MIRA
INFORM REPORT
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Report Date : |
20.05.2014 |
IDENTIFICATION DETAILS
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Name : |
FOSHAN METECH TRADING CO., LTD. |
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Registered Office : |
2/F, Building E1, Jiulong Hardware & Ss Trade Center, Dali Town,
Nanhai District, Foshan City, Guangdong Province, 528231 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
20.12.2010 |
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Com. Reg. No.: |
440682000238179 |
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Legal Form : |
Limited liabilities
company |
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Line of Business : |
Mainly Engaged in Selling Aluminum Processing Equipment |
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No of Employees : |
3 |
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 : |
Small Company |
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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 – September 30, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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.
|
Source
: CIA |
COMPANY NAME & ADDRESS
FOSHAN METECH TRADING CO., LTD.
2/F, building E1, Jiulong Hardware & SS
TRADE CENTER, DALI TOWN, NANHAI DISTRICT, FOSHAN CITY, GUANGDONG PROVINCE,
528231 PR CHINA
TEL: 86
(0) 757-81020128/81102120
FAX: 86
(0) 757-81020129
EXECUTIVE SUMMARY
INCORPORATION DATE : Dec. 20, 2010
REGISTRATION NO. : 440682000238179
REGISTERED LEGAL FORM : Limited liabilities
company
chief executive :
MR. TAN NANLIN (CHAIRMAN)
STAFF STRENGTH :
3
REGISTERED CAPITAL : CNY 1,000,000
BUSINESS LINE :
trading
TURNOVER :
CNY 430,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 930,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.2337 = 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 co. at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on Dec. 20, 2010.
Company Status: Limited Liability Company 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, importing and
exporting goods and technologies. (with permit if needed).
SC is mainly engaged in selling aluminum processing equipment
Mr. Tan Nanlin is the legal representative, chairman and general manager
of SC at present.
SC is known to have approx. 3 employees at
present.
SC is currently operating at the above stated address, and
this address houses its operating office in the commercial zone of Foshan. Detailed premise
information is unspecified.
www.cnmetech.com The
web belongs to Foshan Metech Aluminum Technology Co., Ltd. The design is
professional and the content is well organized. At present it is in Chinese,
English and other versions.
No significant events or changes were found during our checks with local
AIC.
Subject passed the annual inspection of 2012 with
Administration for Industry & Commerce.
Organization Code: 566665159
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Tan Tonghe 70
Tan Nanlin 30
Legal representative, Chairman and
General manager:
Mr. Tan Nanlin is currently responsible for
the overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative, chairman and general manager
Supervisor:
……………
Tan Tonghe
SC is mainly engaged in selling aluminum processing equipment.
Main Products:
Aluminum &Alloy Rod Wire CCR line Equipment
Aluminum Billets & Bar Production line Equipment
Aluminum Slabs & Plate Production line Machinery
Aluminum Foil & Roll & Coil Production line Equipment
Aluminum Castings Manufacturing Equipments
Secondary Aluminum Ingot Production line Machinery
Aluminum Profiles Production Line Equipments
Other Aluminum Industrial Auxiliary Equipments
Industrial Melting Furnaces & Smelter & Oven
Etc.
SC sources its materials 100% from domestic market. SC sells
10% of its products in domestic market and 90% 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.
Note: SC refused
to release its major suppliers and clients
Yueyang Xinte Heat Energy Engineering and Technology Co., Ltd.
==============================================
Reg. No.: 430621000006433
Legal representative: Luo Jingfeng
Incorporation date:
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.
SC’s management declined to release its bank details.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2013 |
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Cash & bank |
230 |
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Inventory |
0 |
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Accounts receivable |
50 |
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Other Accounts receivable |
800 |
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Advances to suppliers |
900 |
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Other current assets |
0 |
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------------------ |
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Current assets |
1,980 |
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Fixed assets net value |
0 |
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Projects under construction |
0 |
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Long-term investment |
0 |
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Intangible assets |
0 |
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Long-term deferred expenses |
0 |
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Other assets |
0 |
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------------------ |
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Total assets |
1,980 |
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============= |
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Short loans |
0 |
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Note payable |
0 |
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Accounts payable |
0 |
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Advance from customers |
1,050 |
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Other Accounts payable |
0 |
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Salaries payable |
0 |
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Taxes payable |
0 |
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Other current liabilities |
0 |
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1,050 |
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Long term liabilities |
0 |
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Total liabilities |
1,050 |
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Equities |
930 |
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------------------ |
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1,980 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2013 |
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Turnover |
430 |
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Cost of goods sold |
350 |
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Sales expense |
10 |
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Management expense |
60 |
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Profit before tax |
10 |
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Less: profit tax |
0 |
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Profits |
10 |
Important Ratios
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As
of Dec. 31, 2013 |
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*Current ratio |
1.89 |
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*Quick ratio |
1.89 |
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*Liabilities to assets |
0.53 |
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*Net profit margin (%) |
2.33 |
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*Return on total assets (%) |
0.51 |
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*Inventory /Turnover ×365 |
/ |
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*Accounts receivable/Turnover ×365 |
42 days |
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*Turnover/Total assets |
0.22 |
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* Cost of goods sold/Turnover |
0.81 |
PROFITABILITY:
AVERAGE
The turnover of SC appears fair in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a
normal level.
SC’s quick ratio is maintained in a normal
level.
SC has no inventory in 2013.
SC’s accounts receivable is average in 2013.
SC has no short-term loan in 2013.
SC’s turnover is in a poor 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 average.
Overall financial
condition of the SC: Fairly Stable.
SC is considered small-sized in its line with fairly stable financial conditions.
Taking into consideration of SC’s general performance and operation size, a
credit line up to USD 2,000 is recommended.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.42 |
|
|
1 |
Rs.96.28 |
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Euro |
1 |
Rs.80.12 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
SHG |
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 |
-- |
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.