MIRA INFORM REPORT
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Report Date : |
02.08.2011 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG HONGDA RUBBER CO., LTD. |
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Registered Office : |
Daijia Village, Hongchou Town, Tiantai County, Zhejiang Province, 317210 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
10.04.2000 |
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Com. Reg. No.: |
331023000019097 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and Selling Rubber Products |
RATING & COMMENTS
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MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
usd 300,000 |
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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 – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
China |
a2 |
a2 |
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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 |
Company name & address
ZHEJIANG HONGDA RUBBER CO., LTD.
DAIJIA VILLAGE, HONGCHOU TOWN, TIANTAI COUNTY,
ZHEJIANG PROVINCE, 317210 PR
CHINA
TEL:
86 (0) 576-83015111/83010488 FAX:
86 (0) 576-83011998/83012988
EXECUTIVE SUMMARY
INCORPORATION
DATE : APR. 10, 2000
REGISTRATION
NO. : 331023000019097
REGISTERED
LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF
STRENGTH : 150
REGISTERED
CAPITAL :
CNY 45,800,000
BUSINESS
LINE :
MANUFACTURING
TURNOVER : cny 44,750,000 (UNAUDITED, AS OF DEC. 31,
2010)
EQUITIES : cny
48,300,000 (UNAUDITED, AS OF DEC. 31, 2010)
PAYMENT
: AVERAGE
RECOMM.
CREDIT RANGE : up to usd 300,000
MARKET
CONDITION : AVERAGE
FINANCIAL
CONDITION : FAIRLY STABLE
OPERATIONAL TREND :
steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.47= 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 Ren
Min Bi
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 Apr. 10, 2000.
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 manufacturing rubber and plastic products and crafts;
exporting its products and importing the materials, instrument, machinery,
parts and technology needed for its products; processing with imported
materials, processing with imported samples, assembling with imported parts,
and compensation trade in agreement.
SC is mainly engaged in manufacturing and
selling rubber products.
Mr. Dai Junchao has been chairman of SC since
2004.
SC is known to have approx. 150 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office and factory in the industrial zone of Tiantai County. Our checks reveal that SC owns the total premise about 15,000 square meters.
SC is not known to
host website of its own at present.
SC has got the
certificate of ISO9001: 2008.
Changes of SC’s registered information:
|
Date |
Item |
Before changed |
After changed |
|
Apr., 2004 |
Legal rep. |
Dai Dalai |
Present one |
|
Jan., 2007 |
Registered capital |
CNY 5,800,000 |
CNY 15,800,000 |
|
Shareholding |
Dai Tingting 10% Dai Meijiao 20% Dai Junchao 70% |
Dai Tingting 3.6709% Dai Meijiao 26.3291% Dai Junchao 70% |
|
|
Apr., 2010 |
Registered capital |
CNY 15,800,000 |
Present amount |
|
Shareholders |
Dai Tingting 3.6709%; Dai Meijiao 26.3291%; Dai Junchao 70% |
Present ones |
|
|
Registered no. |
3310231002105 |
Present one |
MAIN SHAREHOLDERS:
Name % of Shareholding
Dai Meijiao ID#:
332625640606702 32.31
Dai Junchao ID#: 332625661030701
67.69
l
Chairman
and General Manager:
Mr. Dai Junchao, in
his
Working Experience(s):
From 2004 to present Working
in SC as chairman and general manager.
l
Supervisor:
Dai Meijiao
SC is mainly engaged in manufacturing and
selling rubber products.
SC’s products mainly include:
Ordinary conveyor belt
Nylon conveyor belt
Polyester conveyor belt
Ordinary heat-resistant conveyor belt
Acid alkali resistant conveyor belt
Oil resistant conveyor belt
Cold resistant conveyor belt
High temperature resistant conveyor belt
Cycloconveyor belt
Patterned conveyor belt
Flat rubber belt Cut rubber belt
Multi-wedge rubber belt
Triangle rubber belt
SC sources its materials 90% from domestic market,
and 10% from the overseas market, mainly European countries. SC sells 70% of
its products in domestic market, and 30% to the overseas market, mainly
Southeast Asia and European countries.
The buying terms of
SC include Check, T/T, L/C and Credit of 30-60 days. The payment terms of SC
include T/T, L/C and Credit of 30-60 days.
Note: SC’s management declined to release its main 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.
Bank of China
AC#：840010877208091001
Relationship: Normal.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
Cash & bank |
9,943 |
11,280 |
|
Inventory |
8,495 |
7,440 |
|
Accounts receivable |
20,226 |
17,530 |
|
Advances to suppliers |
0 |
550 |
|
Other receivables |
11,121 |
19,600 |
|
Other current assets |
132 |
6,310 |
|
|
--------------- |
---------------- |
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Current assets |
49,917 |
62,710 |
|
Fixed assets net value |
9,704 |
10,510 |
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Projects under construction |
0 |
0 |
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Long term investment |
0 |
0 |
|
Other assets |
324 |
5,550 |
|
|
--------------- |
----------------- |
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Total assets |
59,945 |
78,770 |
|
|
============ |
============ |
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Short loans |
20,100 |
9,350 |
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Bills payable |
16,200 |
15,770 |
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Accounts payable |
5,384 |
4,410 |
|
Advances from clients |
0 |
0 |
|
Taxes payable |
35 |
50 |
|
Salaries payable |
195 |
110 |
|
Other payable |
-60 |
450 |
|
Other current liabilities |
46 |
330 |
|
|
------------------- |
----------------- |
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Current liabilities |
41,900 |
30,470 |
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Long term liabilities |
0 |
0 |
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------------------- |
----------------- |
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Total liabilities |
41,900 |
30,470 |
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Equities |
18,045 |
48,300 |
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|
------------------- |
------------------ |
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Total liabilities & equities |
59,945 |
78,770 |
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|
=========== |
============ |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2009 |
As of Dec. 31, 2010 |
|
Turnover |
50,981 |
44,750 |
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Cost of goods sold |
47,240 |
40,160 |
|
Sales expense |
845 |
790 |
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Management expense |
1,826 |
2,260 |
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Finance expense |
833 |
920 |
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Profit before tax |
302 |
340 |
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Less: profit tax |
76 |
80 |
|
Profits |
226 |
260 |
Note: The above financial records
for Yr2010 have not been audited.
Important Ratios
=============
|
|
2009 |
2010 |
|
*Current ratio |
1.19 |
2.06 |
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*Quick ratio |
0.99 |
1.81 |
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*Liabilities to assets |
0.70 |
0.39 |
|
*Net profit margin (%) |
0.44 |
0.58 |
|
*Return on total assets (%) |
0.38 |
0.33 |
|
*Inventory /Turnover ×365 |
61 days |
61 days |
|
*Accounts receivable/Turnover ×365 |
145 days |
143 days |
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*Turnover/Total assets |
0.85 |
0.57 |
|
* Cost of goods sold/Turnover |
0.93 |
0.90 |
PROFITABILITY: AVERAGE
l
The
turnover of SC appears average in 2009, but it decreased in 2010.
l
SC’s net
profit margin is average in both years.
l
SC’s
return on total assets is average in both years.
l
SC’s
cost of goods sold is fairly high in both years, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The
current ratio of SC is maintained in a normal level.
l
SC’s
quick ratio is maintained in a normal level.
l
The
inventory of SC is average in both years.
l
The
accounts receivable of SC is fairly large in both years.
l
The
short loans of SC are fairly large in 2009 and average in 2010.
l
SC’s
turnover is in a fair level in both years, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
l
The debt
ratio of SC is average in 2009 and low in 2010.
l
The risk
for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly
Stable.
SC is considered
medium-sized in its line with fairly stable financial conditions. A credit line
up to USD 300,000 appears to be within SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.05 |
|
UK Pound |
1 |
Rs.72.40 |
|
Euro |
1 |
Rs.63.46 |
RATING EXPLANATIONS
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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 |
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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.