MIRA
INFORM REPORT
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Report Date : |
20.11.2012 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG KAFULAI HOME TEXTILE SCIENCE & TECHNOLOGY
CO., LTD. |
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Formerly Known As : |
ZHEJIANG XINGUOXIU SCIENCE & TECHNOLOGY CO., LTD. |
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Registered Office : |
Shenhua Business Zone, |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
26.09.2005 |
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Com. Reg. No.: |
330621000003499 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Wholesaling and Retailing of Knitting Goods & Textiles & Raw
Materials, Garment, Shoes & Hats, Begging, and Home Textiles. |
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No. of Employees : |
15 |
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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 : |
Slow but correct |
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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
ZHEJIANG KAFULAI HOME
TEXTILE SCIENCE & TECHNOLOGY CO., LTD.
SHENHUA BUSINESS ZONE, EAST NO. 6 XING’AN ROAD, ANCHANG TOWN
SHAOXING COUNTY, ZHEJIANG PROVINCE 311808 PR CHINA
TEL: 86 (0) 575-89865666/89865866
FAX: 86 (0) 575-85692125
EXECUTIVE SUMMARY
Date of Registration : september 26, 2005
REGISTRATION NO. : 330621000003499
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : cny 10,000,000
staff :
15
BUSINESS CATEGORY : trading
Revenue :
CNY 29,646,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 5,159,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRly STABLE
OPERATIONAL TREND : ORDINARY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.24 = USD 1
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
***Note: The (Opposit of 1st
SC’s current name should be the heading one, while
the given name (Zhejiang Xinguoxiu Science & Technology Co., Ltd.) was the
former one.
SC was established
as a limited liabilities company of PRC with State Administration of Industry
& Commerce (SAIC) under registration No.: 330621000003499 on September 26, 2005.
SC’s Organization Code Certificate No.:
78047169-7
SC’s Tax No.: 330621780471697
SC’s registered capital: CNY 10,000,000
SC’s paid-in capital: CNY 10,000,000
Registration Change Record:
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Date |
Change of Contents |
Before the change |
After the change |
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2012 |
Registered Capital |
CNY 5,000,000 |
CNY 10,000,000 |
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Company Name |
Zhejiang Xinguoxiu Science & Technology Co., Ltd. |
Zhejiang Kafulai Home Textile Science & Technology Co., Ltd. |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
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Name of Shareholder (s) |
% of Shareholding |
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Li Weicheng |
90 |
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Wang Hongbin |
10 |
SC’s Chief Executives:-
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Position |
Name |
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Legal Representative, Chairman, and
General Manager |
Li Weicheng |
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Supervisor |
Wang Hongbin |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Li Weicheng 90
Wang Hongbin 10
MANAGEMENT
Li Weicheng, Legal
Representative, Chairman, and General Manager
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Ø
Gender: M
Ø
ID# 360429196911122513
Ø
Age: 43
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman,
and general manager
Wang Hongbin,
Supervisor
-----------------------------------------------
Ø
Gender: M
Ø
ID# 360429197310012559
Ø
Age: 39
Ø
Qualification:
University
BUSINESS OPERATION
SC’s registered business scope includes researching and
developing textile technology; wholesaling and retailing knitting goods &
textiles & raw materials, garment, shoes & hats, begging, and home textiles;
importing and exporting commodities.
SC is mainly
engaged in selling home textiles.
SC’s products
mainly include:
Curtain cloth
Upholstery fabric
Etc.
Acting brands:
“Xinguoxiu” & “Kafulai”.
SC sources its products 100% from domestic market,
mainly Zhejiang. SC sells 40% of its products in domestic market, and 60% to
overseas market, mainly Southeast Asia, etc.
The buying terms
of SC include Check, T/T and Credit of 30-60 days. The payment terms of SC
include T/T, L/C and Credit of 30-60 days.
Staff & Office:
--------------------------
SC is known
to have approx. 15 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:
Bank
of China Shaoxing Sub-branch
AC#: 870130954318094014
Bank
of China Shaoxing Sub-branch
AC#: 870130954318091001
Industrial
and Commercial Bank of China Shaoxing Sub-branch
AC#: 1211021519200008417
Agricultural
Bank of China Anchang Sub-branch
AC#: 512601040012631
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
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18,447 |
23,886 |
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Notes receivable |
0 |
0 |
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Accounts
receivable |
0 |
0 |
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Advances to
suppliers |
0 |
0 |
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Other receivable |
6,714 |
5,994 |
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Subsidy
receivable |
0 |
0 |
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Inventory |
5,675 |
8,560 |
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Prepaid expenses |
181 |
307 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
31,017 |
38,747 |
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Fixed assets |
418 |
393 |
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Construction in
progress |
0 |
0 |
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Intangible
assets |
0 |
0 |
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Long-term
prepaid expenses |
0 |
0 |
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Deferred income
tax assets |
0 |
0 |
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Other
non-current assets |
0 |
0 |
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------------------ |
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Total assets |
31,435 |
39,140 |
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============= |
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Short-term loans |
6,636 |
9,762 |
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Notes payable |
11,952 |
15,234 |
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Accounts payable |
2,975 |
2,345 |
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Welfares payable |
4 |
0 |
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Taxes payable |
-1,179 |
-1,543 |
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Advances from
clients |
5,625 |
12,154 |
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Other payable |
230 |
-3,989 |
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Other current
liabilities |
18 |
18 |
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------------------ |
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Current
liabilities |
26,261 |
33,981 |
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Non-current
liabilities |
0 |
0 |
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Total
liabilities |
26,261 |
33,981 |
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Equities |
5,174 |
5,159 |
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Total
liabilities & equities |
31,435 |
39,140 |
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Income Statement
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Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
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Revenue |
18,122 |
29,646 |
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Cost of sales |
16,252 |
27,005 |
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Taxes and surcharges |
0 |
0 |
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Sales expense |
657 |
676 |
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Management expense |
826 |
931 |
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Finance expense |
2,293 |
971 |
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Profit before
tax |
220 |
100 |
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Less: profit tax |
56 |
83 |
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164 |
17 |
Important Ratios
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As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
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*Current ratio |
1.18 |
1.14 |
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*Quick ratio |
0.97 |
0.89 |
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*Liabilities to
assets |
0.84 |
0.87 |
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*Net profit
margin (%) |
0.90 |
0.06 |
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*Return on
total assets (%) |
0.52 |
0.04 |
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*Inventory /
Revenue ×365 |
115 days |
106 days |
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*Accounts
receivable/ Revenue ×365 |
-- |
-- |
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*
Revenue/Total assets |
0.58 |
0.76 |
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* Cost of
sales / Revenue |
0.90 |
0.91 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears average in its line, and
it increased in 2011.
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 sales is average, comparing with its
revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s quick ratio is maintained in a normal level in
both years.
l
The inventory of SC appears average.
l
SC has no accounts receivable in both years.
l
The short-term loans of SC appear average.
l
SC’s revenue is in a fair level, comparing with the
size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered small-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.97 |
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|
1 |
Rs.87.50 |
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Euro |
1 |
Rs.70.16 |
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 |
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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.