MIRA
INFORM REPORT
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Report Date : |
29.10.2013 |
IDENTIFICATION DETAILS
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Name : |
Livina Incorporation Ltd. |
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Registered Office : |
No. 4
Building Foshan Software Park, No. 28 Shawan 3rd Road, Chancheng
District, Foshan, Guangdong Province 528000
PR |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
03.09.2010 |
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Com. Reg. No.: |
440602000189067 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is mainly engaged in international trade include: tiles,
suitcase |
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No. of Employees : |
6 |
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
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
|
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 |
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
Livina Incorporation Ltd.
no. 4 building foshan software park, no. 28 shawan 3rd road
chancheng DISTRICT, foshan, guangdong PROVINCE 528000 PR CHINA
TEL: 86 (0) 757-82786972
FAX: 86 (0) 757-82786972
***Note:
SC’s current address should be the heading one, while SC’s registered address
is 2F, No. 1, Building, No. 11 Renminxi Road, Chancheng Area, Foshan, Guangdong
Province.
EXECUTIVE SUMMARY
Date of
Registration : SEPTEMBER 3, 2010
REGISTRATION NO. : 440602000189067
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE : FENG YING (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 30,000
staff : 6
BUSINESS CATEGORY : TRADING
Revenue : CNY 16,997,000
(AS OF DEC. 31, 2012)
EQUITIES : CNY 17,000
(AS OF DEC. 31, 2012)
WEBSITE : N/A
E-MAIL : N/A
PAYMENT : AVERAGE
MARKET CONDITION :
FAIR
FINANCIAL CONDITION
: fair
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : FAIR
EXCHANGE RATE : CNY 6.08 = USD 1
Adopted
abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL
REPUTATION
This section aims at indicating the relative
positions of SC in respect of its operational trend & general reputation
Operational Trend:- General Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL STATUS & HISTORY
SC was established
as a limited liabilities company of PRC with State Administration of Industry
& Commerce (SAIC) under registration No.: 440602000189067
on September 3, 2010.
SC’s Organization
Code Certificate No.: 56087774-0
SC’s Tax No.:
440602560877740
SC’s registered capital:
CNY 30,000
SC’s paid-in
capital: CNY 30,000
Registration
Change Record:-
No significant
changes of SC have been noted in SAIC since its incorporation.
Current Co search
indicates SC’s shareholders & chief executives are as follows:-
|
Name of Shareholder
(s) |
% of
Shareholding |
|
Feng Ying |
90 |
|
Feng Gang |
10 |
SC’s Chief
Executives:-
|
Position |
Name |
|
Legal
Representative, Chairman, and General Manager |
Feng Ying |
|
Supervisor |
Feng Gang |
RECENT DEVELOPMENT
No recent development was found during our checks
at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Feng Ying 90
Feng Gang 10
MANAGEMENT
Feng
Ying, Legal Representative, Chairman
and General Manager
----------------------------------------------------------------------------------------------
Ø
Gender: F
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC
as legal representative, chairman and general manager
Feng
Gang, Supervisor
--------------------------------------
Ø
Gender: M
Ø
Qualification:
University
BUSINESS OPERATION
SC’s registered business scope includes importing and exporting
commodities and technology; and domestic trade.
SC is mainly engaged in international trade.
SC’s products
mainly include: tiles, suitcase, etc.
SC sources its
materials 100% from domestic market. SC sells 60% of its products in domestic
market, and 40% to overseas market, mainly U.S.A., 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.
*Major Client*
-----------------
Harkirat Singh
Staff &
Office:
--------------------------
SC is known to have approx. 6
staff at present.
SC rents an area as its operating office, but the detailed information
is unknown.
RELATED COMPANY
SC is not known to have any subsidiaries at present.
PAYMENT
Overall payment
appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
The bank information of SC is not filed in
local SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
232 |
30 |
|
|
Notes receivable |
0 |
0 |
|
Accounts receivable |
-279 |
3,670 |
|
Advances to suppliers |
0 |
0 |
|
Other receivable |
0 |
1,306 |
|
Inventory |
0 |
0 |
|
Deferred expenses |
0 |
0 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
-47 |
5,006 |
|
Fixed assets |
0 |
0 |
|
Construction in progress |
0 |
0 |
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Intangible assets |
0 |
0 |
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Long-term prepaid expenses |
0 |
0 |
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Deferred income tax assets |
0 |
0 |
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Other non-current assets |
0 |
0 |
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|
------------------ |
------------------ |
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Total assets |
-47 |
5,006 |
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|
============= |
============= |
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Short-term loans |
0 |
0 |
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Notes payable |
0 |
0 |
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Accounts payable |
297 |
3,797 |
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Wages payable |
0 |
0 |
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Taxes payable |
-605 |
89 |
|
Advances from clients |
0 |
0 |
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Other payable |
247 |
1,102 |
|
Other current liabilities |
0 |
1 |
|
|
------------------ |
------------------ |
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Current liabilities |
-61 |
4,989 |
|
Non-current liabilities |
0 |
0 |
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|
------------------ |
------------------ |
|
Total liabilities |
-61 |
4,989 |
|
Equities |
14 |
17 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
-47 |
5,006 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
|
Revenue |
16,997 |
|
Cost of sales |
16,493 |
|
Taxes and surcharges |
6 |
|
Sales expense |
276 |
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Management expense |
104 |
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Finance expense |
83 |
|
Profit before tax |
34 |
|
Less: profit tax |
21 |
|
13 |
Important
Ratios
=============
|
|
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
*Current ratio |
0.77 |
1.00 |
|
*Quick ratio |
0.77 |
1.00 |
|
*Liabilities to assets |
1.30 |
1.00 |
|
*Net profit margin (%) |
-- |
0.08 |
|
*Return on total assets (%) |
-- |
0.26 |
|
*Inventory / Revenue ×365 |
-- |
-- |
|
*Accounts receivable / Revenue ×365 |
-- |
79 days |
|
*Revenue / Total assets |
-- |
3.40 |
|
*Cost of sales / Revenue |
-- |
0.97 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears average in its line in
2012.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of sales is high, comparing with its
revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a normal
level in 2012.
l
SC’s quick ratio is maintained in a normal level in
2012.
l
SC has no inventory in both years
l
The accounts receivable of SC appears large in
2012.
l
SC has no short-term loans in both years.
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE:
POOR
l
The debt ratio of SC is high in 2012.
l
The risk for SC to go bankrupt is fairly high.
Overall
financial condition of the SC: Fair.
CONCLUSIONS
SC is considered small-sized in its line
with fair financial conditions. The large amount of accounts receivable may be
a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.50 |
|
|
1 |
Rs.99.94 |
|
Euro |
1 |
Rs.84.88 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
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.