MIRA INFORM REPORT
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Report Date : |
09.11.2013 |
IDENTIFICATION DETAILS
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Name : |
ETERNAL TRADING
CO., LTD. |
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Registered Office : |
Room 2201 |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
12.12.2003 |
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Com. Reg. No.: |
120191000027148 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject mainly engaged in international trade products mainly include:
herbal products, dehydrated vegetables, spices, dehydrated fruits, plant
extracts, agriculture products |
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No. of Employees : |
Approximately 13 |
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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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 |
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.
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Source
: CIA |
COMPANY NAME & ADDRESS
ETERNAL TRADING CO., LTD.
room 2201 GARLAND center building, no. 73
weijin road, heping district, tianjin, 300070 PR CHINA
TEL :
86 (0) 22-27816719/27811203/86-18622265455
FAX :
86 (0) 22-27818057
EXECUTIVE SUMMARY
INCORPORATION DATE : december 12, 2003
REGISTRATION NO. : 120191000027148
REGISTERED LEGAL FORM : Limited liabilities
company
CHIEF EXECUTIVE :
liu YUTING (CHAIRMAN)
STAFF STRENGTH :
13
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
trading
TURNOVER :
CNY 6,360,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 4,300,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fair
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 6.0976 = 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 company name (Hong Kong Goodwill Trading Co Ltd.) is
SC’s trading name which is registered in Hong Kong.
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 December 12, 2003.
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 manufacturing, wholesaling and
retailing plant products (excluding food, medicine and cosmetics); researching
and developing medicine; importing and exporting goods and technology;
purchasing agricultural products (excluding grain), with permit if needed.
SC is mainly engaged in international trade.
Liu Yuting has been legal representative and chairman of SC since 2012.
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 commercial zone of Tianjin. Our checks
reveal that SC rents the total premise about 150 square meters.
SC is not known to host website of its own at present.
E-mail : eternal_trading@hotmail.com
Changes of its registered information are as follows:
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Date of change |
Item |
Before the change |
After the change |
|
2008 |
Registration No. |
1201912108306 |
120191000027148 |
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2012 |
Legal representative |
Shen Caiping |
Liu Yuting |
See below for SC as executive party (defendant).
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Executed Party |
Eternal Trading Co., Ltd. |
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Court |
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Date of Case |
Sep. 26, 2011 |
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Case Number |
(2011) 01245 |
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Claim Amount |
RMB 371,029.25 |
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Case Status |
Completed |
Remark: Due to the lack of information, we are unable to provide the cause of
action, judgment or other information.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Shen Caiping 10.80
Wu Aichang 89.20
·
Legal
Representative and Chairman:
Liu Yuting is currently responsible for the
overall management of SC.
Working
Experience(s):
From 2012 to present Working in SC as legal
representative and chairman.
·
General Manager:
Mr. Wu Aichang, about 46 years old with
university education, he is currently responsible for the daily management of
SC.
Working
Experience(s):
From 2003 to present Working in SC as
general manager.
SC is mainly engaged in international trade.
SC’s products mainly include: herbal products, dehydrated vegetables, spices,
dehydrated fruits, plant extracts, agriculture products
SC sources its materials 40% from domestic market, and 60% from overseas
market. SC sells 60% of its products in domestic market, and 40% to overseas
market, mainly 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 T/T, L/C and Credit of 30-60 days.
Note: SC’s management refused to release its main suppliers and clients.
Hong Kong Goodwill Trading Co., Limited
============================
Registration no. :
1864750
Legal form :
private
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 Branch
AC# 271360039123
Relationship: Normal.
Balance Sheet
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Unit: CNY’000 |
as
of Dec. 31, 2012 |
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Cash & bank |
80 |
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Inventory |
14,220 |
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Notes receivable |
510 |
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Accounts receivable |
2,610 |
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Advances to supplies |
2,370 |
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Other Accounts receivable |
1,020 |
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To be apportioned expense |
0 |
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Other current assets |
50 |
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------------------ |
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Current assets |
20,860 |
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Fixed assets net value |
510 |
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Projects under construction |
3,150 |
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Long term investment |
0 |
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Other assets |
650 |
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------------------ |
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Total assets |
25,170 |
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============= |
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Short loans |
4,000 |
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Accounts payable |
4,840 |
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Other Accounts payable |
11,000 |
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Tax payable |
-210 |
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Warfare payable |
90 |
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Advances from clients |
1,150 |
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Other current liabilities |
0 |
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------------------ |
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Current liabilities |
20,870 |
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Long term liabilities |
0 |
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Other liabilities |
0 |
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------------------ |
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Total liabilities |
20,870 |
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Equities |
4,300 |
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------------------ |
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Total liabilities & equities |
25,170 |
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============= |
Income Statement
Unit: CNY’000
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As of Dec. 31,
2012 |
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Turnover |
6,360 |
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Cost of goods sold |
5,280 |
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Taxes and additional of main operation |
10 |
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Sales expense |
590 |
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Management expense |
590 |
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Finance expense |
70 |
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Non-operating income |
200 |
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Non-operating expense |
40 |
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Profit before tax |
-26 |
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Less: profit tax |
0 |
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Profits |
-26 |
Important Ratios
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As
of Dec. 31, 2012 |
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*Current ratio |
1.00 |
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*Quick ratio |
0.32 |
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*Liabilities to assets |
0.83 |
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*Net profit margin (%) |
-0.41 |
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*Return on total assets (%) |
-0.10 |
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*Inventory /Turnover ×365 |
817 days |
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*Accounts receivable/Turnover ×365 |
150 days |
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*Turnover/Total assets |
0.25 |
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* Cost of goods sold/Turnover |
0.83 |
PROFITABILITY:
FAIR
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The turnover of SC appears average in its line.
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SC’s net profit margin is fair.
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SC’s return on total assets is fair.
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SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIR
·
The current ratio of SC is maintained in a normal
level.
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SC’s quick ratio is maintained in a poor level.
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The inventory of SC appears LARGE.
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The accounts receivable of SC appears average.
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SC’s short-term loan appears average in 2012.
·
SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: FAIR
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The debt ratio of SC is fairly high.
·
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair
SC is considered small-sized in its line with fair financial conditions.
The large amount of inventory could be a threat to SC’s financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.73 |
|
|
1 |
Rs.100.92 |
|
Euro |
1 |
Rs.84.06 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIA |
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 |
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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 |
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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 |
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<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.