MIRA
INFORM REPORT
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Report Date : |
13.06.2013 |
IDENTIFICATION DETAILS
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Name : |
TAIZHOU SUNROAD TRADING CO., LTD. |
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Registered Office : |
6/F Qingshang Building, Wanchang North Road, Chengdong Street
Wenling, Zhejiang Province 317500 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
09.05.2012 |
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Com. Reg. No.: |
331081100184255 |
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Legal Form : |
One-Personlimited Liabilities Company |
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Line of Business : |
Subject engaged in international trade mainly include Shoes, Hats,
Garment, Electronics |
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No. of Employees : |
9 |
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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
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 and address
TAIZHOU SUNROAD TRADING CO., LTD.
6/F QINGSHANG BUILDING, WANCHANG NORTH ROAD, CHENGDONG STREET
WENLING, ZHEJIANG PROVINCE 317500 PR CHINA
TEL: 86 (0) 576-86472869/86477561
FAX: 86 (0) 576-86472862
EXECUTIVE SUMMARY
Date of Registration : may 9, 2012
REGISTRATION NO. : 331081100184255
LEGAL FORM : one-personLimited liabilities company
REGISTERED CAPITAL : CNY 3,000,000
staff :
9
BUSINESS CATEGORY : trading
Revenue :
CNY 360,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 2,930,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : fair
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : ORDINARY
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 6.13 = 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 one-person limited liabilities company of PRC with State Administration of
Industry & Commerce (SAIC) under registration No.: 331081100184255 on May 9, 2012.
SC’s Organization Code Certificate No.:
59578609-9
SC’s registered capital: CNY 3,000,000
SC’s paid-in capital: CNY 3,000,000
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 |
|
Baolite Group Co., Ltd. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General
Manager |
Chen Fen |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Baolite Group Co., Ltd. 100
---------------------------
Registration No.: 331000000037392
Date of Registration: June 8, 2001
Legal Form: Shares Limited Company
Registered Capital: CNY 72,510,000
Legal Representative: Chen Huagen
MANAGEMENT
Chen Fen Legal
Representative, Chairman and General Manager
----------------------------------------------------------------------------------------------
Ø
Gender: F
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman
and general manager
BUSINESS OPERATION
SC’s registered business scope includes importing and
exporting commodities and technology.
SC is mainly
engaged in international trade.
SC’s products
mainly include:
Shoes
Hats
Garment
Electronics
Etc.
SC sources its products and products 100% from
domestic market, mainly Zhejiang. SC sells 60% of its products in domestic
market, and 40% to overseas 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, L/C and Credit of 30-60 days.
Staff & Office:
--------------------------
SC is known
to have approx. 9 staff at
present.
SC rents an area
as its operating office, but the detailed information is unknown.
RELATED COMPANY
l
Taizhou Baolite Shoes Co., Ltd.
Registration
No.: 331000400001757
Date
of Registration: December 31, 1994
Legal
Form: Chinese-foreign equity joint venture enterprise
Registered
Capital: USD 4,580,000
Legal
Representative: Chen Huagen
Etc.
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 |
|
560 |
|
|
Notes receivable |
0 |
|
Accounts
receivable |
0 |
|
Advances to
suppliers |
2,000 |
|
Other receivable |
360 |
|
Inventory |
0 |
|
Non-current
assets within one year |
0 |
|
Other current
assets |
10 |
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|
------------------ |
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Current assets |
2,930 |
|
Fixed assets |
150 |
|
Construction in
progress |
0 |
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Intangible
assets |
0 |
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Long-term
investment |
0 |
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Deferred income
tax assets |
0 |
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Other
non-current assets |
0 |
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|
------------------ |
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Total assets |
3,080 |
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============= |
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Short-term loans |
0 |
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Notes payable |
0 |
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Accounts payable |
20 |
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Welfares payable |
0 |
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Taxes payable |
0 |
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Advances from
clients |
130 |
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Other payable |
0 |
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Other current
liabilities |
0 |
|
|
------------------ |
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Current liabilities |
150 |
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Non-current
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
150 |
|
Equities |
2,930 |
|
|
------------------ |
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Total
liabilities & equities |
3,080 |
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|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
|
Revenue |
360 |
|
Cost of sales |
310 |
|
Sales expense |
49 |
|
Management expense |
78 |
|
Finance expense |
5 |
|
Profit before
tax |
-80 |
|
Less: profit tax |
0 |
|
-80 |
Important Ratios
=============
|
|
As of Dec. 31, 2012 |
|
*Current ratio |
19.53 |
|
*Quick ratio |
19.53 |
|
*Liabilities
to assets |
0.05 |
|
*Net profit
margin (%) |
-22.22 |
|
*Return on
total assets (%) |
-2.60 |
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*Inventory / Revenue
×365 |
-- |
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*Accounts
receivable / Revenue ×365 |
-- |
|
*Revenue /
Total assets |
0.12 |
|
*Cost of sales
/ Revenue |
0.86 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l
The revenue of SC appears fair in its 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 average, comparing with its
revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
SC has no inventory.
l
SC has no accounts receivable.
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: AVERAGE
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered small-sized in its line with fair financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.27 |
|
|
1 |
Rs.91.16 |
|
Euro |
1 |
Rs.77.50 |
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.