MIRA INFORM
REPORT
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Report Date : |
18.04.2013 |
IDENTIFICATION DETAILS
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Name : |
WUJIANG SHANGTONE TEXTILE CO., LTD. |
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Registered Office : |
No. 29 Hong An Road, |
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Country : |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
10.02.2009 |
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Com. Reg. No.: |
320584000200636 |
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Legal Form : |
One Person Limited Liability Company |
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Line of Business : |
International
Trade |
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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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 2012 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 under 8% for 2012. An economic slowdown in Europe contributed to
China's, and is expected to further drag Chinese growth in 2013. 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
WUJIANG SHANGTONE
TEXTILE CO., LTD.
NO. 29 HONG AN ROAD,
29
TEL: 86 (0) 512-63597818
FAX: 86 (0)
512-63597890
EXECUTIVE SUMMARY
INCORPORATION DATE : FEB. 10, 2009
REGISTRATION NO. : 320584000200636
REGISTERED LEGAL
FORM : ONE PERSON LIMITED LIABILITY COMPANY
STAFF STRENGTH :
12
REGISTERED CAPITAL : CNY 500,000
BUSINESS LINE :
international trading
TURNOVER : CNY 10,590,000 (AS OF DEC. 31, 2009)
EQUITIES :
CNY 810,000 (AS OF DEC. 31, 2009)
PAYMENT :
average
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.65= USD 1
Adopted abbreviations
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
SC was registered as a one person limited liability company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Feb. 10, 2009.
Company Status: One-person
Limited Liability Company Single person LLC refers to a
limited liability company set up by only one natural person or legal person
as the single shareholder of it. The minimum registered capital
of Single person LLC is CNY100,000. The shareholder’s capital contributes,
as set out by the articles of associations should be a lump-sum payment in
full. One natural person can only
invest in and set up one limited liability company, which is not permitted
to invest in and set up a new Single person LLC. As to any one-person limited
liability company, the sole-investor nature of the natural person or legal
person shall be indicated in the registration documents of the company and
shall be indicated in the business license thereof as well. The regulation of Single person
LLC should be set up by the shareholder The regulation of Single person
LLC has no shareholder meeting.
SC’s registered business scope includes selling knitting and textile
products, chemical fiber, garments and materials; importing and exporting
various goods and technology.
SC is mainly
engaged in international trade.
Mr. Tang Guoxiang
has been chairman of SC since 2009.
SC is known
to have approx. 12 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in Wujiang. Our checks reveal that SC rents the total premise
about 180 square meters.
http://www.shangtone.com The
design is professional and the content is well organized. At present it is in
both Chinese and English versions.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Tang Guoxiang ID#: 320924198201023470 100
l
Chairman and General Manager:
Mr. Tang Guoxiang, born in 1982, with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2009 to present Working
in SC as chairman and general manager.
SC is mainly
engaged in international trade.
SC’s products
mainly include: filament yarn fabric.
SC sources its
materials 100% from domestic market. SC sells 100% of its products to the
overseas market, mainly Southeast Asian and European countries.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
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.
Wujiang Rural Commercial Bank
AC#
0706678521120100396335
Relationship:
Balance Sheet
Unit: CNY’000
|
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As of Dec. 31, 2009 |
|
Cash & bank |
960 |
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Inventory |
650 |
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Accounts
receivable |
40 |
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Advances to
suppliers |
0 |
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Other
receivables |
890 |
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Other current
assets |
0 |
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--------------- |
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Current assets |
2,540 |
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Fixed assets net
value |
70 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
110 |
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--------------- |
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Total assets |
2,720 |
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============ |
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Short loans |
0 |
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Accounts payable |
700 |
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Advances from
clients |
580 |
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Taxes payable |
0 |
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Salaries payable |
0 |
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Other payable |
630 |
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Other current
liabilities |
0 |
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------------------- |
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Current
liabilities |
1,910 |
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Long term
liabilities |
0 |
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------------------- |
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Total
liabilities |
1,910 |
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Equities |
810 |
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------------------- |
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Total
liabilities & equities |
2,720 |
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=========== |
Income Statement
Unit: CNY’000
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As
of Dec. 31, 2009 |
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Turnover |
10,590 |
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Cost of goods
sold |
9,700 |
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Sales expense |
390 |
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Management expense |
70 |
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Finance expense |
0 |
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Profit before
tax |
420 |
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Less: profit tax |
110 |
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Profits |
310 |
Important Ratios
=============
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2009 |
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*Current ratio |
1.33 |
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*Quick ratio |
0.99 |
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*Liabilities
to assets |
0.70 |
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*Net profit
margin (%) |
2.93 |
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*Return on
total assets (%) |
11.40 |
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*Inventory
/Turnover ×365 |
22 days |
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*Accounts
receivable/Turnover ×365 |
1 days |
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*Turnover/Total
assets |
3.89 |
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* Cost of
goods sold/Turnover |
0.92 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in 2009.
l
SC’s net profit margin is average in 2009.
l
SC’s return on total assets is fairly good in 2009.
l
SC’s cost of goods sold is average in 2009,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in 2009.
l
SC’s quick ratio is maintained in a normal level in
2009.
l
The inventory of SC is average in 2009.
l
The accounts receivable of SC is average in 2009.
l
SC has no short loans in 2009.
l
SC’s turnover is in a good level in 2009, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is fairly high in 2009.
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.53.94 |
|
|
1 |
Rs.82.76 |
|
Euro |
1 |
Rs.71.04 |
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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 |
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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.