MIRA
INFORM REPORT
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Report Date : |
10.12.2012 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI TIQIAO TEXTILE
& YARN DYEING CO., LTD. |
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Registered Office : |
No. 519, |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
14.07.1997 |
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Reg. No.: |
310112000163709 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Manufacturing and selling textiles. |
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No. of Employees : |
1,200 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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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 |
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 2010 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 near 9% for 2011. An economic slowdown in Europe is expected to further drag Chinese growth in 2012. 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.
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Source : CIA |
Company Name and address
SHANGHAI TIQIAO TEXTILE & YARN DYEING CO., LTD.
NO. 519, LIYUE ROAD, MINHANG DISTRICT, SHANGHAI
201114 PR CHINA
TEL: 86 (0) 21-64292434 FAX: 86 (0) 21-64293198
EXECUTIVE SUMMARY
INCORPORATION DATE : JUL. 14, 1997
REGISTRATION NO. : 310112000163709
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MR. PAN YUMING (CHAIRMAN)
STAFF STRENGTH :
1,200
REGISTERED CAPITAL : CNY 160,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 598,401,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 255,671,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY
STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.23= 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
SC was registered as a Limited liabilities co. at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on Jul. 14, 1997.
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 exporting self-made garments and
textiles; importing and exporting commodities and technologies; importing raw
materials, machinery equipment, instruments, meters and spare parts needed in
manufacturing and researching by SC; leasing owned property; selling garments
and daily necessaries; researching, developing and selling metal tools. (with
permit if needed). SC is mainly engaged in manufacturing and selling textiles.
Mr. Pan Yuming is legal representative
and chairman of SC at present.
SC is known to have approx. 1,200 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 Shanghai. The
detailed premise information is unknown.
http://www.tiqiao.com/ The design is professional and the content is
well organized. At present the web site is in Chinese, English and Japanese
versions.
E-mail: bellazhang@tiqiao.com
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name
% of Shareholding
Pan Yuming 89
Xu Cuihong 11
Legal
representative and Chairman:
Mr. Pan Yuming 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 Tiqiao Weaving Co., Ltd. as legal
representative.
Supervisor:
-----------------------
Xu Cuihong
Also working in Shanghai Tiqiao Textile Dyeing and Finishing Co., Ltd.
as legal representative.
SC is mainly engaged in manufacturing and selling textiles.
SC’s products mainly include spinning products, dyed yard products,
knitting products, etc.
SC sources its materials 50% from domestic market and 50% from overseas
market. SC sells 30% of its products in domestic market and 70% to overseas
market.
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.
Note: SC declined
to release its major suppliers and clients.
Subsidiaries:
Shanghai Tiqiao Weaving Co., Ltd.
Registered no.: 310000400319185
Legal representative: Pan Yuming
Registered capital: USD 4,000,000
Shanghai Tiqiao Textile Dyeing and Finishing Co., Ltd.
Registered no.: 310225000224724
Legal representative: Xu Cuihong
Registered capital: CNY 5,000,000
Etc.
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 accountant refused to release the bank details.
Balance Sheet
Unit: CNY’000
|
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As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
Cash & bank |
50,173 |
34,003 |
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Inventory |
85,468 |
112,791 |
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Bills receivable |
2,966 |
4,223 |
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Accounts receivable |
124,365 |
116,727 |
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Advances to suppliers |
20,073 |
18,928 |
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Other receivables |
129,641 |
102,094 |
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Other current assets |
476 |
586 |
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------------------ |
------------------ |
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Current assets |
413,162 |
389,352 |
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Fixed assets net value |
258,230 |
216,812 |
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Long term investment |
24,395 |
9,023 |
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Projects under construction |
21,299 |
29,225 |
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Intangible assets |
19,913 |
19,498 |
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Other assets |
788 |
4,024 |
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------------------ |
------------------ |
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Total assets |
737,787 |
667,934 |
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=========== |
=========== |
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Short loan |
177,000 |
169,571 |
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Accounts payable |
85,501 |
91,823 |
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Bills payable |
75,708 |
43,204 |
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Advances from clients |
15,409 |
10,878 |
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Taxes payable |
-3,218 |
3,115 |
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Other Accounts payable |
58,392 |
10,665 |
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Other current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current liabilities |
408,792 |
329,256 |
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Long term liabilities |
83,007 |
83,007 |
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------------------ |
------------------ |
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Total liabilities |
491,799 |
412,263 |
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Equities |
245,988 |
255,671 |
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------------------ |
------------------ |
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Total liabilities & equities |
737,787 |
667,934 |
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=========== |
=========== |
Income Statement
Unit: CNY’000
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As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
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Turnover |
618,947 |
598,401 |
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Cost of goods sold |
513,388 |
498,026 |
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Sales expense |
27,717 |
21,072 |
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Management expense |
53,720 |
47,192 |
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Finance expense |
17,764 |
19,672 |
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Investment income |
-135 |
-3,587 |
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Profit before tax |
13,291 |
9,683 |
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Less: profit tax |
0 |
0 |
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Profits |
13,291 |
9,683 |
Important Ratios
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As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
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*Current ratio |
1.01 |
1.18 |
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*Quick ratio |
0.80 |
0.84 |
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*Liabilities to assets |
0.67 |
0.62 |
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*Net profit margin (%) |
2.15 |
1.62 |
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*Return on total assets (%) |
1.80 |
1.45 |
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*Inventory /Turnover ×365 |
51 days |
69 days |
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*Accounts receivable/Turnover ×365 |
74 days |
72 days |
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*Turnover/Total assets |
0.84 |
0.90 |
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* Cost of goods sold/Turnover |
0.83 |
0.83 |
PROFITABILITY:
AVERAGE
The turnover of SC appears fairly good but it decreased in 2011.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is average, comparing with its turnover.
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 appears average.
The accounts receivable of SC appears average.
The short-term loan of SC appears fairly large.
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
SC is considered large-sized in its line with fairly stable financial
conditions. The large amount of short-term loan could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.20 |
|
|
1 |
Rs.86.99 |
|
Euro |
1 |
Rs.70.22 |
INFORMATION DETAILS
|
Report
Prepared by : |
SDA |
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.