MIRA INFORM REPORT
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Report Date : |
21.03.2013 |
IDENTIFICATION DETAILS
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Name : |
TIANJIN ERLUN CHEMICAL SCIENCE AND TECHNOLOGY Co.,
Ltd. |
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Registered Office : |
Huifeng Industrial Zone,
Xianshuigu Town, Jinnan District, Tianjin,
300350 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
20.08.2010 |
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Com. Reg. No.: |
120112000092969 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in selling chemical raw materials. |
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No. of Employees : |
13 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small company |
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Payment Behaviour : |
Usually 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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
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 |
|
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 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.
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Source : CIA |
Company
name and address
TIANJIN ERLUN CHEMICAL SCIENCE AND TECHNOLOGY Co.,
Ltd.
Huifeng
Industrial Zone, XIANSHUIGU TOWN,
JINNAN
DISTRICT, TIANJIN, 300350 PR CHINA
TEL: 86
(0) 22-28394245 FAX: 86 (0)
22-28391805
EXECUTIVE SUMMARY
INCORPORATION DATE : AUG. 20, 2010
REGISTRATION NO. : 120112000092969
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 13
REGISTERED CAPITAL : CNY 6,800,000
BUSINESS LINE : trading
TURNOVER : CNY 11,980,000 (UNaudited, AS OF DEC.
31, 2012)
EQUITIES : CNY 6,870,000 (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
6.2209 = USD
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 “Fuxing
Building, Xianshuigu Town, Jinnan District, Tianjin, China” was SC’s former
address.
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 Aug. 20, 2010.
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 researching and developing fine chemicals;
wholesaling chemical raw materials (excluding dangerous goods), hardware,
chemicals, equipment and accessories, non-ferrous metals, office supplies,
computer supplies, glassware, packaging products, garments, bedding, labor
supplies; importing and exporting goods and technologies (management of special
regulations, accordance with relevant state regulations).
SC is
mainly engaged in selling chemical raw materials.
Ms. Du
Jing has been legal representative, chairman and general manager of SC since
2010.
SC is known to have approx. 13 employees at
present.
SC is currently operating at the above stated address, and this
address houses its operating office in the industrial zone of Tianjin. Our
checks reveal that SC rents the total premise about 90 square meters.
http://www.qingshunchem.com The website belongs
to Shandong Qingshun Chemical Science and Technology Co., Ltd. and it 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: lili@tianshunchem.com
No significant changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Du Jing
41.18
Zhang Chunyan
29.41
Li Shimei
29.41
l Legal
Representative, Chairman and General Manager:
Ms. Du Jing (杜静), about 35 years old, with high
school education. She is currently responsible for the overall management of
SC.
Working Experience(s):
From 2010 to present Working in SC as legal
representative, chairman and general manager.
SC is
mainly engaged in selling chemical raw materials.
SC’s products
mainly include chemical raw materials.
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 customer and supplier details.
According to the website: http://www.qingshunchem.com
Shandong Qingshun Chemical Science and Technology Co., Ltd.
===============================================
Registration no.: 371400400003407
Legal rep.: Ma Lihua
Web: http://www.qingshunchem.com
E-mail: qingshuntech@163.com
Tel: 86-534-3283166
Fax: 86-534-3283555
Add: Donghuan Road, Economy Development Zone, Qingyun, Shandong
Province
Tianjin Tianshun Chemical Dyestuff Co., Ltd.
=================================
Incorporation date: Sep. 9, 1994
Registration no.: 120000400033310
Registered capital: CNY 1,977,367
Legal rep.: Ma Haiquan
Legal form: Chinese-foreign equity joint venture enterprise
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.
Bank of China Tianjin Jinnan Sub-branch
Tel:
86-22-28392035
Add:
No. 11, Tiyuchang Road, Xianshuigu Town, Jinnan District, Tianjin
AC#：271360044474
Relationship:
Normal
Balance
Sheet
Unit:
CNY’000
|
|
as of Dec. 31, 2011 |
as of Dec. 31, 2012 |
|
Cash
& bank |
590 |
430 |
|
Inventory |
1,250 |
930 |
|
Accounts
receivable |
540 |
1,040 |
|
Advances
to suppliers |
0 |
0 |
|
Other
receivables |
7,490 |
7,480 |
|
Other
current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
assets |
9,870 |
9,880 |
|
Long-term
investments |
0 |
0 |
|
Fixed
assets net value |
30 |
30 |
|
Projects
under construction |
0 |
0 |
|
Intangible
assets |
0 |
0 |
|
Other
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
assets |
9,900 |
9,910 |
|
|
============= |
============= |
|
Short
loans |
0 |
0 |
|
Accounts
payable |
2,280 |
2,380 |
|
Advances
from customers |
0 |
0 |
|
Accrued
Payroll |
200 |
210 |
|
Taxes
payable |
20 |
70 |
|
Other
accounts payable |
330 |
380 |
|
Non-current
liabilities due within one year |
90 |
0 |
|
Other
current liabilities |
0 |
0 |
|
|
----------------- |
----------------- |
|
Current
liabilities |
2,920 |
3,040 |
|
Long
term liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
2,920 |
3,040 |
|
Shareholders
equities |
6,980 |
6,870 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
9,900 |
9,910 |
|
|
============= |
============= |
Income
Statement
Unit:
CNY’000
|
|
as of Dec. 31, 2012 |
|
Turnover |
11,980 |
|
Cost
of goods sold |
10,450 |
|
Taxes
and additional of main operation |
30 |
|
Sales expense |
370 |
|
Management expense |
790 |
|
Finance expense |
70 |
|
Non-operating
income |
0 |
|
Non-operating expense |
0 |
|
Profit
before tax |
270 |
|
Less:
profit tax |
140 |
|
Net
profit |
130 |
Note:
The above financial for Yr2012 have not been audited.
Important
Ratios
=============
|
|
as of Dec. 31, 2011 |
as of Dec. 31, 2012 |
|
*Current
ratio |
3.38 |
3.25 |
|
*Quick
ratio |
2.95 |
2.94 |
|
*Liabilities
to assets |
0.29 |
0.31 |
|
*Net
profit margin (%) |
/ |
1.09 |
|
*Return
on total assets (%) |
/ |
1.31 |
|
*Inventory
/Turnover ×365 |
/ |
29 days
|
|
*Accounts
receivable/Turnover ×365 |
/ |
32 days |
|
*Turnover/Total
assets |
/ |
1.21 |
|
*
Cost of goods sold/Turnover |
/ |
0.87 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in
its line in 2012.
l
SC’s net profit margin is average in
2012.
l
SC’s return on total assets is average
in 2012.
l
SC’s cost of goods sold is average in
2012, comparing with its turnover.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained
in a fairly good level in both years.
l
SC’s quick ratio is maintained in a
fairly good level in both years.
l
The inventory of SC appears average in
both years.
l
The accounts receivable of SC appears
average in both years.
l
SC has no short-term loan in both
years.
l
SC’s turnover is in an average level in
2012, 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
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.54.37 |
|
|
1 |
Rs.82.07 |
|
Euro |
1 |
Rs.70.03 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
RATING EXPLANATIONS
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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.