MIRA INFORM REPORT
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Report Date : |
22.03.2013 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG RIFA TEXTILE MACHINERY CO., LTD. |
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Formerly Known as: |
Liaocheng Changrun Textile
Machinery Co., Ltd. |
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Registered Office : |
North Head Of Zhonghua Road, Economic & Technological
Development Zone, Liaocheng, Shandong Province, 252000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
11.03.2002 |
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Com. Reg. No.: |
371500018017079 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
manufacturing and selling textile machinery |
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No. of Employees : |
300 |
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 : |
Good |
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Payment Behaviour : |
Regular |
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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 |
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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 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 & address
shandong rifa textile machinery Co., Ltd.
North head of
zhonghua road, economic & technological development zone, liaocheng,
shandong PROVINCE, 252000 PR CHINA
TEL: 86 (0)
635-2999585/2999507 FAX: 86 (0)
635-2119668/8516735
EXECUTIVE SUMMARY
INCORPORATION DATE : mar. 11, 2002
REGISTRATION NO. : 371500018017079
REGISTERED LEGAL
FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE :
MR. he xuping (CHAIRMAN)
STAFF STRENGTH : 300
REGISTERED CAPITAL :
CNY 78,514,600
BUSINESS LINE : MANUFACTURING AND
TRADING
TURNOVER : N/A (UNaudited,
AS OF DEC. 31, 2012)
EQUITIES : CNY 179,240,000 (UNaudited, AS OF DEC. 31, 2012)
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION
: fairly stable
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE : CNY 6.2209 = 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 Company at local Administration for industry & commerce (AIC - the official body of issuing and renewing business license) on Mar. 11, 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 developing, manufacturing and selling textile
machinery; exporting its products, importing
machinery equipment, components and raw materials needed in the manufacture (excluding
the items limited or forbidden by the state).
SC is mainly
engaged in manufacturing and selling textile machinery.
Mr. He Xuping is legal
representative, chairman and general manager of SC at present.
SC is known to have approx. 300 employees at
present.
SC
is currently operating at the above stated address,
and this address houses its operating office and factory in the economic &
technological development zone of Liaocheng. Our checks reveal that SC owns the
total premise about 100,000 square meters.
http://www.rifasd.com/ The design
is professional and the content is well organized. At present it is only in
Chinese version.
E-mail: sd-rifa@yahoo.com.cn
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Company name |
Liaocheng Changrun Textile Machinery Co., Ltd. |
Present one |
|
Legal rep. |
Yu Haiyun |
SC’s quality system meets the international standards of ISO 9001.
Honors:
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Chang Run Investment &
Holding Group Co., Ltd. 26.32
Zhejiang Rifa Textile Machinery
Co., Ltd. 72.30
Li Zijun ID # 370205196908204032 1.38
Chang Run Investment & Holding
Group Co., Ltd.
====================================
Registration no.:
371500018013899
Tel: 86-0635-2119010
Fax: 86-0635-2119000
Web: http://www.crtz.com/
Email: o.cr@vip.163.com
Zhejiang Rifa Textile Machinery
Co., Ltd.
==============================
Zhejiang Rifa Textile Machinery Co., Ltd. is
a state-level key hi-tech enterprise, key enterprise of State Textile Industry
Administration, key enterprise of State Machine Industry Administration, CIMS
project demonstration enterprise of China’s "863 plan", China’s CAD
applied engineering demonstration enterprise and key hi-tech enterprise of the
Torch Plan of China.
Its former Chinese
name was 浙江日发纺织机械有限公司.
Incorporation Date: January 28, 2002
Registration No.: 330624000014283
Legal Rep.: Zheng Hejun
Registered Capital: CNY 60,000,000
Legal form: Shares limited co.
E-mail: sales.tm@rifa.com.cn
Add: Rifa Digital Sci-Tech Park, Hi-Tech
Industry Zone (Nanyan), Xinchang County, Zhejiang Province
Tel: 86 (0) 575-86299100/86299128
Fax: 86 (0) 575-86299077
Legal Representative,
Chairman and General Manager:
Mr. He Xuping, ID# 330106660411007, born in 1966 with university education. He 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 manufacturing and selling textile machinery.
SC’s products
mainly include linen loom, rapier loom, air-jet loom, towel loom, etc.
SC sources its materials 95%
from domestic market, and 5% from overseas market. SC sells 70% of its products
in domestic market, and 30% to overseas market, mainly India and Southeast
Asian 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
declined to release its customer and supplier details.
Zhejiang Rifa Holding Group Co.,
Ltd.
============================
Incorporation Date: Feb. 26, 1997
Registration No.: 330100000010210
Registered Capital: CNY 190,000,000
Legal Rep.: Wu Jie
Legal form: Limited liabilities co.
Add: 19/F, Zhongtian Building, No. 173 Yugu
Road, Xihu District, Hangzhou, Zhejiang Province
Tel: 0571-87633688
Fax: 0571-87633677
E-Mail: rifa@mail.sxptt.zj.cn
SC is known to have the following offices: (website sources)
Subei
Office
Tel:
0513--86320489
Guangdong
Office
Tel:
0757--86884685
Zhejiang
Office
Tel:
0571--82799578
Shengze
Office
Tel:
0512--63526119
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.
Huaxia Bank Liaocheng Jianshe Sub-branch
AC#：801200000856
Relationship:
Normal
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2011 |
as of Dec. 31, 2012 |
|
Cash & bank |
/ |
69,070 |
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Notes receivable |
/ |
80,120 |
|
Inventory |
/ |
53,830 |
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Accounts
receivable |
/ |
150,680 |
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Advances to
suppliers |
/ |
6,930 |
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Other
receivables |
/ |
3,170 |
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Other current
assets |
/ |
0 |
|
|
------------------ |
------------------ |
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Current assets |
/ |
363,800 |
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Long-term
investments |
/ |
0 |
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Fixed assets net
value |
/ |
42,290 |
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Projects under
construction |
/ |
260 |
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Long-term deferred
expenses |
/ |
90 |
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Deferred income
tax assets |
/ |
2,420 |
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Intangible
assets |
/ |
7,140 |
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Other assets |
/ |
0 |
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------------------ |
------------------ |
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Total assets |
323,000 |
416,000 |
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============= |
============= |
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Short loans |
/ |
43,000 |
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Accounts payable |
/ |
13,330 |
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Advances from
customers |
/ |
14,180 |
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Employee
pay payable |
/ |
2,000 |
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Taxes payable |
/ |
4,740 |
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Other accounts
payable |
/ |
-5,200 |
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Non-current liabilities due within one year |
/ |
42,000 |
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Other
current liabilities |
/ |
0 |
|
|
------------------ |
----------------- |
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Current
liabilities |
/ |
114,050 |
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Long term
liabilities |
/ |
122,710 |
|
|
------------------ |
------------------ |
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Total
liabilities |
170,560 |
236,760 |
|
Shareholders
equities |
152,440 |
179,240 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
323,000 |
416,000 |
|
|
============= |
============= |
Note:
The above balance sheet for Year 2012 has not been audited.
SC’s accountant
refused to release the income statement and the detailed balance sheet for
Yr2011.
Important Ratios
=============
|
|
as
of Dec. 31, 2011 |
as
of Dec. 31, 2012 |
|
*Current ratio |
/ |
3.19 |
|
*Quick ratio |
/ |
2.72 |
|
*Liabilities
to assets |
0.53 |
0.57 |
|
*Net profit
margin (%) |
/ |
/ |
|
*Return on
total assets (%) |
/ |
/ |
|
*Inventory /Turnover
×365 |
/ |
/ |
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*Accounts
receivable/Turnover ×365 |
/ |
/ |
|
*Turnover/Total
assets |
/ |
/ |
|
* Cost of
goods sold/Turnover |
/ |
/ |
LIQUIDITY: FAIRLY
GOOD
l
The current ratio of SC is maintained in a fairly good
level in 2012.
l
SC’s quick ratio is maintained in a fairly good
level in 2012.
l
The inventory of SC appears average in 2012.
l
The accounts receivable of SC appears fairly large
in 2012.
l
SC’s short-term loan is in an average level in
2012.
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 medium-sized in its line with fairly stable
financial conditions. The large amount of accounts receivable could be a threat
to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.28 |
|
UK Pound |
1 |
Rs.82.06 |
|
Euro |
1 |
Rs.70.23 |
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 |
|
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 |
---- |
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.