MIRA
INFORM REPORT
|
Report Date : |
01.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
LAIWU DINGSHI TEXTILE IMPORT AND EXPORT CO.,
LTD. |
|
|
|
|
Registered Office : |
Beiwangshan Village, Zhangjiawa Subdistrict Office, Laicheng District, Laiwu, Shandong
Province, 271113 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
30.10.2009 |
|
|
|
|
Com. Reg. No.: |
371200200021528 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
selling textiles |
|
|
|
|
No. of Employees : |
03 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Small Company |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
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
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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 & address
LAIWU DINGSHI TEXTILE IMPort AND EXPort Co.,
Ltd.
beiwangshan village, zhangjiawa Subdistrict
Office,
Laicheng District, Laiwu, shandong PROVINCE,
271113 PR CHINA
TEL: 86 (0) 634-8079519/6598178 FAX: 86 (0) 634-6598491
EXECUTIVE SUMMARY
INCORPORATION DATE : oct. 30, 2009
REGISTRATION NO. : 371200200021528
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE : MR. liu zhe (CHAIRMAN)
STAFF STRENGTH :
3
REGISTERED CAPITAL : cny 500,000
BUSINESS LINE :
trading
TURNOVER :
CNY 14,130,000 (unaudited, AS OF DEC. 31, 2012)
EQUITIES :
CNY -3,810,000 (unaudited, AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : poor
OPERATIONAL TREND : fair
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.2109 = 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 limited liabilities company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Oct. 30, 2009.
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 selling textiles, garments, textile raw materials (excluding
seed cotton), chemical products (excluding dangerous chemicals), steel;
importing and exporting goods and technologies (excluding the items limited and
permitted by the state).
SC is mainly
engaged in selling textiles.
Mr. Liu Zhe has
been legal representative, chairman and general manager of SC since 2009.
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 Laiwu. Our checks reveal that SC rents the total premise
about 20 square meters.
SC is not known to host website of its own at present.
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN
SHAREHOLDERS:
Name
%
of Shareholding
Liu Zhe 40
Pan Zongjun 20
Yang Yanzhen 20
Yi Lan 20
Legal
representative, chairman
and general manager:
Mr. Liu Zhe, born in 1964, with junior college education. He is currently responsible for the overall management of SC.
Working
Experience(s):
From 2009 to present Working in SC as legal
representative, chairman and general manager.
Supervisor:
Pan Zongjun
SC is mainly
engaged in selling textiles.
SC’s products mainly include: textiles.
SC sources its materials 100% from domestic
market. SC sells 100% of its products to overseas market, mainly Korea, India,
etc.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include L/C and Credit of 30-60 days.
Note: SC declined to release its major suppliers and clients.
SC
is not known to have any 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 Laiwu Branch
AC#：407602814278091001
Relationship: Normal.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2011 |
as of Dec. 31, 2012 |
|
Cash & bank |
130 |
190 |
|
Inventory |
0 |
0 |
|
Accounts
receivable |
6,600 |
850 |
|
Advances to
suppliers |
0 |
0 |
|
Other receivables |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
6,730 |
1,040 |
|
Long-term
investments |
0 |
0 |
|
Fixed assets net
value |
10 |
10 |
|
Projects under construction |
0 |
0 |
|
Intangible
assets |
0 |
0 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
6,740 |
1,050 |
|
|
============= |
============= |
|
Short loans |
1,460 |
1,460 |
|
Accounts payable |
6,590 |
1,410 |
|
Advances from
customers |
0 |
1,550 |
|
Accrued
Payroll |
10 |
0 |
|
Taxes payable |
0 |
0 |
|
Other accounts
payable |
430 |
440 |
|
Other
current liabilities |
0 |
0 |
|
|
----------------- |
----------------- |
|
Current liabilities |
8,490 |
4,860 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
8,490 |
4,860 |
|
Shareholders
equities |
-1,750 |
-3,810 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
6,740 |
1,050 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2012 |
|
Turnover |
14,130 |
|
Cost of goods
sold |
15,980 |
|
Taxes
and additional of main operation |
0 |
|
Sales expense |
100 |
|
Management expense |
110 |
|
Finance expense |
0 |
|
Non-operating
income |
0 |
|
Non-operating expense |
0 |
|
Profit before
tax |
-2,060 |
|
Less: profit tax |
0 |
|
Net profit |
-2,060 |
Note: The Financial Report for Year 2012 hasn’t been audited.
Important
Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
0.79 |
0.21 |
|
*Quick ratio |
0.79 |
0.21 |
|
*Liabilities
to assets |
1.26 |
4.63 |
|
*Net profit
margin (%) |
/ |
-14.58 |
|
*Return on
total assets (%) |
/ |
-196.19 |
|
*Inventory
/Turnover ×365 |
/ |
/ |
|
*Accounts
receivable/Turnover ×365 |
/ |
22 days |
|
*Turnover/Total
assets |
/ |
13.46 |
|
* Cost of
goods sold/Turnover |
/ |
1.13 |
PROFITABILITY:
POOR
l
The turnover of SC appears average in its line in
2012.
l
SC’s net profit margin is poor in 2012.
l
SC’s return on total assets is poor in 2012.
l
SC’s cost of goods sold is high in 2012, comparing
with its turnover.
LIQUIDITY: POOR
l
The current ratio of SC is maintained in a fair
level in 2011 but poor in 2012.
l
SC’s quick ratio is maintained in a fair level in
2011 but poor in 2012.
l
SC has no inventory in both years.
l
The accounts receivable of SC is maintained in a
fairly large level in both years.
l
SC’s short-term loan is in a fairly large level in
both years.
l
SC’s turnover is in a good level in 2012, 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: Poor.
SC is considered small-sized in its line with poor financial conditions.
The large amount of short-term loan could be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.39 |
|
UK Pound |
1 |
Rs.82.32 |
|
Euro |
1 |
Rs.69.54 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>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 |
|
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 |
|
---- |
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.