MIRA INFORM REPORT
|
Report Date : |
20.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
SUN
RISING INC ltd. |
|
|
|
|
Registered Office : |
Suite 603, Central Enterprise Plaza, No. 2993 Gonghe New
Road, Zhabei District, Shanghai, 200072 PR |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
26.05.2004 |
|
|
|
|
Com. Reg. No.: |
3101142069153 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Subject engaged in trading of art crafts. |
|
|
|
|
No. of Employees : |
5 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
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
SUITE 603, CENTRAL ENTERPRISE PLAZA, NO. 2993 GONGHE NEW
ROAD,
ZHABEI DISTRICT, SHANGHAI, 200072 PR CHINA
TEL: 86 (0) 21-56037628 FAX:
86 (0) 21-56772796
EXECUTIVE SUMMARY
INCORPORATION DATE :
MAY 26, 2004
REGISTRATION NO. :
3101142069153
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
5
REGISTERED CAPITAL :
CNY 500,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 2,060,000 (UNAUDITED, AS OF
DEC. 31, 2012)
EQUITIES :
CNY 620,000 (UNAUDITED, AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.2484= 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 contact
person (Kevin Hsiang) is SC’s chairman and the mobile phone number
(13341787296) belongs to him.
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 May 26, 2004.
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 horn wares, art crafts, car
accessories, decorations, bone products, glasses & accessories, office
& school supplies, articles of daily use, hardware & electrical
materials, electron components, auto parts, rubber & plastic products,
metal materials, building materials, mechanical & electrical products,
chemicals & raw materials (excluding hazardous products), communication
equipment, instruments & meters, computers & spare parts, automatic
control equipment. (with permit if needed)
SC is mainly
engaged in trading of art crafts.
Mr. Xiang Yang is
legal representative, chairman and general manager of SC at present.
SC is known
to have approx. 5 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Shanghai.
Our checks reveal that SC rents the premise with 50 ㎡.
www.hornna.com The design is
professional and the content is well organized. At present it is in English and
Chinese versions.
Email: dodo@hornna.com, haoyilai@gmail.com
Note: the given email sales@homandbone.com
does not exist, as emails sent to this address were bounced.
No significant changes were found during our checks with the local
Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Xiang Yang 50
Peng Anquan 50
l
Legal Representative, Chairman and General Manager:
Mr. Xiang Yang , Kevin, is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative, chairman and general manager.
SC is mainly
engaged in trading of art crafts.
SC’s products mainly include:
Bone products
Bone Folder
Bone Musical Instrument Parts
Bone Tools
Bone Accouterment
Bone Accessories
Horn Products
Shofar
Horn Massager
Horn Guasha Tools
Horn Comb
Horn Sundries
Horn Mat
Horn Seal
Horn Chesses
Horn Accouterment
Buffalo & Yak
&Sheep Skull
Sheep Skull with Horns
Yak Skull with Horns
Buffalo Skull with Horns
Etc.
SC sources its materials 100% from domestic
market. SC sells 100% of its products in domestic
market.
The buying terms of SC include Check, T/T and Credit of
30-60 days. The payment terms of SC include Check, T/T and Credit of 30-60
days.
Note:
SC’s management declined to release its major clients and suppliers.
SC
is not known to have any related company 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.
No bank
information was found during our checks with the local Administration for Industry
and Commerce. And SC declined to release its banking details.
Balance Sheet
(Unaudited)
Unit: CNY’000
|
|
as of Dec. 31, 2012 |
|
Cash & bank |
300 |
|
Inventory |
370 |
|
Accounts
receivable |
1,320 |
|
Short-term
investment |
0 |
|
Dividends
receivable |
0 |
|
Interest
receivable |
0 |
|
Subsidies
receivable |
0 |
|
Advances to
suppliers |
390 |
|
Notes receivable |
0 |
|
Other
receivables |
0 |
|
Prepaid expenses |
0 |
|
|
------------------ |
|
Current assets |
2,380 |
|
Fixed assets net
value |
30 |
|
Long term
investment |
0 |
|
Projects under
construction |
0 |
|
Intangible
assets |
0 |
|
Long-term
deferred expenses |
0 |
|
|
------------------ |
|
Total assets |
2,410 |
|
|
============= |
|
Short loans |
0 |
|
Accounts payable |
0 |
|
Advances from
clients |
0 |
|
Accrued payroll |
0 |
|
Welfares payable |
10 |
|
Taxes payable |
20 |
|
Accrued expenses |
0 |
|
Other accounts
payable |
1,760 |
|
Other payable to
government |
0 |
|
Accrued expenses |
0 |
|
|
------------------ |
|
Current
liabilities |
1,790 |
|
Long term
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
1,790 |
|
Equities |
620 |
|
|
------------------ |
|
Total
liabilities & equities |
2,410 |
|
|
============= |
Income Statement (Unaudited)
Unit: CNY’000
|
|
as of Dec. 31,
2012 |
|
Turnover |
2,060 |
|
Cost of goods
sold |
1,890 |
|
Taxes
and additional of main operation |
0 |
|
Sales expense |
250 |
|
Management expense |
0 |
|
Finance expense |
0 |
|
Profit before
tax |
-80 |
|
Less: profit tax |
20 |
|
Profits |
-100 |
Important Ratios
=============
|
|
as
of Dec. 31, 2012 |
|
*Current ratio |
1.33 |
|
*Quick ratio |
1.12 |
|
*Liabilities
to assets |
0.74 |
|
*Net profit
margin (%) |
-4.85 |
|
*Return on
total assets (%) |
-4.15 |
|
*Inventory
/Turnover ×365 |
66 days |
|
*Accounts
receivable/Turnover ×365 |
234 days |
|
*Turnover/Total
assets |
0.85 |
|
* Cost of
goods sold/Turnover |
0.92 |
PROFITABILITY:
FAIR
l
The turnover of SC appears average in its line.
l
SC’s net profit margin is fair.
l
SC’s return on total assets is fair.
l
SC’s cost of goods sold is average comparing with
its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is normal.
l
SC’s quick ratio is normal.
l
SC’s inventory is average in 2012.
l
SC’s account receivable is large in
2012.
l
SC has no short loan in 2012.
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 small-sized in its line with fairly stable
financial conditions. The large amount of account receivable could be a threat to SC’s financial
conditions. Taking into consideration of SC's operation size and development
history, we would rate SC as an above average credit risk company.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian
Rupees |
|
US Dollar |
1 |
Rs.54.28 |
|
UK Pound |
1 |
Rs.84.09 |
|
Euro |
1 |
Rs.72.44 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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.