MIRA INFORM REPORT
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Report Date : |
01.10.2013 |
IDENTIFICATION DETAILS
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Name : |
Shaoxing Greenfaith
Knit Technologies Co., Ltd. |
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Registered Office : |
Building A, Guanye Factory, Lanting Industrial
Zone, Shaoxing County, Shaoxing City, Zhejiang Province, 312000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
01.06.2010 |
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Com. Reg. No.: |
330621000118984 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Sales of Knitwear and Textiles. |
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No. of Employees : |
20 |
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 : |
No Complaints |
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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
Shaoxing Greenfaith Knit Technologies Co., Ltd.
Building A, Guanye
Factory, Lanting Industrial ZONE, shaoxing county, shaoxing city, zhejiang
PROVINCE, 312000 PR CHINA
TEL: 86 (0)
575-84606917/15958500522 FAX: 86 (0)
575-84602648
EXECUTIVE SUMMARY
INCORPORATION DATE : june 1, 2010
REGISTRATION NO. : 330621000118984
REGISTERED LEGAL FORM : Limited
liabilities co.
CHIEF EXECUTIVE : Mr. Huang chuan (legal representative)
STAFF STRENGTH :
20
REGISTERED CAPITAL : CNY 3,000,000
BUSINESS LINE :
trading
TURNOVER :
CNY 20,610,000 (AS OF DEC. 31, 2012)
EQUITIES : CNY 3,050,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND :
steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.1198 = 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 June
1, 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 research and development of toys,
knitwear and textile; wholesale and retail of textile and its raw material,
clothing, office equipment, home textile products, toys, handicrafts, daily
necessities, mechanical equipment and accessories, electronic products,
instruments, chemical raw materials (excluding dangerous chemical products),
paper and paper products, packaging materials, computer software (excluding
publication), building materials (excluding dangerous chemical products);
import and export of goods (excluding those prohibited by law).
SC is mainly engaged in sales of knitwear and textiles.
Mr. Huang Chuan is
legal representative of SC at present.
SC is known to
have approx. 20 employees at
present.
SC is currently operating at the above stated address, and this address
houses its operating office in the industrial zone of Shaoxing. Our checks
reveal that SC rents the premise about 350 square meters.
SC’s registered address is Yiqiao Village, Lizhu Town, Shaoxing County, Shaoxing City, Zhejiang Province, PRC
http://www.greenfaith.cn/ (Greenfaith Group) The design is professional and the content is well organized. At present it is in English and Chinese versions.
Email: mountybank@sina.com
No significant changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Huang Chuan 75
Xue Chunfang 25
l Legal
Representative:
Mr. Huang Chuan is about 35 years old. He is currently responsible for
the overall and management of SC.
Working Experience(s):
At present Working in SC as legal
representative.
Also working in
Zhejiang Greenfaith Nonwoven Co., Ltd. as legal representative.
SC is mainly engaged in sales of knitwear and textiles.
SC’s products
mainly include: wet imitation velveteen, elastic cloth and knitted leather,
etc.
SC sources its materials 100% from domestic
market. SC sells 20% of its products in domestic market, and 80% to overseas
market, mainly India, America, Pakistan and Turkey, etc.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
Note: SC declined to release its major
suppliers and clients.
Zhejiang Greenfaith
Nonwoven Co., Ltd.
==============================
Incorporation
Date: November 10, 2010
Registration
No.: 330600400019330
Legal
Representative: Huang Chuan
Address:
Nanyang Industrial Park, Longhu Village, Nanyang Street, Xiaoshan District,
Hangzhou City, Zhejiang Province, PRC
Tel: +86 (0)571-82977222
According to SC’s website, SC has an office in Wenzhou (No. 19, Second Street, Zhenan Xieliao Market, Shangmaocheng, Wenzhou City, Zhejiang Province, PRC), and a related company in Hong Kong (Unit No. 11, 9th Floor, Wayson Comm. Building, 28 Connaught Road West, Hong Kong).
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’s suppliers
declined to make any comments.
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.
Shaoxing Hengxin Rural Cooperative Bank Didang Sub-branch
AC#:
20100006952219
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2012 |
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Cash & bank |
1,000 |
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Inventory |
120 |
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Accounts
receivable |
1,430 |
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Note receivable |
110 |
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Advances to
suppliers |
1,600 |
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Other
receivables |
4,060 |
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------------------ |
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Current assets |
8,320 |
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Fixed assets net
value |
10 |
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Long term
investment |
2,060 |
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------------------ |
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Total assets |
10,390 |
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=========== |
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Short loan |
7,300 |
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Accounts payable |
10 |
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Other Accounts
payable |
30 |
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------------------ |
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Current
liabilities |
7,340 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
7,340 |
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Equities |
3,050 |
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------------------ |
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Total
liabilities & equities |
10,390 |
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=========== |
Income Statement
Unit: CNY’000
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As of Dec. 31,
2012 |
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Turnover |
20,610 |
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Cost of goods
sold |
19,350 |
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Sales expense |
510 |
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Management expense |
250 |
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Finance expense |
320 |
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Profit before
tax |
180 |
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Less: profit tax |
50 |
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Profits |
130 |
Important
Ratios
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As
of Dec. 31, 2012 |
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*Current ratio |
1.13 |
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*Quick ratio |
1.12 |
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*Liabilities to
assets |
0.71 |
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*Net profit
margin (%) |
0.63 |
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*Return on total
assets (%) |
1.25 |
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*Inventory
/Turnover ×365 |
3
days |
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*Accounts
receivable/Turnover ×365 |
26
days |
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*Turnover/Total
assets |
1.98 |
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* Cost of goods
sold/Turnover |
0.94 |
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PROFITABILITY:
AVERAGE
l The turnover of SC appears average in its line.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
l
SC’s cost of goods sold is average.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears small.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’ short loans are large in 2012.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
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 small-sized in its line with fairly stable financial
conditions. The large amount of short loans could be a threat to SC’s financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.78 |
|
|
1 |
Rs.101.42 |
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Euro |
1 |
Rs.84.67 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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.