MIRA
INFORM REPORT
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Report Date : |
11.07.2014 |
IDENTIFICATION DETAILS
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Name : |
WEIFANG ENTACHEM
CO., LTD. |
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Registered Office : |
Room 712, Building 1, No. 1629, Shengli West Street, Weicheng District,
Weifang, Shandong Province, 261011 Pr
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
02.12.2011 |
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Com. Reg. No.: |
370702200019355 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
· Engaged in Selling Chemical Products (excluding Dangerous Chemicals and Precursor Chemicals), Concrete Admixtures, Construction Materials as well as importing and exporting goods and technologies. (excluding the items limited and prohibited by laws, regulations and state) (with permit if needed). engaged in Exporting Concrete Admixtures & Production of Naphthalene Superplasticizer Subject product ranges include Concrete Admixtures,
Concrete Pigment, Reinforcement Material, Waterproof Material, Coating,
Triisobutyl Phosphate and Concrete Fibers. |
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No of Employees : |
13 (Approximately) |
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 – March 31, 2014
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Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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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, 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 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. Debt overhang from
its credit-fueled stimulus program in 2008-10, particularly among local
governments, and soaring property prices challenge policy makers currently.
Their efforts to cool a red-hot property market in 2011 appear to have curbed
inflation, but contributed to slower GDP growth in 2012 and 2013. Slow recovery
in Europe and other key export markets have also retarded growth. 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 fixed investments and exports in the future.
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
WEIFANG
ENTACHEM CO., LTD.
ROOM 712, BUILDING 1, NO. 1629, SHENGLI WEST
STREET, WEICHENG DISTRICT, WEIFANG, SHANDONG Province, 261011 PR CHINA
TEL: 86 (0) 536-8051016-802 FAX: 86 (0) 536-8051026
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 2, 2011
REGISTRATION NO. : 370702200019355
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH :
13
REGISTERED CAPITAL : cny 1,000,000
BUSINESS LINE : TRADING
TURNOVER :
CNY 34,510,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 1,120,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY
6.2068 = 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 limited liabilities co. at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on Dec. 2, 2011.
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 selling chemical products (excluding dangerous
chemicals and precursor chemicals), concrete admixtures, construction
materials; importing and exporting goods and technologies. (excluding the items
limited and prohibited by laws, regulations and state) (with permit if needed).
SC is mainly engaged
in Exporting Concrete Admixtures & Production of Naphthalene Superplasticizer
Mr. Chen Gangtian
has been the legal representative, chairman and general manager of SC since
December of 2011.
SC is known to
have approx. 13 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Weifang. Our checks
reveal that SC rents the total premise, but the gross area of the premise is
unspecific.
http://www.entachem.com The design is professional and the content is
well organized. At present it is in English version.
E-mail: entachem@gmail.com
; sales@entachem.com
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
SC was taken into operation in February of 2012.
Organization code: 587187766
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name
% of Shareholding
Chen Gangtian 45
Chen Junfeng 55
Legal
representative, chairman
and general manager:
Mr. Chen Gangtian, is currently responsible for the overall management of SC.
Working
Experience(s):
From December of 2011 to present Working in SC as legal representative, chairman and general
manager.
Supervisor:
Chen Junfeng
SC is mainly
engaged in Exporting Concrete Admixtures & Production of Naphthalene Superplasticizer
SC’s products mainly include concrete admixtures, concrete pigment,
reinforcement material, waterproof material, coating, triisobutyl phosphate and
concrete fibers.
SC was taken into operation in February of 2012.
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 Check, L/C and Credit of 30-60 days.
Note:
SC declined to release its major suppliers and clients.
Shandong
ENTAC Building Material Technology Co., Ltd.
============================================
Incorporation
date: 2010-4-14
Registration
no.: 370724200006452
Registered
capital: CNY 50,000,000
Legal
rep.: Song Fuli
Legal
form: Limited liabilities co.
Web: http://www.entac.cn
E-mail: sdentac@163.com
Tel: +86-0536-3375999
Fax: +86-0536-3375333
Add:
Dongcheng Industry Park, Linqu, Shandong Province
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.
Weifang Weicheng District Yuhe Rural Credit Cooperative
AC#：N/A
Relationship:
Normal
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2013 |
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Cash & bank |
980 |
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Inventory |
0 |
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Accounts
receivable |
4,060 |
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Advances to
suppliers |
0 |
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Other
receivables |
2,070 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
7,110 |
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Long-term
investments |
0 |
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Fixed assets net
value |
0 |
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Projects under
construction |
0 |
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Intangible
assets |
0 |
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Other assets |
0 |
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Total assets |
7,110 |
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============= |
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Short loans |
0 |
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Accounts payable |
6,090 |
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Advances from
customers |
0 |
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Accrued
payroll |
0 |
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Taxes payable |
-780 |
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Other accounts
payable |
680 |
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Other
current liabilities |
0 |
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Current
liabilities |
5,990 |
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Long term liabilities |
0 |
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Total
liabilities |
5,990 |
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Shareholders
equities |
1,120 |
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Total
liabilities & equities |
7,110 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2013 |
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Turnover |
34,510 |
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Cost of goods
sold |
30,170 |
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Taxes
and additional of main operation |
0 |
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Sales expense |
2,930 |
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Management expense |
1,070 |
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Finance expense |
260 |
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Non-operating
income |
0 |
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Non-operating expense |
0 |
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Profit before
tax |
80 |
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Less: profit tax |
20 |
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Net profit |
60 |
Important
Ratios
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As
of Dec. 31, 2013 |
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*Current ratio |
1.19 |
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*Quick ratio |
1.19 |
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*Liabilities
to assets |
0.84 |
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*Net profit
margin (%) |
0.17 |
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*Return on
total assets (%) |
0.84 |
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*Inventory
/Turnover ×365 |
/ |
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*Accounts
receivable/Turnover ×365 |
43 days |
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*Turnover/Total
assets |
4.85 |
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* Cost of
goods sold/Turnover |
0.87 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
SC has no inventory in 2013.
l
The accounts receivable of SC appears average.
l
SC has no short-term loan in 2013.
l
SC’s turnover is in a fairly good level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
l
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.88 |
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UK Pound |
1 |
Rs.102.59 |
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Euro |
1 |
Rs.81.69 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
MNL |
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.