MIRA
INFORM REPORT
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Report Date : |
20.11.2014 |
IDENTIFICATION DETAILS
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Name : |
SHANXI MINJEE TRADE LIMITED CORPORATION |
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Registered Office : |
Room 306 Thaihang Shiji Bldg., No. 31 Qinxian Beijie |
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Country : |
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Financials (as on) : |
31.07.2014 |
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Date of Incorporation : |
11.09.2003 |
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Com. Reg. No.: |
140100200185212 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling gas equipment, general machinery products, mining machinery
& equipment, building & decorating materials, computers &
accessories, metal materials, pig iron, chemical products, sporting goods,
hardware, knitting goods & textiles & textile equipment, office
supplies, and paint; machinery & equipment detection and maintenance;
international trade; enterprise management and consultation; and cargo
handling. |
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No of Employees : |
4 |
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 – June 1, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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 |
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 and address
SHANXI MINJEE TRADE
LIMITED CORPORATION
Room 306 Thaihang Shiji Bldg., No. 31 Qinxian Beijie
Taiyuan, Shanxi Province 030000 PR China
TEL: 86 (0) 351-7077636
FAX: 86 (0) 351-7077636
EXECUTIVE SUMMARY
Date of Registration : september 11, 2003
REGISTRATION NO. : 140100200185212
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : cny 1,000,000
staff :
4
BUSINESS CATEGORY :
trading
REVENUE :
CNY 6,750,000 (JAN. 1, 2014 TO
JUL. 31, 2014)
EQUITIES :
CNY 970,000 (AS OF JUL. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND :
ordinary
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.13 = USD 1
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.: 140100200185212 on September 11,
2003.
SC’s Organization Code Certificate No.:
75405543-8
SC’s registered capital: CNY 1,000,000
SC’s paid-in capital: CNY 1,000,000
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 |
|
Hao Xuan |
51 |
|
Wang Jiangquan |
49 |
SC’s Chief Executives
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Hao Xuan |
|
Supervisor |
Wang Jiangquan |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Hao Xuan 51
Wang Jiangquan 49
MANAGEMENT
Hao Xuan, Legal
Representative, Chairman, and General Manager
Ø
Gender: M
Ø
Nationality: China
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman,
and general manager
Wang Jiangquan,
Supervisor
Ø
Gender: M
Ø
Nationality: China
Ø
Qualification:
University
BUSINESS OPERATION
SC’s registered business scope includes selling gas
equipment, general machinery products, mining machinery & equipment,
building & decorating materials, computers & accessories, metal
materials, pig iron, chemical products, sporting goods, hardware, knitting
goods & textiles & textile equipment, office supplies, and paint;
machinery & equipment detection and maintenance; international trade;
enterprise management and consultation; and cargo handling.
SC is mainly
engaged in international trade.
SC’s products
mainly include: textiles machines spare parts, home textile, towels, solar
water heaters, furniture, etc.
SC sources its products 100% from domestic
market. SC sells 60% of its products in domestic market, and 40% to overseas
market, mainly Southeast Asia, etc.
The buying terms
of SC include Check, T/T and Credit of 30-60 days. The payment terms of SC
include T/T, L/C and Credit of 30-60 days.
Staff & Office
SC is known
to have approx. 4 staff at
present.
SC rents an area as
its operating office, 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
Basic Bank
Minsheng Bank
AC#: N/a
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
As
of Jul. 31, 2014 |
|
Cash |
960 |
1,530 |
|
Notes receivable |
0 |
0 |
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Accounts
receivable |
710 |
970 |
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Advances to
suppliers |
0 |
0 |
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Other receivable |
400 |
470 |
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Inventory |
660 |
830 |
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Non-current
assets within one year |
0 |
0 |
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Other current
assets |
20 |
10 |
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------------------ |
------------------ |
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Current assets |
2,750 |
3,810 |
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Fixed assets |
10 |
10 |
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Long-term
prepaid expenses |
0 |
0 |
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Deferred income
tax assets |
0 |
0 |
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Other
non-current assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
2,760 |
3,820 |
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============= |
============= |
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Short-term loans |
0 |
0 |
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Notes payable |
100 |
100 |
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Accounts payable |
710 |
1,240 |
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Advances from
clients |
0 |
0 |
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Other payable |
860 |
860 |
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Other current
liabilities |
110 |
650 |
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------------------ |
------------------ |
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Current
liabilities |
1,780 |
2,850 |
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Non-current
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
1,780 |
2,850 |
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Equities |
980 |
970 |
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------------------ |
------------------ |
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Total
liabilities & equities |
2,760 |
3,820 |
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============= |
============= |
Income Statement
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Unit: CNY’000 |
Jan.
1, 2014 to Jul. 31, 2014 |
|
Revenue |
6,750 |
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Cost of sales |
5,310 |
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Sales expense |
0 |
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Management expense |
1,270 |
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Finance expense |
25 |
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Profit before
tax |
9 |
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Less: profit tax |
12 |
|
Profits |
-3 |
Important Ratios
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As
of Dec. 31, 2013 |
As
of Jul. 31, 2014 |
|
*Current ratio |
1.54 |
1.34 |
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*Quick ratio |
1.17 |
1.05 |
|
*Liabilities
to assets |
0.64 |
0.75 |
|
*Net profit
margin (%) |
-- |
-0.04 |
|
*Return on
total assets (%) |
-- |
-0.08 |
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*Inventory /
Revenue ×365/210 |
-- |
26 days |
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*Accounts
receivable/ Revenue ×365/210 |
-- |
31 days |
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*Revenue/Total
assets |
-- |
1.77 |
|
*Cost of sales
/ Revenue |
-- |
0.79 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l
The revenue 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 sales is average, comparing with its
revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average.
l
SC has no short-term loans.
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is average.
l
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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.83 |
|
|
1 |
Rs.96.56 |
|
Euro |
1 |
Rs.77.42 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
SNT |
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 |
|
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.