MIRA
INFORM REPORT
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Report Date : |
16.10.2013 |
IDENTIFICATION DETAILS
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Name : |
SHAOXING COUNTY CICHENG TEXTILE CO., LTD. |
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Registered Office : |
Room 707-A, International Trade Mansion, No. 1358 Jinkeqiao Road, Keqiao, Shaoxing County, Zhejiang Province, 312030 Pr |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
26.06.2009 |
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Com. Reg. No.: |
330621000083990 |
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Legal Form : |
Limited
Liabilities Company |
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Line of Business : |
selling of textiles including fabric, garment, home textiles,
children’s textiles |
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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 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.
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Source : CIA |
Company name & address
shaoxing county cicheng textile co., ltd.
room 707-A,
international trade mansion, no. 1358 jinkeqiao road, keqiao, shaoxing county,
zhejiang PROVINCE, 312030 PR CHINA
TEL: 86 (0)
575-81180216 FAX: 86 (0)
575-81180217
EXECUTIVE SUMMARY
INCORPORATION DATE : june 26, 2009
REGISTRATION NO. : 330621000083990
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE :
Ms. chen yuanyuan
(CHAIRMAN)
STAFF STRENGTH :
10
REGISTERED CAPITAL : CNY 1,000,000
BUSINESS LINE :
TRADE
TURNOVER :
CNY 19,300,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 470,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.111= 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 26, 2009.
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 wholesale and retail of textiles, textile raw materials,
clothing and accessories, textile crafts, bedding, footwear, leather products,
down products, goods import and export.
SC is mainly
engaged in selling textiles.
Ms. Chen Yuanyuan
has been legal representative, chairman & general manager of SC since 2009.
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 Shaoxing county. Our checks reveal
that SC rents the total premise, but the gross area is unspecified.
SC is not known to host website of its own at present.
E-mail: joanna@cichengtex.com.cn
No significant changes were found during our checks with the local
Administration for Industry and Commerce.
For the past two years there is no record of litigation
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Chen Yuanyuan 60
Ye Peng 40
Legal
Representative, Chairman and General Manager:
Ms. Chen Yuanyuan, ID# 34011119821210xxxx, with university education. She is currently responsible for the overall management of SC.
Working
Experience(s):
From 2009 to present Working
in SC as legal representative, chairman and general manager
SC is mainly engaged
in selling textiles.
SC’s products
mainly include: fabric, garment, home textiles, children’s textiles.
SC sources its materials 100% from domestic
market, mainly Jiangsu and Zhejiang. SC sells 10% of its products in domestic market,
and 90% to overseas market, mainly USA, Europe and Southeast Asian market.
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.
*Major Supplier:
=============
Changshu City Fuli Needle Textile Co., Ltd.
Note:
SC’s management declined to release its major clients.
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’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.
SC declined to
release its banking information.
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2012 |
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Cash & bank |
530 |
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Inventory |
1,140 |
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Accounts
receivable |
2,090 |
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Short-term
investment |
0 |
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Advances to
suppliers |
0 |
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Notes receivable |
100 |
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Other
receivables |
230 |
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Prepaid expenses |
0 |
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------------------ |
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Current assets |
4,090 |
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Fixed assets net
value |
350 |
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Long term
investment |
0 |
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Projects under
construction |
0 |
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Intangible
assets |
0 |
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Deferred assets |
0 |
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Total assets |
4,440 |
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Short loans |
50 |
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Notes payable |
150 |
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Accounts payable |
1,420 |
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Advances from
clients |
0 |
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Accrued payroll |
0 |
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Other payable to
government |
10 |
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Taxes payable |
-140 |
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Other accounts
payable |
2,460 |
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Accrued expenses |
20 |
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Current
liabilities |
3,970 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
3,970 |
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Equities |
470 |
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------------------ |
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Total
liabilities & equities |
4,440 |
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Income Statement
Unit: CNY’000
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as of Dec. 31,
2012 |
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Turnover |
19,300 |
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Cost of goods
sold |
18,260 |
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Taxes and
additional of main operation |
20 |
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Sales expense |
600 |
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Management expense |
980 |
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Finance expense |
20 |
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Non-operating
income |
50 |
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Non-operating expense |
10 |
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Profit before
tax |
-540 |
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Less: profit tax |
40 |
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Profits |
-580 |
Important Ratios
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as
of Dec. 31, 2012 |
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*Current ratio |
1.03 |
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*Quick ratio |
0.74 |
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*Liabilities
to assets |
0.89 |
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*Net profit
margin (%) |
-3.01 |
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*Return on
total assets (%) |
-13.06 |
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*Inventory
/Turnover ×365 |
22 days |
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*Accounts receivable/Turnover
×365 |
40 days |
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*Turnover/Total
assets |
4.35 |
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* Cost of
goods sold/Turnover |
0.95 |
PROFITABILITY:
FAIR
l
The turnover of SC appears average in its line.
l
SC’s net profit margin is fair.
l
SC’s return on total assets is poor.
l
SC’s cost of goods sold is fairly high, comparing
with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is normal.
l
SC’s quick ratio is fair.
l
SC’s inventory is average in 2012.
l
SC’s account receivable is average in
2012.
l
SC’s short loan is average in 2012.
l
SC’s turnover is in a fairly good level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fair
SC is considered small-sized in its line with fair financial conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.61.69 |
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UK Pound |
1 |
Rs.98.59 |
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Euro |
1 |
Rs.83.67 |
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 |
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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.