MIRA
INFORM REPORT
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Report Date : |
29.08.2014 |
IDENTIFICATION DETAILS
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Name : |
TIANJIN LEADING IMPort & EXPort 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 : |
08.04.2004 |
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Com. Reg. No.: |
120101000081006 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject includes wholesaling and retailing chemical
products (excluding precursor
chemicals and other dangerous articles), textile garments,
shoes and hats, hardware, electronic equipment, mechanical equipment, raw
steel materials, metallic materials, building materials, farm machineries,
general merchandise, stationery & sports; importing
and exporting commodities and technologies, excluding export commodities limited or prohibited by the state (in
accordance with relative regulations as to the specially operated items). |
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No. of Employees |
25 |
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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, 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.
|
Source
: CIA |
Company name and address
TIANJIN LEADING IMPort & EXPort
CO., LTD.
SUITE
2104, JIALI CENTRE, NO. 73 WEIJIN ROAD, HEPING DISTRICT
TIANJIN
300070 PR CHINA
TEL: 86
(0) 22-67161306/27824591/27824571
FAX: 86
(0) 22-27827649
EXECUTIVE SUMMARY
Date of Registration : APRIL 8, 2004
REGISTRATION NO. : 120101000081006
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL :
CNY 1,000,000
staff : 25
BUSINESS CATEGORY :
trading
Revenue :
CNY 15,360,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY -60,000 (AS OF DEC. 31, 2013)
WEBSITE : www.tianjinleading.com
E-MAIL :
info@tianjinleading.com
PAYMENT : average
MARKET CONDITION : fair
FINANCIAL CONDITION : poor
OPERATIONAL TREND :
FAIR
GENERAL REPUTATION : FAIR
EXCHANGE RATE : CNY 6.23 = 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.: 120101000081006 on April 8, 2004.
SC’s Organization Code Certificate
No.: 76125376-6
SC’s Tax No.: 120101761253766
SC’s registered capital: CNY
1,000,000
SC’s paid-in capital: CNY
1,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registration No. |
1201012007609 |
120101000081006 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Zhu Donghua |
60 |
|
Wang Yumi |
40 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Zhu
Donghua |
|
Supervisor |
Wang
Yumi |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Zhu Donghua 60
Wang Yumi 40
MANAGEMENT
Zhu
Donghua, Legal
Representative, Chairman and General Manager
------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 41
Ø
Qualification:
University
Ø
Working
experience (s):
From 2004 to present, working in SC as legal representative,
chairman and general manager
Wang
Yumi, Supervisor
-------------------------------------------
Ø
Gender: F
Ø
Qualification:
University
BUSINESS OPERATION
SC’s registered business scope includes wholesaling and
retailing chemical products (excluding precursor chemicals and other dangerous
articles), textile garments, shoes and hats, hardware, electronic equipment,
mechanical equipment, raw steel materials, metallic materials, building
materials, farm machineries, general merchandise, stationery & sports; importing and exporting commodities and technologies, excluding export commodities limited or prohibited by the state (in
accordance with relative regulations as to the specially operated items).
SC is
mainly engaged in international trade.
SC’s
products mainly include: ZDH dyestuff, ZDH pigment, ZDH chemicals, ZDH
fluorescent brig and ZDH textile auxiliary.
SC sources its products 90% from domestic
market, and 10% from overseas market. SC sells 10% of its products in domestic
market, and 90% to overseas market, mainly Southeast Asian 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.
*Major Supplier:
============
Tianjin Zhenxing Weiye Chemical Dyestuff Co., Ltd.
*Major Customer:
=============
Staff & Office:
--------------------------
SC is
known to have approx. 25
staff at present.
SC rents an area
as its operating office of approx. 130 sq. meters at the heading address.
RELATED COMPANY
SC
is not known to have any subsidiary 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: A trade enquiry currently
conducted with SC's supplier(s) reveal the following:
Supplier
A
Products sold: Dyestuff
Date account opened: Since 2009 to present
Line of credit: N/A
Terms: 30-60
days
Average monthly sales: N/A
Current balance: N/A
Rating Key : 3
Payment record keys :
1 = Prompt : Payment made before the credit
period expires
2 = As agreed terms : Payment made upon due
date
3 = Slightly slow but acceptable : Payment
made 5 to 20 days beyond agreed terms
4 = Slow : Payment made 16 to 45 days beyond
agreed terms
5 = Poor : Payment made over 45 days beyond
agreed terms
6
= No comment : Account is newly opened & record is not yet established
Note : In
some instances, payment beyond terms can be the result of disputes over
merchandise, lost invoices, disputed accounts & etc.
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
Basic Bank:
Bank
of China Tianjin Nankai Sub-branch
AC#: 856310628608091001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
60 |
110 |
|
|
Accounts
receivable |
1,890 |
2,090 |
|
Advances to
suppliers |
290 |
440 |
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Other receivable |
0 |
0 |
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Inventory |
3,940 |
3,960 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current assets |
250 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
6,430 |
6,600 |
|
Fixed assets |
30 |
80 |
|
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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Total assets |
6,460 |
6,680 |
|
|
============= |
============= |
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Short-term loans |
0 |
0 |
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Notes payable |
0 |
0 |
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Accounts payable |
1,330 |
2,090 |
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Advances from
clients |
2,010 |
2,000 |
|
Other payable |
3,080 |
2,150 |
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Other current
liabilities |
60 |
500 |
|
|
------------------ |
------------------ |
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Current
liabilities |
6,480 |
6,740 |
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Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total
liabilities |
6,480 |
6,740 |
|
Equities |
-20 |
-60 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
6,460 |
6,680 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
Revenue |
21,170 |
15,360 |
|
Cost of sales |
19,730 |
13,990 |
|
Sales expense |
760 |
600 |
|
Management expense |
1,080 |
830 |
|
Finance expense |
140 |
20 |
|
Profit before
tax |
-40 |
-60 |
|
Less: profit tax |
0 |
0 |
|
-40 |
-60 |
Important Ratios
=============
|
|
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
0.99 |
0.98 |
|
*Quick ratio |
0.63 |
0.39 |
|
*Liabilities
to assets |
1.00 |
1.01 |
|
*Net profit
margin (%) |
-0.19 |
-0.39 |
|
*Return on
total assets (%) |
-0.62 |
0.90 |
|
*Inventory /
Revenue ×365 |
68 days |
95 days |
|
*Accounts
receivable/ Revenue ×365 |
33 days |
50 days |
|
*
Revenue/Total assets |
3.28 |
2.30 |
|
* Cost of
sales / Revenue |
0.93 |
0.91 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l
The revenue of SC appears
average in its line.
l
SC’s net profit margin is fair.
l
SC’s return on total assets is fair.
l
SC’s cost of goods sold is fairly high, comparing
with its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears fairly large in 2013.
l
The accounts receivable of SC appears average.
l
SC has no short-term loans.
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.
l
The risk for SC to go bankrupt is fairly high.
Overall financial
condition of the SC: Poor.
CONCLUSIONS
SC is considered small-sized in its line with
poor 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.60.47 |
|
|
1 |
Rs.100.35 |
|
Euro |
1 |
Rs.78.86 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
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|
Report Prepared
by : |
SHG |
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 |
|
|
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 |
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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.