MIRA INFORM REPORT

 

 

Report No. :

352926

Report Date :

04.12.2015

 

IDENTIFICATION DETAILS

 

Name :

FOSHAN NEW COLOURFUL PIGMENT CO., LTD.

 

 

Registered Office :

Room 302, No. 3 Building, Treasure Industrial Park B Area of Fuan Manufacturing District, Leliu Town Shunde District, Foshan, Guangdong Province 528322 PR

 

 

Country :

China

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

10.05.2011

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject engaged in selling water-based organic pigment, water-borne coatings, waterborne pigment additives, water-based resin; domestic commerce; supplying and selling of commodities;   operating and acting as an agent of importing and exporting various kinds of commodities and technology; technical advisory services of fine chemical products.

 

 

No. of Employee :

6

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

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 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

China

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name and address

 

FOSHAN NEW COLOURFUL PIGMENT CO., LTD.

 

ROOM 302, NO. 3 BUILDING, TREASURE INDUSTRIAL PARK

B AREA OF FUAN MANUFACTURING DISTRICT, LELIU TOWN

SHUNDE DISTRICT, FOSHAN, GUANGDONG PROVINCE 528322 PR CHINA

TEL: 86 (0) 13826182589/757-22919009/22638156

FAX: 86 (0) 757-22615384

 

 

EXECUTIVE SUMMARY

 

Date of Registration                     : may 10, 2011

Unified social credit code           : 91440606574482723E

LEGAL FORM                                       : Limited Liability Company

CHIEF EXECUTIVE                               : cheng yincheng (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL                         : CNY 500,000

staff                                                  : 6

BUSINESS CATEGORY                         : TRADING

Revenue                                            : CNY 7,553,000 (AS OF DEC. 31, 2014)

EQUITIES                                             : CNY 562,000 (AS OF DEC. 31, 2014)

WEBSITE                                              : N/A

E-MAIL                                                 : yfdpigment@163.com

PAYMENT                                            : SLOW BUT CORRECT

MARKET CONDITION                            : average

FINANCIAL CONDITION                         : fairly stable

OPERATIONAL TREND                         : Ordinary

GENERAL REPUTATION                       : AVERAGE

EXCHANGE RATE                                : CNY 6.40 = 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 unified social credit code: 91440606574482723E.

 

SC’s Tax No.: 440681574482723

 

SC’s registered capital: CNY 500,000

 

SC’s paid-in capital: CNY 500,000

 

Registration Change Record:-

 

Date

Change of Contents

Before the change

After the change

--

Registration No./ Unified Social Credit Code

440681000290111

91440606574482723E

 

Current Co search indicates SC’s shareholders & chief executives are as follows:-

 

Name of Shareholder (s)

% of Shareholding

Chang Mei

50

Cheng Yincheng

50

 

SC’s Chief Executives:-

 

Position

Name

Legal Representative, Chairman and General Manager

Cheng Yincheng

Supervisor

Chang Mei

 

 

RECENT DEVELOPMENT

 

No recent development was found during our checks at present.

 

 

SHAREHOLDER CHART & BACKGROUND

 

Name                                                              % of Shareholding

 

Chang Mei                                                                    50

 

Cheng Yincheng                                                            50

 

 

MANAGEMENT

 

Cheng Yincheng, Legal Representative, Chairman and General Manager

---------------------------------------------------------------------------------------------------------

Gender: M

Qualification: University

Working experience (s):

 

At present, working in SC as legal representative, chairman and general manager

 

 

Supervisor

--------------

Chang Mei

 

 

***Note: The given contact person John Zhong is working in SC at present.

 

 

BUSINESS OPERATION

 

SC’s registered business scope includes selling water-based organic pigment, water-borne coatings, waterborne pigment additives, water-based resin; domestic commerce; supplying and selling of commodities;           operating and acting as an agent of importing and exporting various kinds of commodities and technology; technical advisory services of fine chemical products.

 

SC is mainly engaged in selling water-based organic pigment, water-borne coatings, waterborne pigment additives, water-based resin.

SC’s products mainly include: water-based organic pigment, water-borne coatings, waterborne pigment additives, water-based resin.

 

SC sources the products 100% from domestic market. SC sells 60% of its products in domestic market, and 40% to overseas market.

 

The buying terms of SC include Check, 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. 6 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 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

 

Basic Bank:

 

Agricultural Bank of China Foshan Shunde Sub-branch

 

AC#: 44467001040024535

 

 

FINANCIALS

 

Balance Sheet

Unit: CNY’000

As of Dec. 31, 2013

As of Dec. 31, 2014

Cash

216

51

Accounts receivable

1,609

2,921

Advances to suppliers

0

0

Other receivable

-355

-488

Inventory

541

554

Non-current assets within one year

0

0

Other current assets

38

9

 

------------------

------------------

Current assets

2,049

3,047

Fixed assets

9

60

Long-term prepaid expenses

0

0

Deferred income tax assets

0

0

Other non-current assets

0

0

 

------------------

------------------

Total assets

2,058

3,107

 

=============

=============

Short-term loans

0

0

Accounts payable

1,557

2,535

Wages payable

0

0

Taxes payable

6

10

Advances from clients

0

0

Other payable

0

0

Other current liabilities

0

0

 

------------------

------------------

Current liabilities

1,563

2,545

Non-current liabilities

0

0

 

------------------

------------------

Total liabilities

1,563

2,545

Equities

495

562

 

------------------

------------------

Total liabilities & equities

2,058

3,107

 

=============

=============

 

Income Statement

Unit: CNY’000

As of Dec. 31, 2013

As of Dec. 31, 2014

Revenue

4,738

7,553

     Cost of sales

4,347

7,127

     Sales expense

0

0

     Management expense

381

334

     Finance expense

1

1

Profit before tax

3

83

Less: profit tax

4

8

Profits

-1

75

 

 

Important Ratios

=============

 

As of Dec. 31, 2013

As of Dec. 31, 2014

*Current ratio

1.31

1.20

*Quick ratio

0.96

0.98

*Liabilities to assets

0.76

0.82

*Net profit margin (%)

-0.02

0.99

*Return on total assets (%)

-0.05

2.41

*Inventory / Revenue ×365

42 days

27 days

*Accounts receivable/ Revenue ×365

124 days

142 days

*Revenue/Total assets

2.30

2.43

*Cost of sales / Revenue

0.92

0.94

 

 

FINANCIAL COMMENTS

 

PROFITABILITY: AVERAGE

The revenue of SC appears average in its line.

SC’s net profit margin is average in 2014.

SC’s return on total assets is average in 2014.

SC’s cost of sales is fairly high, comparing with its revenue.

 

LIQUIDITY: AVERAGE

The current ratio of SC is maintained in a normal level.

SC’s quick ratio is maintained in a normal level.

The inventory of SC is maintained in an average level.

The accounts receivable of SC appears large.

SC has no short-term loans in both years.

SC’s revenue is in an average level, comparing with the size of its total assets.

 

LEVERAGE: FAIR

The debt ratio of SC is average.

The risk for SC to go bankrupt is above average.

 

Overall financial condition of the SC: Fairly Stable.

 

 

CONCLUSIONS

 

SC is considered small-sized in its line with fairly stable financial conditions. The large amount of accounts receivable may be a threat to SC’s financial condition.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.75

UK Pound

1

Rs.99.61

Euro

1

Rs.70.67

CNY

1

Rs.10.47

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

TRU

 


 

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

--

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.