MIRA
INFORM REPORT
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Report Date : |
11.12.2013 |
IDENTIFICATION DETAILS
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Name : |
NANJING RUIYA EXTRUSION SYSTEM LIMITED |
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Registered Office : |
No. 23, Linhuai Street,
Jiangning Economic And Technological Development Zone, Nanjing, Jiangsu
Province, 211106 Pr |
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Country : |
China |
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Financials (as on) : |
30.09.2013 |
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Date of Incorporation : |
20.10.1993 |
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Com. Reg. No.: |
320100400003469 |
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Legal Form : |
Chinese-Foreign Equity Joint
Venture Enterprise |
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Line of Business : |
manufacturing and selling
of mechanical equipment including twin-screw extruder, ancillary equipment, electrical
controls and spare parts. |
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No. of Employees : |
95 |
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 – September 30th, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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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
NANJING
RUIYA EXTRUSION SYSTEM LIMITED
NO. 23, LINHUAI STREET, JIaNGNING Economic and
Technological Development Zone, NANJING, JIANGSU PROVINCE, 211106 PR CHINA
TEL: 86 (0)
25-58003938 / 52768685 FAX: 86 (0)
25-52768688
EXECUTIVE SUMMARY
INCORPORATION DATE : OCT. 20, 1993
REGISTRATION NO. : 320100400003469
REGISTERED LEGAL FORM :
CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE :
mr. ROBERT CHARLES URTEL (CHAIRMAN)
STAFF STRENGTH : 95
REGISTERED CAPITAL :
usd 1,600,000
BUSINESS LINE : manufacturing and
trading
TURNOVER : CNY 70,600,000 (Jan. 1 to Sep. 30, 2013)
EQUITIES : CNY 43,350,000 (AS OF Sep. 30, 2013)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.0721 = 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
Note: the given tel. no. “86-10963616187” is not correct.
SC was registered as a Chinese-foreign equity joint venture enterprise
at local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Oct. 20, 1993.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business scope includes general business items: manufacturing
plastic products, plastic products and accessories, plastic machinery, food
machinery and electronic control equipment; selling self-produced products.
SC is mainly
engaged in manufacturing and selling mechanical equipment.
Mr.
Robert Charles Urtel is legal representative and chairman of SC at present.
SC is
known to have approx. 95 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the economic and technological development zone
of Nanjing. Our checks reveal that SC owns the total
premise, but the gross area of the premise is unspecific.
www.njruiya.com The design is professional and the content is
well organized. At present it is in Chinese and English versions.
E-mail: sales@njruiya.com
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
CPM Acquisition Corporation
(U.S.A.) 25
Nanjing Ruiya Polymer Processing
Equipment Co., Ltd. 75
CPM Acquisition Corporation
(U.S.A.)
============================
CPM Acquisition Corporation (“CPM”) is a
global leader in the supply of primary
processing equipment to the plastics, human food, rubber, animal feed, oilseed
and biofuels industries. With 16 facilities located in North America, Europe
and Asia, CPM is “Your Partner In Productivity”, offering innovative technical
solutions and after sales support around the globe.
Web: http://www.cpm.net
Legal
Representative and Chairman:
Mr. Robert Charles Urtel, American, # 210172454. He is
currently responsible for the overall management of SC.
Working
Experience(s):
At present Working in SC as legal representative and chairman.
Directors:
Chen Yaokun # S03192612
Ted Douglas Waitman # 026128553
Douglas Eugene # 402222238
Charlies James Spearing # 207794153
Supervisor:
Nicholas John Taiber # 221160760
SC is mainly engaged
in manufacturing and selling mechanical equipment.
SC’s products mainly include: twin-screw extruder, ancillary equipment,
electrical controls and spare parts.
SC sources its materials 90% from domestic
market, and 10% from overseas market. SC sells 80% of its products in domestic
market, and 20% 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 refused to release its main clients and suppliers.
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.
China Everbright
Bank Nanjing Jiangning Sub-branch
AC#：N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2012 |
As of Sep. 30, 2013 |
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Cash & bank |
19,650 |
35,130 |
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Inventory |
36,020 |
27,310 |
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Accounts
receivable |
16,900 |
16,380 |
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--------------- |
--------------- |
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Current assets |
80,600 |
83,450 |
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--------------- |
--------------- |
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Total assets |
87,680 |
90,360 |
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============ |
============ |
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Current
liabilities |
46,280 |
47,010 |
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Long term
liabilities |
0 |
0 |
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------------------- |
------------------- |
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Total
liabilities |
46,280 |
47,010 |
|
Equities |
41,400 |
43,350 |
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|
------------------- |
------------------- |
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Total
liabilities & equities |
87,680 |
90,360 |
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|
=========== |
=========== |
Note:
SC’s accountant refused to release the detailed balance sheet.
Income Statement
Unit: CNY’000
|
|
Jan.
1 to Sep. 30, 2013 |
|
Turnover |
70,600 |
|
Cost of goods sold |
57,230 |
|
Taxes and additional of main
operation |
170 |
|
Income
from other operation |
1,060 |
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Sales expense |
3,370 |
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Management expense |
5,580 |
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Finance expense |
-450 |
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Non-operating
income |
20 |
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Non-operating expense |
10 |
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Profit before
tax |
5,770 |
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Less: profit tax |
1,440 |
|
Profits |
4,330 |
Important Ratios
=============
|
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As
of Dec. 31, 2012 |
As
of Sep. 30, 2013 |
|
*Current ratio |
1.74 |
1.78 |
|
*Quick ratio |
0.96 |
1.19 |
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*Liabilities to
assets |
0.53 |
0.52 |
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*Net profit
margin (%) |
/ |
6.13 |
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*Return on
total assets (%) |
/ |
4.79 |
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*Inventory
/Turnover ×365 |
/ |
/ |
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*Accounts
receivable/Turnover ×365 |
/ |
/ |
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*Turnover/Total
assets |
/ |
0.78 |
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* Cost of
goods sold/Turnover |
/ |
0.81 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The accounts receivable of SC is average.
l
The inventory of SC is average.
l
SC’s turnover is in a fair 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: Stable.
SC is considered medium-sized in its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.21 |
|
UK Pound |
1 |
Rs.100.65 |
|
Euro |
1 |
Rs.84.15 |
INFORMATION DETAILS
|
Report
Prepared by : |
MNL |
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 |
|
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.