MIRA
INFORM REPORT
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Report Date : |
30.05.2014 |
IDENTIFICATION DETAILS
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Name : |
Zhejiang Huxin Stainless Steel Manufacturing Co., Ltd. |
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Registered Office : |
Mocheng Industrial Zone, Aojiang
Town, Pingyang County, Wenzhou, Zhejiang Province, 325401 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
16.03.2006 |
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Com. Reg. No.: |
330326000024621 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Engaged in manufacturing and sales of metal products. |
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No. of Employees : |
66 |
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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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 and address
Zhejiang Huxin Stainless Steel Manufacturing Co.,
Ltd.
Mocheng industrial zone, aojiang town, pingyang county,
wenzhou,
zhejiang PROVINCE, 325401 PR CHINA
TEL: 86
(0) 577-63638608/63261797 FAX: N/A
EXECUTIVE SUMMARY
INCORPORATION DATE : MAR. 16, 2006
REGISTRATION NO. : 330326000024621
REGISTERED LEGAL FORM : Limited liabilities co.
STAFF STRENGTH : 66
REGISTERED CAPITAL : CNY 60,000,000
BUSINESS LINE :
TRADING AND MANUFACTURING
TURNOVER :
CNY 58,090,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 48,230,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : FAIRLY steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.25 = 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 Mar.
16, 2006.
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 manufacture, processing and sales
of stainless steel seamless pipe, stainless steel welded pipe and other
stainless steel; import and export of goods and technology (excluding those
limited, prohibited and permitted by the law).
SC is mainly engaged in manufacturing and sales of metal products.
Mr. Zheng
Xiangqing is legal representative, executive director and general manager of SC
at present.
SC is
known to have approx. 66 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 Wenzhou. Detailed
premise information is not available at present.
http://zjhuxin.com/ The design is professional
and the content is well organized. At present it is in English and Chinese
versions.
Email: vickzheng@zjhuxin.com
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.
Subject
passed the annual inspection of 2012 with Administration for Industry &
Commerce.
Organization
Code: 786410123
Honor
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zheng Xiangqing 87.5
Zheng Xiangqian 12.5
l
Legal Representative, Executive Director and
General Manager:
Mr. Zheng Xiangqing is currently responsible for the overall and daily
management of SC.
Working Experience(s):
At
present Working in SC as
legal representative, executive director and general manager.
l
Supervisor:
Zheng Xiangqian
SC is mainly engaged in manufacturing and sales of metal products.
SC’s products mainly
include: seamless pipe and stainless steel welded pipe.
SC sources its materials 100% from domestic
market. SC sells 90% of its products in domestic market, and 10% 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 declined to release its major
suppliers and clients.
SC is not known to have the 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 accountant
refused to release the bank details.
Balance Sheet
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Unit: CNY’000 |
As
of Dec. 31, 2013 |
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Cash & bank |
800 |
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Inventory |
2,090 |
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Accounts
receivable |
5,030 |
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Advances to suppliers |
430 |
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Other
receivables |
20,090 |
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Note payable |
550 |
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------------------ |
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Current assets |
28,990 |
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Fixed assets net
value |
50,130 |
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Projects under
construction |
22,640 |
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Intangible and
other assets |
30 |
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------------------ |
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Total assets |
101,790 |
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=========== |
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Short loan |
40,000 |
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Accounts payable |
5,230 |
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Advances from
customers |
150 |
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Taxes payable |
170 |
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Other accounts
payable |
8,010 |
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------------------ |
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Current
liabilities |
53,560 |
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Long term liabilities |
0 |
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------------------ |
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Total
liabilities |
53,560 |
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Equities |
48,230 |
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------------------ |
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Total
liabilities & equities |
101,790 |
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=========== |
Income Statement
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Unit: CNY’000 |
As of Dec. 31,
2013 |
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Turnover |
58,090 |
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Cost of goods
sold |
54,160 |
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Taxes and additional of main operation |
120 |
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Sales expense |
370 |
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Management expense |
4,530 |
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Finance expense |
860 |
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Non-operating
income |
360 |
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Profit before
tax |
-1,590 |
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Less: profit tax |
0 |
|
Profits |
-1,590 |
Important
Ratios
=============
|
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As
of Dec. 31, 2013 |
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*Current ratio
|
0.54 |
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*Quick ratio |
0.50 |
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*Liabilities
to assets |
0.53 |
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*Net profit
margin (%) |
-2.74 |
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*Return on
total assets (%) |
-1.56 |
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*Inventory
/Turnover ×365 |
14 days |
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*Accounts
receivable/Turnover ×365 |
32 days |
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*Turnover/Total
assets |
0.57 |
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* Cost of
goods sold/Turnover |
0.93 |
PROFITABILITY:
FAIR
l
The turnover of SC appears
average 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 fairly high.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears average.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short loans are fairly large in 2013.
l
SC’s turnover is in a fair 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.
SC is considered small-sized in its line with fairly stable financial
conditions. The fairly large amount of short loans could be a threat to SC’s
financial situation.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.84 |
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|
1 |
Rs.98.40 |
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Euro |
1 |
Rs.80.03 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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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.