MIRA
INFORM REPORT
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Report Date : |
13.04.2013 |
IDENTIFICATION DETAILS
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Name : |
haining tianyu cloth Co., Ltd. |
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Registered Office : |
No. 66, Hongqi Avenue, Warp Knitting Industry Zone, Haining, Zhejiang
Province, 314419 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
21.04.1999 |
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Com. Reg. No.: |
330481000051544 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and selling wrap knitting cloth. |
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No. of Employees : |
180 |
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 : |
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 – 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
haining tianyu cloth Co., Ltd.
No. 66, hongqi
avenue, warp knitting industry zone,
haining, zhejiang
PROVINCE, 314419 PR CHINA
TEL: 86 (0)
573-87768658
FAX: 86 (0)
573-87761658
EXECUTIVE SUMMARY
INCORPORATION DATE : apr. 21, 1999
REGISTRATION NO. : 330481000051544
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
180
REGISTERED CAPITAL : CNY 35,000,000
BUSINESS LINE :
MANUFACTURING and selling
TURNOVER :
CNY 271,430,000 (UNaudited, AS OF
DEC. 31, 2012)
EQUITIES :
CNY 56,110,000 (UNaudited, AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.19 = 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 co. at local Administration
for industry & commerce (AIC - the official body of issuing and renewing
business license) on Apr. 21, 1999.
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 manufacturing and processing wrap knitting cloth, industrial
fabric, geotextile, plastics and lamp-case cloth; exporting its products and
importing machinery equipment, spare parts, raw materials and technologies
needed in manufacturing and researching.
SC is mainly
engaged in manufacturing and selling wrap knitting cloth.
Mr. Zhou Wangsong
is legal representative and chairman of SC at present.
SC is known to have approx. 180 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Haining. The detailed
information of the premise is unspecified.
http://www.sky-all.com
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
Email: tianyujenny@gmail.com
No significant events or changes were found during our checks with the local
Administration for Industry and Commerce.
SC’s quality system meets the international standards of ISO 9001.
See below for SC as executive party (defendant).
|
Executed Party |
Haining Tianyu Cloth Co., Ltd. |
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Court |
Zhejiang Province Haining City People's Court |
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Date
of Case |
Aug. 31, 2008 |
|
Case Number |
(2008) 01681 |
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Claim
Amount |
0 |
|
Case
Status |
Completed |
Remark: Due to the lack of information, we are unable to provide the cause of action,
judgment or other information.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhou Wangsong 51
Zhou Lisong 4
Wang Zhangxue 45
l
Legal representative and Chairman:
Mr. Zhou Wangsong is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative and chairman
SC is mainly engaged
in manufacturing and selling wrap knitting cloth.
SC’s products
mainly include: PVC flex, PVC films, truck tarpaulin, warp knitted fabric, and
so on.
SC sources its materials 90% from domestic
market, and 10% from overseas market. SC sells 70% of its products in domestic
market, and 30% to overseas market.
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 declined to release its customer and supplier
details.
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.
SC’s management
declined to release its bank details.
Balance Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2011 |
as
of Dec. 31, 2012 |
|
Cash & bank |
49,370 |
44,560 |
|
Short-term
investments |
1,040 |
1,040 |
|
Inventory |
10,890 |
14,690 |
|
Accounts
receivable |
41,770 |
39,580 |
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Other Accounts
receivable |
48,680 |
32,970 |
|
Advances to
suppliers |
10,090 |
9,670 |
|
Prepaid expenses |
150 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
161,990 |
142,510 |
|
Fixed assets net
value |
56,110 |
51,380 |
|
Projects under construction |
0 |
0 |
|
Long term
investment |
16,600 |
31,800 |
|
Intangible
assets |
10,430 |
10,590 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
245,130 |
236,280 |
|
|
============= |
============= |
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Short loans |
96,650 |
96,600 |
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Notes payable |
64,570 |
68,290 |
|
Accounts payable |
10,850 |
14,610 |
|
Advances from
clients |
30 |
0 |
|
Taxes payable |
360 |
500 |
|
Other Accounts
payable |
16,850 |
170 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
189,310 |
180,170 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
189,310 |
180,170 |
|
Equities |
55,820 |
56,110 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
245,130 |
236,280 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2012 |
|
Turnover |
271,430 |
|
Cost of goods
sold |
247,700 |
|
Taxes and
additional of main operation |
590 |
|
Sales expense |
1,560 |
|
Management expense |
11,740 |
|
Finance expense |
8,610 |
|
Investment
income |
290 |
|
Profit before
tax |
2,560 |
|
Less: profit tax |
630 |
|
Profits |
1,930 |
Note: The above
financial records for Yr 2012 have not been audited.
Important Ratios
=============
|
|
as of Dec. 31,
2011 |
as of Dec. 31,
2012 |
|
*Current ratio |
0.86 |
0.79 |
|
*Quick ratio |
0.80 |
0.71 |
|
*Liabilities
to assets |
0.77 |
0.76 |
|
*Net profit
margin (%) |
/ |
0.71 |
|
*Return on
total assets (%) |
/ |
0.82 |
|
*Inventory
/Turnover ×365 |
/ |
20 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
54
days |
|
*Turnover/Total
assets |
/ |
1.15 |
|
* Cost of
goods sold/Turnover |
/ |
0.91 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
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 in both years.
l
SC’s quick ratio is maintained in a fair level in
both years.
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’s short-term loan appears large in both years.
l
SC’s turnover is in an average 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 medium-sized in its line with fairly stable financial conditions.
The large amount of short loans could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.44 |
|
|
1 |
Rs.83.77 |
|
Euro |
1 |
Rs.71.33 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
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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.