MIRA
INFORM REPORT
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Report Date : |
15.02.2014 |
IDENTIFICATION DETAILS
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Name : |
FOSHAN GEM CO CERAMIC TECHNOLOGY CO., LTD. |
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Registered Office : |
Room 805, F/8, Building 3, No. 12 Heping Road, Chancheng District,
Foshan City, Guangdong Province, 528031
PR |
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Country : |
China |
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Financials (as on) : |
30.09.2013 |
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Date of Incorporation : |
19.10.2009 |
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Com. Reg. No.: |
440602000124144 |
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Legal Form : |
Limited Liabilities Co |
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Line of Business : |
Subject is engaged in exporting of ceramic equipment. products mainly
include: grinding equipment, slurry preparation equipment, drying equipment
and ceramics firing equipment |
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No. of Employees : |
10 |
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 – 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
Foshan Gem Co Ceramic Technology Co., Ltd.
ROOM 805, F/8, building 3, No. 12 heping Road,
chancheng
district, foshan city, guangdong PROVINCE,
528031 PR CHINA
TEL: 86 (0) 757-82268386
FAX: 86 (0) 757-82125712
EXECUTIVE SUMMARY
INCORPORATION DATE : oct. 19, 2009
REGISTRATION NO. : 440602000124144
REGISTERED LEGAL FORM : Limited liabilities co.
CHIEF EXECUTIVE :
Ms. Ma xiaoWei (legal
representative)
STAFF STRENGTH :
10
REGISTERED CAPITAL : CNY 1,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 13,940,000 (jan. 1~SEP. 30, 2013)
EQUITIES :
CNY 1,420,000 (AS OF SEP. 30, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.0595 = 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: We contacted SC through the given telephone number (+86 757
82268385), but no one answered the phone. And SC’s staff said that the
telephone number didn’t belong to them.
SC was registered as a limited liabilities company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Oct. 19, 2009.
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 ceramic technology services; sales
of ceramic equipment and fittings, ceramic chemical raw materials (excluding
hazardous chemicals); domestic trade, import and export of goods and technology
(excluding those prohibited by the law; if needed with permit).
SC is mainly engaged in exporting of ceramic equipment.
Ms. Ma Xiaowei is legal representative of SC at present.
SC is known to have approx. 10 employees
at present.
SC is currently operating at the above stated address, and this address
houses its operating office in Foshan. Detailed premise information is not
available at present.
http://www.isi-ceramic.com/
The design is professional and the content is well organized. At present it is
in Chinese version.
Email: isiceramic@vip.sina.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: 696403077
MAIN SHAREHOLDERS:
Name %
of Shareholding
Ma Xiaowei 40
Liang Zhibin 40
Liu Jianjun 20
Legal
Representative:
Ms. Ma Xiaowei 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 exporting of ceramic equipment.
SC’s products mainly include: grinding equipment, slurry preparation
equipment, drying equipment and ceramics firing equipment
SC sources its materials 100% from domestic market. SC sells 100% of its
products to overseas market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
Note: SC declined to release its major 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’s accountant refused to release the bank details.
Financial Summary (Unit: CNY’000)
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Balance Sheet |
As
of Sep. 30, 2013 |
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Current assets |
9,110 |
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Total assets |
9,110 |
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Current liabilities |
7,690 |
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Total liabilities |
7,690 |
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Equities |
1,420 |
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=========== |
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Income Statement |
Jan. 1~Sep. 30,
2013 |
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Turnover |
13,940 |
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Cost of goods sold |
12,540 |
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Profit before tax |
92 |
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Less: profit tax |
23 |
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Profits |
69 |
Note: We did not find SC’s detailed financial statements.
Important
Ratios
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As
of Sep. 30, 2013 |
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*Current ratio |
1.18 |
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*Quick ratio |
/ |
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*Liabilities to assets |
0.84 |
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*Net profit margin (%) |
0.49 |
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*Return on total assets (%) |
0.76 |
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*Inventory /Turnover ×365 |
/ |
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*Accounts receivable/Turnover ×365 |
/ |
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*Turnover/Total assets |
1.53 |
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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
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The current ratio of SC is maintained in a normal
level.
·
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIR
·
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.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.28 |
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|
1 |
Rs.103.67 |
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Euro |
1 |
Rs.85.18 |
INFORMATION DETAILS
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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.