MIRA
INFORM REPORT
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Report Date : |
18.09.2012 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
16/F, Foreign Trade Building, Jiafeng Yinzuo, No. 21 Jingya Road, Tongxiang, Zhejiang Province, 314500 Pr |
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Country : |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
23.03.1998 |
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Com. Reg. No.: |
330000000031544 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
International trade like garments, textiles, chemical, leather & fur products and farm products. |
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No. of Employees : |
143 |
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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 – 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.
Source
: CIA
Company name and address
ZHEJIANG TONGXIANG FOREIGN TRADE
(GROUP) CO., LTD.
16/F, foreign trade
building, JIAFENG YINZUO, NO. 21 JINGYA ROAD, TONGXIANG, zhejiang province,
314500 PR CHINA
TEL: 86 (0)
573-88023015/88021409 FAX: 86 (0)
573-88023917
EXECUTIVE SUMMARY
INCORPORATION DATE :
MAR. 23, 1998
REGISTRATION NO. :
330000000031544
REGISTERED LEGAL FORM : SHARES LIMITED CO.
STAFF STRENGTH :
143
REGISTERED CAPITAL : CNY 46,000,000
BUSINESS LINE :
INTERNATIONAL TRADE
TURNOVER :
CNY 533,640,000 (UNAUDITED, AS
OF DEC. 31, 2010)
EQUITIES :
CNY 65,280,000 (UNAUDITED, AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.3287 =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
%20CO%20,%20LTD%20%20-%20193697%2018-Sep-2012_files/image019.gif){kind=small}
Note: SC’s complete English name should be the heading one.
SC was registered as a shares limited company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Mar. 23, 1998.
Company Status: Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The co has independent
property of legal person and enjoys property rights of legal person. The characteristics of the shares limited co. are as
follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be domiciled
in The minimum registered capital
of a co. is CNY The board of directors must
consist of five to nineteen directors. If the co.
raises capital by public offer, the promoters must not subscribe less than
35% of the total shares. the promoters’ shares are restricted to transfer-
within one year of the offer. A
state-owned enterprise that is restructured into a shares limited co. must
comply with the conditions & requirements specified under the law &
administrative rule.
SC’s registered
business scope includes importing and exporting goods (See the People's
Republic of China Import and Export Enterprise Qualification Certificate).
SC is mainly
engaged in international trade.
Mr. Qian Songkun has been legal representative and chairman of
SC since 2004.
SC is known
to have approx. 143 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Tongxiang. Our checks reveal that SC
owns the total premise about 10,000 square meters.
%20CO%20,%20LTD%20%20-%20193697%2018-Sep-2012_files/image020.gif){kind=small}
http://www.zjtxft.com
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
E-Mail: admin@zjtxft.com.cn
%20CO%20,%20LTD%20%20-%20193697%2018-Sep-2012_files/image021.gif){kind=small}
Changes
of its registered information:
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Date of change |
Item |
Before the change |
After the change |
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Legal Representative |
Zhang Minzhi |
Qian Songkun |
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Registered Capital |
CNY 10,000,000 |
CNY 46,000,000 |
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Registration number |
3300001001471 |
Present one |
%20CO%20,%20LTD%20%20-%20193697%2018-Sep-2012_files/image022.gif){kind=small}
MAIN SHAREHOLDERS:
Name %
of Shareholding
Qian Songkun 30.00
Wu
Hua 14.54
Qian Mingguan 13.37
Chai Yuhong 5.35
Tao Jianping 4.46
Tang Xiaoyan 0.89
Zhu Yifan 0.45
Ding Yinqi 0.40
Shou Menghui 0.40
Hu Weifeng 0.40
Zhou Yingying 0.40
Weng Yan 0.40
Zhu Yeqing 0.40
Other 18 individuals 28.54
%20CO%20,%20LTD%20%20-%20193697%2018-Sep-2012_files/image023.gif){kind=small}
l
Legal Representative and Chairman:
Mr. Qian Songkun , ID# 330425561226081, born in 1956, with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2004 to present Working
in SC as legal representative and chairman;
Also working in Jiaxing Jiahua Imp. & Exp.
Co., Ltd. as legal representative.
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General manager:
Ms. Tang Xiaoyan , ID# 330425711230002, born
in 1971, with university education. She is currently responsible for the daily
management of SC.
Working Experience(s):
From 2003 to present Working
in SC as general manager.
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Directors:
Mao Yuexin
Chai Yuhong
Jin Yunjiang
Qian Mingguan
Tao Jianping
Wu Hua
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Supervisors:
Zhu Yifan
Zheng Ran
Zhu Jufang
%20CO%20,%20LTD%20%20-%20193697%2018-Sep-2012_files/image024.gif){kind=small}
SC is mainly
engaged in international trade.
SC’s main products include: garments, textiles, chemical, leather &
fur products and farm products.
%20CO%20,%20LTD%20%20-%20193697%2018-Sep-2012_files/image008.jpg)
%20CO%20,%20LTD%20%20-%20193697%2018-Sep-2012_files/image010.jpg)
%20CO%20,%20LTD%20%20-%20193697%2018-Sep-2012_files/image012.jpg){kind=small}
SC sources its materials 100% from domestic
market. SC sells 80% of its products in domestic market, and 20% of its
products to overseas market mainly Southeast Asia and Europe.
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.
*Major Supplier:
=============
Tongxiang Jiayu Fashion Co., Ltd.
Note: SC’s management declined to release its main clients.
%20CO%20,%20LTD%20%20-%20193697%2018-Sep-2012_files/image025.gif){kind=small}
SC is known to have following subsidiaries and branches at present:
Zhejiang Tongxiang Foreign Trade (Group) Co.,
Ltd. Business Department No. 1
Tel: 0573-8023017
Fax: 0573-8034719
Zhejiang Tongxiang Foreign Trade (Group) Co.,
Ltd. Business Department No. 2
Tel: 0573-8038822
Fax: 0573-8023481
Zhejiang Tongxiang Foreign Trade (Group) Co.,
Ltd. Business Department No. 3
Tel: 0573-8022234
Fax: 0573-8026122
Zhejiang Tongxiang Foreign Trade (Group) Co.,
Ltd. Business Department No. 4
Tel: 0573-8023008
Fax: 0573-8020502
Zhejiang Tongxiang Foreign Trade (Group) Co.,
Ltd. Business Department No. 5
Tel: 0573-8588228
Fax: 0573-8588215
Zhejiang Tongxiang Foreign Trade (Group) Co.,
Ltd. Business Department No. 6
Tel: 0573-8021209
Fax: 0573-8020102
Zhejiang Tongxiang Foreign Trade (Group) Co.,
Ltd. Business Department No. 7
Tel: 0573-8038811
Fax: 0573-8031704
Zhejiang Tongxiang Foreign Trade (Group) Co.,
Ltd. Business Department No. 8
Tel: 0573-8587008
Fax: 0573-8588369
Zhejiang Tongxiang Foreign Trade (Group) Co.,
Ltd. Business Department No. 9
Tel: 0573-8023015
Fax: 0573-8023375
Zhejiang Tongxiang Foreign Trade (Group) Co.,
Ltd. Business Department No. 10
Tel: 0573-8023962
Fax: 0573-8022915
Tongxiang Jiayu Fashion Co., Ltd.
Address: No. 28 Renmin Road, Tongxiang, Zhejiang Province.
Tel: 0573-8588232
Jiaxing Jiahua Imp. & Exp. Co., Ltd.
Tel: 0573-8022927
Nantong Qihe Chemical Co., Ltd.
Zhejiang Huarui Haiyue Optoelectronic Industry Venture Investment Co.,
Ltd.
Zhejiang Tongxiang Foreign Trade (Group) Co., Ltd. Jiaxing Office
Etc.
%20CO%20,%20LTD%20%20-%20193697%2018-Sep-2012_files/image026.gif){kind=small}
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’s suppliers
declined to make any comments.
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.
%20CO%20,%20LTD%20%20-%20193697%2018-Sep-2012_files/image027.gif){kind=small}
Bank of China Jiaxing Tongxiang Sub-branch
AC# 353258337688
0086-573-88020103
Relationship:
Normal.
SC’s accountant
released that SC doesn’t open an accountant in Bank of China Jiaxing Branch.
%20CO%20,%20LTD%20%20-%20193697%2018-Sep-2012_files/image028.gif){kind=small}
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
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Cash & bank |
72,451 |
43,580 |
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Inventory |
2,578 |
18,740 |
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Accounts
receivable |
59,275 |
49,910 |
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Advances to
suppliers |
12,223 |
22,080 |
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Other
receivables |
1,662 |
6,050 |
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Other current
assets |
22,692 |
15,680 |
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------------------ |
------------------ |
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Current assets |
170,881 |
156,040 |
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Fixed assets net
value |
27,941 |
28,870 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
44,960 |
46,850 |
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Other assets |
0 |
1,750 |
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Total assets |
243,782 |
233,510 |
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============= |
============= |
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Short loans |
27,313 |
25,360 |
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Accounts payable |
56,597 |
60,850 |
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Advances from
clients |
15,284 |
9,980 |
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Taxes payable |
533 |
470 |
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Salaries payable |
0 |
0 |
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Other payable |
0 |
70,600 |
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Other current
liabilities |
83,219 |
970 |
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Current
liabilities |
182,946 |
168,230 |
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Long term
liabilities |
0 |
0 |
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------------------ |
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Total
liabilities |
182,946 |
168,230 |
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Equities |
60,836 |
65,280 |
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------------------ |
------------------ |
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Total
liabilities & equities |
243,782 |
233,510 |
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Income Statement
Unit: CNY’000
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As of Dec. 31,
2009 |
As of Dec. 31,
2010 |
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Turnover |
561,358 |
533,640 |
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Cost of goods
sold |
530,775 |
501,540 |
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Sales expense |
11,723 |
9,970 |
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Management expense |
17,056 |
18,450 |
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Finance expense |
-641 |
150 |
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Profit before
tax |
4,380 |
5,530 |
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Less: profit tax |
1,061 |
1,120 |
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Profits |
3,319 |
4,410 |
Note: The above financial
records for Yr2010 have not been audited.
SC’s management declined to release SC’s latest detailed financial
information.
Important Ratios
=============
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as
of Dec. 31, 2009 |
as
of Dec. 31, 2010 |
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*Current ratio |
0.93 |
0.93 |
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*Quick ratio |
0.92 |
0.82 |
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*Liabilities
to assets |
0.75 |
0.72 |
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*Net profit
margin (%) |
0.59 |
0.83 |
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*Return on
total assets (%) |
1.36 |
1.89 |
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*Inventory
/Turnover ×365 |
2 days |
13 days |
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*Accounts
receivable/Turnover ×365 |
39 days |
34 days |
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*Turnover/Total
assets |
2.30 |
2.29 |
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* Cost of
goods sold/Turnover |
0.95 |
0.94 |
%20CO%20,%20LTD%20%20-%20193697%2018-Sep-2012_files/image029.gif){kind=small}
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in both
years.
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SC’s net profit margin is average in both years.
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SC’s return on total assets is average in both
years.
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SC’s cost of goods sold is fairly high in both
years, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fair level.
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SC’s quick ratio is maintained in a normal level.
l
The inventory of SC is maintained in an average
level in both years.
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The accounts receivable of SC is maintained in an
average level in both years.
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The short loans of SC are average in both years.
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SC’s turnover is in a fairly good level in both
years, comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average in both years.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
%20CO%20,%20LTD%20%20-%20193697%2018-Sep-2012_files/image030.gif){kind=small}
SC is considered medium-sized in its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.97 |
|
|
1 |
Rs.87.52 |
|
Euro |
1 |
Rs.70.84 |
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 |
|
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 |
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<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.