MIRA
INFORM REPORT
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Report Date : |
05.05.2012 |
IDENTIFICATION DETAILS
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Name : |
Henan
Best Steel Wire Products CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
03.03.2009 |
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Com. Reg. No.: |
410181000002097 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in manufacturing
hose wire. |
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No. of Employees : |
400 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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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 – September 30, 2011
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Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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 |
Company name and address
Henan Best Steel Wire Products CO.,
LTD.
JIAOWAN VILLAGE, KANGDIAN TOWN,
GONGYI,
HENAN PROVINCE, 451251 PR CHINA
TEL: 86 (0) 371-85602888/85607888
FAX: 86 (0) 371-85605555/64349555
EXECUTIVE SUMMARY
INCORPORATION DATE : MARCH 3, 2009
REGISTRATION NO. : 410181000002097
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
400
REGISTERED CAPITAL : CNY 59,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 266,670,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 53,030,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.29 = 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 company at
local Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on March 3, 2009.
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 hose reinforcement steel wire, brass
wire, cutting wire, civil steel wire, plated brass rope; importing and
exporting goods and technology (excluding items prohibited by legal,
administrative rules and regulations).
SC is mainly
engaged in manufacturing hose wire.
Mr. Xie Fuqiang is
the legal representative, chairman and general manager of SC at present.
SC is known to have approx. 400 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 Gongyi. Our checks
reveal that SC owns the total premise about 57,000 square meters.
http://www.best999.com.cn/ The design
is professional and the content is well organized. At present it is in Chinese
version.
E-mail: hnbosite@163.com
No significant changes were found during our checks with the local
Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Xie Fuqiang 39
Xie Zhaojie 21
Zhang Yong 8
Zhang Xiaowen 8
Zhao Mengjie 8
Xue Xiuqing 8
Tan Jiangshan 8
l
Legal Representative, Chairman and
General Manager:
Mr. Xie Fuqiang, born in 1963, with junior college education. He is
currently responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative, chairman and general manager.
SC is mainly
engaged in manufacturing hose wire.
SC’s products
mainly include: brass coated hose wire, braided
steel wire, hose reinforcement steel wire, high carbon steel wire for hose
reinforcement, brass coated steel wire for rubber hose, etc.
SC sources its materials and products 90%
from domestic market, and 10% from overseas market. SC sells 100% of its
products in domestic 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 and Credit of 30-60 days.
Note:
SC’s management 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.
China Construction Bank Gongyi Sub-branch
AC#：41001587010050205388
Relationship:
Normal.
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 |
20,170 |
44,780 |
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Notes receivable |
13,350 |
29,130 |
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Inventory |
25,320 |
33,260 |
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Accounts
receivable |
24,940 |
65,500 |
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Advances to
supplies |
34,190 |
40,990 |
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Other
receivables |
15,150 |
12,650 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
133,120 |
226,310 |
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Long-term investments |
0 |
0 |
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Fixed assets net
value |
92,620 |
194,660 |
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Projects under
construction |
33,350 |
38,360 |
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Material for
construction |
5,120 |
210 |
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Disposal of
fixed assets |
50 |
120 |
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Intangible
assets |
0 |
770 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
264,260 |
460,430 |
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============= |
============= |
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Short loans |
67,500 |
139,000 |
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Notes payable |
0 |
10,000 |
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Accounts payable |
8,580 |
40,480 |
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Advances from
customers |
0 |
0 |
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Accrued
payroll |
0 |
0 |
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Accrued
expenses |
0 |
150 |
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Taxes payable |
-13,510 |
-20,710 |
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Other accounts
payable |
117,530 |
114,480 |
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Other
current liabilities |
0 |
0 |
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----------------- |
----------------- |
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Current
liabilities |
180,100 |
283,400 |
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Long term
liabilities |
24,450 |
124,000 |
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------------------ |
------------------ |
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Total
liabilities |
204,550 |
407,400 |
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Shareholders equities |
59,710 |
53,030 |
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------------------ |
------------------ |
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Total
liabilities & equities |
264,260 |
460,430 |
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============= |
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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 |
109,240 |
266,670 |
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Cost of goods sold |
91,990 |
228,270 |
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Taxes and additional of main
operation |
0 |
0 |
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Income
from other operation |
550 |
100 |
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Sales expense |
6,440 |
14,370 |
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Management expense |
7,050 |
10,530 |
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Finance expense |
2,070 |
20,190 |
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Non-operating
income |
0 |
0 |
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Non-operating expense |
180 |
40 |
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Profit before
tax |
2,060 |
-6,630 |
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Less: profit tax |
250 |
500 |
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Net profit |
1,810 |
-7,130 |
Important Ratios
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as of Dec. 31, 2010 |
as of Dec. 31, 2011 |
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*Current ratio |
0.74 |
0.80 |
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*Quick ratio |
0.60 |
0.68 |
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*Liabilities
to assets |
0.77 |
0.88 |
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*Net profit
margin (%) |
1.66 |
-2.67 |
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*Return on
total assets (%) |
0.68 |
-1.55 |
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*Inventory
/Turnover ×365 |
85 days |
46 days |
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*Accounts
receivable/Turnover ×365 |
84 days |
90 days |
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*Turnover/Total
assets |
0.41 |
0.58 |
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* Cost of
goods sold/Turnover |
0.84 |
0.86 |
PROFITABILITY:
FAIR
l
The turnover of SC appears fairly good in its line
in both years, and it increased in 2011.
l
SC’s net profit margin is average in 2010 but fair
in 2011.
l
SC’s return on total assets is average in 2010 but
fair in 2011.
l
SC’s cost of goods sold is average in both years,
comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level in both years.
l
SC’s quick ratio is maintained in a fair level in
both years.
l
The inventory of SC appears average in both years.
l
The accounts receivable of SC appears average in
both years.
l
The short-term loan of SC appears large in both
years.
l
SC’s turnover is in a fair level in both years, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high in 2010 but
high in 2011.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
SC is considered medium-sized in its line with fair financial
conditions. The large amount of short-term loan could be a threat to SC’s
financial condition. A credit line up to USD 200,000 would appear to be within
SC’s capacities upon a periodical review basis.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.53.72 |
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|
1 |
Rs.86.98 |
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Euro |
1 |
Rs.70.64 |
INFORMATION DETAILS
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Report Prepared
by : |
PDT |
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 |
-- |
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.