MIRA
INFORM REPORT
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Report Date : |
12.02.2014 |
IDENTIFICATION DETAILS
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Name : |
SUZHOU CASA FASHION TEXTILE CO., LTD. |
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Registered Office : |
Room 1a#0410, Xindu Plaza, No.
8 Zhongxin Street West, Suzhou Industrial Park, Suzhou City, Jiangsu
Province, 215021 PR |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
06.01.2006 |
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Com. Reg. No.: |
320594000062113 |
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Legal Form : |
Wholly Foreign-Owned |
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Line of Business : |
Subject is engaged in sales of textiles. products mainly include: silk
touch woven polyester, recycled polyester and viscose fabrics. |
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No. of Employees : |
21 |
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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Maximum Credit Limit : |
usd 5,000 (Periodical Review) |
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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, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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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 |
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 & address
SUZHOU Casa fashion Textile Co., Ltd.
ROOM 1A#0410, xindu plaza, No. 8 zhongxin
street west, suzhou industrial park, suzhou city, JIANGSU PROVINCE, 215021 PR
CHINA
TEL: 86 (0) 512-62808253-113/114/115
FAX: N/A
EXECUTIVE SUMMARY
INCORPORATION DATE : JAN. 6, 2006
REGISTRATION NO. : 320594000062113
REGISTERED LEGAL FORM : Wholly
foreign-owned enterprise
CHIEF EXECUTIVE :
Mr. Ke yongkun (legal
representative)
STAFF STRENGTH :
21
REGISTERED CAPITAL : CNY
2,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 16,120,000 (unaudited, AS OF DEC. 31, 2013)
EQUITIES :
CNY 900,000 (unaudited, AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 5,000 (periodical review)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.0633 = 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
Note: The (
SC was registered as a wholly foreign-owned enterprise at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Jan. 6, 2006.
Company Status: Wholly foreign-owned enterprise This
form of business in PR China is defined as a legal person. It is a limited
co. established within the territories of PR China with capital provided
totally by the foreign investors. More than one foreign investor may
jointly invest in a wholly foreign-owned enterprise. The investing
party/parties solely exercise management, reap profit and bear risks and
liabilities by themselves. This form of companies usually have a limited
duration is extendible upon approval of Examination and Approval
Authorities.
SC’s registered business scope includes wholesale of textile materials
and products, hardware, lubricating oil, non hazardous chemical products,
computer and supplies, office supplies, electrical and mechanical equipment,
building materials, electronic products and timber, import and export,
commission agents and related business.
SC is mainly engaged in sales of textiles.
Mr. Ke Yongkun is legal representative of SC at present.
SC is known to have approx. 21 employees
at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the industrial park of Suzhou. Detailed premise
information is not available at present
http://www.cf-tex.com/
The design is professional and the content is well organized. At present it is
in English version.
Email: info@cf-tex.com
For the past two years there is no record of litigation.
No significant changes were found during our
checks with the local Administration for Industry and Commerce.
Subject passed the annual inspection of 2012 with Administration for
Industry & Commerce.
Organization Code: 783358892
MAIN SHAREHOLDERS:
Name %
of Shareholding
Ke Yongkun (Hong Kong people) 90
Cui Mingzhu (Korean) (in Chinese Pinyin) 10
Legal
Representative:
Mr. Ke Yongkun (Hong Kong people) is currently responsible for the
overall management of SC.
Working
Experience(s):
At present Working
in SC as legal representative.
SC is mainly engaged in sales of textiles.
SC’s products mainly include: silk touch woven polyester, recycled
polyester and viscose fabrics.
SC sources its materials 70% from domestic market, and 30% from overseas
market through the agent. SC sells 80% of its products in domestic market, and
20% to overseas market through the agent.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T and Credit of 30-60 days.
Note: SC declined to release its major suppliers and clients.
Casa Fashion Textile Limited (Hong Kong)
==============================
Incorporation Date:
Registration No.: 1208579
Legal Form: Private
Jiaxing Office
Add: No. 112 Rongxu Road, Wangjiangjing Economic Development Zone,
Jiaxing City, Zhejiang Province, PR China.
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’s accountant refused to release the bank details.
Balance
Sheet (Unaudited)
Unit: CNY’000
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As
of Dec. 31, 2013 |
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Cash & bank |
80 |
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Inventory |
2,140 |
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Accounts receivable |
300 |
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Advances to suppliers |
2,160 |
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Current assets |
4,680 |
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Fixed assets net value |
70 |
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Total assets |
4,750 |
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=========== |
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Short loan |
0 |
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Accounts payable |
40 |
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Advances from customers |
900 |
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Taxes payable |
30 |
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Other accounts payable |
2,810 |
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Wage payable |
70 |
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Current liabilities |
3,850 |
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Long term liabilities |
0 |
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Total liabilities |
3,850 |
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Equities |
900 |
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------------------ |
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Total liabilities & equities |
4,750 |
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Income
Statement (Unaudited)
Unit: CNY’000
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As
of Dec. 31, 2013 |
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Turnover |
16,120 |
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Cost of goods sold |
14,550 |
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Taxes and additional of
main operation |
20 |
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Sales expense |
210 |
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Management expense |
1,350 |
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Non-operating income |
20 |
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Profit before tax |
10 |
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Less: profit tax |
0 |
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Profits |
10 |
Important
Ratios
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As
of Dec. 31, 2013 |
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*Current ratio |
1.22 |
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*Quick ratio |
0.66 |
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*Liabilities to assets |
0.81 |
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*Net profit margin (%) |
0.06 |
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*Return on total assets (%) |
0.21 |
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*Inventory /Turnover ×365 |
49 days |
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*Accounts receivable/Turnover ×365 |
7 days |
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*Turnover/Total assets |
3.39 |
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* Cost of goods sold/Turnover |
0.90 |
PROFITABILITY:
AVERAGE
·
The turnover of SC appears
average in its line.
·
SC’s net profit margin is average.
·
SC’s return on total assets is average.
·
SC’s cost of goods sold is average.
LIQUIDITY: AVERAGE
·
The current ratio of SC is maintained in a normal
level.
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SC’s quick ratio is maintained in a fair level.
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The inventory of SC appears fairly large.
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The accounts receivable of SC is small.
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SC has no short loans in 2013.
·
SC’s turnover is in a fairly good level, comparing
with the size of its total assets.
LEVERAGE: FAIR
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The debt ratio of SC is fairly high.
·
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable financial
conditions. A credit line up to USD 5,000
would appear to be within SC’s capacities upon a periodical review basis.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.44 |
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|
1 |
Rs.102.48 |
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Euro |
1 |
Rs.85.28 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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 |
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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.