011)
EQUITIES : CNY -5,250,000
(unaudited, AS OF DEC. 31, 2011)
PAYMENT
: AVERAGE
MARKET CONDITION : FAIR
FINANCIAL CONDITION : POOR
OPERATIONAL TREND :
FAIR
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 -
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 Jan. 30, 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 wholesaling of agricultural and livestock
products, native products and food additives (food hygiene license is valid
until February 2, 2012); selling of textiles, clothing, daily necessities,
cultural, sporting goods and equipment, mineral products, building materials,
chemical products (excluding dangerous goods and precursor chemicals), general
machinery equipment, hardware, electronic products; importing and exporting of goods and
technology, but excluding those refined and prohibited by the state. (with
permit if needed)
SC is mainly
engaged in trading of chemicals.
Mr.
Zan Jun is legal representative, chairman and general manager of SC at present.
SC is
known to have approx. 4 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Deyang.
Detailed information of the premise is unspecified.
http://www.5-continententerprises.com/
The design is professional and the content is well organized. At present it is
in English version.
E-mail: info@5-continententerprises.com
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name % of Shareholding
Zan Jun 50
Hong Shaoyi 30
Yang Xianhui 10
Luo Hui 5
Zhang Ying 5
Legal
Representative, Chairman and General Manager:
Mr. Zan Jun is currently responsible for the overall management of SC.
Working
Experience(s):
At present Working in SC as legal representative, chairman and general manager.
Supervisor:
Hong Shaoyi
SC is mainly
engaged in trading of chemicals.
SC’s products mainly include:
Citric Acid
2-Keto L-Gulonic Acid
Fumaric Acid
Thiourea Dioxide
Thiourea
Furfuryl Alcohol
2-Naphthol
Tartaric Acid
Silicon Metal
Polysilicon
2,4 Dichloro Fluoro Benzene
2,4 Dichloro Phenacyl Chloride
Ortho Chloro Phenol (Ocp)
2-4 Dichloro Phenol
1,3-Difluoro Benzene
Diphenylamine
Benzanthrone
Beta Naphthol
Quinizarine
Saccharin Sodium Salt
Hydroxylamine Hydrochloride
Anthraquinone
Acrylamide
Triethyl Orthoformate
Cimetidine
Paracetamol
Azithromycin
SC sources its materials 100% from domestic
market. SC sells 20% of its products in domestic market, and 80% to overseas
market, mainly to
The buying terms of SC include Check, T/T 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’s management declined to release its major clients and suppliers.
SC is not known to have any subsidiary at present.
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.
No bank
information was found during our checks with the local Administration for Industry
and Commerce. And SC declined to release its banking details.
Balance Sheet
Unit: CNY’000
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As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
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Cash & bank |
790 |
600 |
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Notes receivable
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0 |
0 |
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Inventory |
3,660 |
3,940 |
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Accounts
receivable |
0 |
0 |
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Advances to
suppliers |
2,670 |
460 |
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Other accounts
receivable |
200 |
130 |
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Other current
assets |
0 |
0 |
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------------------ |
----------------- |
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Current assets |
7,320 |
5,130 |
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Fixed assets net
value |
60 |
60 |
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Project under
construction |
0 |
0 |
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Long term
investment |
0 |
0 |
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Long-term
prepaid expenses |
0 |
0 |
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Project
materials |
0 |
0 |
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Intangible and
other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
7,380 |
5,190 |
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============= |
============= |
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Short loans |
4,650 |
3,180 |
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Notes payable |
0 |
0 |
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Accounts payable
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0 |
0 |
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Advances from
clients |
5,020 |
4,750 |
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Accrued payroll |
0 |
0 |
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Welfare payable |
0 |
0 |
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Taxes payable |
20 |
30 |
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Surcharge payable |
0 |
0 |
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Other accounts
payable |
1,480 |
1,440 |
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Other current
liabilities |
0 |
0 |
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Interest payable |
0 |
0 |
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------------------ |
------------------ |
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Current
liabilities |
11,170 |
9,400 |
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Long-term
liabilities |
0 |
1,040 |
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------------------ |
------------------ |
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Total
liabilities |
11,170 |
10,440 |
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Equities |
-3,790 |
-5,250 |
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------------------ |
------------------ |
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Total
liabilities & equities |
7,380 |
5,190 |
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============= |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2011 |
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Turnover |
20,750 |
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Cost of goods sold |
19,810 |
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Taxes and additional of main operations |
50 |
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Sales expense |
1,850 |
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Management expense |
70 |
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Finance expense |
480 |
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Subsidy income |
60 |
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Profit before
tax |
-1,450 |
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0 |
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Profits |
-1,450 |
Note: The financial reports of Yr2011 have not been audited.
Important Ratios
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As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
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*Current ratio |
0.66 |
0.55 |
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*Quick ratio |
0.33 |
0.13 |
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*Liabilities
to assets |
1.51 |
2.01 |
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*Net profit
margin (%) |
/ |
-6.99 |
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*Return on
total assets (%) |
/ |
-27.94 |
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*Inventory
/Turnover ×365 |
/ |
70 days |
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*Accounts
receivable/Turnover ×365 |
/ |
/ |
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*Turnover/Total
assets |
/ |
4.00 |
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* Cost of
goods sold/Turnover |
/ |
0.95 |
PROFITABILITY:
FAIR
l
The turnover of SC appears average in 2011.
l
SC’s net profit margin is fair in 2011.
l
SC’s return on total assets is poor in 2011.
l
SC’s cost of goods sold is fairly high, comparing
with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is fair in both years.
l
SC’s quick ratio is poor in both years.
l
SC’s inventory is large in both years.
l
SC has no accounts receivable in both
years.
l
SC’s short-term loan appears large in both years.
l
SC’s turnover is fairly good in 2011, comparing
with the size of its total assets.
LEVERAGE: POOR
l
The debt ratio of SC is too high.
l
The risk for SC to go bankrupt is high.
Overall financial
condition of the SC: Poor.
SC is considered small-sized in its line with poor financial
conditions. The large amount of inventory and short loans could be a threat to
SC’s financial condition.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.53.71 |
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UK Pound |
1 |
Rs.86.34 |
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Euro |
1 |
Rs.69.23 |
INFORMATION DETAILS
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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.