MIRA
INFORM REPORT
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Report Date : |
19.09.2014 |
IDENTIFICATION DETAILS
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Name : |
WENZHOU SAILING TRADE CO., LTD. |
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Registered Office : |
Room 207, No. 999, Airport Road, Industrial Zone, Wenzhou, Zhejiang Province, 325013 PR |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
12.03.2012 |
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Com. Reg. No.: |
330303000091327 |
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Legal Form : |
Limited Liabilities Co |
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Line of Business : |
Subject includes selling stainless steel products, pipes,
fittings, valves, flanges, leather products, sanitary ware, plumbing
equipment, chemical raw materials (excluding hazardous chemicals and
precursor chemicals), clothing, bags, shoes and hats; importing and exporting
goods and technologies |
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No. of Employees |
10 |
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 |
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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
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Source
: CIA |
Company name and address
WENZHOU SAILING TRADE
CO., LTD.
ROOM 207, NO. 999, AIRPORT ROAD, INDUSTRIAL ZONE,
WENZHOU, ZHEJIANG PROVINCE, 325013 PR CHINA
TEL: 86 (0) 577-86602058/86602061
FAX: 86 (0) 577-86602055
EXECUTIVE SUMMARY
INCORPORATION DATE : MAR. 12, 2012
REGISTRATION NO. : 330303000091327
REGISTERED LEGAL FORM : Limited liabilities co.
CHIEF EXECUTIVE : Mr. LIU QUANLIN (CHAIRMAN)
STAFF STRENGTH : 10
REGISTERED CAPITAL : cny 500,000
BUSINESS LINE : TRADING
TURNOVER : CNY 6,855,000(AS OF DEC. 31, 2012)
EQUITIES : CNY 537,000 (AS OF DEC. 31, 2012)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.1417= 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 Ren Min Bi
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 Mar. 12, 2012.
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 selling stainless steel products, pipes, fittings, valves, flanges, leather products, sanitary ware, plumbing equipment, chemical raw materials (excluding hazardous chemicals and precursor chemicals), clothing, bags, shoes and hats; importing and exporting goods and technologies.
SC is mainly engaged in selling stainless steel products.
Mr. Liu Quanlin is the legal representative, chairman and general manager of SC at present.
SC is known to have approx. 10 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office in the industrial zone of Wenzhou. Our checks reveal that SC rents the total premise, but the gross area of the premise is unspecific.
SC is not known to host website of its own at present.
E-mail: beyonditliu@gmail.com
No significant changes were found during our checks with the local Administration for Industry and Commerce.
SC started normal operation in July of 2012.
Organization Code: 592853954
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Liu Quanlin
ID#51090219830426**** 50
Liu Xiaoqin 50
Legal Representative,
Chairman and General Manager:
Mr. Liu Quanlin, ID#51090219830426****, born in 1983. He is currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative, chairman and general manager.
Also working in Wenzhou Sailing Stainless Steel Co., Ltd. as legal representative.
Supervisor:
Liu Xiaoqin
SC is mainly engaged in selling stainless steel products.
SC’s products mainly include: Stainless Steel Seamless Pipe, Sanitary Pipe, Fittings, Flange, F Pipe, etc.
SC started normal operation in July of 2012.
SC sources its materials 100% from domestic market. SC sells 50% of its products in domestic market, and 50% 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.
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TRADEMARKS & PATENTS |
No record
Note: SC’s management declined to release its major client and suppliers.
Longwan Steel Group Co., Limited (Hong Kong)
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Incorporation date:
Registration no.: 1632211
Legal form: Private company limited by shares
Status: Live
Wenzhou Sailing Stainless Steel Co., Ltd.
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Incorporation date:
Registration no.: 330303000108068
Registered capital: CNY 2,000,000
Legal rep.: Liu Quanlin
Web: http://www.sailing-trade.com/
Tel: 86-577-86602057
Fax: 86-577-86602055
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 Wenzhou Longwan Sub-branch
AC#：N/A
Relationship: Normal
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2012 |
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Cash & bank |
158 |
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Inventory |
481 |
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Accounts receivable |
223 |
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Advances to suppliers |
0 |
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Other receivables |
56 |
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Other current assets |
0 |
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Current assets |
918 |
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Long-term investments |
0 |
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Fixed assets net value |
15 |
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Projects under construction |
0 |
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Intangible assets |
0 |
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Other assets |
0 |
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Total assets |
933 |
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Short loans |
0 |
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Accounts payable |
-13 |
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Advances from customers |
560 |
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Accrued payroll |
9 |
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Taxes payable |
-160 |
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Other accounts payable |
0 |
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Other current liabilities |
0 |
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Current liabilities |
396 |
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Long term liabilities |
0 |
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Total liabilities |
396 |
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Shareholders equities |
537 |
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Total liabilities & equities |
933 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2012 |
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Turnover |
6,855 |
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Cost of goods sold |
6,607 |
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Taxes and additional of main operation |
3 |
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Sales expense |
87 |
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Management expense |
81 |
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Finance expense |
31 |
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Non-operating income |
0 |
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Non-operating expense |
0 |
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Profit before tax |
46 |
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Less: profit tax |
9 |
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Net profit |
37 |
Important Ratios
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as of Dec. 31, 2012 |
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*Current ratio |
2.32 |
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*Quick ratio |
1.10 |
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*Liabilities to assets |
0.42 |
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*Net profit margin (%) |
0.54 |
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*Return on total assets (%) |
3.97 |
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*Inventory /Turnover ×365 |
26 days |
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*Accounts receivable/Turnover ×365 |
12 days |
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*Turnover/Total assets |
7.35 |
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* Cost of goods sold/Turnover |
0.96 |
PROFITABILITY: AVERAGE
The turnover of SC appears average in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC appears average.
The accounts payable of SC appears average.
SC has no short-term loan in 2012.
SC’s turnover is in a good level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is low.
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.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
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1 |
Rs.99.55 |
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Euro |
1 |
Rs.78.57 |
INFORMATION DETAILS
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Analysis Done by
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KAR |
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Report Prepared
by : |
NIS |
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.