MIRA
INFORM REPORT
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Report Date : |
15.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
LYNX Commercial
Co., Ltd. |
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Registered Office : |
15A02 No. 33 Linjiang Dadao, Zhujiang New Town, Tianhe District,
Guangzhou, Guangdong Province 510000 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
03.09.2009 |
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Com. Reg. No.: |
440101400016328 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Engaged in trading and trade consulting |
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No. of Employees |
3 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
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High Risk |
C2 |
|
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 resource
|
Source
: CIA |
Company name and address
LYNX Commercial Co., Ltd.
15A02 NO. 33 Linjiang
Dadao, Zhujiang New Town, TIANHE DISTRICT
GUANGZHOU, GUANGDONG
province 510000 PR CHINA
TEL: 86 (0) 18664638005
FAX: N/A
***Note: The given
telephone numbers (+86 20 37857639/+86 15902085522) do not exist at present.
EXECUTIVE SUMMARY
Date of Registration : MARCH 9, 2009
REGISTRATION NO. : 440101400016328
LEGAL FORM : Wholly foreign-owned enterprise
REGISTERED CAPITAL :
cny 100,000
staff : 3
BUSINESS CATEGORY :
trading & CONSULTING
Revenue : CNY 10,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY -265,000 (AS OF DEC. 31, 2013)
E-MAIL :
Brim4@163.com
PAYMENT : not yet be determined
MARKET CONDITION : fair
FINANCIAL CONDITION : poor
OPERATIONAL TREND :
DOWNWARD
GENERAL REPUTATION : Detrimental
EXCHANGE RATE :
CNY 6.25 = 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 wholly foreign-owned enterprise of
PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 440101400016328 on March 9, 2009.
SC’s Organization Code Certificate
No.: 68521565-2
SC’s Tax No.: 440100685215652
SC’s registered capital: cny 100,000
SC’s paid-in capital: cny 100,000
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:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Mohammad Fazeli (Iran) |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman
and General Manager |
Mohammad Fazeli |
|
Supervisor |
Li
Zhifang |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Mohammad Fazeli (Iran) 100
MANAGEMENT
Mohammad
Fazeli, Legal
Representative, Chairman and General Manager
-------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Nationality: Iran
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman
and general manager
Li Zhifang, Supervisor
-----------------------------------------
Ø
Gender: F
BUSINESS OPERATION
SC’s registered business scope includes
commodity and international economic information consulting service.
SC is
mainly engaged in trading and trade consulting
SC’s
products mainly include: marble, granite, etc.
SC sources its products 100% from overseas
market, mainly Iran. SC sells 100% of its products in domestic market
The
buying terms of SC include Check, T/T, L/C and Credit of 30-60 days. The payment
terms of SC include Check, T/T and Credit of 30-60 days.
Staff & Office:
--------------------------
SC is
known to have approx. 3 staff
at present.
SC rents an area
as its operating office, but the detailed information is unknown.
RELATED COMPANY
SC is not known to have any subsidiary at present.
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good ( ) Average ( ) Fair ( ) Poor (X) 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
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
|
Cash |
18 |
|
Notes receivable |
0 |
|
Accounts receivable |
0 |
|
Advances to
suppliers |
0 |
|
Other receivable |
50 |
|
Inventory |
0 |
|
Prepaid
expenses |
0 |
|
Other current
assets |
0 |
|
|
------------------ |
|
Current assets |
68 |
|
Fixed assets |
0 |
|
Construction in
progress |
0 |
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Intangible assets |
0 |
|
Long-term
prepaid expenses |
0 |
|
Deferred income
tax assets |
0 |
|
Other
non-current assets |
0 |
|
|
------------------ |
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Total assets |
68 |
|
|
============= |
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Short-term loans |
0 |
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Notes payable |
0 |
|
Accounts payable |
0 |
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Wages payable |
0 |
|
Taxes payable |
0 |
|
Advances from
clients |
0 |
|
Other payable |
249 |
|
Accrued expenses |
0 |
|
Other current
liabilities |
0 |
|
|
------------------ |
|
Current
liabilities |
249 |
|
Non-current
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
249 |
|
Equities |
-181 |
|
|
------------------ |
|
Total
liabilities & equities |
68 |
|
|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
|
Revenue |
0 |
|
Cost of sales |
0 |
|
Taxes and surcharges |
0 |
|
Sales expense |
0 |
|
Management expense |
115 |
|
Finance expense |
1 |
|
Profit before
tax |
-116 |
|
Less: profit tax |
0 |
|
Profits |
-116 |
Financial Summary
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
|
Total assets |
96 |
|
|
------------- |
|
Total
liabilities |
361 |
|
Equities |
-265 |
|
|
------------- |
|
Revenue |
10 |
|
Profit before
tax |
-84 |
|
Less: profit tax |
0 |
|
Profits |
-84 |
Important Ratios
=============
|
|
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
0.27 |
-- |
|
*Quick ratio |
0.27 |
-- |
|
*Liabilities
to assets |
3.66 |
3.76 |
|
*Net profit
margin (%) |
-- |
-840.00 |
|
*Return on
total assets (%) |
-170.59 |
-87.5 |
|
*Inventory / Revenue
×365 |
-- |
-- |
|
*Accounts
receivable / Revenue ×365 |
-- |
-- |
|
*Revenue /
Total assets |
-- |
0.10 |
|
*Cost of sales
/ Revenue |
-- |
-- |
FINANCIAL COMMENTS
PROFITABILITY:
POOR
l
The revenue of SC appears
poor in its line in 2013.
l
SC’s net profit margin is poor.
l
SC’s return on total assets is poor.
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
SC has no inventory in 2012.
l
SC has no accounts receivable in 2012.
l
SC has no short-term loans in 2012.
l
SC’s revenue is in a
poor level, comparing with the size of its total assets.
LEVERAGE:
POOR
l
The debt ratio of SC is too high.
l
The risk for SC to go bankrupt is high.
Overall financial
condition of the SC: Poor.
CONCLUSIONS
SC is considered small-sized in its line with poor financial
conditions. Great caution is required in providing credit to SC & C.O.D. is
recommended.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.87 |
|
|
1 |
Rs.100.98 |
|
Euro |
1 |
Rs.82.40 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
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|
Report Prepared
by : |
PDT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
|
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 |
|
|
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 |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
|
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 |
|
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
|
-- |
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.