MIRA
INFORM REPORT
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Report Date : |
10.10.2014 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
Room 1403, Sinochem Building, No. 707 Lianmeng Road, Xinhua District, Shijiazhuang,
Hebei Province, 050061 Pr |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
31.03.2008 |
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Com. Reg. No.: |
130100000143715 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Importing and exporting commodities and technology (excluding the
items prohibited by the state); selling plastic products (excluding medical
plastic), rubber products, mechanical and electrical products, chemical
products (excluding Grade A poisonous chemicals, hazardous chemicals);
textile & knitting, decorative materials, metal products (excluding items
special controlled by state); selling leather products, instrument. |
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No of Employees : |
15 |
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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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.
|
Source
: CIA |
Company Name & address
Hebei Runlin International Trading Ltd.
Room 1403, Sinochem Building, No. 707 Lianmeng
Road, Xinhua District, Shijiazhuang, Hebei Province, 050061 PR China
TEL: 86 (0) 311-85028897/85866552
FAX: 86 (0) 311-85028880
EXECUTIVE SUMMARY
INCORPORATION DATE : MARch 31, 2008
REGISTRATION NO. : 130100000143715
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE :
MR. tian shili (legal representative)
STAFF STRENGTH :
15
REGISTERED CAPITAL : CNY
3,000,000
BUSINESS LINE :
TRADING
Turnover :
CNY 61,830,000 (As of Dec. 31, 2013)
Equities :
CNY 2,660,000 (As of Dec. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.13 = 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 March 31, 2008.
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 importing and exporting
commodities and technology (excluding the items prohibited by the state);
selling plastic products (excluding medical plastic), rubber products,
mechanical and electrical products, chemical products (excluding Grade A
poisonous chemicals, hazardous chemicals); textile & knitting, decorative
materials, metal products (excluding items special controlled by state);
selling leather products, instrument.
SC is mainly engaged in trading plastic products, plastic board
materials
Mr. Tian Shili is legal representative and executive director of SC
since 2008.
SC is known to have approx. 15 employees
at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Shjiazhuang. Detailed
premise information is not available at present.
http://www.sign-material.com/ The design is professional and the content
is well organized. At present it is in English version.
E-mail: tshl2001cn@yahoo.com.cn; tianshili@sign-material.com
No significant events or 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: 67322042x
MAIN SHAREHOLDERS:
Name Amount (CNY) %
of Shareholding
Tian Shili 2,000,000 66.67
Li Dan 1,000,000 33.33
Legal
Representative and Executive Director:
Mr. Tian Shili, born in 1978, with university education. He is currently
responsible for the overall management of SC.
Working
Experience(s):
From 2008 to present Working in
SC as executive director and legal representative.
Supervisor:
Li Dan
SC is mainly engaged in trading plastic products, plastic board
materials
Main products: Backlit, Mesh, One-Way Vision, Cold-Laminated Film
SC sources its materials 100% from domestic market, mainly Hebei. SC
sells 100% of its products to overseas market, mainly Brazil and Turkey.
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’s management declined to release its main clients and
suppliers.
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.
Bank of China Shijiazhuang Jichang Road Sub-branch
AC#：100147723478
Relationship: Normal.
Balance
Sheet
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Unit: CNY’000 |
as of Dec. 31,
2013 |
as of Dec. 31, 2012 |
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Cash & bank |
1,380 |
2,750 |
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Inventory |
560 |
440 |
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Accounts receivable |
5,810 |
5,180 |
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Advances to suppliers |
210 |
30 |
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Other Accounts receivable |
2,220 |
0 |
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Subsidies receivable |
0 |
5,580 |
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------------------ |
------------------ |
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Current assets |
10,180 |
13,980 |
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Fixed assets net value |
60 |
90 |
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------------------ |
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Total assets |
10,240 |
14,070 |
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============= |
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Short loans |
0 |
0 |
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Accounts payable |
850 |
110 |
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Taxes payable |
-100 |
-70 |
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Other Accounts payable |
6,830 |
11,380 |
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Current liabilities |
7,580 |
11,420 |
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Long term liabilities |
0 |
0 |
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------------------ |
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Total liabilities |
7,580 |
11,420 |
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Equities |
2,660 |
2,650 |
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------------------ |
------------------ |
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Total liabilities & equities |
10,240 |
14,070 |
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Income
Statement
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Unit: CNY’000 |
as of Dec. 31,
2013 |
as of Dec. 31,
2012 |
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Turnover |
61,830 |
79,150 |
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Cost of goods sold |
59,280 |
76,710 |
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Taxes and additional of
main operation |
20 |
0 |
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Sales expense |
1,250 |
1,080 |
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Management expense |
1,150 |
1,180 |
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Finance expense |
180 |
170 |
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Non-operating income |
55 |
0 |
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Profit before tax |
5 |
13 |
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Less: profit tax |
3 |
3 |
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Profits |
2 |
10 |
Important
Ratios
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as of Dec. 31,
2013 |
as of Dec. 31,
2012 |
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*Current ratio |
1.34 |
1.22 |
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*Quick ratio |
1.27 |
1.19 |
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*Liabilities to assets |
0.74 |
0.81 |
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*Net profit margin (%) |
0.003 |
0.01 |
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*Return on total assets (%) |
0.02 |
0.07 |
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*Inventory /Turnover ×365 |
4 days |
3 days |
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*Accounts receivable/Turnover ×365 |
35 days |
24 days |
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*Turnover/Total assets |
6.04 |
5.63 |
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* Cost of goods sold/Turnover |
0.96 |
0.969 |
PROFITABILITY:
AVERAGE
The turnover of SC appears average in both years.
SC’s net profit margin is average in both years.
SC’s return on total assets is average in both years.
SC’s cost of goods sold is fairly high, comparing with its turnover in
both years.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level in both years.
SC’s quick ratio is maintained in a normal level in both years.
The inventory of SC appears small in both years.
The accounts receivable of SC is maintained in an average level in both
years.
There is no short-term loan of SC in both years.
SC’s turnover is in a good level in both years, comparing with the size
of its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is high in 2012, but average in 2013.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: stable.
SC is considered small-sized in its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.04 |
|
|
1 |
Rs.98.64 |
|
Euro |
1 |
Rs.77.74 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
TPT |
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 |
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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.