MIRA INFORM REPORT
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Report Date : |
08.12.2014 |
IDENTIFICATION DETAILS
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Name : |
FOSHAN FORTEK MACHINERY CO., LTD. |
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Registered Office : |
11/E |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
05.02.2007 |
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Com. Reg. No.: |
440682000019162 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in manufacturing and selling roller kiln, out of the kiln machine, blanking machine, feeding machine and spray drying tower; selling mechanical and electrical fittings, building material products and related raw materials, and auxiliary materials; importing and exporting commodities and technology. |
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No of Employees : |
40 |
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 – September 30, 2014
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Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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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 |
Since the late 1970s
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Source
: CIA |
COMPANY NAME & ADDRESS
FOSHAN FORTEK
MACHINERY CO., LTD.
11/E DONGJIAN BUILDING,
NO. 121 FENJIANG ZHONG ROAD
FOSHAN, GUANGDONG
PROVINCE 528000 PR CHINA
TEL: 86 (0)
757-88043860/88043865/88043868/86105268/86190284
FAX: 86 (0)
757-82960889
EXECUTIVE SUMMARY
Date of Registration : FEBRUARY 5, 2007
REGISTRATION NO. : 440682000019162
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : cny 1,050,000
staff : 40
BUSINESS CATEGORY : manufacturing & trading
Revenue : CNY 12,700,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY -12,550,000 (AS OF DEC. 31, 2013)
WEBSITE : www.fortekcn.com
E-MAIL :
Business@fortekcn.com
PAYMENT : SLOW
MARKET CONDITION :
fair
FINANCIAL CONDITION : poor
OPERATIONAL TREND : DOWNWARD
GENERAL REPUTATION : FAIR
EXCHANGE RATE : CNY 6.14 = 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.: 440682000019162 on February 5, 2007.
SC’s Organization Code Certificate
No.: 79777768-4
SC’s Tax No.: 440682797777684
SC’s registered capital: cny 1,050,000
SC’s paid-in capital: cny 1,050,000
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:-
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Name of Shareholder (s) |
% of Shareholding |
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Wu Qingguo |
40 |
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Ren Chongfu |
30 |
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Li Guangsheng |
15 |
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Yan Qinlong |
15 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman
and General Manager |
Wu Qingguo |
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Supervisor |
Li Guangsheng |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Wu Qingguo 40
Ren Chongfu 30
Li Guangsheng 15
Yan Qinlong 15
MANAGEMENT
Wu Qingguo, Legal
Representative, Chairman and General Manager
---------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman and general manager
Li Guangsheng, Supervisor
----------------------------------------------
Ø
Gender: M
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and
selling roller kiln, out of the kiln machine, blanking machine, feeding machine
and spray drying tower; selling mechanical and electrical fittings, building
material products and related raw materials, and auxiliary materials; importing
and exporting commodities and technology.
SC is
mainly engaged in manufacturing and selling machinery.
SC’s
products mainly include: ceramic equipment, etc.
SC sources its materials 100% from domestic market.
SC sells 40% of its products in domestic market, and 60% 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.
Staff & Office:
--------------------------
SC is
known to have approx. 40 staff
at present.
SC rents an area
as its operating office, but the detailed information is unknown.
SC’s
factory locates in 15 East 3rd Street Lianhe Industrial Zone Airport Road,
Foshan, Guangdong, China.
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: 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
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Unit: CNY’000 |
As
of Dec. 31, 2013 |
|
60 |
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Notes receivable |
0 |
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Accounts
receivable |
40 |
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Advances to
suppliers |
0 |
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Other receivable |
440 |
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Inventory |
6,960 |
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Non-current
assets within one year |
0 |
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Other current
assets |
710 |
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------------------ |
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Current assets |
8,210 |
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Fixed assets |
380 |
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Construction in
progress |
0 |
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Intangible
assets |
0 |
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Long-term
investment |
0 |
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Deferred income
tax assets |
0 |
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Other
non-current assets |
10 |
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------------------ |
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Total assets |
8,600 |
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============= |
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Short-term loans |
0 |
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Notes payable |
0 |
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Accounts payable |
9,800 |
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Welfares payable |
0 |
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Taxes payable |
0 |
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Advances from
clients |
0 |
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Other payable |
5,190 |
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Other current
liabilities |
6,160 |
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------------------ |
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Current
liabilities |
21,150 |
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Non-current
liabilities |
0 |
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Total
liabilities |
21,150 |
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Equities |
-12,550 |
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------------------ |
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Total
liabilities & equities |
8,600 |
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Income Statement
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Unit: CNY’000 |
As of Dec. 31,
2013 |
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Revenue |
12,700 |
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Cost of sales |
11,570 |
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Sales expense |
1,170 |
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Management expense |
1,680 |
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Finance expense |
0 |
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Profit before
tax |
-1,720 |
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Less: profit tax |
100 |
|
-1,820 |
Important Ratios
=============
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As of Dec. 31, 2013 |
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*Current ratio |
0.39 |
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*Quick ratio |
0.06 |
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*Liabilities
to assets |
2.46 |
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*Net profit
margin (%) |
-14.33 |
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*Return on
total assets (%) |
-21.16 |
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*Inventory /
Revenue ×365 |
201 days |
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*Accounts
receivable / Revenue ×365 |
2 days |
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*Revenue /
Total assets |
1.48 |
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*Cost of sales
/ Revenue |
0.91 |
FINANCIAL COMMENTS
PROFITABILITY:
POOR
l The revenue of SC appears fair in its line.
l SC’s net profit
margin is poor.
l SC’s return on
total assets is poor.
l
SC’s cost of sales is fairly high, comparing with
its revenue.
LIQUIDITY:
POOR
l
The current ratio of SC is maintained in a poor
level.
l
SC’s quick ratio is maintained in a poor level.
l
The inventory of SC appears large.
l
The accounts receivable of SC appears small.
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. The large amount of inventory may be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs. 61.85 |
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1 |
Rs. 96.73 |
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Euro |
1 |
Rs. 76.53 |
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
DPT |
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.