MIRA INFORM REPORT
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Report Date : |
30.10.2014 |
IDENTIFICATION DETAILS
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Name : |
GUANGZHOU KETONG TRADE CO., LTD. |
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Registered Office : |
No. 77, Fengxiang Middle
Road, Jianggao Town, Baiyun District, Guangzhou,
Guangdong Province 510450 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
12.04.2004 |
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Com. Reg. No.: |
440111000141453 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Subject is mainly engaged in trading different kinds of products mainly include: leather chemical materials |
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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
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
China |
A2 |
A2 |
|
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
GUANGZHOU KETONG TRADE CO., LTD.
NO. 77, FENGXIANG MIDDLE ROAD, JIANGGAO TOWN,
BAIYUN DISTRICT,
GUANGZHOU, GUANGDONG PROVINCE 510450 PR CHINA
TEL: 86
(0) 20-26298409
FAX: 86
(0) 20-26298415
EXECUTIVE
SUMMARY
INCORPORATION DATE : APR. 12, 2004
REGISTRATION NO. :
440111000141453
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH :
15
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 35,860,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 1,260,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.1111 =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 co. at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on Apr. 12, 2004.
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 wholesaling trade; auto general cargo transport; agent for warehousing formalities; importing and exporting commodities and technologies.
SC is mainly engaged in trading different kinds of products.
Mr. Wu Yishi is the legal representative, chairman and general manager of SC at present.
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 Guangzhou. The detailed premise information is unknown.
SC is not known to host web site of its own at present.
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: 759438104
There is no record of litigation till now.
MAIN
SHAREHOLDERS:
Name % of Shareholding
Wu Yishi 20
Cai Chao 80
l
Legal
Representative, Chairman and General Manager:
Mr. Wu Yishi is currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative,
chairman and general manager.
l
Supervisor:
Cai Chao
SC is mainly
engaged in trading different kinds of products.
SC’s products mainly include: leather
chemical materials
SC sources its
materials 50% from domestic market and 50% from overseas market. SC sells 99% of
its products in domestic market and 1% 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 T/T, L/C, Check 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 declined to
release its banking details.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2013 |
|
Cash & bank |
3,100 |
|
Inventory |
4,560 |
|
Accounts
receivable |
10,590 |
|
Advances to
suppliers |
-10 |
|
Other
receivables |
540 |
|
Dividends
receivable |
0 |
|
Other current
assets |
0 |
|
|
------------------ |
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Current assets |
18,780 |
|
Fixed assets net
value |
370 |
|
Projects under
construction |
0 |
|
Long term
investment |
0 |
|
Intangible
assets |
20 |
|
Other assets |
0 |
|
|
------------------ |
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Total assets |
19,170 |
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|
============= |
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Short loans |
5,860 |
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Accounts payable |
2,270 |
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Other accounts
payable |
8,580 |
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Notes payable |
0 |
|
Taxes payable |
50 |
|
Advances from
clients |
1,040 |
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Welfare payable |
90 |
|
Surcharge
payable |
10 |
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Other current
liabilities |
10 |
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|
------------------ |
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Current liabilities |
17,910 |
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Long term
liabilities |
0 |
|
|
------------------ |
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Total
liabilities |
17,910 |
|
Equities |
1,260 |
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|
------------------ |
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Total
liabilities & equities |
19,170 |
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|
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2013 |
|
Turnover |
35,860 |
|
Cost of goods sold |
36,280 |
|
Taxes and additional of main operation |
20 |
|
Sales expense |
3,260 |
|
Management expense |
1,220 |
|
Finance expense |
550 |
|
Non-operating
income |
0 |
|
Non-operating expense |
30 |
|
Profit before
tax |
-5,500 |
|
Less: profit tax |
0 |
|
Profits |
-5,500 |
Important Ratios
=============
|
|
as
of Dec. 31, 2013 |
|
*Current ratio |
1.05 |
|
*Quick ratio |
0.79 |
|
*Liabilities
to assets |
0.93 |
|
*Net profit
margin (%) |
-15.34 |
|
*Return on
total assets (%) |
-28.69 |
|
*Inventory
/Turnover ×365 |
47 days |
|
*Accounts
receivable/Turnover ×365 |
108 days |
|
*Turnover/Total
assets |
1.87 |
|
* Cost of
goods sold/Turnover |
1.01 |
PROFITABILITY:
FAIR
l
The turnover of SC appears average in its line.
l
SC’s net profit margin is poor.
l
SC’s return on total assets is poor.
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 normal
level.
l
SC’s quick ratio is maintained in a fair level.
l
SC’s inventory is average.
l
SC’s accounts receivable appears large.
l
SC’s short-term loan appears large in 2013.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high.
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 large amount of accounts receivable and short-term loan could be a threat
to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.32 |
|
|
1 |
Rs.99.00 |
|
Euro |
1 |
Rs.78.14 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
SMN |
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 |
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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.