MIRA
INFORM REPORT
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Report Date : |
19.11.2012 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
no. 1-306, |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
12.03.2010 |
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Com. Reg. No.: |
130200000075277 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in selling steel and rolled products |
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No. of Employees : |
12 |
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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2012) |
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
tangshan xingtuo trading co., ltd.
no. 1-306,
junruihuayuan commercial building, lubei district
tangshan,
hebei province 063000 PR CHINA
TEL: 86
(0) 315-2326825
FAX: 86
(0) 315-5399113
EXECUTIVE SUMMARY
Date of Registration : march 12, 2010
REGISTRATION NO. : 130200000075277
LEGAL FORM : Limited
liabilities company
REGISTERED CAPITAL : cny 20,000,000
staff : 12
BUSINESS CATEGORY : trading
Revenue : CNY 112,550,000 (AS OF
DEC. 31, 2011)
EQUITIES : CNY 16,430,000 (AS OF
DEC. 31, 2011)
WEBSITE : N/A
E-MAIL : N/A
PAYMENT : AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : ORDINARY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.24 = USD
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 registration No.: 130200000075277 on
March 12, 2010.
SC’s Organization Code Certificate
No.: 55187221-9
SC’s registered capital: cny 20,000,000
SC’s paid-in capital: cny 20,000,000
Registration Change Record:-
No significant changes of SC have
been noted in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives
are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Ai Yonglin |
40 |
|
Zhang Huifeng |
60 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Zhang
Huifeng |
|
Supervisor |
Ai Yonglin |
RECENT DEVELOPMENT
No recent development was found during our checks at
present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Ai Yonglin
40
Zhang Huifeng 60
MANAGEMENT
Zhang
Huifeng, Legal Representative, Chairman and General Manager
--------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 27
Ø
ID# 130221198512304373
Ø
Qualification: University
Ø
Working experience (s):
From 2010 to present, working in SC as legal
representative, chairman and general manager
Ai
Yonglin, Supervisor
-----------------------------------------------
Ø
Gender: M
Ø
Age: 45
Ø
ID# 130221196708153918
BUSINESS OPERATION
SC’s registered business scope
includes wholesale and retail of steel and rolled products, pig
iron, steel, aluminum, nickel plate, iron, iron ore, limestone, ferro alloys, coke,
cement and related products, refractories, ceramics, transfer, tile, sand and
gravel materials, rubber and plastic products, hardware, dedicated equipment,
machinery parts, water-based paint, office machinery, stationery, computer
software, computers and auxiliary equipment, electrical machinery; goods import
and export.
SC is
mainly engaged in selling steel and rolled products.
SC’s
products mainly include: section steel, steel billets, etc.
SC sources its materials 100%
from domestic market, mainly Tangshan. SC sells 80% of its products in domestic
market, and 20% to overseas market, mainly Japan, Korea, Southeast Asia, Mid
East, etc.
The
buying terms of SC include T/T and Credit of 30-60 days. The payment terms of
SC include T/T, L/C and Credit of 30-60 days.
*Major Supplier:
==============
Tangshan
Shenda Steel Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 12 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
AC#: N/a
FINANCIALS
Balance Sheet
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Unit:
CNY’000 |
As of Dec. 31, 2011 |
|
13,000 |
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Accounts
receivable |
-550 |
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Advances
to suppliers |
0 |
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Other
receivable |
0 |
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Inventory |
0 |
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Non-current
assets within one year |
0 |
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Other
current assets |
6,350 |
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|
------------------ |
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Current
assets |
18,800 |
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Fixed
assets |
120 |
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Construction
in progress |
0 |
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Intangible
assets |
0 |
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Long-term
prepaid expenses |
0 |
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Deferred
income tax assets |
0 |
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Other
non-current assets |
-10 |
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------------------ |
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Total
assets |
18,910 |
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============= |
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Short-term
loans |
29,900 |
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Notes
payable |
0 |
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Accounts
payable |
-70,590 |
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Wages
payable |
0 |
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Advances
from clients |
45,930 |
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Other
payable |
-2,420 |
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Other
current liabilities |
-340 |
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|
------------------ |
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Current
liabilities |
2,480 |
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Non-current
liabilities |
0 |
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|
------------------ |
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Total
liabilities |
2,480 |
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Equities |
16,430 |
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|
------------------ |
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Total
liabilities & equities |
18,910 |
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|
============= |
Income Statement
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Unit:
CNY’000 |
As
of Dec. 31, 2011 |
|
Revenue |
112,550 |
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Cost of sales |
111,290 |
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Sales expense |
4,250 |
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Management expense |
410 |
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Finance expense |
220 |
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Profit
before tax |
-3,620 |
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Less:
profit tax |
0 |
|
-3,620 |
Important
Ratios
=============
|
|
As of Dec. 31, 2011 |
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*Current
ratio |
7.58 |
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*Quick
ratio |
7.58 |
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*Liabilities
to assets |
0.13 |
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*Net
profit margin (%) |
-3.22 |
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*Return
on total assets (%) |
-19.14 |
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*Inventory
/ Revenue ×365 |
-- |
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*Accounts
receivable/ Revenue ×365 |
-- |
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*
Revenue/Total assets |
5.95 |
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*
Cost of sales / Revenue |
0.99 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l
The revenue of SC appears average in
its line.
l
SC’s net profit margin is fair.
l
SC’s return on total assets is poor.
l
SC’s cost of sales is high, comparing with
its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained
in a fairly good level.
l
SC’s quick ratio is maintained in a
fairly good level.
l
SC has no inventory in 2011.
l
The short-term loans of SC appear
large.
l
SC’s revenue is in a fairly good level,
comparing with the size of its total assets.
LEVERAGE:
FAIR
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is above
average.
Overall
financial condition of the SC: Fair.
CONCLUSIONS
SC is considered small-sized in its line with fair financial
conditions. The large amount of short-term loans may be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.99 |
|
|
1 |
Rs.87.21 |
|
Euro |
1 |
Rs.70.22 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIT |
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 |
|
<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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.