MIRA
INFORM REPORT
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Report Date : |
28.05.2014 |
IDENTIFICATION DETAILS
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Name : |
JIANGSU MEIGANG STEEL TUBE CO., LTD. |
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Registered Office : |
No. 1, Xinggang Road, Riverside Development Zone, Jiangdu District, Yangzhou, Jiangsu
Province, 225211 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
07.12.2011 |
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Com. Reg. No.: |
321088000226973 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in selling steel materials, steel pipe, bar, panel, pipe
welding, stainless steel products, aluminum alloy products, metal materials,
anti-corrosion materials, mould, mechanical equipment, parts and electrical
equipment; storage; load and unload; stowage information services; import and export of various goods and technologies
(excluding the goods forbidden by the government). |
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No. of Employees : |
60 |
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 31st, 2014
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Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
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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 |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
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 & address
jiangsu meigang steel tube Co., Ltd.
No. 1, xinggang
road, riverside development zone,
jiangdu district,
yangzhou, jiangsu PROVINCE, 225211 PR CHINA
TEL: 86 (0)
514-86439971 FAX: 86 (0)
514-86435303
EXECUTIVE SUMMARY
INCORPORATION DATE : dec. 7, 2011
REGISTRATION NO. : 321088000226973
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE : MR. bian xiaoliang (CHAIRMAN)
STAFF STRENGTH : 60
REGISTERED CAPITAL :
CNY 490,000,000
BUSINESS LINE : TRADING
TURNOVER : CNY 1,210,340,000 (AS OF DEC. 31, 2012)
EQUITIES : CNY 338,490,000 (AS OF DEC. 31, 2012)
PAYMENT : AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
6.04 = 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
Note: SC’s detailed address should be the heading one.
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. 7, 2011.
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 selling steel materials, steel pipe,
bar, panel, pipe welding, stainless steel products, aluminum alloy products,
metal materials, anti-corrosion materials, mould, mechanical equipment, parts
and electrical equipment; storage; load and unload; stowage information
services; import and export of various goods and
technologies (excluding the goods forbidden by the government).
SC is mainly
engaged in selling steel materials and steel pipes.
Mr. Bian Xiaoliang
is legal representative, chairman and general
manager of SC at present.
SC is
known to have approx. 60 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the development zone of Yangzhou.
Our checks reveal that SC rents the total premise, but SC’s accountant refused
to release the gross area of the premise.
SC is not known to host website of its own at present.
No significant events or changes were found during our checks
with the local Administration for Industry and Commerce.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Bian Xiaoliang ID# 32108819761023XXXX 80
Xu Guoping ID# 32108819640706XXXX 20
Legal
representative, Chairman and General manager:
Mr. Bian Xiaoliang, born in 1976, with university education. He 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:
Xu Guoping
SC is mainly
engaged in selling steel materials and steel pipes.
SC’s products
mainly include: steel materials and steel pipes.
SC sources its materials 90%
from domestic market, and 10% from overseas market. SC sells 70% of its products
in domestic market, and 30% to overseas 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, L/C and Credit of 30-60
days.
Note: SC’s management declined to release its customer and supplier
details.
SC
is not known to have any subsidiary at present.
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, 2012 |
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Cash & bank |
98,460 |
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Notes receivable |
8,900 |
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Inventory |
23,830 |
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Accounts
receivable |
464,990 |
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Other
receivables |
0 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
596,180 |
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Fixed assets net
value |
50 |
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Projects under
construction |
1,660 |
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Long term
investment |
0 |
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Other assets |
0 |
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------------------ |
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Total assets |
597,890 |
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============= |
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Short loans |
10,000 |
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Notes payable |
190,000 |
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Accounts payable |
62,510 |
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Other payable |
190 |
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Taxes payable |
-3,300 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
259,400 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
259,400 |
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Equities |
338,490 |
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------------------ |
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Total
liabilities & equities |
597,890 |
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============= |
Income Statement
Unit: CNY’000
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as of Dec. 31,
2012 |
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Turnover |
1,210,340 |
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Cost of goods
sold |
1,205,070 |
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Sales expense |
12,910 |
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Management expense |
350 |
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Finance expense |
3,510 |
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Profit before
tax |
-11,500 |
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Less: profit tax |
0 |
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Profits |
-11,500 |
Important Ratios
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as
of Dec. 31, 2012 |
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*Current ratio |
2.30 |
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*Quick ratio |
2.21 |
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*Liabilities
to assets |
0.43 |
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*Net profit
margin (%) |
-0.95 |
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*Return on
total assets (%) |
-1.92 |
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*Inventory
/Turnover ×365 |
8 days |
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*Accounts
receivable/Turnover ×365 |
141 days |
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*Turnover/Total
assets |
2.02 |
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* Cost of
goods sold/Turnover |
1.00 |
PROFITABILITY:
FAIR
l
The turnover of SC appears good in its line.
l
SC’s net profit margin is fair.
l
SC’s return on total assets is fair.
l
SC’s cost of goods sold is high, comparing with its
turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fairly
good level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC appears large in
2012.
l
SC’s short-term loan is in an average level.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is average.
Overall financial condition of the SC:
Fairly stable.
SC is considered medium-sized in its line with fairly stable
financial conditions. The large amount of accounts receivable could be a threat
to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.06 |
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UK Pound |
1 |
Rs.99.61 |
|
Euro |
1 |
Rs.80.60 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.