MIRA
INFORM REPORT
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Report Date : |
16.05.2014 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG HUACHEN SCREW MANUFACTURING CO., LTD. |
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Registered Office : |
No. 169 Xindao East Road, Jintang Town, Dinghai District Zhoushan, Zhejiang Province 316033 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
28.09.2005 |
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Com. Reg. No.: |
330907000003296 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in the manufacturing, processing, and selling
plastic machinery, chemical fiber machinery, rubber & plastic machinery, screw
barrel, and mechanical components; importing and exporting commodities and
technology. |
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No. of Employees : |
45 |
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
|
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
ZHEJIANG HUACHEN SCREW MANUFACTURING CO.,
LTD.
NO. 169 XINDAO
EAST ROAD, JINTANG TOWN, DINGHAI DISTRICT
ZHOUSHAN,
ZHEJIANG PROVINCE 316033 PR CHINA
TEL: 86 (0)
580-8052288/8053878
FAX: 86 (0)
580-8340889
EXECUTIVE SUMMARY
Date of Registration : september 28, 2005
REGISTRATION NO. : 330907000003296
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE :
he jie (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : cny 5,180,000
staff :
45
BUSINESS CATEGORY : manufacturing
& processing & trading
Revenue :
CNY 10,810,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 7,990,000 (AS OF DEC. 31, 2013)
WEBSITE : www.hcscrewbarrel.com
E-MAIL :
sales@hcscrewbarrel.com
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : ORDINARY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.24 = 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.:
330907000003296 on September 28, 2005.
SC’s Organization Code Certificate No.:
78047524-1
SC’s Tax No.: 330902780475241
SC’s registered capital: cny 5,180,000
SC’s paid-in capital: cny 5,180,000
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 |
|
He Jie |
60 |
|
Xu Yanna |
40 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General Manager |
He Jie |
|
Supervisor |
Xu Yanna |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
He Jie 60
Xu Yanna 40
MANAGEMENT
He Jie, Legal Representative, Chairman and General
Manager
-----------------------------------------------------------------------------------------
Gender: M
Working experience
(s):
At present, working in SC as legal representative, chairman and general
manager
Xu Yanna, Supervisor
----------------------------------------
Gender: F
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing,
processing, and selling plastic machinery, chemical fiber machinery, rubber
& plastic machinery, screw barrel, and mechanical components; importing and
exporting commodities and technology.
SC is mainly engaged in manufacturing, processing, and selling screw
barrel.
SC’s products mainly include:
Screw Barrel
Nitrided Screw Barrel
Bimetallic Screw Barrel
Planet Screw Barrel
Rubber Screw Barrel
Pin Rubber Screw Barrel
Hot Feeding Rubber Screw Barrel
Cool Feeding Rubber Barrel
Twin Screw Barrel
Parallel Twin Screw Barrel
Conical Twin Screw Barrel
Single Screw Barrel
Fiber screw barrel
Screw Barrel Components
Film Blowing Screw Barrel
Injection Screw Barrel
Extruder Screw Barrel
SC sources its materials 100% from domestic market. SC sells 60% of its
products in domestic market, and 40% 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, T/T, L/C and Credit of 30-60 days.
Staff &
Office:
--------------------------
SC is known to have approx. 45
staff at present.
SC rents an area as its operating office and factory, but the detailed
information is unknown.
RELATED
COMPANY
SC is not known to have any subsidiary at present.
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,
2013 |
|
270 |
|
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Notes receivable |
270 |
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Accounts receivable |
9,950 |
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Advances to suppliers |
0 |
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Other receivable |
450 |
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Inventory |
2,730 |
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Non-current assets within one year |
0 |
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Other current assets |
750 |
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------------------ |
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Current assets |
14,420 |
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Fixed assets |
5,940 |
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Construction in progress |
0 |
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Intangible assets |
0 |
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Long-term investment |
0 |
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Deferred income tax assets |
0 |
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Other non-current assets |
8,280 |
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------------------ |
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Total assets |
28,640 |
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============= |
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Short-term loans |
11,000 |
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Notes payable |
0 |
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Accounts payable |
6,500 |
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Welfares payable |
0 |
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Taxes payable |
0 |
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Advances from clients |
0 |
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Other payable |
1,540 |
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Other current liabilities |
70 |
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------------------ |
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Current liabilities |
19,110 |
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Non-current liabilities |
1,540 |
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------------------ |
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Total liabilities |
20,650 |
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Equities |
7,990 |
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------------------ |
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Total liabilities & equities |
28,640 |
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============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
|
Revenue |
10,810 |
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Cost of sales |
8,620 |
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Sales expense |
340 |
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Management expense |
1,560 |
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Finance expense |
570 |
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Profit before tax |
-200 |
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Less: profit tax |
0 |
|
-200 |
Important Ratios
|
|
As of Dec. 31, 2013 |
|
*Current ratio |
0.75 |
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*Quick ratio |
0.61 |
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*Liabilities to assets |
0.72 |
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*Net profit margin (%) |
-1.85 |
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*Return on total assets (%) |
-0.70 |
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*Inventory / Revenue ×365 |
93 days |
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*Accounts receivable / Revenue ×365 |
336 days |
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*Revenue / Total assets |
0.38 |
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*Cost of sales / Revenue |
0.80 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIR
·
The revenue of SC appears average in its line.
·
SC’s net profit margin is fair.
·
SC’s return on total assets is fair.
·
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: FAIR
·
The current ratio of SC is maintained in a fair
level.
·
SC’s quick ratio is maintained in a fair level.
·
The inventory of SC appears average.
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The accounts receivable of SC appears large.
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The short-term loans of SC appear large.
·
SC’s revenue is in a fair level, comparing with the
size of its total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is average.
·
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered small-sized in its line with fair financial conditions.
The large amount of accounts receivable and short-term loans may be a threat to
SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.47 |
|
|
1 |
Rs.99.70 |
|
Euro |
1 |
Rs.81.55 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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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 |
|
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.