MIRA INFORM REPORT
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Report Date : |
05.09.2012 |
IDENTIFICATION DETAILS
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Name : |
CHINDIAS ENVIRO & ENERGY TECHNOLOGIES
LTD. |
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Registered Office : |
Room 3615, Building A, New World Center, No. 88 Zhujiang
Road, Xuanwu District, Nanjing, Jiangsu
Province, 210018 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
29.08.2006 |
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Com. Reg. No.: |
320102000097764 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
sales of automation equipment and instrumentation, environmental
projects construction and related technical consulting services |
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No. of Employees : |
05 (Excluding Construction Staff) |
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 – March 31st, 2012
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Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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 & address
CHINDIAS
ENVIRO & ENERGY TECHNOLOGIES LTD.
ROOM 3615, building
a, new world center, no. 88 zhujiang road,
xuanwu district,
nanjing, jiangsu province, 210018 PR CHINA
TEL: 86 (0)
25-84721339 FAX: 86 (0)
25-84721339
EXECUTIVE SUMMARY
INCORPORATION DATE : aug. 29, 2006
REGISTRATION NO. : 320102000097764
REGISTERED LEGAL
FORM : Limited liabilities company
STAFF STRENGTH :
5
(EXCLUDING CONSTRUCTION STAFF)
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
TRADE, construction, service
TURNOVER :
CNY 1,880,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 3,890,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : Fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 6.3412 = 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 operating address should be the heading one, excluding Room 3616-3617.
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. 29, 2006.
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 R&D, sales and technical consulting services of environmental
protection equipment, energy-saving equipment; importing & exporting
commodities and technology; environmental projects construction; sales of
automation equipment and instrumentation.
SC is mainly
engaged in sales of automation equipment and instrumentation, environmental
projects construction and related technical consulting services.
Mr. Wang Liqian is
legal representative, chairman and general manager of SC at present.
SC is known to
have approx. 5 (excluding construction staff) employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Nanjing.
Our checks reveal that SC uses the premise freely.
http://www.chindias.net/ The design is professional and the content is
well organized. At present it is in both Chinese and English versions.
Email: Harriswong@sina.com ; chindias@chindias.net
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Sun Rong 5
Wang Liqian 95
Legal
representative, chairman and general manager:
Mr. Wang Liqian, born in 1933, 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.
* Professor of Thermal Power Engineering of South-East University,
* Consultant and former Chairman of the Chinese Society of Electrostatic Precipitation,
* Honorary board member of the International Society for Electrostatic Precipitation,
* Former deputy director of the Environmental Protection Research Institute of the Ministry of Electric Power, China.
Supervisor:
Wang Yanzhe
SC is mainly engaged
in sales of automation equipment and instrumentation, environmental projects
construction and related technical consulting services.
SC’s products mainly include: Electrostatic Precipitator, Bag Filter,
Auxiliary Equipments & Instruments, etc.
SC’s businesses mainly include:
◆ Dry/wet electrostatic precipitator
◆ Bag filter, normal pressure and high pressure,
◆ Dry or semi-dry ( spray drying, circulating fluid bed) flue gas
desulfurization
◆ Energy saving of environmental protection systems
◆ Energy saving of special furnaces and pollution control installations
◆ Industrial waste and municipal sewage water treatment
SC sources its materials 99% from domestic
market, and 1% from overseas market. SC sells 10% of its products in domestic
market, and 90% to overseas market, mainly Hungary, India.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
Note: SC’s management refused to release its
main suppliers and clients.
Partners: (according to SC’s website)
--------------------------------------------
Himenviro Environmental Technologies Pvt.
Ltd. (India)
EACAT AB (Sweden)
Chi Sage Systems (US)
According
to SC’s website:
Ador Powertron Industries, Ltd.
Esp-Apc Technologies
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 records 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 declined to
release its banking details.
Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2011 |
|
Cash & bank |
300 |
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Inventory |
410 |
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Bills receivable |
0 |
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Accounts
receivable |
240 |
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Other Accounts
receivable |
200 |
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Advances to
suppliers |
11,400 |
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To be
apportioned expense |
0 |
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Other current
assets |
20 |
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------------------ |
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Current assets |
12,570 |
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Fixed assets net
value |
20 |
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Long-term
investment |
0 |
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Intangible and
other assets |
0 |
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------------------ |
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Total assets |
12,590 |
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============= |
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Short loans |
0 |
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Accounts payable |
0 |
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Advance from
customers |
1,560 |
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Welfare payable |
20 |
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Other Accounts
payable |
7,140 |
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Notes payable |
0 |
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Taxes payable |
-30 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
10 |
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------------------ |
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8,700 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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------------------ |
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Total
liabilities |
8,700 |
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Equities |
3,890 |
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------------------ |
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12,590 |
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============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2011 |
|
Turnover |
1,880 |
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Cost of goods sold |
790 |
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Sales expense |
30 |
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Management expense |
370 |
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Finance expense |
2 |
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Profit before tax |
680 |
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Less: profit tax |
0 |
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Profits |
680 |
Important Ratios
=============
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As
of Dec. 31, 2011 |
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*Current ratio |
1.44 |
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*Quick ratio |
1.40 |
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*Liabilities
to assets |
0.69 |
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*Net profit
margin (%) |
36.17 |
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*Return on
total assets (%) |
5.40 |
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*Inventory
/Turnover ×365 |
80 days |
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*Accounts
receivable/Turnover ×365 |
47 days |
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*Turnover/Total
assets |
0.15 |
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* Cost of
goods sold/Turnover |
0.42 |
PROFITABILITY:
AVERAGE
l The turnover of SC
appears average in its line.
l SC’s net profit
margin is good.
l SC’s return on
total assets is fairly good.
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
The inventory of SC is maintained in an average
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 a fair level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.54 |
|
UK Pound |
1 |
Rs.88.23 |
|
Euro |
1 |
Rs.70.02 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
|
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 |
|
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 |
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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 |
|
<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.