MIRA
INFORM REPORT
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Report Date : |
21.06.2014 |
IDENTIFICATION DETAILS
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Name : |
EKO DEVELOPMENT LIMITED |
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Registered Office : |
Flat 1013-1015 R & F Profit Plaza, No 76 Huangpu Avenue West Tianhe District, Guangzhou, Guangdong Province 510623 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
29.07.1998 |
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Com. Reg. No.: |
440101000105080 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in selling various hotel supplies. Products mainly include:
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No. of Employees |
35 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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, 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
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Source
: CIA |
Company name and address
EKO DEVELOPMENT
LIMITED
FLAT 1013-1015 R & F PROFIT PLAZA, NO 76 HUANGPU AVENUE WEST
TIANHE DISTRICT, GUANGZHOU, GUANGDONG PROVINCE 510623 PR CHINA
TEL: 86 (0) 20-38391988
FAX: 86 (0) 20-38391968
EXECUTIVE SUMMARY
DATE OF REGISTRATION : JULY 29, 1998
REGISTRATION NO. : 440101000105080
LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE : CHEN YIZHI (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 5,000,000
STAFF : 35
BUSINESS CATEGORY : TRADING
REVENUE : CNY 170,140,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 7,490,000 (AS OF DEC. 31, 2013)
WEBSITE : WWW.EKO.COM.CN
E-MAIL : sales@eko.com.cn
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : average
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.: 440101000105080 on July 29, 1998.
SC’s Organization Code Certificate No.: 70837144-8
SC’s Tax No.: 440106708371448
SC’s registered capital: cny 5,000,000
SC’s paid-in capital: cny 5,000,000
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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Chen Yizhi |
90 |
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Chen Dan |
10 |
SC’s Chief Executives:-
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Position |
Name |
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Legal Representative, Chairman and General Manager |
Chen Yizhi |
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Supervisor |
Chen Dan |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name % of Shareholding
Chen Yizhi 90
Chen Dan 10
MANAGEMENT
Chen Yizhi, Legal Representative, Chairman and General Manager
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Gender: M
ID# 440106196510141915
Age: 49
Working experience (s):
At present, working in SC as legal representative, chairman and general manager
Chen Dan, Supervisor
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Gender: F
BUSINESS OPERATION
SC’s registered business scope includes commodities wholesaling trade; commodities retailing trade; information technology consulting service; software development; importing and exporting commodities and technology; and trade agency.
SC is mainly engaged in selling various hotel supplies.
SC’s products mainly include:
Trash
Ashtray
Luggage Cart
Rail seat
Room service cart
Etc.
SC sources its products 100% from domestic market. SC sells 20% of its products in domestic market, and 80% to overseas market, mainly U.S.A., Southeast Asia, etc.
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.
*Major Client*
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Costco Wholesale
Staff & Office:
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SC is known to have approx. 35 staff at present.
SC rents an area as its operating office, but the detailed information is unknown.
RELATED COMPANY
Inox Bin Product Limited
Registration No.: 440782000005960
Date of Registration: January 14, 2001
Legal Form: Limited Liabilities Company
Registered Capital: CNY 500,000
Legal Representative: Chen Yizhi
Etc.
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, 2012 |
As of Dec. 31, 2013 |
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Cash |
3,073 |
1,270 |
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Notes receivable |
0 |
0 |
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Accounts receivable |
0 |
40 |
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Advances to suppliers |
10,329 |
10,080 |
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Other receivable |
154 |
120 |
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Inventory |
1 |
40 |
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Prepaid expenses |
0 |
0 |
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Other current assets |
1,029 |
1,240 |
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------------------ |
------------------ |
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Current assets |
14,586 |
12,790 |
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Fixed assets |
1,972 |
1,670 |
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Construction in progress |
0 |
0 |
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Intangible assets |
0 |
0 |
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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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------------------ |
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Total assets |
16,558 |
14,460 |
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============= |
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Short-term loans |
0 |
0 |
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Notes payable |
0 |
0 |
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Accounts payable |
8,325 |
6,510 |
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Wages payable |
0 |
0 |
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Taxes payable |
-154 |
-310 |
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Advances from clients |
1,315 |
750 |
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Other payable |
21 |
20 |
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Accrued expenses |
0 |
0 |
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Other current liabilities |
0 |
0 |
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------------------ |
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Current liabilities |
9,507 |
6,970 |
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Non-current liabilities |
0 |
0 |
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------------------ |
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Total liabilities |
9,507 |
6,970 |
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Equities |
7,051 |
7,490 |
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------------------ |
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Total liabilities & equities |
16,558 |
14,460 |
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Income Statement
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Unit: CNY’000 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
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Revenue |
157,525 |
170,140 |
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Cost of sales |
142,225 |
169,610 |
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Sales expense |
12,655 |
12,110 |
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Management expense |
2,686 |
2,790 |
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Finance expense |
-525 |
-3,280 |
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Profit before tax |
628 |
540 |
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Less: profit tax |
218 |
60 |
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Profits |
410 |
480 |
Important Ratios
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As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
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*Current ratio |
1.53 |
1.84 |
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*Quick ratio |
1.53 |
1.83 |
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*Liabilities to assets |
0.57 |
0.48 |
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*Net profit margin (%) |
0.26 |
0.28 |
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*Return on total assets (%) |
2.48 |
3.32 |
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*Inventory / Revenue ×365 |
1 day |
1 day |
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*Accounts receivable / Revenue ×365 |
-- |
1 day |
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*Revenue / Total assets |
9.51 |
11.77 |
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*Cost of sales / Revenue |
0.90 |
1.00 |
FINANCIAL COMMENTS
PROFITABILITY: AVERAGE
The revenue of SC appears fairly good in its line, and it increased in 2013.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of sales is fairly high, comparing with its revenue in 2013.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a fairly good level.
The inventory of SC appears small.
The accounts receivable of SC appears small in 2013.
SC has no short-term loans.
SC’s revenue is in an average level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is above average.
Overall financial condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered small-sized in its line with fairly stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.60.28 |
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1 |
Rs.102.77 |
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Euro |
1 |
Rs.82.12 |
INFORMATION DETAILS
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Analysis Done by
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SUB |
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Report Prepared
by : |
NIS |
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.