MIRA
INFORM REPORT
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Report Date : |
08.04.2013 |
IDENTIFICATION DETAILS
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Name : |
ZHANGJIAGANG FREE TRADE ZONE HUAERNUO INTERNATIONAL TRADE CO., LTD. |
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Registered Office : |
Room 508 Textile Raw Materials Market, Free Trade Zone Zhangjiagang, Jiangsu Province 215634 Pr |
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Country : |
China |
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Financials (as on) : |
28.02.2013 |
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Date of Incorporation : |
22.01.2010 |
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Com. Reg. No.: |
320592000044684 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Importing and exporting commodities and technology; purchasing and selling textile materials & products, and plastic materials. |
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No. of Employees : |
8 |
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 : |
Poor |
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Payment Behaviour : |
Slow and delayed |
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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
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
|
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
ZHANGJIAGANG FREE TRADE ZONE HUAERNUO INTERNATIONAL TRADE CO., LTD.
ROOM 508 TEXTILE RAW MATERIALS MARKET, FREE TRADE ZONE
ZHANGJIAGANG, JIANGSU PROVINCE 215634 PR CHINA
TEL: 86 (0) 512-86361689
FAX: 86 (0) 512-86362871
EXECUTIVE SUMMARY
Date of Registration : january 22, 2010
REGISTRATION NO. : 320592000044684
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : CNY 500,000
staff :
8
BUSINESS CATEGORY : TRADING
Revenue :
CNY 1,807,000 (FROM JAN. 1, 2013
TO FEB. 28, 2013)
EQUITIES :
CNY -1,430,000 (AS
OF FEB. 28, 2013)
E-MAIL :
N/A
PAYMENT :
SLOW
AND DELAYED
MARKET CONDITION : FAIR
FINANCIAL CONDITION : POOR
OPERATIONAL TREND : DOWNWARD
GENERAL REPUTATION : FAIR
EXCHANGE RATE :
CNY 6.21 = USD 1
Adopted abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL
REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL STATUS & HISTORY
SC was established
as a limited liabilities company of PRC with State Administration of Industry
& Commerce (SAIC) under registration No.: 320592000044684
on January 22, 2010.
SC’s Organization Code Certificate No.:
55023559-2
SC’s Tax No.: 321600550235592
SC’s registered capital: CNY 500,000
SC’s paid-in capital: CNY 500,000
Registration Change Record:-
No significant changes of SC have been noted in
SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Li Jian |
10 |
|
Li Zhong |
90 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Li Jian |
|
Supervisor |
Li Zhong |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Li Jian 10
Li Zhong 90
MANAGEMENT
Li Jian , Legal Representative, Chairman and General
Manager
-----------------------------------------------------------------------------------------
Ø
Gender: M
Ø
ID# 320219197208017838
Ø
Age: 41
Ø
Qualification:
University
Ø
Working
experience (s):
At
present, working in SC as legal representative, chairman and general manager
Li Zhon, Supervisor
------------------------------------
Ø
Gender: M
Ø
ID# 320219196301273014
Ø
Age: 50
Ø
Qualification:
University
BUSINESS OPERATION
SC’s
registered business scope includes importing and exporting commodities and
technology; purchasing and selling textile materials & products, and
plastic materials.
SC is mainly
engaged in international trade.
SC sources its materials 100% from domestic market. SC sells 70% in domestic market and 30% to overseas market, mainly Southeast Asia, etc.
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.
Staff & Office:
--------------------------
SC is known
to have approx. 8 staff at
present.
SC rents an area
as its operating office, but the detailed information is unknown.
RELATED COMPANY
SC is not known to have the subsidiary at present.
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
The bank information
of SC is not filed in local SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
As of Feb. 28, 2013 |
|
384 |
1,800 |
|
|
Notes receivable |
11 |
311 |
|
Accounts
receivable |
743 |
535 |
|
Advances to
suppliers |
2,217 |
2,311 |
|
Other receivable |
0 |
0 |
|
Inventory |
2,589 |
1,522 |
|
Deferred
expenses |
0 |
0 |
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Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
5,944 |
6,479 |
|
Fixed assets |
0 |
0 |
|
Construction in progress |
0 |
0 |
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Intangible
assets |
0 |
0 |
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Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
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Other
non-current assets |
0 |
0 |
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|
------------------ |
------------------ |
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Total assets |
5,944 |
6,479 |
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|
============= |
============= |
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Short-term loans |
0 |
0 |
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Notes payable |
0 |
0 |
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Accounts payable |
329 |
651 |
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Wages payable |
63 |
63 |
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Taxes payable |
-739 |
-630 |
|
Advances from
clients |
87 |
375 |
|
Other payable |
6,200 |
6,200 |
|
Other current
liabilities |
0 |
0 |
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|
------------------ |
------------------ |
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Current
liabilities |
5,940 |
6,659 |
|
Non-current
liabilities |
1,250 |
1,250 |
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|
------------------ |
------------------ |
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Total
liabilities |
7,190 |
7,909 |
|
Equities |
-1,246 |
-1,430 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
5,944 |
6,479 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
From Jan. 1, 2013 to Feb. 28, 2013 |
|
Revenue |
1,807 |
|
Cost of sales |
1,966 |
|
Taxes and surcharges |
0 |
|
Sales expense |
23 |
|
Management expense |
1 |
|
Finance expense |
5 |
|
Profit before
tax |
-186 |
|
Less: profit tax |
0 |
|
-186 |
Important Ratios
=============
|
|
As
of Dec. 31, 2012 |
As
of Feb. 28, 2013 |
|
*Current ratio |
1.00 |
0.97 |
|
*Quick ratio |
0.56 |
0.74 |
|
*Liabilities
to assets |
1.00 |
1.03 |
|
*Net profit
margin (%) |
-- |
-10.29 |
|
*Return on
total assets (%) |
-- |
-2.87 |
|
*Inventory / Revenue
×365/60 |
-- |
51 days |
|
*Accounts
receivable / Revenue ×365/60 |
-- |
18 days |
|
* Revenue /
Total assets |
-- |
0.28 |
|
* Cost of
sales / Revenue |
-- |
1.09 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l
The revenue of SC appears fair in is line.
l
SC’s net profit margin is poor.
l
SC’s return on total assets is fair.
l
SC’s cost of sales is high, comparing with its
revenue.
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 appears average.
l
The accounts receivable of SC is maintained in an
average level.
l
SC has no short-term loans.
l
SC’s revenue is in a fair level, comparing with the
size of its total assets.
LEVERAGE: POOR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is fairly high.
Overall financial
condition of the SC: Poor.
CONCLUSIONS
SC is considered small-sized in its line with poor financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.88 |
|
|
1 |
Rs.83.54 |
|
Euro |
1 |
Rs.70.90 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.