MIRA
INFORM REPORT
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Report Date : |
29.11.2013 |
IDENTIFICATION DETAILS
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Name : |
CHANGZHOU
KETENG TEXTILE CO., LTD. |
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Registered Office : |
Room 1420, Block A, Eco Business Plaza, No. 66, Guanhe East Road, Tianning District, Changzhou, Jiangsu Province, 213001 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
10.09.2002 |
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Com. Reg. No.: |
320402000058254 |
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Legal Form : |
Limited
Liabilities Co |
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Line of Business : |
Subject is engaged in purchasing and selling cotton |
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No. of Employees : |
26 |
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 and address
CHANGZHOU KETENG TEXTILE
CO., LTD.
ROOM 1420, BLOCK A,
ECO BUSINESS PLAZA, NO. 66, GUANHE EAST ROAD,
TIANNING DISTRICT,
CHANGZHOU, JIANGSU PROVINCE, 213001 PR CHINA
TEL: 86 (0)
519-81180136/85226108
FAX: 86 (0)
519-88120132/81189133
EXECUTIVE SUMMARY
INCORPORATION DATE :
SEP. 10, 2002
REGISTRATION NO. : 320402000058254
REGISTERED LEGAL FORM :
LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MR. LU JIANHUA (CHAIRMAN)
STAFF STRENGTH : 26
REGISTERED CAPITAL : CNY 30,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 853,790,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 47,300,000 (AS OF DEC. 31, 2011)
PAYMENT : AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE (AS OF DEC. 31, 2011)
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.10=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 Ren Min Bi
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 Sep. 10, 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 general business scope: cotton purchasing, selling textile raw materials, textile needles, clothing, electronic products, general machinery and accessories sales, importing and exporting goods and technologies.
SC is mainly engaged in purchasing and selling cotton.
Mr. Lu Jianhua is the legal representative, chairman and general manager of SC at present.
SC is known to have approx. 26 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Changzhou. Our checks reveal that SC owns the total premise about 200 square meters.
http://www.ketengchina.com The design is professional and the content is well organized. At present it is in Chinese and English versions.
E-mail: czkt163@163.com
No significant changes were found during our checks with the local Administration for Industry and Commerce.
Qualification:
==========
China Cotton Association Routine Director Unit
A Member of the International Cotton Association
MAIN SHAREHOLDERS:
Name %
of shareholdings
Lu Jianhua
ID# 320402730707103 75
Yu Haifeng
ID# 32068119750812001X 15
Lu Weifeng
ID# 320626197012084217 10
Legal Representative, Chairman and General Manager:
Mr. Lu Jianhua, ID# 320402730707103, born in 1973. 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.
Supervisor:
Yu Haifeng ID# 32068119750812001X
SC is mainly engaged in purchasing and selling cotton.
SC’s products mainly include: cotton.
SC sources its materials 40% from domestic market, and 60% from overseas market, mainly India, America, Brazil, etc. SC sells 100% of its products in domestic 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 and Credit of 30-60 days.
Note: SC refused to
release its major clients and suppliers.
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.
Jiangnan Rural Commercial Bank
AC#：N/A
Relationship: Normal.
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2011 |
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Cash & bank |
84,460 |
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Inventory |
12,690 |
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Notes receivable |
40,710 |
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Accounts receivable |
18,180 |
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Advances to suppliers |
100,430 |
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Other receivables |
480 |
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Other current assets |
0 |
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------------------ |
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Current assets |
256,950 |
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Long-term investments |
8,500 |
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Fixed assets net value |
9,570 |
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Projects under construction |
0 |
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Intangible assets |
0 |
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Other assets |
0 |
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------------------ |
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Total assets |
275,020 |
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============= |
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Short loans |
93,000 |
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Accounts payable |
100,360 |
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Advances from customers |
30,240 |
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Accrued Payroll |
0 |
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Taxes payable |
30 |
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Other accounts payable |
4,090 |
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Other current liabilities |
0 |
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----------------- |
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Current liabilities |
227,720 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
227,720 |
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Shareholders equities |
47,300 |
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------------------ |
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Total liabilities & equities |
275,020 |
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============= |
Income Statement
Unit: CNY’000
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as of Dec. 31, 2011 |
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Turnover |
853,790 |
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Cost of goods sold |
853,950 |
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Taxes and additional of main operation |
250 |
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Income from other operation |
1,330 |
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Sales expense |
13,750 |
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Management expense |
14,540 |
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Finance expense |
5,120 |
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Subsidy income |
5,680 |
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Non-operating income |
40,000 |
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Non-operating expense |
650 |
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Profit before tax |
12,540 |
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Less: profit tax |
3,270 |
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Net profit |
9,270 |
Note: SC’s management declined to
release the latest financial information.
Important Ratios
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|
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as of Dec. 31, 2011 |
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*Current ratio |
1.13 |
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*Quick ratio |
1.07 |
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*Liabilities to assets |
0.83 |
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*Net profit margin (%) |
1.09 |
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*Return on total assets (%) |
3.37 |
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*Inventory /Turnover ×365 |
6 days |
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*Accounts receivable/Turnover ×365 |
8 days |
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*Turnover/Total assets |
3.10 |
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* Cost of goods sold/Turnover |
1.00 |
PROFITABILITY:
AVERAGE
The turnover of SC appears fairly good in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is high, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
The quick ratio of SC is maintained in a normal level.
The inventory of SC appears average.
The accounts receivable of SC appears average.
The short-term loan of SC appears large in 2011.
SC’s turnover is in a fairly good level, comparing with the size of its total assets.
LEVERAGE: FAIR
The debt ratio of SC is fairly high.
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. The large amount of short loans could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.39 |
|
|
1 |
Rs.101.80 |
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Euro |
1 |
Rs.84.75 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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 |
-- |
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.