MIRA
INFORM REPORT
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Report Date : |
21.08.2014 |
IDENTIFICATION DETAILS
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Name : |
ZOUPING RUNZI CHEMICAL INDUSTRY CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
17.06.2010 |
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Com. Reg. No.: |
371626200010463 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Subject is engaged in processing and selling ferrous sulfate, zinc
sulfate, copper sulfate, salt fertilization; selling manganese sulfate,
magnesium sulfate, borax, boric acid and other chemical products (excluding
dangerous chemicals), fertilizers, steel, textiles; import and export
qualification approved business scope (with permit if needed). |
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No of Employees : |
30 |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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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 – June 01, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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 Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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, growth of the private sector,
development of stock markets and a modern banking system, 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 considered important to "economic security,"
explicitly looking to foster globally competitive industries. After keeping its
currency tightly linked to the US dollar for years, in July 2005 China 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 and expanded the daily trading
band within which the RMB is permitted to fluctuate. 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 2013 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 consumption; (b) facilitating higher-wage job
opportunities for the aspiring middle class, including rural migrants and
increasing numbers of college graduates; (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. Several factors are converging to slow China's growth, including
debt overhang from its credit-fueled stimulus program, industrial overcapacity,
inefficient allocation of capital by state-owned banks, and the slow recovery
of China's trading partners. The government's 12th Five-Year Plan, adopted in
March 2011 and reiterated at the Communist Party's "Third Plenum"
meeting in November 2013, emphasizes continued economic reforms and the need to
increase domestic consumption in order to make the economy less dependent in
the future on fixed investments, exports, and heavy industry. However, China
has made only marginal progress toward these rebalancing goals. The new
government of President XI Jinping has signaled a greater willingness to
undertake reforms that focus on China's long-term economic health, including
giving the market a more decisive role in allocating resources.
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Source
: CIA |
Company name & address
ZOUPING RUNZI CHEMICAL INDUSTRY CO., LTD.
NANWANG VILLAGE, CHANGSHAN TOWN, ZOUPING COUNTY, BINZHOU, SHANDONG
PROVINCE, 256206 PR CHINA
TEL: 86 (0) 543-4304059/4851273
FAX: 86 (0) 543-4850288
EXECUTIVE SUMMARY
INCORPORATION DATE :
JUNE 17, 2010
REGISTRATION NO. :
371626200010463
REGISTERED LEGAL FORM :
ONE-PERSON LIMITED LIABILITY COMPANY
CHIEF EXECUTIVE :
MR. ZHANG BAOQUAN (CHAIRMAN)
STAFF STRENGTH :
30
REGISTERED CAPITAL :
CNY 500,000
BUSINESS LINE :
PROCESSING & TRADING
TURNOVER :
CNY 2,950,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY -330,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION :
FAIR
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND :
FAIR
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.16 = 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 one-person limited liability company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on June 17, 2010.
Company Status: One-person Limited Liability Company Single person LLC refers to a
limited liability company set up by only one natural person or legal person
as the single shareholder of it. The minimum registered capital
of Single person LLC is CNY100,000. The shareholder’s capital contributes,
as set out by the articles of associations should be a lump-sum payment in
full. One natural person can only
invest in and set up one limited liability company, which is not permitted
to invest in and set up a new Single person LLC. As to any one-person limited
liability company, the sole-investor nature of the natural person or legal
person shall be indicated in the registration documents of the company and
shall be indicated in the business license thereof as well. The regulation of Single person
LLC should be set up by the shareholder The regulation of Single person
LLC has no shareholder meeting.
SC’s registered business scope includes processing and selling ferrous
sulfate, zinc sulfate, copper sulfate, salt fertilization; selling manganese
sulfate, magnesium sulfate, borax, boric acid and other chemical products
(excluding dangerous chemicals), fertilizers, steel, textiles; import and
export qualification approved business scope (with permit if needed).
SC is mainly engaged in processing and
selling chemical products.
Mr. Zhang Baoquan is the legal representative, chairman and general
manager of SC at present.
SC is known to have approx. 30 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in Zouping County. SC’s employee refused
to release the detailed information of the premise.
http://www.runzichem.cc/ The design is professional and the content is
well organized. At present it is in Chinese and English versions.
E-mail: info@runzichem.cn sales@runzichem.cn
No significant changes were found during our checks with the local AIC.
Subject passed the annual inspection of 2012 with Administration for
Industry & Commerce.
Organization Code: 557855401
There is no record of litigation till now.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhang Baoquan 100
Legal representative, chairman and general manager:
Mr. Zhang Baoquan is currently responsible for the overall management of
SC.
Working Experience(s):
At present Working
in SC as chairman, legal representative and general manager.
Supervisor:
Geng Shuqin
SC is mainly engaged in processing and
selling chemical products.
SC’s products
mainly include:
Borax
Boric Acid
Magnesium Sulphate
Ferrous Sulphate
Copper Sulphate
Zinc Sulphate
Manganese Sulphate
Silicon Fertilizer
EDTA
Ammonium Sulfate
Macronutrient
SC sources its materials 100% from domestic market. SC sells 50% of its
products in domestic market, and 50% to overseas 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.
Note: SC’s management refused to release its main suppliers and 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 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 banking details.
Balance
Sheet
Unit: CNY’000
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As
of Dec. 31, 2013 |
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Cash & bank |
185 |
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Notes receivable |
0 |
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Accounts receivable |
0 |
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Advances to suppliers |
220 |
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Other receivables |
1 |
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Inventory |
710 |
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Other current assets |
4 |
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Current assets |
1,120 |
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Fixed assets net value |
170 |
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Intangible assets |
0 |
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Long term investment |
0 |
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Other assets |
0 |
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Total assets |
1,290 |
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Short loans |
0 |
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Notes payable |
0 |
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Accounts payable |
280 |
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Advances from clients |
420 |
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Taxes payable |
20 |
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Other accounts payable |
900 |
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Other current liabilities |
0 |
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Current liabilities |
1,620 |
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Long term loans |
0 |
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Other liabilities |
0 |
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Total liabilities |
1,620 |
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Equities |
-330 |
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Total liabilities & equities |
1,290 |
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Income
Statement
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Unit: CNY’000 |
as
of Dec. 31, 2013 |
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Turnover |
2,950 |
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Cost of goods sold |
2,760 |
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Taxes and additional of main operation |
10 |
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Sales expense |
140 |
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Management expense |
410 |
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Finance expense |
30 |
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Other incomes |
30 |
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Profit before tax |
-370 |
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Less: profit tax |
0 |
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Profits |
-370 |
Important
Ratios
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as
of Dec. 31, 2013 |
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*Current ratio |
0.69 |
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*Quick ratio |
0.25 |
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*Liabilities to assets |
1.26 |
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*Net profit margin (%) |
-12.54 |
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*Return on total assets (%) |
-28.68 |
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*Inventory /Turnover ×365 |
88 days |
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*Accounts receivable/Turnover ×365 |
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*Turnover/Total assets |
2.29 |
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* Cost of goods sold/Turnover |
0.94 |
PROFITABILITY:
FAIR
The turnover of SC appears average in its line.
SC’s net profit margin is fair.
SC’s return on total assets is poor.
SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a poor level.
The inventory of SC is maintained
in a fairly large level.
SC has no accounts receivable in 2013.
SC has no short-term loan in 2013.
SC’s turnover is in a fairly good level, comparing with the size of its
total assets.
LEVERAGE: POOR
The debt ratio of SC is TOO HIGH.
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 |
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US Dollar |
1 |
Rs.60.67 |
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1 |
Rs.100.81 |
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Euro |
1 |
Rs.80.73 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
TPT |
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.