MIRA
INFORM REPORT
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Report Date : |
18.06.2013 |
IDENTIFICATION DETAILS
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Name : |
ROY INDUSTRY & RESOURCE CO., LTD |
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Registered Office : |
13/F, No. 3 Building, Longze Plaza, Lane 313, Ningguo
Road, Yangpu District, Shanghai, 200090 Pr |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
03.06.2002 |
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Com. Reg. No.: |
310109000306914 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
International Trade |
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No. of Employees : |
12 |
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 : |
Slow but Correct |
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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
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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
ROY
INDUSTRY & RESOURCE CO., LTD.
13/f, no. 3 Building,
Longze Plaza, lane 313, ningguo road,
Yangpu District,
shanghai, 200090 PR CHINA
TEL: 86 (0)
21-51696659 FAX: 86 (0)
21-55807113
EXECUTIVE SUMMARY
INCORPORATION DATE :
june 3, 2002
REGISTRATION NO. : 310109000306914
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
12
REGISTERED CAPITAL : CNY 4,500,000
BUSINESS LINE : TRADING
TURNOVER :
CNY 99,060,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 4,280,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : Fairly
stable
OPERATIONAL TREND : Fairly STEADY
GENERAL REPUTATION : average
EXCHANGE RATE : CNY 6.13 = 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 June 3, 2002.
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 paper (Outward processing), printed materials, knitwear and textiles, mechanical and electrical equipment, metal materials, communications equipment (excluding satellite ground receiving device); Business Information Consulting, importing and exporting commodities and technology (not attach products catalog additionally), excluding the items prohibited or limited by the country, parts printing (limited to branch).
SC is mainly engaged in international trade.
Ms. Zhang Qing is legal representative and chairman of SC at present.
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 the commercial zone of Shanghai. SC’s
employee
refused to release the detailed information of the premise.
http://www.royindustry.com/
This website belongs to Roy Group, and also includes the information on SC. The
design is professional and the content is well organized. At present it is in
Chinese and English versions.
E-mail: roy@royindustry.com
No significant events or changes were found during our checks with local
AIC.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhang Qing 35.33
Zhuang Huimin 16.67
Ma Wenhua 3.33
Wen Li 3.56
Pan Genchen 3.33
Yu Pu 3.33
Hong Wei 0.67
Liang Peiming 0.67
Xia Bin 4.22
Zhou Rongde 6.22
Zhang Aili 6.67
Guo Jingru 1.11
Ji Zengrong 4.22
Ma Chunhua 4.45
Yang Junjing 1.33
Liu Xiaoxiang 2.22
Rao Jing 1.11
Zhu Haoqing 1.56
Legal
representative and chairman:
Ms. Zhang Qing is currently responsible for the overall management of
SC.
Working
Experience(s):
At present Working in SC as legal representative and chairman.
Also working in Roy Paper & Printing Resource Co., Ltd. as legal representative.
Supervisor:
Zhuang Huimin
SC is mainly
engaged in international trade.
SC’s products mainly include: paper, printed materials, textiles, hats,
etc.
SC sources its materials 100% from domestic
market. SC sells 10% of its products in domestic market, and 90% 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.
Note:
SC’s management refused to release its main clients and suppliers.
SC is known to invest in the following companies:
Roy
Paper & Printing Resource Co., Ltd.
-------------------------------
Registration No.: 310110000402550
Incorporation Date: 2006-08-31
Chairman: Zhang Qing
Registered Capital: CNY 1,000,000
Tel: (8621) 65463212
Email: paper@royindustry.com
Shanghai
Rongpan Information Technology Co., Ltd.
------------------------------------
Registration No.: 310110000415302
Incorporation Date: 2007-01-05
Chairman: Zhou Huimin
Registered Capital: CNY 800,000
Branch:
Roy
Industry & Resource Co., Ltd. Branch
---------------------------------------
Registration No.: 310110000435211
Incorporation Date: 2007-06-27
Principal: Xia Bin
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 declined to
release its banking details.
Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
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Cash & bank |
1,240 |
4,520 |
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Inventory |
3,450 |
5,120 |
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Bills receivable |
0 |
0 |
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Accounts
receivable |
4,440 |
8,020 |
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Other Accounts
receivable |
860 |
1,890 |
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Advances to
suppliers |
0 |
0 |
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Trading
financial assets |
530 |
530 |
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Other current
assets |
0 |
0 |
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|
------------------ |
------------------ |
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Current assets |
10,520 |
20,080 |
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Fixed assets net
value |
2,490 |
2,310 |
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Long-term
investment |
860 |
850 |
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Intangible and
other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
13,870 |
23,240 |
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============= |
============= |
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Short loans |
500 |
0 |
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Accounts payable |
9,540 |
19,320 |
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Advance from
customers |
0 |
0 |
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Other Accounts
payable |
0 |
0 |
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Notes payable |
0 |
0 |
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Taxes payable |
-400 |
-360 |
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Withdraw the
expenses in advance |
0 |
0 |
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Other current
liabilities |
0 |
0 |
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------------------ |
------------------ |
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9,640 |
18,960 |
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Long term
liabilities |
0 |
0 |
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Other
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
9,640 |
18,960 |
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Equities |
4,230 |
4,280 |
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------------------ |
------------------ |
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13,870 |
23,240 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
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Turnover |
93,190 |
99,060 |
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Cost of goods sold |
100,650 |
105,290 |
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Taxes and additional of main
operation |
20 |
0 |
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Sales expense |
4,190 |
6,460 |
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Management expense |
240 |
270 |
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Finance expense |
710 |
-4,700 |
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Non-operating
income |
12,690 |
8,350 |
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Non-operating expense |
0 |
0 |
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Profit before
tax |
64 |
90 |
|
Less: profit tax |
14 |
20 |
|
Profits |
50 |
70 |
Important Ratios
=============
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As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
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*Current ratio |
1.09 |
1.06 |
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*Quick ratio |
0.73 |
0.79 |
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*Liabilities
to assets |
0.70 |
0.82 |
|
*Net profit
margin (%) |
0.05 |
0.07 |
|
*Return on total
assets (%) |
0.36 |
0.30 |
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*Inventory
/Turnover ×365 |
14 days |
19 days |
|
*Accounts
receivable/Turnover ×365 |
17 days |
30 days |
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*Turnover/Total
assets |
6.72 |
4.26 |
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* Cost of
goods sold/Turnover |
1.08 |
1.06 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average 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 too high, comparing with
its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC is maintained in an average
level in both years.
l
The accounts receivable
of SC is maintained in an average level in both years.
l
SC’s short-term loan appears average in 2011, and
SC has no short-term loan in 2012.
l
SC’s turnover is in a fairly good level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is average in 2011, but fairly
high in 2012.
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.57.73 |
|
UK Pound |
1 |
Rs.90.61 |
|
Euro |
1 |
Rs.76.96 |
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 |
|
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 |
|
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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.