MIRA
INFORM REPORT
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Report Date : |
29.05.2014 |
IDENTIFICATION DETAILS
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Name : |
AKSA POWER GENERATION (CHINA) CO., LTD. |
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Registered Office : |
No. 19 Tongjiang North Road, Xinbei District, Changzhou, Jiangsu Province, 213031 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
27.05.2009 |
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Com. Reg. No.: |
320400400025753 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Subject is engaged in technology research and development of power generation equipment; manufacturing and processing AC motors, generator sets and spare parts; selling self-made products; providing after-sales service; import and export, domestic wholesales of engine, AC motors and their spare parts (with application if needed). |
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No of Employees : |
300 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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
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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 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
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Source
: CIA |
COMPANY NAME & ADDRESS
AKSA POWER GENERATION (CHINA) CO., LTD.
no. 19 TONGJIANG NORTH ROAD, XINBEI DISTRICT,
CHANGZHOU,
jiangsu province, 213031 PR CHINA
TEL: 86 (0) 519-85150205 FAX: 86 (0) 519-85150133/85150206
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY
27, 2009
REGISTRATION NO. :
320400400025753
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE
STAFF STRENGTH : 300
REGISTERED CAPITAL : USD 12,500,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 947,060,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 160,350,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.2439 = 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
%20CO%20,%20LTD%20%20-%20269003%2029-May-2014_files/image001.gif){kind=small}
SC was registered as a wholly foreign-owned enterprise at local Administration
for industry & commerce (AIC - the official body of issuing and renewing
business license) on May 27, 2009.
Company Status: Wholly foreign-owned
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. established within
the territories of PR China with capital provided totally by the foreign
investors. More than one foreign investor may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon
approval of Examination and Approval Authorities.
SC’s registered business scope includes technology research and development
of power generation equipment; manufacturing and processing AC motors,
generator sets and spare parts; selling self-made products; providing
after-sales service; import and export, domestic wholesales of engine, AC
motors and their spare parts (with application if needed).
SC is mainly
engaged in manufacturing and selling power generation equipment and spare
parts.
Mr. Necati Baykal
is legal representative and chairman of SC at present.
SC is known to
have approx. 300 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Changzhou. SC’s employee
refused to release the detailed information of the premise.
%20CO%20,%20LTD%20%20-%20269003%2029-May-2014_files/image002.gif){kind=small}
http://cn.aksapowergen.com/
The design is professional and the content is well organized. At present it is
in Chinese and English versions.
Email: aksa@aksapowergen.com;
export129@aksachina.com
%20CO%20,%20LTD%20%20-%20269003%2029-May-2014_files/image003.gif){kind=small}
For the past two years there is no record of litigation.
%20CO%20,%20LTD%20%20-%20269003%2029-May-2014_files/image004.gif){kind=small}
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2012 |
Registered capital |
USD 10,255,400 |
Present amount |
Subject passed the
annual inspection of 2012 with Administration for Industry & Commerce.
Organization Code:
689625800
SC started its normal production in May of 2012.
%20CO%20,%20LTD%20%20-%20269003%2029-May-2014_files/image005.gif){kind=small}
MAIN SHAREHOLDERS:
Name %
of Shareholding
Aksa Jenerator Sanayi Anonim Sirketi
(Turkey) 100
Website: http://www.aksa.com.tr/
Email: aksa@aksa.com.tr
%20CO%20,%20LTD%20%20-%20269003%2029-May-2014_files/image006.gif){kind=small}
l
Legal Representative and Chairman:
Mr. Necati Baykal, Turk, he is currently responsible for the overall
management of SC.
Working Experience(s):
At present Working
in SC as legal representative and chairman;
Also
working in AKSA Power Generation (Changzhou) Co., Ltd. as legal representative.
l
Vice Chairman and General Manager:
Mr. Alper Peker, Turk, he is currently responsible for the daily
management of SC.
Working Experience(s):
At present Working
in SC as vice chairman and general manager;
Also working in Jiangyin AKSA Electric Motor Co., Ltd. as
legal representative.
l
Director:
Sedat Siverek
l
Supervisor:
Cemil Kazanci
%20CO%20,%20LTD%20%20-%20269003%2029-May-2014_files/image007.gif){kind=small}
SC started its normal production in May of 2012.
SC is mainly
engaged in manufacturing and selling power generation equipment and spare
parts.
SC’s products mainly include: Diesel Gensets,
Parallel Generators, Lighting Tower, etc.
%20CO%20,%20LTD%20%20-%20269003%2029-May-2014_files/image009.jpg)
%20CO%20,%20LTD%20%20-%20269003%2029-May-2014_files/image011.gif)
%20CO%20,%20LTD%20%20-%20269003%2029-May-2014_files/image013.jpg)
SC sources its materials 95% from domestic
market, and 5% from overseas market. SC sells 70% of its products to overseas
market and 30% in domestic market.
The buying terms of SC include Check, L/C, T/T and Credit of 30-60 days.
The payment terms of SC include Check, L/C, T/T and Credit of 30-60 days.
Note:
SC’s management refused to release its main suppliers and clients.
%20CO%20,%20LTD%20%20-%20269003%2029-May-2014_files/image014.gif){kind=small}
AKSA
Power Generation (Changzhou) Co., Ltd.
………………………………………………….
Incorporation Date:
Registration No.: 320400400020774
Jiangyin
AKSA Electric Motor Co., Ltd.
………………………………………………….
Incorporation Date:
Registration No.: 320281000019047
Legal representative: Mr. Alper Peker
%20CO%20,%20LTD%20%20-%20269003%2029-May-2014_files/image015.gif){kind=small}
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.
%20CO%20,%20LTD%20%20-%20269003%2029-May-2014_files/image016.gif){kind=small}
SC’s accountant
refused to release the bank details.
%20CO%20,%20LTD%20%20-%20269003%2029-May-2014_files/image017.gif){kind=small}
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2013 |
|
Cash & bank |
76,450 |
|
Inventory |
93,870 |
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Accounts receivable |
207,390 |
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Advances to
suppliers |
1,000 |
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Other
receivables |
2,720 |
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Prepaid expenses |
690 |
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------------------ |
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Current assets |
382,120 |
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Fixed assets net
value |
102,560 |
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Long term
investment |
1,570 |
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Projects under construction |
3,660 |
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Intangible and
other assets |
15,360 |
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------------------ |
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Total assets |
505,270 |
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=========== |
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Short loan |
30,000 |
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Accounts payable |
164,060 |
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Advances from
customers |
12,000 |
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Taxes payable |
-6,110 |
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Other accounts
payable |
2,730 |
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Note payable |
120,710 |
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Interest payable |
60 |
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Payroll payable |
5,220 |
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Accrued expenses |
16,250 |
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------------------ |
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Current
liabilities |
344,920 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
344,920 |
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Equities |
160,350 |
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------------------ |
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Total
liabilities & equities |
505,270 |
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=========== |
Income Statement
Unit: CNY’000
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As of Dec. 31,
2013 |
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Turnover |
947,060 |
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Cost of goods
sold |
799,950 |
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Sales expense |
17,050 |
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Management expense |
51,870 |
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Finance expense |
18,690 |
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Investment
income |
-1,340 |
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Profit from
other operations |
4,770 |
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Non-operating
income |
370 |
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Profit before
tax |
63,300 |
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Less: profit tax |
8,840 |
|
Profits |
54,460 |
Important
Ratios
=============
|
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As
of Dec. 31, 2013 |
|
*Current ratio
|
1.11 |
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*Quick ratio |
0.84 |
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*Liabilities
to assets |
0.68 |
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*Net profit
margin (%) |
5.75 |
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*Return on
total assets (%) |
10.78 |
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*Inventory
/Turnover ×365 |
37 days |
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*Accounts
receivable/Turnover ×365 |
80 days |
|
*Turnover/Total
assets |
1.87 |
|
* Cost of
goods sold/Turnover |
0.84 |
%20CO%20,%20LTD%20%20-%20269003%2029-May-2014_files/image018.gif){kind=small}
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears
fairly good in its line.
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SC’s net profit margin is fairly good.
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SC’s return on total assets is good.
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SC’s cost of goods sold is average.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average.
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The accounts receivable of SC is maintained in a
fairly large level.
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SC’s short loans are average in 2013.
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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 average.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
%20CO%20,%20LTD%20%20-%20269003%2029-May-2014_files/image019.gif){kind=small}
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. 59.07 |
|
|
1 |
Rs. 99.20 |
|
Euro |
1 |
Rs. 80.53 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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Report Prepared
by : |
DPT |
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 |
|
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 |
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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.