MIRA
INFORM REPORT
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Report Date : |
11.05.2012 |
IDENTIFICATION DETAILS
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Name : |
Hangzhou
Lin'an Huale Textile CO., LTD. |
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Registered Office : |
Room 1906, Fortune Plaza, No. 63, Huancheng North Road, Hangzhou,
Zhejiang Province, 310004 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
21.03.2005 |
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Com. Reg. No.: |
3301852010988 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Engaged in selling textiles. |
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No. of Employees : |
11 |
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 : |
Slow |
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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
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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
Hangzhou Lin'an Huale Textile CO.,
LTD.
ROOM 1906, FORTUNE PLAZA, NO. 63, HUANCHENG NORTH ROAD,
HANGZHOU, ZHEJIANG PROVINCE, 310004 PR CHINA
TEL: 86 (0) 571-28028771 FAX: 86 (0) 571-28025266
EXECUTIVE SUMMARY
INCORPORATION DATE : MARCH 21, 2005
REGISTRATION NO. : 3301852010988
REGISTERED LEGAL FORM :
LIMITED LIABILITIES CO.
STAFF STRENGTH : 11
REGISTERED CAPITAL : CNY 1,000,000
BUSINESS LINE : TRADING
TURNOVER : CNY 83,860,000 (AS OF
DEC. 31, 2011)
EQUITIES : CNY 520,000 (AS OF
DEC. 31, 2011)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.29 = USD
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 co.
at local Administration for Industry & Commerce (AIC-The official body of issuing
and renewing business license) on March 21, 2005.
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 selling: textiles;
importing and exporting goods (excluding items prohibited by legal, administrative
rules and regulations, and operating the limited items after obtaining the
permits).
SC is
mainly engaged in selling textiles.
Mr. Gu
Yunliang is legal representative, chairman and general manager of SC at
present.
SC is
known to have approx. 11 employees
at present.
SC is currently operating at the above stated address, and this
address houses its operating office in the commercial zone of Hangzhou. Our
checks reveal that SC rents the total premise about 450 square meters.
SC is not known to host website of its own at present.
No significant changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name % of
Shareholding
Gu Yunliang 90
Gu Yaqin 10
l
Legal Representative, Chairman
and General Manager:
Mr. Gu Yunliang, about 51 years old, with high
school diploma. 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 selling textiles.
SC’s products
mainly include: all kinds of textiles.
SC
sources its materials 100% from domestic market. SC sells 100% of its products
to overseas market, mainly America.
The buying terms of SC include Check, T/T and Credit of
30-60 days. The payment terms of SC include Check, L/C 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.
Bank of China Hangzhou Lin’an Sub-branch
AC#：805029503308091001
Relationship:
Normal.
Balance
Sheet
Unit:
CNY’000
|
|
as of Dec. 31, 2011 |
|
Cash
& bank |
10,180 |
|
Inventory |
0 |
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Accounts
receivable |
4,360 |
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Advances
to supplies |
45,770 |
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Export
tax rebate receivable |
1,290 |
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Other
receivables |
2,240 |
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Other
current assets |
0 |
|
|
------------------ |
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Current
assets |
63,840 |
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Long-term
investments |
0 |
|
Fixed
assets net value |
150 |
|
Projects
under construction |
0 |
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Intangible
assets |
0 |
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Other
assets |
0 |
|
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------------------ |
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Total
assets |
63,990 |
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============= |
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Short
loans |
18,100 |
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Notes
payable |
2,000 |
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Accounts
payable |
27,210 |
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Advances
from customers |
4,020 |
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Accrued
Payroll |
30 |
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Taxes
payable |
0 |
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Other
accounts payable |
12,110 |
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Other
current liabilities |
0 |
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----------------- |
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Current
liabilities |
63,470 |
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Long
term liabilities |
0 |
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------------------ |
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Total
liabilities |
63,470 |
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Shareholders
equities |
520 |
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|
------------------ |
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Total
liabilities & equities |
63,990 |
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|
============= |
Income
Statement
Unit:
CNY’000
|
|
as of Dec. 31, 2011 |
|
Turnover |
83,860 |
|
Cost
of goods sold |
77,890 |
|
Taxes
and additional of main operation |
80 |
|
Sales expense |
5,100 |
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Management expense |
-130 |
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Finance expense |
3,510 |
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Non-operating
income |
0 |
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Non-operating expense |
0 |
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Profit
before tax |
-2,850 |
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Less:
profit tax |
0 |
|
Net
profit |
-2,850 |
Important
Ratios
=============
|
|
as of Dec. 31,
2011 |
|
*Current ratio |
1.01 |
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*Quick ratio |
1.01 |
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*Liabilities to assets |
0.99 |
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*Net profit margin (%) |
-3.40 |
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*Return on total assets (%) |
-4.45 |
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*Inventory /Turnover ×365 |
0 |
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*Accounts receivable/Turnover ×365 |
19 days |
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*Turnover/Total assets |
1.31 |
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* Cost of goods sold/Turnover |
0.93 |
PROFITABILITY:
FAIR
l
The turnover of SC appears average.
l
SC’s net profit margin appears fair.
l
SC’s return on total assets is fair.
l
SC’s cost of goods sold is average,
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
SC has no inventory in 2011.
l
The accounts receivable of SC appears
average.
l
The short-term loan of SC appears
large.
l
SC’s turnover is in an average level,
comparing with the size of its total assets.
LEVERAGE:
FAIR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is above
average.
Overall
financial condition of the SC: Fairly Stable.
SC is considered medium-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. A credit line up to USD 2,000 would appear to be within SC’s capacities upon a
periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.33 |
|
|
1 |
Rs.86.10 |
|
Euro |
1 |
Rs.69.06 |
INFORMATION DETAILS
|
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 |
|
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 |
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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.