MIRA INFORM REPORT
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Report Date : |
16.05.2014 |
IDENTIFICATION DETAILS
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Correct Name : |
Jieyang South China Trading Co., Ltd. |
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Registered Office : |
Shop 5-8, F/1, Junfayuan, Center Garden East, Huangqishan
Avenue, Dongshan District, Jieyang, Guangdong Province, 522031 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
29.04.2004 |
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Com. Reg. No.: |
445200000010448 |
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Legal Form : |
Limited Liabilities Co |
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Line of Business : |
Engaged in importing of copper scrap, steel scrap, aluminium scrap,
waste paper, waste plastics. |
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No. of Employees |
9 |
RATING & COMMENTS
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MIRA’s Rating : |
C |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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Status : |
Ceased Business Activity |
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Payment Behaviour : |
--- |
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Litigation : |
--- |
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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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately 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
|
Source
: CIA |
Company
name and address
Jieyang South China Trading Co., Ltd.
Shop 5-8,
F/1, junfayuan, center garDen east, huangqishan avenue, dongshan district,
jieyang, guangdong PROVINCE, 522031 PR CHINA
TEL: 86
(0) 663-8292839/8292388 FAX: 86 (0)
663-8292151
EXECUTIVE
SUMMARY
INCORPORATION DATE : apr. 29, 2004
REGISTRATION NO. : 445200000010448
REGISTERED LEGAL FORM : Limited liabilities co.
STAFF STRENGTH : 9
REGISTERED CAPITAL : CNY 13,080,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 0 (AS
OF DEC. 31, 2013)
EQUITIES : CNY -3,180,000 (AS OF DEC. 31, 2013)
PAYMENT :
Not yet determined
RECOMM. CREDIT RANGE : No recommendation
MARKET CONDITION : fair
FINANCIAL CONDITION : Poor
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.2268 = 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
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 Apr. 29, 2004.
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 domestic trade (excluding those
prohibited by the law; if needed with permit); import and export of goods and
technology (excluding those limited or prohibited by the state); import of
copper scrap, steel scrap, aluminium scrap, waste paper, waste plastics (with
permit).
SC’s accountant released
that SC has ceased its business since 2011; SC was mainly engaged in importing
of copper scrap, steel scrap, aluminium scrap, waste paper, waste plastics.
Mr. Wu Yidan is
executive director, general manager and legal representative of SC at present.
SC is
known to have approx. 9 employees
at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in Jieyang. Detailed premise information is not available at
present.
SC is not known to host website of its own at present.
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.
Organization
Code: 761578640
SC’s accountant released that SC has ceased its business since 2011, but
she declined to disclose the details.
MAIN SHAREHOLDERS:
Name Amount
(CNY) % of Shareholding
Zhang Zhongsheng 7,080,000 54.13
Wu Yidan 6,000,000 45.87
l Executive
Director, General Manager and Legal Representative:
Mr. Wu Yidan
l Supervisor
Zhang Zhongsheng
SC’s accountant released that SC has ceased its business since 2011, but
she declined to disclose the details.
SC was mainly
engaged in importing of copper scrap, steel scrap, aluminium scrap, waste
paper, waste plastics.
SC is not known to have the subsidiary at present.
Overall payment appraisal:
( ) Excellent (
) Good ( ) Average
( ) Fair (
) Poor (X) 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: N/A.
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 bank details are not available at present.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2013 |
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Cash & bank |
220 |
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Inventory |
710 |
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Accounts
receivable |
260 |
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------------------ |
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Current assets |
1,190 |
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Fixed assets net
value |
0 |
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------------------ |
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Total assets |
1,190 |
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=========== |
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Short loan |
26,500 |
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Accounts payable |
330 |
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Advances to
suppliers |
4,020 |
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Tax payable |
-40 |
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Other accounts
payable |
-26,480 |
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Payroll payable |
40 |
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------------------ |
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Current
liabilities |
4,370 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
4,370 |
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Equities |
-3,180 |
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------------------ |
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Total
liabilities & equities |
1,190 |
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=========== |
Income Statement
Unit: CNY’000
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As of Dec. 31,
2013 |
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Turnover |
0 |
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Cost of goods
sold |
0 |
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Management expense |
270 |
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Finance expense |
3,700 |
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Non-operating
income |
30 |
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Profit before
tax |
-3,940 |
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Less: profit tax |
0 |
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Profits |
-3,940 |
Important
Ratios
=============
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As
of Dec. 31, 2013 |
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*Current ratio
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0.27 |
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*Quick ratio |
0.11 |
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*Liabilities
to assets |
3.67 |
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*Net profit
margin (%) |
/ |
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*Return on
total assets (%) |
-331.09 |
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*Inventory
/Turnover ×365 |
/ |
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*Accounts
receivable/Turnover ×365 |
/ |
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*Turnover/Total
assets |
/ |
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* Cost of
goods sold/Turnover |
/ |
PROFITABILITY:
POOR
l SC has no turnover in 2013.
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
The inventory of SC appears large.
l
The accounts receivable of SC is average
l
SC’s short loans are large in 2013.
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
SC is considered
small-sized in its line with poor financial conditions. The large amount of
short loans and inventory could be a threat to SC’s financial conditions.
According to SC’s accountant, SC has ceased its business since 2011. Judging from the above investigation results, no credit
dealings with SC are recommended.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.47 |
|
|
1 |
Rs.99.70 |
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Euro |
1 |
Rs.81.55 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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Report Prepared
by : |
PDT |
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.