MIRA
INFORM REPORT
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Report Date : |
17.10.2013 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
6-8/F, Sanjing Building, No. 8 Tongjiang Middle Road, Xinbei District, Changzhou, Jiangsu
Province, 213022 Pr |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
05.02.1997 |
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Com. Reg. No.: |
320400000016072 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in international trading of mechanical and electrical
products, textiles, clothing, general merchandise, shoes, hats, chemicals |
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No. of Employees : |
95 |
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 & address
CHANGZHOU DAYA IMPORT AND EXPORT CORP., Ltd.
6-8/F, Sanjing
Building, No. 8 Tongjiang Middle Road,
XINBEI DISTRICT,
Changzhou, Jiangsu PROVINCE, 213022 PR CHINA
TEL: 86 (0) 519-88107052/88100641 FAX: 86 (0) 519-88100769
EXECUTIVE SUMMARY
INCORPORATION DATE : FEB. 5, 1997
REGISTRATION NO. : 320400000016072
REGISTERED LEGAL FORM :
LIMITED LIABILITIES CO.
CHIEF EXECUTIVE : mr. Li jun (CHAIRMAN)
STAFF
STRENGTH : 95
REGISTERED CAPITAL :
cny 10,000,000
BUSINESS LINE : trading
TURNOVER : CNY 1,245,950,000 (AS OF DECEMBER 31,
2012)
EQUITIES : CNY 19,480,000 (AS OF DECEMBER 31,
2012)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.095 = 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 co. at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Feb. 5, 1997.
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 pre-packaged food. importing and exporting
commodities and technology, excluding export commodities under state-unified operation and import commodities operated by the
state-designated companies; processing with imported materials,
processing with imported samples, assembling with imported parts, and
compensation trade in agreement; Acquisition,
organization of export supply allocation; warehousing of domestic trade
business, economic and technological exchanges and consulting services; selling
of industrial production materials (excluding of special provisions).
SC is mainly
engaged in international trade.
Mr. Li
Jun is legal
representative and chairman of SC at present.
SC is
known to have approx. 95 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 but the detailed information
of the premise is unspecified.
www.dayaexport.com The design
is professional and the content is well organized. At present it is in both
Chinese and English versions.
E-mail: daya@dayaexport.com
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
Certificate
========
In the past two years there is no record of litigation
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Zhou Huiping 10.5
Li Jun 8
Hu Hongbo 8
Li Yibo 5.5
Pan Li 5.5
Shi Rongyan 5
Fang Yong 3.5
Xiang Nanping 3.5
Xue Zilong 3.5
Zang Jianhua 3.5
Ge Dongyun 2.5
Chen Wu 2.5
Other 30 individual shareholders 38.5
Legal
Representative and Chairman:
Mr. Li Jun, ID # 32040219691208xxxx, born in 1969, he is
currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative and chairman.
*Officials:
=======
Name Title
Hu Hongbo Director
Zhou Huiping Director
Huang Haodong Supervisor
SC is mainly
engaged in international trade.
SC’s products mainly include: mechanical and electrical products, textiles,
clothing, general merchandise, shoes, hats, chemicals.
SC sources its materials 80% from domestic
market, and 20% from overseas market. SC sells 20% of its products in domestic
market, and 80% to overseas 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, L/C and Credit of 30-60
days.
Note:
SC’s management declined 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.
SC declined to
release its bank details.
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2012 |
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Current assets |
155,820 |
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Total assets |
173,440 |
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Current
liabilities |
153,960 |
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Total
liabilities |
153,960 |
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Equities |
19,480 |
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Total
liabilities & equities |
173,440 |
Note: SC’s accountant refused to release the detailed Balance
Sheet for Yr2012.
Income Statement
Unit: CNY’000
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as of Dec. 31,
2012 |
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Turnover |
1,245,950 |
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Cost of goods
sold |
1,206,990 |
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Taxes and
additional of main operation |
20 |
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Income from
commission on buying and selling |
980 |
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Income from
other operation |
270 |
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Sales expense |
26,630 |
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Management expense |
11,700 |
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Finance expense |
-3,720 |
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Non-operating
income |
510 |
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40 |
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Profit before
tax |
6,050 |
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Less: profit tax |
1,660 |
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Profits |
4,390 |
Important Ratios
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as
of Dec. 31, 2012 |
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*Current ratio |
1.01 |
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*Quick ratio |
/ |
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*Liabilities
to assets |
0.89 |
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*Net profit
margin (%) |
0.35 |
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*Return on total
assets (%) |
2.53 |
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*Inventory
/Turnover ×365 |
/ |
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*Accounts
receivable/Turnover ×365 |
/ |
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*Turnover/Total
assets |
7.18 |
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* Cost of
goods sold/Turnover |
0.97 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears good 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 high, comparing with its
turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is normal.
l
SC’s turnover is in a 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 average.
Overall financial
condition of the SC: Fairly Stable
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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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.