MIRA INFORM REPORT
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Report Date : |
25.09.2013 |
IDENTIFICATION DETAILS
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Name : |
HANGZHOU ORIENTAL TRADING CO., LTD. |
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Registered Office : |
Room 2504, Huarong
Times Mansion, No. 3880 Jiangnan Avenue, Binjiang
District, Hangzhou City, Zhejiang Province, 310053 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
28.07.2008 |
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Com. Reg. No.: |
330100000056588 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is mainly engaged in selling paper and textile products. |
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No. of Employees : |
5 |
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) |
|
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
HANGZHOU
ORIENTAL TRADING CO., LTD.
ROOM 2504, HUARONG
TIMES MANSION, NO. 3880 JIANGNAN AVENUE,
BINJIANG DISTRICT,
HANGZHOU CITY, ZHEJIANG PROVINCE, 310053 PR CHINA
TEL: 86 (0)
571-86604230/87296920/87296930
FAX: 86 (0) 571-87296931
EXECUTIVE SUMMARY
INCORPORATION DATE : JULY 28, 2008
REGISTRATION NO. : 330100000056588
REGISTERED LEGAL
FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE : MS. DONG DAN (CHAIRMAN)
STAFF STRENGTH : 5
REGISTERED CAPITAL :
CNY 1,010,000
BUSINESS LINE : TRADING
TURNOVER : CNY 420,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY -10,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : FAIR
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND :
FAIR
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.1187
=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
Note: the given telephone number
is with a wrong area code, and the correct phone number should be heading ones.
The given company “Oriental Paper (HK) Ltd.
is SC’s related company and major customer in Hong Kong.
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 July 28, 2008.
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 wholesaling and retailing: clothes, arts and crafts, paper, mechanical equipment and groceries; importing and exporting goods; services: economic information consultation; other legal items not need to be examined and approved.
SC is mainly engaged in selling paper and textile products.
Ms. Dong Dan has been the legal representative, chairman and general manager of SC since 2008.
SC is known to have approx. 5 employees at present.
SC is currently operating at the above stated address, and
this address houses its operating office in the commercial zone of Hangzhou. Our checks reveal that SC rents the total premise, but SC’s
accountant refused to release the gross area.
SC is not known to host web site of its own at present.
No significant events or changes were found during our checks with local
AIC.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of shareholdings
Dong Dan ID# 31023019770605XXXX 90
Chen Lijuan ID# 33032419810523XXXX 10
l Legal
Representative, chairman and general manager:
Ms. Dong Dan, ID# 31023019770605XXXX, born in
1977, she is currently responsible for the overall and daily management of SC.
Working Experience(s):
From 2008 to present Working in SC as legal
representative, chairman and general manager
SC
is mainly engaged in selling paper and textile products.
SC’s products mainly
include: paper, fabric, corduroy, canvas, etc.
SC sources its
merchandise 100% from domestic market. SC sells 20% of its products in domestic
market, and 80% to overseas market, mainly Southeast Asia and Middle East
market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, L/C, T/T, and Credit of 30-60 days.
*Major customer:
=============
Oriental Paper (HK) Ltd.
Note:
SC’s management declined to release its major suppliers.
Oriental Paper (HK) Ltd.
==================
Registration No.: 0995404
Establishment Date: September 12, 2005
Legal Form: Private
Web: http://www.oriental-paper.com/
E-mail: info@oriental-paper.com
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.
China
Merchants Bank Hangzhou Branch Qiantang Sub-branch
AC#：571905667810902
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
Cash & bank |
30 |
200 |
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Notes receivable |
0 |
0 |
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Inventory |
180 |
10 |
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Accounts
receivable |
0 |
0 |
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Advances to
suppliers |
350 |
150 |
|
Prepaid expenses |
0 |
0 |
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Other accounts
receivable |
0 |
0 |
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Other current
assets |
0 |
0 |
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|
------------------ |
------------------ |
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Current assets |
560 |
360 |
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Fixed assets net
value |
30 |
10 |
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Project under
construction |
0 |
0 |
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Long term
investment |
0 |
0 |
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Intangible and
other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
590 |
370 |
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============= |
============= |
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Short loans |
0 |
0 |
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Notes payable |
0 |
0 |
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Accounts payable |
0 |
0 |
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Advances from
clients |
210 |
0 |
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Accrued payroll |
0 |
0 |
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Taxes payable |
-30 |
0 |
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Other accounts
payable |
250 |
370 |
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Other current
liabilities |
0 |
10 |
|
|
------------------ |
------------------ |
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Current
liabilities |
430 |
380 |
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Long-term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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430 |
380 |
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|
Equities |
160 |
-10 |
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|
------------------ |
------------------ |
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Total
liabilities & equities |
590 |
370 |
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============= |
============= |
Income Statement
Unit: CNY’000
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As
of Dec. 31, 2012 |
|
Turnover |
420 |
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Cost of goods sold |
400 |
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Sales expense |
0 |
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Management expense |
180 |
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Finance expense |
0 |
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Other expense |
0 |
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Profit before
tax |
-160 |
|
0 |
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Profits |
-160 |
Important
Ratios
=============
|
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As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
1.30 |
0.95 |
|
*Quick ratio |
0.88 |
0.92 |
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*Liabilities
to assets |
0.73 |
1.03 |
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*Net profit
margin (%) |
/ |
-38.10 |
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*Return on
total assets (%) |
/ |
-43.24 |
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*Inventory
/Turnover ×365 |
/ |
9 days |
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*Accounts
receivable/Turnover ×365 |
/ |
1 day |
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*Turnover/Total
assets |
/ |
1.14 |
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* Cost of
goods sold/Turnover |
/ |
0.96 |
PROFITABILITY:
POOR
l The turnover of SC
appears fair in its line in 2012.
l SC’s net profit
margin is poor in 2012.
l SC’s return on
total assets is poor in 2012.
l
SC’s cost of goods sold is high, comparing with its
turnover.
LIQUIDITY: AVERAGE
l The current ratio
of SC is maintained in a normal level in 2011 but fair in 2012.
l SC’s quick ratio
is maintained in a normal level in both years.
l
The inventory of SC appears average in both years.
l
SC has no accounts receivable in both years.
l
SC has no short-term loan in both years.
l
SC’s turnover is in an average level in 2012,
comparing with the size of its total assets.
LEVERAGE: POOR
l The debt ratio of
SC is average in 2011 but too high in 2012.
l
The risk for SC to go bankrupt is fairly high.
Overall financial
condition of the SC: Fair.
SC is considered small-sized in its line with fair financial conditions.
Great caution is required in providing credit to SC and C.O.D. is recommended.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.66 |
|
|
1 |
Rs.100.46 |
|
Euro |
1 |
Rs.84.60 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
RATING EXPLANATIONS
|
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 |
|
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.