MIRA
INFORM REPORT
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Report Date : |
26.10.2012 |
IDENTIFICATION DETAILS
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Name : |
SHENZHEN POWTRAN TECHNOLOGY CO., LTD. |
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Registered Office : |
3/F, No. 75, Baomin 2nd Road, Xixiang Street, Baoan District, Shenzhen, Guangdong Province, 518101 Pr |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
07.08.2002 |
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Com. Reg. No.: |
440306104084168 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and selling frequency changer |
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No. of Employees : |
20 |
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RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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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
Shenzhen Powtran Technology Co., Ltd.
3/F, NO. 75, BAOMIN
2ND ROAD, XIXIANG STREET, BAOAN DISTRICT,
SHENZHEN, GUANGDONG
PROVINCE, 518101 PR CHINA
TEL: 86 (0)
755-29630738/29103909 FAX: 86 (0)
755-29666485/29103981
EXECUTIVE SUMMARY
INCORPORATION DATE : AUG. 7, 2002
REGISTRATION NO. : 440306104084168
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
20
REGISTERED CAPITAL : CNY 500,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 67,330,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY -390,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fair
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.25 = 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
Note: SC’s complete name should be the heading one.
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 Aug. 7, 2002.
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 researching, developing and selling machinery and
electronics products with electromechanical integration and automatic test
system; manufacturing frequency changer.
SC is mainly
engaged in manufacturing and selling frequency changer.
Ms.
Lv Lili has been the legal
representative, chairman and general manager of SC since 2012.
SC is known to have approx. 20 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Shenzhen. The detailed information
of the premise is unspecified.
http://www.powtran.com/ It includes the information on SC and SC’s related
companies. The design is professional and the content is well organized. At
present the web site is in Chinese and English versions.
Email: powtran@powtran.com
Changes
of its registered information are as follows:
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Date of change |
Item |
Before the change |
After the change |
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Registration No. |
4403011094260 |
Present one |
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Legal representative |
Li Wenbin |
Present one |
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Shareholders |
Zhou Yinong 10% Dalian Powtran Technology Co., Ltd. 90% |
Present ones |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Lv Lili 90
Zhou Yinong 10
l
Legal representative, Chairman and General manager:
Ms. Lv Lili , born in 1958 with university education. She is currently
responsible for the overall management of SC.
Working Experience(s):
From 2012 to present Working
in SC as legal representative, chairman and general manager
l
Directors:
Zhang Haijie
Zhou Yinong
l
Supervisor:
Guo Nan
SC is mainly
engaged in manufacturing and selling frequency changer.
SC’s products
mainly include: frequency changer.
SC sources its materials 100% from domestic
market. SC sells 100% of its products in domestic market.
The buying terms of SC include Check, T/T 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 customer and supplier
details.
Dalian
Powtran Technology Co., Ltd.
===========================
Incorporation
Date: Jan. 21, 2001
Registration
No.: 210200000040186
Registered
Legal Form: Shares Limited Co.
Chief
Executive: Mr. Zhang Haijie (Chairman)
Registered
Capital: CNY 20,000,000
Dalian
Powtran Technology Co., Ltd. Shenzhen Branch
========================================
Registration
No.: 440301105516103
Principal:
Mr. Zhang Haijie
Incorporation
Date: June 28, 2011
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.
SC’s management
declined to release its bank details.
Balance Sheet (as of Dec. 31, 2011)
Unit: CNY’000
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Cash & bank |
1,950 |
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Inventory |
10,140 |
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Accounts
receivable |
7,950 |
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Notes receivable |
750 |
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Other
receivables |
2,650 |
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Other current
assets |
50 |
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Current assets |
23,490 |
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Fixed assets net
value |
0 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
0 |
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Total assets |
23,490 |
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Short loans |
0 |
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Accounts payable |
21,640 |
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Other payable |
1,490 |
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Taxes payable |
230 |
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Other current
liabilities |
520 |
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Current
liabilities |
23,880 |
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Long term
liabilities |
0 |
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Total
liabilities |
23,880 |
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Equities |
-390 |
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Total
liabilities & equities |
23,490 |
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Income Statement (as of Dec. 31, 2011)
Unit: CNY’000
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Turnover |
67,330 |
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Cost of goods
sold |
56,030 |
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Sales expense |
5,690 |
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Management expense |
4,180 |
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Finance expense |
-50 |
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Non-operating
expense |
6,040 |
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Profit before
tax |
-4,790 |
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Less: profit tax |
0 |
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Profits |
-4,790 |
Important Ratios
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as
of Dec. 31, 2011 |
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*Current ratio |
0.98 |
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*Quick ratio |
0.56 |
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*Liabilities
to assets |
1.02 |
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*Net profit
margin (%) |
-7.11 |
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*Return on
total assets (%) |
-20.39 |
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*Inventory
/Turnover ×365 |
55 days |
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*Accounts
receivable/Turnover ×365 |
44 days |
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*Turnover/Total
assets |
2.87 |
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* Cost of
goods sold/Turnover |
0.83 |
PROFITABILITY:
FAIR
l
The turnover 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 goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC is maintained in a fairly large
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC has no short-term loan in 2011.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: POOR
l
The debt ratio of SC is too high.
l
The risk for SC to go bankrupt is high.
Overall financial condition of the SC: Fair.
SC is considered small-sized in its line with fair financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
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US Dollar |
1 |
Rs.53.63 |
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1 |
Rs.86.17 |
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Euro |
1 |
Rs.69.74 |
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.