MIRA
INFORM REPORT
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Report Date : |
23.10.2012 |
IDENTIFICATION DETAILS
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Name : |
XUZHOU MEICHANG TRADE CO., LTD. |
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Registered Office : |
Room 807, hengmao building, no. 6 |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
12.11.2010 |
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Com. Reg. No.: |
320300000244577 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Trading of glassworks and machinery casting |
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No. of Employees : |
3 |
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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 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.
Source
: CIA
Company name and address
XUZHOU MEICHANG TRADE CO., LTD.
Room 807, hengmao
building, no. 6 xi’an north road, quanshan district, xuzhou city, jiangsu,
221002 PR CHINA
TEL: 86 (0) 516-85582298 FAX:
86 (0) 516-85582298
EXECUTIVE SUMMARY
INCORPORATION DATE :
NOV. 12, 2010
REGISTRATION NO. :
320300000244577
REGISTERED LEGAL FORM : ONE-PERSON LIMITED LIABILITY COMPANY.
STAFF STRENGTH :
3
REGISTERED CAPITAL : CNY 1,010,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 1,406,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 1,016,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.2557 = 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 One-person Limited Liability Company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Nov. 12, 2010.
Company Status:
One-person Limited Liability Company Single person LLC refers to a
limited liability company set up by only one natural person or legal person
as the single shareholder of it. The minimum registered capital
of Single person LLC is CNY 100,000. The shareholder’s capital contributes,
as set out by the articles of associations should be a lump-sum payment in
full. One natural person can only
invest in and set up one limited liability company, which is not permitted
to invest in and set up a new Single person LLC. As to any one-person limited
liability company, the sole-investor nature of the natural person or legal
person shall be indicated in the registration documents of the company and
shall be indicated in the business license thereof as well. The regulation of Single person
LLC should be set up by the shareholder The regulation of Single person
LLC has no shareholder meeting.
SC’s registered
business scope includes selling glassworks, bottle caps, chemical products,
textile products, cosmetics, article of daily use, hardware & electric
materials, steel, machinery equipment for constructional engineering, building
materials, household appliances, electric products, art wares, iron ores, garments, bamboo products, wood products and
straw products; importing and exporting various goods and technologies
(excluding goods or technologies limited or forbidden by state).
SC is mainly
engaged in trading of glassworks and
machinery castings.
Ms. Wei Ying is legal representative, chairman and general
manager of SC at present.
SC is known
to have approx. 3 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Xuzhou. Our checks reveal that SC
rents the premise with about 46 ㎡.
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.
SC was taken into operation in the first quarter of 2011.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Wei Ying 100
l
Legal Representative, Chairman and General Manager:
Ms. Wei Ying , ID# 320303197606253224, 36 years old, she is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative, chairman and general manager.
l
Supervisor:
Mr. Chen Congdong, ID# 320323197406030611,
born in 1974
SC is mainly
engaged in trading of glassworks and
machinery casting.
SC’s products mainly include: glass bottles, bottle
caps, machinery casting, etc.
SC sources its materials 100% from domestic
market. SC sells 50% of its products in domestic market, and 50% to overseas
market, mainly to Europe and Southeast Asia.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
SC was taken into normal operation in the first quarter of 2011.
Note:
SC’s management declined to release its major clients and suppliers.
SC is not known to have the 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
Xuzhou Branch Operating Department
Account No.: 470258206761
Relationship:
Normal
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2011 |
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Cash & bank |
163 |
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Inventory |
30 |
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Accounts
receivable |
324 |
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Advances to
suppliers |
1 |
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Other
receivables |
1,010 |
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Current assets |
1,528 |
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Fixed assets net
value |
47 |
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Long term
investment |
0 |
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Total assets |
1,575 |
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Short loans |
0 |
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Accounts payable |
28 |
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Taxes payable |
-57 |
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Advances from
clients |
227 |
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Other accounts
payable |
259 |
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Accrued expense |
102 |
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Current
liabilities |
559 |
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Long term
liabilities |
0 |
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Total
liabilities |
559 |
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Equities |
1,016 |
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Total
liabilities & equities |
1,575 |
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Income Statement
Unit: CNY’000
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as of Dec. 31,
2011 |
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Turnover |
1,406 |
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Cost of goods
sold |
998 |
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Taxes and additional
of main operation |
0 |
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Sales expense |
285 |
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Management expense |
163 |
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Finance expense |
-50 |
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Non-operating
income |
1 |
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Non-operating expense |
0 |
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Profit before
tax |
11 |
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Less: profit tax |
3 |
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Profits |
8 |
Important Ratios
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as
of Dec. 31, 2011 |
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*Current ratio |
2.73 |
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*Quick ratio |
2.68 |
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*Liabilities
to assets |
0.35 |
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*Net profit
margin (%) |
0.57 |
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*Return on
total assets (%) |
0.51 |
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*Inventory
/Turnover ×365 |
8 days |
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*Accounts
receivable/Turnover ×365 |
84 days |
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*Turnover/Total
assets |
0.89 |
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* Cost of
goods sold/Turnover |
0.71 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears average in its line.
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SC’s net profit margin is average.
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SC’s return on total assets is average.
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SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is normal.
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SC’s quick ratio is normal.
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SC’s inventory is small in 2011.
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The accounts receivable of SC appears average in
2011.
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SC has no short-term loan in 2011.
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SC’s turnover is fair, comparing with the size of
its total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is low.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: stable.
SC is considered small-sized in its line with stable financial
conditions. Taking into consideration of SC’s development history and operation
size, we would rate SC as an above average credit risk company.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.53.67 |
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1 |
Rs.86.05 |
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Euro |
1 |
Rs.70.07 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.