MIRA INFORM REPORT
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Report Date : |
15.05.2013 |
IDENTIFICATION DETAILS
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Name : |
SINCOL CORPORATION
LTD. |
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Registered Office : |
C-12a, Songdu Building, No. 303 Jiangdong Middle Road, Jianye
District, Nanjing, Jiangsu Province, 210019 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
18.10.2012 |
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Com. Reg. No.: |
320100400027319 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Subject is engaged in manufacturing and selling ink products. |
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No. of Employees : |
40 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 – March, 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
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 |
china - ECONOMIC OVERVIEW
Since the late 1970s China has moved from a closed,
centrally planned system to a more market-oriented one that plays a major global
role - in 2010 China became the world's largest exporter. Reforms began with
the phasing out of collectivized agriculture, and expanded to include the
gradual liberalization of prices, fiscal decentralization, increased autonomy
for state enterprises, creation of a diversified banking system, development of
stock markets, rapid growth of the private sector, and opening to foreign trade
and investment. China has implemented reforms in a gradualist fashion. In
recent years, China has renewed its support for state-owned enterprises in
sectors it considers important to "economic security," explicitly
looking to foster globally competitive national champions. After keeping its
currency tightly linked to the US dollar for years, in July 2005 China revalued
its currency by 2.1% against the US dollar and moved to an exchange rate system
that references a basket of currencies. From mid 2005 to late 2008 cumulative
appreciation of the renminbi against the US dollar was more than 20%, but the
exchange rate remained virtually pegged to the dollar from the onset of the
global financial crisis until June 2010, when Beijing allowed resumption of a
gradual appreciation. The restructuring of the economy and resulting efficiency
gains have contributed to a more than tenfold increase in GDP since 1978.
Measured on a purchasing power parity (PPP) basis that adjusts for price
differences, China in 2012 stood as the second-largest economy in the world
after the US, having surpassed Japan in 2001. The dollar values of China's agricultural
and industrial output each exceed those of the US; China is second to the US in
the value of services it produces. Still, per capita income is below the world
average. The Chinese government faces numerous economic challenges, including:
(a) reducing its high domestic savings rate and correspondingly low domestic
demand; (b) sustaining adequate job growth for tens of millions of migrants and
new entrants to the work force; (c) reducing corruption and other economic
crimes; and (d) containing environmental damage and social strife related to
the economy's rapid transformation. Economic development has progressed further
in coastal provinces than in the interior, and by 2011 more than 250 million
migrant workers and their dependents had relocated to urban areas to find work.
One consequence of population control policy is that China is now one of the
most rapidly aging countries in the world. Deterioration in the environment -
notably air pollution, soil erosion, and the steady fall of the water table,
especially in the North - is another long-term problem. China continues to lose
arable land because of erosion and economic development. The Chinese government
is seeking to add energy production capacity from sources other than coal and
oil, focusing on nuclear and alternative energy development. In 2010-11, China
faced high inflation resulting largely from its credit-fueled stimulus program.
Some tightening measures appear to have controlled inflation, but GDP growth
consequently slowed to under 8% for 2012. An economic slowdown in Europe
contributed to China's, and is expected to further drag Chinese growth in 2013.
Debt overhang from the stimulus program, particularly among local governments,
and a property price bubble challenge policy makers currently. The government's
12th Five-Year Plan, adopted in March 2011, emphasizes continued economic
reforms and the need to increase domestic consumption in order to make the
economy less dependent on exports in the future. However, China has made only
marginal progress toward these rebalancing goals.
|
Source
: CIA |
COMPANY NAME AND ADDRESS
SINCOL CORPORATION LTD.
C
TEL: 86 (0) 25-87763060 FAX: 86 (0) 25-87763090
EXECUTIVE SUMMARY
INCORPORATION DATE : OCT. 18, 2004
REGISTRATION NO. : 320100400027319
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY
JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE :
MR. RUI HONGBO (CHAIRMAN)
STAFF STRENGTH :
40
REGISTERED CAPITAL : USD 6,000,000
BUSINESS LINE :
MANUFACTURING and trading
TURNOVER :
CNY 22,810,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 35,530,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.14= 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: SC also uses Nanjing Sincol Technology Co., Ltd. as its English
name.
SC was registered as a Chinese-foreign equity joint venture enterprise
at local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Oct. 18, 2004.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business scope includes manufacturing and processing
pre-dispersed high-end ink finished products, semi-finished products and
related products; selling self-made products; similar products wholesales,
import and export, commission agency (excluding auction, with permit if
needed); technical and business advice and services.
SC is mainly engaged in manufacturing and selling ink products.
Mr. Rui Hongbo 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 and head office in the commercial zone of Nanjing.
The detailed information of the area is unspecified.
The factory of SC is located in No. 88 Shengtai Road, Jiangning Economic
& Technological Development Zone, Nanjing City.
http://www.sincol.com.cn/
The design is professional and the content is well organized. At present it is
in English version.
Email: enquiries@sincol.com.cn
Changes of its
registered information:
|
Date |
Item |
Before the change |
After the change |
|
2012 |
Registered capital |
USD 800,000 |
Present amount |
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Sincol Corporation Limited (Hong Kong) 90
Shanghai Sincol Trading Co., Ltd. 10
Sincol Corporation Limited (Hong Kong)
…………………………………………
CR No.: 0909186
Incorporation date: June 30, 2004
Legal form: Private
Status: Live
Shanghai Sincol Trading Co., Ltd.
……………………………………
Legal representative: Rui Hongbo
Registration No.: 310115000654758
Incorporation date: Jan. 9, 2002
Legal
representative and Chairman:
Mr. Rui Hongbo, ID# 320125197004193313, born in 1970, he is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative and chairman;
Also working in Shanghai Sincol Trading Co., Ltd. as legal
representative
General manager:
Mr. Ma Xiaoshun, ID# 320113197008192056, born in 1970, he is currently
responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as general manager
Directors:
…………..
Sun Jingbo, ID# 320113196309282042
Ma Xiaoshun, ID# 320113197008192056
Supervisor:
…………..
Zhang Xiaobo, ID# 320105198403071419
SC is mainly engaged in manufacturing and selling ink products.
SC’s products mainly include: colorants for water based inks, colorants
for solvent based inks, colorants for offset inks, etc.
SC sources its materials 10% from overseas market and 90% 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 days.
The payment terms of SC include Check, T/T, L/C and Credit of 30 days.
Note: SC declined
to release its major suppliers and clients.
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.
SC’s management declined to release its bank details.
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Cash & bank |
230 |
28,520 |
|
Short-term investment |
7,690 |
7,760 |
|
Inventory |
6,810 |
5,060 |
|
Accounts receivable |
5,000 |
4,430 |
|
Advances to suppliers |
20 |
0 |
|
Other receivables |
70 |
220 |
|
Other current assets |
390 |
190 |
|
|
------------------ |
------------------ |
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Current assets |
20,210 |
46,180 |
|
Fixed assets net value |
5,020 |
5,180 |
|
Long term investment |
0 |
0 |
|
Projects under construction |
0 |
0 |
|
Intangible and other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
25,230 |
51,360 |
|
|
=========== |
=========== |
|
Short loan |
4,100 |
0 |
|
Accounts payable |
7,250 |
6,200 |
|
Advances from clients |
840 |
710 |
|
Salaries and welfare payable |
0 |
0 |
|
Taxes payable |
130 |
30 |
|
Other Accounts payable |
10,590 |
8,800 |
|
Other current liabilities |
0 |
90 |
|
|
------------------ |
------------------ |
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Current liabilities |
22,910 |
15,830 |
|
Long term liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
22,910 |
15,830 |
|
Equities |
2,320 |
35,530 |
|
|
------------------ |
------------------ |
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Total liabilities & equities |
25,230 |
51,360 |
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|
=========== |
=========== |
Income Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2012 |
|
Turnover |
22,810 |
|
Cost of goods sold |
20,720 |
|
Taxes and additional of main operation |
80 |
|
Sales expense |
490 |
|
Management expense |
2,120 |
|
Finance expense |
390 |
|
Investment income |
1,180 |
|
Non-operating income |
40 |
|
Non-operating expense |
0 |
|
Profit before tax |
220 |
|
Less: profit tax |
0 |
|
Profits |
220 |
Important Ratios
=============
|
|
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
*Current ratio |
0.88 |
2.92 |
|
*Quick ratio |
0.58 |
2.60 |
|
*Liabilities to assets |
0.91 |
0.31 |
|
*Net profit margin (%) |
/ |
0.96 |
|
*Return on total assets (%) |
/ |
0.43 |
|
*Inventory /Turnover ×365 |
/ |
81days |
|
*Accounts receivable/Turnover ×365 |
/ |
71 days |
|
*Turnover/Total assets |
/ |
0.44 |
|
* Cost of goods sold/Turnover |
/ |
0.91 |
PROFITABILITY:
AVERAGE
The turnover of SC appears average in its line in 2012.
SC’s net profit margin is average in 2012.
SC’s return on total assets is average in 2012.
SC’s cost of goods sold is fairly high, comparing with its turnover in
2012.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a fair level in 2011 but in a
fairly good level in 2012.
SC’s quick ratio is maintained in a fair level in 2011 but in a fairly
good level in 2012.
The inventory of SC appears average in both years.
The accounts receivable of SC appears average in both years.
There is no short-term loan of SC in 2012.
SC’s turnover is in a fair level, comparing with the size of its total
assets in 2012.
LEVERAGE: AVERAGE
The debt ratio of SC is high in 2011, but low in 2012.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
SC is considered small-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.63 |
|
|
1 |
Rs.83.67 |
|
Euro |
1 |
Rs.71.02 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
RATING EXPLANATIONS
|
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 |
|
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 |
|
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 |
---- |
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.