MIRA
INFORM REPORT
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Report Date : |
28.11.2013 |
IDENTIFICATION DETAILS
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Name : |
GAODE EQUIPMENT CO., LTD. |
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Registered Office : |
No. 9, Bldg. 14, Yard 4, Fengqing Road, Jinshui
District, Zhengzhou, He’nan Province,
450002 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
10.08.2012 |
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Com. Reg. No.: |
410105000307104 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in selling small construction machinery equipment |
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No. of Employees : |
10 |
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 |
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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
Gaode equipment Co., Ltd.
no. 9, bldg. 14, yard 4, fengqing road, jinshui
district, zhengzhou, he’nan PROVINCE, 450002 PR CHINA
TEL: 86 (0) 371-55951210
FAX: 86 (0) 371-55951310
EXECUTIVE SUMMARY
INCORPORATION DATE : aug. 10, 2012
REGISTRATION NO. : 410105000307104
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE :
MR. fan hang (CHAIRMAN)
STAFF STRENGTH :
10
REGISTERED CAPITAL : CNY
500,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 120,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 420,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.09 = 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 was SC’s former address, while SC is operating at the heading
address.
SC is also known as Zhengzhou Gaode Equipment Co., Ltd.
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 Aug. 10, 2012.
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 import and export of goods and
technologies; selling mechanical equipment, metal materials, hardware, knitting
textiles, general merchandise and automobile parts.
SC is mainly engaged in selling small construction machinery equipment
Mr. Fan Hang has been the legal representative, chairman and general
manager of SC since Sep., 2013.
SC is known to have approx. 10 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Zhengzhou. The detailed
information of the premise is unspecified.
http://www.grout-pumps.com/
The design is professional and the content is well organized. At present it is
only in English version.
Email: info@grout-pumps.com
No significant changes were found during our checks with the local
Administration for Industry and Commerce.
SC started its normal operation in Nov., 2012.
For the past one year there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Fan Hang 50
Zhou Qiong 30
Cheng Junfeng 20
Legal
representative, Chairman and General manager:
Mr. Fan Hang is currently responsible for the overall management of SC.
Working
Experience(s):
From Sep., 2013 to present Working
in SC as legal representative, chairman and general manager
SC started its normal operation in Nov., 2012.
SC is mainly engaged in selling small construction machinery equipment.
SC’s products mainly include: high pressure grout pump, variable grout
injection pump, low pressure grout pump, single screw pump, hydraulic piston grout
pump, etc.
SC sources its materials 100% from domestic market. SC sells 100% of its
products to overseas market, mainly USA, Canada, India, etc.
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 declined to release its customer and supplier
details.
SC is not known to have any subsidiary at present.
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’s management declined to release its bank details.
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2012 |
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Cash & bank |
450 |
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Inventory |
0 |
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Accounts receivable |
30 |
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Advances to suppliers |
20 |
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Other receivables |
20 |
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Other current assets |
0 |
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------------------ |
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Current assets |
520 |
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Fixed assets net value |
0 |
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Projects under construction |
0 |
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Long term investment |
0 |
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Other assets |
0 |
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------------------ |
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Total assets |
520 |
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============= |
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Short loans |
0 |
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Accounts payable |
70 |
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Other payable |
0 |
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Taxes payable |
0 |
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Advances from clients |
30 |
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Other current liabilities |
0 |
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------------------ |
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Current liabilities |
100 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
100 |
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Equities |
420 |
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------------------ |
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Total liabilities & equities |
520 |
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Income Statement
Unit: CNY’000
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as
of Dec. 31, 2012 |
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Turnover |
120 |
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Cost of goods sold |
90 |
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Sales expense |
60 |
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Management expense |
50 |
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Finance expense |
0 |
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Profit before tax |
-80 |
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Less: profit tax |
0 |
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Profits |
-80 |
Important Ratios
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as
of Dec. 31, 2012 |
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*Current ratio |
5.2 |
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*Quick ratio |
5.2 |
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*Liabilities to assets |
0.19 |
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*Net profit margin (%) |
-66.67 |
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*Return on total assets (%) |
-15.38 |
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*Inventory /Turnover ×365 |
/ |
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*Accounts receivable/Turnover ×365 |
92 days |
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*Turnover/Total assets |
0.23 |
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* Cost of goods sold/Turnover |
0.75 |
PROFITABILITY:
FAIR
·
The turnover of SC appears average in its line.
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SC’s net profit margin is poor.
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SC’s return on total assets is poor.
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SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a normal
level.
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SC’s quick ratio is maintained in a normal level.
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SC has no inventory in 2012.
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The accounts receivable of SC is maintained in an
average level.
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SC has no short-term loan in 2012.
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SC’s turnover is in a poor level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is low.
·
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 a short operating history.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
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US Dollar |
1 |
Rs.62.36 |
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|
1 |
Rs.101.11 |
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Euro |
1 |
Rs.84.68 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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.